NSDC, BOI Establish N10bn Fund to Support Greenfield Project Development

The National Sugar Development Council (NSDC) and the Bank of Industry (BOI) have launched the Sugar Project Acceleration Fund (SPAF) to support the development of greenfield sugar projects across Nigeria.

Valued at N10 billion, the fund is designed to provide both financing and project development support to viable projects, with the aim of accelerating the growth of a sustainable and competitive sugar industry.

As part of the rollout, NSDC hosted an interactive session where both institutions engaged potential beneficiaries and explained the structure, purpose, and requirements of the fund.

Speaking at the event, NSDC Executive Secretary/CEO Kamar Bakrin said that while capital is available in the market, the real challenge is not access to money, but the shortage of well-structured, documented, and de-risked projects that meet the standards required for financing.

According to Bakrin, a bankable sugar project must be built on a technically sound feasibility study covering agronomy, water balance, infrastructure needs, and social and environmental risks. It must also include a robust financial model that tests assumptions, demonstrates resilience under adverse scenarios, and presents a risk-appropriate capital structure.

He added that such projects must also have a clear land tenure framework, a defined outgrower model, a credible implementation plan with realistic milestones, and a capable management team. In addition, projects must meet increasingly important ESG (Environmental, Social, and Governance) standards required by financiers.

Bakrin described SPAF as a structured pre-investment facility created to help qualifying project promoters develop their projects to bankable standard through technical, financial, and advisory support.

He stressed that SPAF is not a grant programme, but a results-driven facility with clear eligibility criteria, measurable deliverables, and a specific goal: to build a strong pipeline of investor-ready Nigerian sugar projects capable of absorbing future financing.

Also speaking at the event, Ms Hadiza Shuaib, who led the BOI delegation, said the Bank will serve as Fund Manager for SPAF, while NSDC will provide sector leadership and technical guidance.

She noted that beyond financing, the programme places strong emphasis on skills development and capacity building, both before and during project implementation.

Shuaib added that BOI’s responsibilities under the fund will include credit appraisal, risk management, loan disbursement, monitoring and evaluation, as well as account closure after full repayment.