The cost of sugar in Nigeria, Africa’s most populous country, has surged to its highest level since 2017, driven by a worsening foreign exchange crisis, insecurity, and recurrent flooding that have hampered production.
Data from the National Sugar Development Council (NSDC) reveals that the average price of sugar skyrocketed by 407 percent to ₦1.64 million per metric ton in October 2024, up from ₦323,900 in October 2017. Despite the increasing prices, sugarcane farmers are struggling to boost production due to various challenges, including limited access to improved seedlings, escalating insecurity, and the impacts of climate change.
“We are unable to expand as some of the hectares of land we cultivated before are no longer accessible due to insecurity,” said Abubakar Aliyu, a sugarcane farmer in Gwandu Local Government Area, Kebbi State. He also cited annual floods, the lack of quality cane seeds, and rising input costs as major hurdles for farmers.
Aliyu lamented the lack of government support for the sugarcane industry despite its potential to contribute significantly to Nigeria’s economy. “The market for sugarcane is growing as demand from local millers and neighbouring countries like Niger and Benin Republic increases,” he added.
Nigeria’s sugar production rose from 6,843 metric tons (MT) in 2012 to 38,597 MT in 2019, accounting for only 2.75 percent of the nation’s total consumption of 1.42 million MT during that period. However, the country still imports 98 percent of its raw sugar due to farmers’ inability to meet growing demand.
The depreciation of the naira has further compounded the pressure on sugar prices. The currency has lost 70 percent of its value since June 2023 when the government floated the naira, plunging to ₦1,533 per dollar in the Nigerian Autonomous Foreign Exchange Market, according to FMDQ data.
Farmers like Isa Useni in Mokwa Local Government Area, Niger State, say insecurity and flooding are worsening conditions for sugarcane production. “There is now a guaranteed market for sugarcane, unlike before, but we can’t increase production because areas we once cultivated are now no-go zones due to insecurity,” Useni explained.
Beyond insecurity, land ownership disputes and communal hostilities further limit access to arable land, stalling the growth of sugarcane farming across key producing areas.
Despite increased investments in the sector, Nigeria’s sugar imports continue to climb. The sweetener ranks as the second most imported agricultural product in terms of volume, after wheat, according to the Food and Agriculture Organisation (FAO).
Between 2012 and 2020, sugar imports surged by 40.1 percent, rising from 1.09 million metric tons to 1.53 million metric tons. Nigeria remains the fourth-largest net importer of sugar globally, with only a 2.1 percent ratio of local production to demand, as outlined in the Nigeria Sugar Master Plan.
In the first nine months of 2024, the country spent ₦582.3 billion on sugar imports, exceeding the ₦517.8 billion recorded for the entire year of 2023, according to Nigeria’s Foreign Trade Report.
The continuous rise in sugar prices is crippling the operations of bakeries and confectioneries, where sugar is a key ingredient. According to the Association of Master Bakers and Caterers of Nigeria (AMBCN), skyrocketing costs of sugar and flour have forced many bakeries to shut down operations.
“It has been difficult for bakers as prices of flour and sugar, the major ingredients in our production, have continued to surge,” said Jude Okafor, National Secretary of AMBCN.
