National Sugar Development Council ,NSDC, and the Bank of Industry ,BOI, have established the Sugar Project Acceleration Fund ,SPAF, as part of efforts to support the emergence and advancement of greenfield projects across the country.
The N10 billion Naira Fund was introduced to provide financing and project development support to viable greenfield projects towards accelerating the development of a sustainable and competitive sugar industry.
The Council hosted an interactive session during which NSDC and BOI educated greenfield promoters who are potential beneficiaries of the Fund.
Speaking at the event, the Executive Secretary/CEO of NSDC, Mr. Kamar Bakrin, said: “Here is a reality that every serious project promoter knows: Capital availability, on its own, will not result in sugar production. Development finance institutions manage billions of dollars in agro-industrial finance and are under pressure to deploy capital. Impact investors are actively seeking credible opportunities in African food systems. The constraint, far more often than people appreciate, is not the availability of money. It is the availability of projects that are structured, documented, and de-risked to the standard required to receive financing.
The Executive Secretary emphasised that SPAF is “NSDC’s structured pre-investment facility established to provide qualifying project promoters with the technical, financial, and advisory support required to develop their projects to bankable standards”.
Also speaking at the event, Ms. Hadiza Shuaib, who led the BoI team to the meeting, said the Bank will serve as the Fund Manager for SPAF, while NSDC will provide sector leadership and technical guidance. She added that beyond financing, the programme places strong emphasis on skills development and capacity building before and alongside funding.
She outlined the Bank’s responsibilities in managing the Fund, including credit appraisal, risk management, loan disbursement, monitoring and evaluation, and account closure following full repayment.
“As Fund Manager, BOI will ensure that projects are properly structured, risks are effectively managed, and funds are deployed responsibly. We are also strong advocates for skills development, because financing alone is not sufficient to deliver sustainable outcomes”, she added.
She noted further that only businesses engaged in sugar or sugar-related activities can benefit from the Fund.
