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Chinese Investing $1bn into Nigeria’s sugar Industry

In the agreement, SINOMACH is set to start by constructing a sugar production plant and sugarcane plantation with an annual production capacity of 100,000 metric tonnes, while the NSDC will facilitate and assist in obtaining the necessary authorisations, approvals and permissions to undertake the project.

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SINOMACH, a Chinese conglomerate, is investing $1 billion in Nigeria’s sugar Industry.

The memorandum of understanding for the development of a sugarcane cultivation and processing plant capable of producing one million metric tonnes of sugar has been signed by the investor and the National Sugar Development Council (NSDC).

In the agreement, SINOMACH is set to start by constructing a sugar production plant and sugarcane plantation with an annual production capacity of 100,000 metric tonnes, while the NSDC will facilitate and assist in obtaining the necessary authorisations, approvals and permissions to undertake the project.

While SINOMACH is expected to contribute its vast expertise, resources, and experience in the execution of the project on an engineering, procurement, and construction (EPC) basis, the biggest advantage of the arrangement is that the Chinese conglomerate would also be financing it.

Speaking at the signing ceremony in Abuja, the Executive Secretary/CEO of NSDC, Kamar Bakrin, said that 2025 represents a pivotal year for accelerated development in Nigeria.

Bakrin said: “It is a critical period during which we expect to make significant strides in our national journey towards economic self-sufficiency and food security, especially given the fiscal pressure that Nigeria faces.“

A robust sugar industry will deliver several benefits to Nigeria. These include the creation of thousands of sustainable jobs across the value chain. Sugar, by its very nature, leads to extensive rural infrastructure development.

For Nigeria, it will also result in substantial foreign exchange savings, as it will substitute imports, which currently account for the bulk of the country’s sugar consumption.

We envision a sugar sector, when fully developed, that will serve as a blueprint for Nigeria’s broader industrialisation strategy. And, of course, China, being the world’s leader in industrialisation, can easily relate to this.

“We believe that the sugar industry can serve as a model in this regard, as it allows us to adopt a creative and transformative approach to achieving scale and speed – critical elements for Nigeria’s development.

Specific elements that we believe, if successfully implemented in the sugar sector, can be replicated in other areas of Nigeria’s industrialisation include a strategic approach to sector development, the establishment of enabling policy frameworks, effective aggregation of critical production inputs, acquisition of technical skills and competencies and innovative financing solutions.”

He said that the signing marked the beginning of what could evolve into a long-term relationship capable of delivering as much as one million metric tonnes of locally produced sugar, thereby strengthening the country’s domestic production capacity and reducing import dependence.

“It is indeed a unique model, as it combines both EPC and development financing—an essential requirement for agro-industrial development in the country,” Bakrin said.

The Vice President of SINOMACH, Li Xiao Yu, acknowledged that as Africa’s largest economy, the country’s vigorous implementation of the NSMP to achieve self-sufficiency in sugar production is laudable.

“We deeply admire this vision – it is not only an industrial policy but also a sweet revolution tied to food sovereignty and economic dignity.

We firmly believe that, through joint efforts, the success of the plantation and sugar mill project will enhance Nigeria’s sugar self-sufficiency, spur economic development in surrounding areas, create substantial employment, modernise the agricultural value chain, and generate long-term and sustainable social benefits.

“We view our partnership with NSDC not merely as a commercial endeavour, but as a concrete step toward implementing the shared vision of our two Heads of State to enhance agricultural cooperation and promote common development,” he said.

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Nigerian govt suspends implementation of 15% petrol import duty

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The Nigerian government has suspended the planned 15 per cent import duty on premium motor spirit (PMS) and automotive gas oil (diesel). The announcement was made by George Ene-Ita, spokesperson for the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in a statement on Thursday.

The regulator urged Nigerians to avoid panic buying, assuring that there is adequate supply of petroleum products nationwide.

“It should also be noted that the implementation of the 15 percent ad valorem import duty on imported premium motor spirit and diesel is no longer in view,” NMDPRA stated.

The statement added that both domestic and imported supplies of petrol, diesel, and other petroleum products are sufficient to meet demand, especially during the peak period. The authority warned against hoarding, panic buying, or unwarranted price increases, and affirmed that it would continue to monitor supply and distribution closely.

President Bola Ahmed Tinubu had approved the 15 per cent import duty last month to encourage the use of products from Dangote Refinery. While some stakeholders supported the move as a boost for local refining, critics argued it could increase fuel prices and worsen economic hardship for Nigerians.

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NAFDAC’s Ban on sachets alcohol: the economy repercussions, by MAN

The Association emphasised that the ban would likely lead to the “Loss of over N1.9 trillion in investments, primarily from indigenous Nigerian companies.

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The Manufacturers Association of Nigeria (MAN) has said that the government’s move to ban the production and sale of alcoholic beverages packaged in sachets and small PET bottles, effective December 31, 2025, will have severe repercussions on the economy.

” This announcement by the NAFDAC, in our view, is counterproductive and threatens to disrupt the economy significantly at a time when it is beginning to stabilise,” said the Association through its Director-General, Ajayi-Kadir.

The Association emphasised that the ban would likely lead to the “Loss of over N1.9 trillion in investments, primarily from indigenous Nigerian companies.

• Mass retrenchment of over 500,000 direct employees and approximately 5 million indirect employees through contracts, marketing, and logistics.”

Ajayi-Kadir said that the earlier directive from the Ministry of Health for a one-year extension, which included the consideration and validation of the draft National Alcohol Policy by stakeholders, should have been taken into account before any significant announcement from another government body.

“We believe that a consultation with whether through a public hearing or focused meetings with relevant parties in the alcohol beverage industry, should have been conducted by the appropriate Senate Committee before an outright ban was imposed.

This approach was successfully followed by the House of Representatives in the recent past,” he stated.

Ajayi-Kadir highlighted that issues related to the ban on alcohol in sachets and small PET bottles were addressed by a broad committee that included all stakeholders, along with NAFDAC representatives, who validated the National Alcohol Policy in October 2025. The committee made the following key recommendations:

• Develop multi-sectoral action plans.- Strengthen enforcement by law enforcement agencies

• Establish licensed liquor stores/outlets in Local Government Areas nationwide.

• Increase monitoring and compliance checks by NAFDAC, FCCPC, and others to ensure product quality and safety.

• Regulatory bodies should focus more on regulation, monitoring, and educational campaigns to inform stakeholders and the public about the dangers of underage alcohol consumption and its sale in motor parks.

• Conduct educational campaigns in secondary schools across the country to raise awareness among students about the dangers and issues related to alcohol abuse.

Furthermore, we would like to note that the unfounded and untested claim of abuse by minors has been challenged by several independent studies conducted by the government.

The industry has proactively launched campaigns promoting responsible alcohol consumption to discourage underage abuse, resulting in expenditures exceeding one billion Naira on media outreach across the nation, which has effectively just underage drinking.

Ajayi-Kadir also stressed that the Senate’s directive for an outright ban is unjust and does not reflect the industry’s true conditions, as it seems the upper chamber has only considered NAFDAC’s perspective.

NAFDAC was part of the validation organised by the Ministry of Health, and it should have presented its views to the Committee and the Ministry during that process, rather than circumventing these channels and approaching the National Assembly without consulting other stakeholders.

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Following Lagos, FG moves to ban single-use plastics

In his inaugural address, the SGF, George Akume, stated that the initiative aligned with Nigeria’s commitment to global environmental standards.

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The Federal Government has commenced the process to ban single-use plastics, inaugurating a committee to steer the policy.

Lagos government began fully enforcement ban on single-use plastics (SUPs), including styrofoam packs, plastic straws, disposable cups, plastic cutlery, and nylons less than 40 microns thick, on July 1, 2025.

The Office of the Secretary to the Government of the Federation (SGF) , yesterday , set up an Inter-Ministerial Committee on the Ban of Single-Use Plastics (SUPs).

Earlier, the Federal Executive Council (FEC) during its meeting on June 25, 2024, approved the ban , specifically targeting Polyethene Terephthalate (PET) bottles, styrofoam food packs, plastic shopping bags, sachet water packaging, and plastic straws.

In his inaugural address, the SGF, George Akume, stated that the initiative aligned with Nigeria’s commitment to global environmental standards.

He said: “The FEC decision was in line with the Federal Government’s efforts to tackle various health and environmental challenges, especially those caused by single-use plastic products and therefore, approved the ban in the country of polyethene terephthalate (PET) bottles, styrofoam, plastic bags, sachet water and straw, which has become an environmental sanitation challenge.”

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