The Nigeria Sugar Development Council (NSDC) and the NEXIM Bank have signed a memorandum of understanding (MoU) to scale up financing for sugar industry projects, the two organisations said on Tuesday.
The MoU focuses on mobilising investments and expanding financing options to promote growth in Nigeria’s sugar value chain, the parties said in a joint statement. It was signed at the NEXIM Bank headquarters in Lagos, the media release said.
Under the agreement, the NSDC and NEXIM Bank will work to strengthen project financing for sugar production, processing and related activities.
The organisations said the collaboration is aimed at attracting private sector investment and improving access to capital for sugar enterprises across Nigeria.
The NSDC is the federal agency responsible for promoting and coordinating the development of the sugar industry, while the Nigerian Export-Import Bank (NEXIM Bank) provides trade and project finance support to exporters and strategic sectors of the economy, the statement said.
In his remarks at the signing, the Director-General of NSDC, Mr Anthony Uwadiae, said the partnership is expected to enhance financing mechanisms within the sugar sector.
He said the MoU will support efforts to promote value chain development and increase productivity in sugar production.
The Managing Director and Chief Executive of NEXIM Bank, Abubakar Mahmoud, said the bank’s involvement will help bridge financing gaps and support enterprises in the sugar industry that require capital for expansion and growth.
He said NEXIM Bank will collaborate with NSDC to design financial products that fit the needs of sugar sector projects.
According to the joint statement, Nigeria produces sugar through both large-scale plantations and smallholder farmers, and improved financing is expected to support capacity expansion, increase local production and reduce import dependency.
The partnership reflects both organisations’ efforts to mobilise resources, attract investment and improve financial access for stakeholders in the sugar value chain, the statement said.
