National Sugar Development Council Act (Amendment) Bill

What Is This Bill?

The National Sugar Development Council Act (Amendment) Bill, 2025 is Nigeria's legislative effort to reform the statutory framework governing the National Sugar Development Council (NSDC) the federal agency responsible for overseeing and regulating all activities in the sugar sub-sector. The Bill seeks to modernise the NSDC's mandate, redefine its functions and powers, and bring its financial operations into full constitutional compliance by requiring that all monies received by the Council be paid into the Federation Account.

Who Does It Target?

The National Sugar Development Council (NSDC) and its Governing Board Sugar producers, refiners, importers, and marketers (including Dangote Sugar Refinery, BUA Sugar, Flour Mills of Nigeria, and Golden Sugar Company) Federal Ministries of Industry Trade and Investment; Finance; Agriculture and Food Security; and Health Regulatory agencies: NAFDAC, Nigeria Customs Service, Standards Organisation of Nigeria Manufacturers Association of Nigeria (MAN) and the Sugar Road Map Implementation Committee Domestic and international investors in Nigeria's sugar and agro-industrial sectors

What Does It Aim to Achieve?

Redefine and clarify the functions and powers of the NSDC to reflect contemporary realities in the sugar sector Mandate that all revenues received by the NSDC be paid into the Federation Account, in line with Section 162 of the 1999 Constitution (as amended) Enhance transparency and accountability in the Council's financial management and revenue operations Strengthen the NSDC's institutional capacity to drive sugar sector reform and reduce Nigeria's dependence on imported sugar Align the NSDC's legislative framework with the Renewed Hope Agenda's emphasis on revitalisation, good governance, and fiscal transparency Support the Nigeria Sugar Master Plan (NSMP) goal of at least 70% domestic self-sufficiency in sugar production

Key Features

Redefined NSDC Functions: The Bill updates the scope of the Council's regulatory and advisory mandate over the full sugar value chain production, importation, marketing, and standards enforcement. Federation Account Compliance: All funds received by the NSDC must be remitted to the Federation Account, in direct compliance with Section 162 of the Constitution, closing a longstanding fiscal governance gap. Clarified Regulatory Powers: The amendment delineates the NSDC's powers to avoid overlap with other agencies such as NAFDAC, whose mandate covers food safety regulation in the same sector. Aligned with Sugar Master Plan: The reformed legal framework reinforces the Nigeria Sugar Master Plan (NSMP) approved September 2012 as the sector's strategic roadmap for self-sufficiency and export development. Inclusive Stakeholder Process: The amendment process included a public hearing with private sector players, government ministries, regulators, and civil society, ensuring a broad consultative base.

Current Status

Rollout Stage: The Bill was referred to the House Committee on Industry following Second Reading. A public hearing was conducted on 22 May 2025. The Committee's Report was tabled for House consideration on 19 November 2025 (Order Paper No. 51). Sugar Imports: Nigeria spends over $1 billion annually on sugar imports; the NSDC estimates full implementation of the NSMP could eliminate this FX outflow entirely. Domestic Production: Nigeria Sugar Master Plan targets 70%+ self-sufficiency; Flour Mills of Nigeria is currently cultivating over 6,000 hectares of sugarcane. Backward Integration: Sugarcane cultivation and processing projects are ongoing across Kwara, Nasarawa, Lagos, and other states under NSDC-supervised backward integration arrangements. NAFDAC Position: NAFDAC has flagged certain provisions of the Bill as potentially overlapping with its statutory mandate and urged the Committee to clearly delineate regulatory roles.

How to Access

Sugar Producers & Refiners: Engage the NSDC for quota allocation under the Nigeria Sugar Master Plan and backward integration programme eligibility. Importers: Obtain import authorisations via NSDC in collaboration with Nigeria Customs Service; comply with standards enforced by NAFDAC and SON. Investors: Approach NSDC for investor facilitation, state government MoU opportunities, and sugarcane out-grower farming programme partnerships. Manufacturers: Engage NSDC and the Manufacturers Association of Nigeria for domestic supply agreements and compliance with industry standards. Contact: National Sugar Development Council (NSDC): nsdcnigeria.org | Federal Ministry of Industry, Trade and Investment: fmiti.gov.ng

Important Terms

Nigeria Sugar Master Plan (NSMP): The strategic roadmap approved by the Federal Government in September 2012 for achieving national self-sufficiency in sugar production within 10 years, now in its second implementation cycle. Backward Integration Programme: A policy requiring sugar importers to invest in domestic sugarcane cultivation and processing as a condition of import quota allocation. Federation Account (Section 162): The constitutional provision requiring that all revenues collected by or accruing to any federal agency be paid into the Federation Account for distribution among the tiers of government. Sugar Industry Development Fund (SIDF): A fund administered by the NSDC to support research, development, and investment in the domestic sugar industry.

Impact & Metrics

Nigeria currently spends over $1 billion annually on sugar imports making sugar one of the largest drains on the country's foreign exchange reserves. The NSDC was established in 1993 and previously amended once in 2015; this 2025 Bill represents the second major legislative reform of the Council's enabling Act. The sugar sector carries significant employment and rural development potential: sugarcane farming supports out-grower schemes, agro-processing jobs, and infrastructure development in host communities. Key industry players Dangote Sugar, BUA Sugar, Flour Mills of Nigeria, and Golden Sugar are central to achieving the NSMP self-sufficiency target and will be directly affected by reformed NSDC powers.

Official Resources

Website: nsdcnigeria.org | fmiti.gov.ng Bill Reference: HB. 2022 and HB. 2030 — National Sugar Development Council Act (Amendment) Bill, 2025 Contact: National Sugar Development Council (NSDC), Sugar House, Abuja | Federal Ministry of Industry, Trade and Investment, Abuja Summary prepared using the Policy Summary Template | Source: NSDC Act Cap. N78 LFN 2004 (as amended 2015); HB. 2022 & HB. 2030; House of Representatives Order Paper No. 51 (19 Nov. 2025); NSDC; Champion Newspapers; PRNigeria | March 2026

Legal Framework

The National Sugar Development Council Act (Amendment) Bill 2025 operates under the National Sugar Development Council Act, the Sugar Industry Act, and the 1999 Constitution (Second Schedule — Federation Account provisions). It aligns with the Sugar Master Plan, the National Commodity Development Framework, and the Agricultural Credit Guarantee Scheme Fund Act. The Companies and Allied Matters Act 2020 governs NSDC's corporate governance requirements.