By Hauwa Umar D
In a rare turn of economic fortune, falling global sugar prices are helping some Nigerian businesses improve their profit margins, thanks to a favorable international climate and steady import levels.
In March 2025 alone, Nigeria imported around 98,000 metric tons of raw sugar, a significant supply that is now being processed by the country’s major sugar refiners—Dangote Sugar, BUA Group, and Golden Penny. This influx coincided with a global price drop in sugar, largely due to ideal weather conditions in Brazil, the world's largest sugar producer.
Brazil, which contributes nearly 70 percent of global raw sugar exports, has seen a bumper harvest season. Wetter-than-usual conditions have boosted cane yields, while lower global oil prices have discouraged Brazilian mills from diverting sugarcane into ethanol production. This double effect has led to oversupply in the global sugar market, ultimately reducing prices.
Nigeria, which consumes between 1.4 and 1.6 million metric tons of sugar annually, relies on imports for about 96 percent of its raw sugar needs—nearly all of which comes from Brazil. With global prices down, Nigerian processors are buying cheaper, refining locally, and enjoying improved margins.
"This drop in prices is a blessing for food and beverage producers who depend heavily on sugar," said an industry analyst. "From confectioneries to soft drink companies, there's relief in the air."
However, the situation also sheds light on Nigeria's long-standing dependence on sugar imports. While local production has seen some growth under the Nigeria Sugar Master Plan (NSMP), it still lags far behind national consumption needs.
Government efforts aimed at boosting backward integration, such as the Backwards Integration Programme (BIP) initiated in 2012, have yielded modest results. According to recent reports, local sugar production is still less than 10 percent of domestic demand.
Experts caution that while current market conditions are favorable, relying solely on imports is risky. Global price volatility, forex shortages, or trade disruptions could quickly reverse the gains.
For now, though, the sweet spell continues—providing a much-needed cost cushion for businesses and a small but welcome relief for Nigerian consumers already battling inflation across many essential goods.