Nigeria: Sugar Market 2022

Sugar Market Size in Nigeria

In 2021, the Nigerien sugar market increased by 7% to $X, rising for the third consecutive year after two years of decline. Over the period under review, the total consumption indicated a strong increase from 2012 to 2021: its value increased at an average annual rate of +7.5% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, consumption increased by +32.0% against 2018 indices. Sugar consumption peaked in 2021 and is likely to see steady growth in years to come.

Sugar Production in Nigeria

In value terms, sugar production fell modestly to $X in 2021 estimated in export price. Overall, production enjoyed significant growth. The pace of growth was the most pronounced in 2016 with an increase of 57%. Over the period under review, production reached the maximum level at $X in 2020, and then contracted in the following year.

The average yield of sugar in Nigeria was estimated at less than X kg per ha in 2021, remaining stable against 2020 figures. Over the period under review, the yield showed a relatively flat trend pattern. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

In 2021, the sugar harvested area in Nigeria totaled less than X ha, flattening at 2020 figures. Overall, the harvested area saw a relatively flat trend pattern.

Sugar Exports

Exports from Nigeria

For the third year in a row, Nigeria recorded decline in overseas shipments of sugar, which decreased by -66% to X tons in 2021. Overall, exports continue to indicate a precipitous slump. The growth pace was the most rapid in 2014 when exports increased by 942%. The exports peaked at X tons in 2012; however, from 2013 to 2021, the exports failed to regain momentum.

In value terms, sugar exports declined markedly to $X in 2021. Over the period under review, exports continue to indicate a precipitous curtailment. The pace of growth was the most pronounced in 2014 with an increase of 1,306% against the previous year. Over the period under review, the exports reached the peak figure at $X in 2012; however, from 2013 to 2021, the exports failed to regain momentum.

Exports by Country

Niger (X tons), Benin (X tons) and the United Arab Emirates (X tons) were the main destinations of sugar exports from Nigeria, with a combined 86% share of total exports.

From 2012 to 2021, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by the United Arab Emirates (with a CAGR of +71.4%), while the other leaders experienced more modest paces of growth.

In value terms, Benin ($X) emerged as the key foreign market for sugar exports from Nigeria, comprising 58% of total exports. The second position in the ranking was taken by the United Arab Emirates ($X), with a 19% share of total exports. It was followed by Niger, with a 15% share.

From 2012 to 2021, the average annual rate of growth in terms of value to Benin amounted to +28.8%. Exports to the other major destinations recorded the following average annual rates of exports growth: the United Arab Emirates (+125.0% per year) and Niger (-31.7% per year).

Export Prices by Country

The average sugar export price stood at $X per ton in 2021, rising by 41% against the previous year. In general, export price indicated notable growth from 2012 to 2021: its price increased at an average annual rate of +3.5% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, sugar export price increased by +6.4% against 2017 indices. The pace of growth appeared the most rapid in 2017 when the average export price increased by 88% against the previous year. Over the period under review, the average export prices attained the peak figure in 2021 and is expected to retain growth in years to come.

There were significant differences in the average prices for the major export markets. In 2021, the country with the highest price was the United Arab Emirates ($X per ton), while the average price for exports to South Africa ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to the United Arab Emirates (+31.3%), while the prices for the other major destinations experienced a decline.

Sugar Imports

Imports into Nigeria

In 2021, after six years of growth, there was decline in supplies from abroad of sugar, when their volume decreased by -0.4% to X tons. In general, imports, however, saw a resilient expansion. The growth pace was the most rapid in 2016 with an increase of 39% against the previous year. Over the period under review, imports hit record highs at X tons in 2020, and then reduced modestly in the following year.

In value terms, sugar imports rose sharply to $X in 2021. Over the period under review, total imports indicated a resilient expansion from 2012 to 2021: its value increased at an average annual rate of +5.9% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, imports increased by +32.6% against 2019 indices. The pace of growth was the most pronounced in 2016 with an increase of 41%. Over the period under review, imports attained the maximum in 2021 and are expected to retain growth in the immediate term.

Imports by Country

In 2021, Brazil (X tons) was the main sugar supplier to Nigeria, accounting for a 98% share of total imports. It was followed by the United States (X tons), with a 1% share of total imports.

From 2012 to 2021, the average annual rate of growth in terms of volume from Brazil totaled +14.6%.

In value terms, Brazil ($X) constituted the largest supplier of sugar to Nigeria, comprising 98% of total imports. The second position in the ranking was held by the United States ($X), with a 0.7% share of total imports.

From 2012 to 2021, the average annual rate of growth in terms of value from Brazil stood at +6.5%.

Import Prices by Country

In 2021, the average sugar import price amounted to $X per ton, rising by 10% against the previous year. Over the period under review, the import price, however, saw a deep downturn. Over the period under review, average import prices attained the peak figure at $X per ton in 2012; however, from 2013 to 2021, import prices remained at a lower figure.

Average prices varied somewhat amongst the major supplying countries. In 2021, the country with the highest price was Brazil ($X per ton), while the price for the United States stood at $X per ton.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Brazil (-7.0%).

Source: IndexBox Platform