Nigeria spends an average of N30 billion annually to finance its sugar requirement, the minister of state for Commerce and Industry, Ms Josephine Tapgun has said.

Nigeria presently consumes about 1.3 million tons of sugar annually with only 5 to 10 per cent of the national consumption produced locally. About 1.2 million tons is imported as raw sugar (for refineries) and refined sugar (for industrial use).

Speaking yesterday in Abuja at the sugar stakeholder's forum, the minister said the status of sugar industry in the country has been a source of concern, adding that the commodity is rated the third most strategic crop after rice and wheat.

"This is in spite of the fact that Nigeria has a high potential in terms of land, water and human resources to produce enough sugar for local consumption and export," she said.

The minister said the forum will consider proposals for fiscal policy amendments for the sugar sub-sector towards achievement of 70 per cent self-sufficiency in sugar production and price of unfortified, refined sugar in Nigeria.

She said apart from the National Sugar Master Plan which was produced by the National Sugar Development Council to achieve 70 per cent local production by 2020, government is exploring other strategies to boost local sugar production in the short term from 2010 to 2012.

Speaking, the Executive Secretary, National Sugar Development Council (NSDC), Usman Bello, faulted the waiver on payments of levy granted bulk/raw sugar importers, saying it was against the provision of NSDC.

He said there was a significant downward slide in the receipts on the sugar levy account due to the fact that over 96 per cent of all sugar imports now are raw sugar.

He said: "It is even more alarming to note that no receipt have been made to this account in the first half of the year, i.e January to June 2010 because all imports are raw. If this trend continues, council will have little or no fund to pursue its statutory roles of fast tracking the development of the sugar sector."