Govt targets lower fuel imports with Bio-Ethanol project

The Federal Government has taken steps to increase the production of fuel-grade ethanol in Nigeria as part of efforts to reduce the country’s dependence on imported energy products and ease pressure on foreign exchange.

The Minister of Budget and Economic Planning, Abubakar Atiku Bagudu, made this known during a capacity-building workshop for stakeholders involved in the Cassava Bio-Ethanol Value Chain Development Project held in Nasarawa State between March 11 and 12, 2026.

The initiative focuses on producing Fuel Grade Ethanol (FGE) from cassava for blending with Premium Motor Spirit (PMS), commonly known as petrol.

A statement from the Ministry of Budget and Economic Planning signed by Mrs. Julie Osagie-Jacobs Director, Information and Public Relations said the move will help lower Nigeria’s energy import bill, reduce demand for foreign currency and support efforts to stabilise the naira.

Bagudu, who was represented at the event by the Director of the Economic Growth Department of the ministry, Muhammed Auwal, said the programme is designed to help Nigeria develop a strong local bio-energy industry that will support the economy and create jobs.

According to him, blending ethanol with petrol will significantly reduce Nigeria’s energy import costs while helping to conserve foreign exchange reserves.

He explained that one of the key objectives of the programme is to address post-harvest losses in the cassava value chain, which currently reduce efficiency in the sector.

“A core technical objective of this workshop is the reduction of post-harvest loss, which currently accounts for a 40 per cent efficiency leak in the value chain through the deployment of strategic aggregation hubs and rapid processing technologies,” he said.

He added that the initiative will help shorten the time between harvesting cassava and processing it into ethanol, which is critical to maintaining the quality of the raw materials.

“We aim to minimise the window between harvest and processing, thereby preserving starch integrity and ensuring our output meets ASTM specifications for anhydrous ethanol,” he said.

The Permanent Secretary of the ministry, Deborah Odoh, said the ministry is committed to supporting stakeholders involved in the project to ensure the programme delivers economic benefits for Nigerians.

She said the government will continue to provide policy coordination as well as monitoring and evaluation to ensure that investments made in the programme produce measurable results.

Odoh said the initiative is expected to create jobs for young people, increase income for farmers and strengthen the resilience of the Nigerian economy.

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She urged participants at the workshop to ensure that the ideas and agreements reached during the programme translate into practical outcomes.

“We must translate the resolutions reached here into measurable outputs and sustainable impacts across the North Central region,” she said.

Earlier, a representative of the Director of the Economic Growth Department in the ministry, Fatai Olaifa, said cassava remains one of Nigeria’s most important crops with huge opportunities for farmers, investors and entrepreneurs.

He called on stakeholders to work together to ensure the success of the cassava bio-ethanol value chain project.

According to him, the government will provide a clear implementation roadmap that defines the roles of different stakeholders and bridges the gap between public sector regulations and private sector efficiency.

Also speaking at the event, the Director-General of the National Agency for Food and Drug Administration and Control, Mojisola Christiana Adeyeye, who was represented by Oyedele Olusegun, said the agency supports the initiative and will work with relevant institutions to ensure its success.

She said the agency is ready to support the development and regulation of secondary by-products generated from cassava processing and commended the ministry for promoting economic diversification.

In her goodwill message, the Technical Adviser to the Governor of Benue State on Food Security and Agriculture, Ochanya Okoh, said the state is ready to take advantage of the programme by increasing cassava production.

She noted that Benue is already one of the leading cassava-producing states in Nigeria and pledged the state government’s support for the successful implementation of the project.

Okoh conveyed the goodwill of the state governor and assured participants that Benue will play an active role in the development of the cassava bio-ethanol value chain in the region.

Officials said the workshop was organised to strengthen the technical capacity of stakeholders involved in converting cassava into bio-ethanol for industrial use and export.

They added that the initiative is also expected to create new opportunities for processing different cassava-based products.

The programme forms part of the broader economic reforms being pursued under the Renewed Hope Agenda of President Bola Ahmed Tinubu.

According to the ministry, the Cassava Bioethanol Value Chain Development Project is designed to move Nigeria from a largely subsistence agricultural system to a more industrialised bio-based economy that makes better use of the country’s abundant biomass resources.

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