FG launches Cassava Bioethanol Project to save N3tn in foreign exchange

The Federal Government has launched the Cassava Bioethanol Value Chain Development Project, an initiative aimed at reducing Nigeria’s dependence on imported fuel and saving more than N3 trillion annually in foreign exchange.

The project involves the production of bioethanol from cassava for blending with Premium Motor Spirit (PMS), a move expected to strengthen the country’s energy security while promoting local content in fuel production.

According to the government, the initiative will directly benefit about 14 million smallholder farmers through access to high-yield and disease-resistant cassava varieties, as well as expanded opportunities for income generation. It is also expected to create jobs, boost rural livelihoods and stimulate economic activities across the cassava value chain.

The project adopts a circular economy model that extends beyond ethanol production, with plans to utilise by-products for additional industrial and agricultural purposes, thereby maximising value and reducing waste.

To drive implementation, the government said it will deploy a Triple-Helix knowledge transfer partnership involving the public sector, private investors and academic institutions. The collaboration is designed to support technology transfer, attract investment and expand market access to ensure the long-term sustainability of the initiative.

The Cassava Bioethanol Value Chain Development Project aligns with Nigeria’s Bio-Economy Policy, which seeks to promote bio-based industries and accelerate economic diversification. Officials say the project will leverage Nigeria’s vast agricultural potential to support industrial growth, enhance energy security and contribute to overall economic development.