The Federal Government has disclosed that blending bioethanol with Premium Motor Spirit (PMS) could help Nigeria save over N3 trillion in foreign exchange annually.
The move aims to curb the country’s dependence on imported fuel while strengthening local agricultural and industrial value chains.
Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, made the disclosure during a capacity-building workshop for stakeholders on the Cassava Bioethanol Value Chain Development Project for the South East zone, held in Enugu, Enugu State.
The Minister was represented at the event by the ministry’s Director of Economic Growth, Mr. Auwal Mohammed.
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Bagudu highlighted that the transition to locally produced bioethanol would “place millions of smallholder farmers at the centre of a new growth strategy for the cassava sector.”
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He added that the government had already initiated measures to empower about 14 million farmers to take active roles across the cassava value chain under the project.
According to the Minister, the scheme aligns with the national Bio-Economy Policy, which aims to go “beyond simple production and consumption of ethanol toward a broader circular economy model.”
He explained, “We are looking at the entire value chain, from high quality stems and starch to the CO2 captured during fermentation and the animal feeds produced from distillery grains.”
Bagudu further described the project as a model that combines agricultural innovation, private sector investment, and institutional support through a Triple-Helix knowledge transfer partnership.
The framework, he said, will focus on “delivering high-yield, disease-resistant cassava varieties, attracting investments, facilitating access to technology and markets, and ensuring that the right infrastructure and policy environment are in place to support sustainable growth.”
