The Federal Government says Nigeria could save more than ₦3 trillion in foreign exchange annually by blending bioethanol with Premium Motor Spirit (PMS), as part of efforts to reduce dependence on imported fuel and strengthen domestic agricultural and industrial value chains.
The Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, disclosed this at a capacity-building workshop for stakeholders on the Cassava Bioethanol Value Chain Development Project for the South East zone, held in Enugu, Enugu State. He was represented by the Director of Economic Growth in the ministry, Mr Auwal Mohammed.
Bagudu said the proposed shift to domestically produced bioethanol would position millions of smallholder farmers at the centre of a new growth strategy for the cassava sector. He noted that the government had commenced steps to empower about 14 million farmers to play key roles across the cassava value chain under the project.
According to him, the initiative aligns with the national Bio-Economy Policy, which aims to move beyond simple ethanol production and consumption towards a broader circular economy model.
“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,” he said.
He added that the programme is designed to deepen local industrial capacity, create jobs and enhance Nigeria’s energy security.
