The Federal Government has said Nigeria could save more than ₦3 trillion annually in foreign exchange 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.
Bagudu, who was represented by the Director of Economic Growth in the ministry, Mr Auwal Mohammed, said the shift toward domestically produced bioethanol would position millions of smallholder farmers at the centre of a new growth strategy for Nigeria’s cassava sector.
He noted that the Federal Government had already commenced steps to empower about 14 million farmers to play critical roles across the cassava value chain under the Cassava Bioethanol Value Chain Development Project.
According to him, the initiative aligns with the National Bio-Economy Policy, which seeks to move beyond simple ethanol production and consumption toward 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,” Bagudu said.
He explained that the project is designed to integrate agricultural innovation, private sector investment and institutional support through a Triple-Helix knowledge transfer partnership.
The framework, he added, will focus on delivering high-yield, disease-resistant cassava varieties, attracting investment, facilitating access to technology and markets, and ensuring the availability of infrastructure and policies required for sustainable growth.
Bagudu stressed that the initiative would not only boost energy security but also create jobs, enhance rural incomes and deepen Nigeria’s industrial base.
