Nigeria is stepping up efforts to develop a cassava-based bioethanol industry, aiming to integrate about 14 million smallholder farmers into the value chain as part of a broader strategy to industrialise agriculture, cut fuel imports and boost domestic manufacturing.
The initiative, led by the Ministry of Budget and Economic Planning, marks the operational rollout of the Cassava Bioethanol Value Chain Development Project, which seeks to position cassava not only as a staple food crop but also as a key industrial and energy input.
To mobilise producers and investors, the government is relying on a so-called “triple helix” model that brings together universities, industry and the state. Officials say the approach is designed to speed up the dissemination of high-yield cassava varieties, attract private capital, improve access to technology and strengthen productivity across the sector.
Through structured knowledge transfer and partnerships with research institutions, the authorities hope to turn Nigeria’s cassava industry into a source of innovation and value addition, rather than one dominated by low-value primary production.
Cassava-based bioethanol is primarily intended for the domestic fuel market. Under Nigeria’s National Biofuels Policy, adopted in 2007, the country plans to introduce a long-term blend of up to 10% ethanol in gasoline, known locally as premium motor spirit (PMS). The policy aims to create a stable domestic outlet for ethanol while reducing reliance on imported petroleum products.
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Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority show that average gasoline consumption stood at about 56.7 million litres per day in October 2025, with nearly half supplied through imports. Against this backdrop, the Ministry of Budget and Economic Planning estimates that large-scale ethanol blending could save Nigeria more than 3 trillion naira a year in foreign exchange by reducing fuel import requirements.
Officials say the savings would help ease pressure on the naira and improve energy security, while creating new demand for domestically produced cassava.
Beyond fuel use, ethanol has a wide range of industrial applications. Consulting firm PwC estimated Nigeria’s industrial ethanol demand at more than 400 million litres per year in 2020. Ethanol is widely used in the chemical and pharmaceutical sectors as a solvent in the manufacture of paints, varnishes, inks, chemicals, disinfectants, hand sanitisers and medicines. It is also a key input in the agri-food industry, particularly in the production of alcoholic beverages and spirits.
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The current push builds on groundwork laid in April 2023, when Nigeria’s Federal Executive Council approved a 11.9 billion naira project to develop the cassava and bioethanol value chain over the 2023–2028 period. The programme, led by the Infrastructure Concession Regulatory Commission, forms part of a broader national strategy to reduce fuel import dependence, stimulate agricultural productivity and generate new revenue streams.
In its pilot phase, the project предусматривает the creation of a 20-hectare biotechnology industrial park, shared between universities and research centres. The park will focus on cultivating hybrid cassava varieties, including TME 419, which are known for high yields, disease resistance and high starch content traits considered critical for both food security and industrial processing.
Authorities say the pilot is intended to demonstrate the viability of a private sector-led approach to investment in renewable biomass. If successful, it could help unlock financing for large-scale bioethanol production and downstream industries.
The government expects the programme to generate jobs and income, reduce poverty in rural areas, improve food and nutrition security and lower Nigeria’s carbon footprint by substituting part of its fossil fuel consumption with renewable biofuels.
Officials also say the initiative could double national cassava output over five years, from about 62 million tonnes to 120 million tonnes. The increase is expected to be driven by mechanisation, biotechnology and stronger mobilisation of public and private resources to ensure a reliable supply of raw materials for bioethanol plants.
While challenges remain including infrastructure gaps, financing constraints and coordination across agencies analysts say the success of the programme will depend on sustained policy support and the ability to translate ambitious targets into commercially viable projects.
