HomeBreaking NewsNigeria Poised to Save ₦3 Trillion Annually Through Cassava Bioethanol Drive

Nigeria Poised to Save ₦3 Trillion Annually Through Cassava Bioethanol Drive

By HeadlineNews.News Economic Development Desk

July 4, 2025 | Abuja


A Transformative Energy-Agri Initiative

On World Cassava Day 2025, Vice President Kashim Shettima declared that Nigeria’s Cassava Bioethanol Project could reduce fuel and ethanol import costs by over ₦3 trillion annually. Delivered at the State House Banquet Hall, Abuja, the announcement reflects a pivot to domesticate energy production using the country’s cassava surplus, currently the world’s largest production source.

Shettima emphasized that savings from import substitution—especially in refined fuels and ethanol derivatives—would generate foreign exchange, foster agro-industrial development, and solidify rural economies.

 Nigeria’s Lost Agribiz Opportunity

Nigeria produces over 60 million tonnes of cassava annually, yet historically sold most as raw tubers.

In 2007, the National Biofuels Policy aimed to expand cassava processing—but structural inertia stalled progress.

Efforts such as the 2009 “Cassakero” pilot adopted ethanol flourished in limited areas (e.g., Edo) but never scaled .

This new push under President Tinubu’s “Renewed Hope” agenda finally leverages cassava for industrial use, not just food.

The Eden Agropolis Angle: Integrating Energy and Agriculture

The Eden Agropolis Project, a flagship under the Renewed Hope strategy, consolidates agro-processing hubs, mechanization, and infrastructure to elevate Nigeria from raw commodity supplier to value-added producer.

By integrating cassava bioethanol plants within these agropolis zones, Nigeria anticipates:

  • Energy independence
  • Local manufacturing
  • Rural employment
  • Export-ready ethanol and by-products

Mechanization efforts—featuring 2,000 tractors, 50 bulldozers, and 9,000 implement sets—will expand land under cassava cultivation by several hundred thousand hectares.

Learning from Brazil and Zambia

Brazil: Since the 1970s, it has built a thriving sugarcane-ethanol industry; today, Brazil exports over 30 billion liters annually, with flexible fuel vehicles and regular E20/E25 blends.

Zambia & others have begun small-scale cassava-to-ethanol projects similar to Nigeria’s plans.

While Nigeria is behind these benchmarks, its scale—and active policy commitment—positions it for rapid catch-up.

Sectoral Importance of Agro-Energy Convergence

Economic Diversification: Moving from oil dependency to agro-industrial ecosystems.

Rural Prosperity: Smallholder farmers become feedstock suppliers via structured value chains.

Energy Security: Local ethanol blended fuels reduce reliance on volatile global petroleum.

Digital Agritech Boost: Incorporates modern tools, mechanization, and youth-led innovation .

Quote & Analysis

This is not just about saving billions; it’s about remaking our economy. Nigeria cannot lead in production but lag in value-addition,”

— Vice President Kashim Shettima  

This administration is placing agritech and youth innovation at the core of its economic strategy,” said the Vice President during the event.

Challenges & Success Factors

Critical success factors: Clear execution, private sector partnerships, financing for smallholders, and sustained mechanization.

Potential barriers: Land-use conflicts, energy-grid unreliability in rural areas, and technology transfer issues (e.g., ethanol conversion efficiency).

Nigeria’s energy balance ratios (NER ~1.2) for small-scale production show positive climate outcome when properly implemented.

Conclusion: A Cornerstone Legacy of APC Administration

By converting a staple crop into strategic energy and industrial feedstock, Tinubu’s government is pushing beyond talk to tangible economic recalibration. The cassava bioethanol initiative—within the Eden Agropolis framework—could well reshape Nigeria’s:

  • Energy procurement
  • Export portfolio
  • Rural livelihoods
  • Youth enterprise

Saving ₦3 trillion annually isn’t just fiscal—it’s futuristic.

Key Stats at a Glance

Metric Value

  • Cassava Production Largest globally
  • Annual Savings via Bioethanol ₦3 trillion
  • Mechanisation Scale 2,000 tractors; 9,000+ implements
  • Foreign Exchange Liberation From ethanol imports
  • Youth-Led Agripreneur Focus Central to policy

 

© HeadlineNews.News 2025. All rights reserved.

Report by Oluwaseyi Bello, Agricultural Economy Correspondent

COMMENTARY: 

“Cassava to Cashflow: Nigeria’s ₦3 Trillion Bioethanol Pivot Gains Ground”

 

 “The future of Africa lies in unlocking value from what we already have.”

— Dr. Akinwumi Adesina, President, African Development Bank

 

“For once, Nigeria is treating agriculture as business, not charity — this is long overdue.”

— Dr. Gloria Adebajo-Fraser, MFR

 

Bioethanol from the Roots: How Nigeria Plans to Save ₦3 Trillion with Cassava”

 

“Don’t wait for miracles; innovate your way out.”

— Ngozi Okonjo-Iweala, WTO DG

 

“This is the first real industrial-era use of cassava in our history — it rewrites the rules of rural economics.”

— Dr. Chuka Ononuju, Policy Economist

 

“Africa’s Largest Cassava Producer Finally Goes Industrial”

Wealth lies not in resources, but in refining them.”

Paul Kagame, President of Rwanda

 

“The world is watching how Nigeria shifts from tuber to turbine.”

— Dr. Bola Olojede, Agricultural Technologist

 

“From Farmland to Fuel Tanks: Tinubu’s Economic Diversification in Action”

Real development begins when a country consumes what it produces and exports what it refines.”

— Dr. Mo Ibrahim, African Governance Expert

 

This could be Nigeria’s most consequential policy shift in agriculture since Operation Feed the Nation in the 1970s.”

Nigeria’s Quiet Cassava Revolution: Bioethanol, Exports, and Trillion-Naira Savings”

“You cannot build a modern economy on raw materials and prayer.”

— Dr. Donald Kaberuka, former AfDB President

 

“This initiative shows that when we stop exporting raw crops and start refining them, we stop exporting jobs too.”

 

 “Eden Agropolis and the Future of Nigeria’s Agro-Energy Economy”

 

Those who feed you, rule you. And those who fuel you, empower you.”

— Thomas Sankara, adapted

 

With Eden Agropolis and cassava bioethanol, Nigeria is reclaiming its place in the global agritech map — not just as a producer, but as a processor.”

 

Headlinenews.news Special report.Headline news

 

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