FG Moves to Scale Up Fuel-Grade Ethanol Production
The Federal Ministry of Budget and Economic Planning has begun the process of scaling up the production of fuel-grade ethanol to be blended with Premium Motor Spirit (PMS) as part of efforts to reduce Nigeria’s energy import costs.
The Minister of Budget and Economic Planning, Abubakar Atiku Bagudu, disclosed this during a capacity-building workshop for stakeholders involved in the Cassava Bio-Ethanol Value Chain Development Project held in Nasarawa State between March 11 and 12, 2026.
Bagudu, who was represented by the Director of the Economic Growth Department in the ministry, Muhammed Auwal, said the initiative aims to significantly reduce Nigeria’s energy import bill, ease pressure on foreign exchange reserves and support the stabilisation of the naira.
He explained that the programme is also designed to stimulate a local bio-circular economy by expanding ethanol production derived from cassava.
According to him, a major objective of the workshop is to address post-harvest losses in cassava production, which currently account for about 40 per cent inefficiency in the value chain.
He said the government plans to deploy strategic aggregation hubs and rapid processing technologies to reduce the time between harvest and processing, thereby preserving starch quality and ensuring ethanol output meets standards set by the ASTM International.
Also speaking, the Permanent Secretary of the ministry, Deborah Odoh, reaffirmed the ministry’s commitment to supporting stakeholders and ensuring that investments in the project generate jobs for youths, boost farmers’ income and strengthen economic resilience.
She urged participants to translate the resolutions of the workshop into measurable outcomes that would support national development objectives.
In a goodwill message, the Director-General of the National Agency for Food and Drug Administration and Control, Mojisola Adeyeye—represented by Oyedele Olusegun—expressed the agency’s readiness to collaborate on regulating by-products generated from cassava processing.
Similarly, the Technical Adviser to the Benue State Governor on Food Security and Agriculture, Ochanya Okoh, said the state plans to take advantage of the project to expand cassava production, noting that Benue is already among the leading cassava-producing states in Nigeria.
The workshop brought together participants from several institutions including the Federal Ministry of Agriculture and Food Security, the Raw Materials Research and Development Council, cassava producers and processors, as well as representatives from states across the North-Central region.
Officials said the initiative aligns with the economic reform agenda of Bola Ahmed Tinubu and is expected to support Nigeria’s transition from subsistence agriculture to a bio-based industrial economy.
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