• Nigeria plans to integrate 14 million small farmers into the cassava bioethanol value chain

• Ethanol blending could save over naira 3000 billion a year by cutting fuel imports

• The strategy targets both domestic fuel use and broader industrial demand

Nigeria has begun rolling out measures to integrate around 14 million small-scale farmers into the cassava-based bioethanol value chain, as part of a broader push to industrialize the sector. Led by the Ministry of Budget and Economic Planning, the initiative marks the operational phase of the Cassava Bioethanol Value Chain Development Project.

To mobilize producers, the authorities are relying on the so-called triple helix model, which brings together universities, industry, and the state. The framework aims to accelerate the dissemination of high-yield cassava varieties, attract private investment, improve access to technology, and strengthen the overall production environment. Through this structured knowledge transfer, the government intends to turn the cassava sector into a driver of innovation and value creation.

The government says cassava-based bioethanol is primarily intended for the domestic fuel market. Under the National Biofuels Policy adopted in 2007, Nigeria plans to blend 10% ethanol into gasoline (PMS) over the long term. The objective is to create a structured domestic industrial outlet while reducing the country’s dependence on imported fuels.

Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) show that average gasoline consumption reached about 56.74 million liters per day in October 2025, with close to 49% supplied through imports. In this context, the Ministry of Budget and Economic Planning estimates that implementing the cassava bioethanol value chain project could allow Nigeria to save more than naira 3000 billion a year in foreign exchange through ethanol blending in PMS. This would significantly reduce the country’s reliance on imported petroleum products.

Beyond its use as a fuel, ethanol has a wide range of industrial applications. In 2020, consulting firm PwC estimated Nigeria’s industrial ethanol demand at more than 400 million liters per year. Ethanol is widely used in the chemical and pharmaceutical industries as a solvent in the production of paints, varnishes, inks, chemicals, disinfectants, hand sanitizers, and medicines. It is also used in the agri-food industry for the production of alcoholic beverages and spirits.

A structuring drive launched in 2023

The foundations of the current initiative were laid on April 19, 2023, when the Federal Executive Council approved a naira 11.9 billion project to develop the cassava and bioethanol value chain over the 2023–2028 period. Led by the Infrastructure Concession Regulatory Commission (ICRC), the program forms part of a national strategy to reduce fuel import dependence, stimulate agriculture, and generate new sources of revenue.

In its pilot phase, the project provides for the creation of a 20-hectare biotechnology industrial park, shared between universities and research centers. It includes the cultivation of hybrid cassava varieties, notably TME 419, which are known for high yields, disease resistance, and high starch content. These traits make them strategic for both food security and industrial processing.

The authorities say the main objective of the pilot is to demonstrate the effectiveness of a private sector-led approach to promoting investment in renewable biomass. The project is expected to create wealth and jobs, reduce poverty, improve food and nutrition security, supply renewable energy, and lower Nigeria’s carbon footprint.

The initiative is also expected to double national cassava production over five years, from 62 million tons to 120 million tons. This increase is to be driven by mechanization, biotechnology, and stronger resource mobilization to ensure sufficient raw material supply for bioethanol production.

Challenges ahead

Unlike traditional cassava products such as flour, gari, and fufu that are mainly destined for food consumption, bioethanol production requires strict industrial conditions. These include large volumes of raw material, consistent root quality, structured logistics, and heavy investment in processing infrastructure. Such requirements push the sector toward a more integrated organization, from the supply of improved cuttings to the use of co-products, including animal feed derived from distillation residues.

While ambitions are high, the success of the project will depend on several factors. These include the ability to secure cassava supply at competitive costs, the development of adequate logistics infrastructure, and the stability of the regulatory framework governing ethanol blending in fuels. In addition, cassava is both a staple food crop and a strategic industrial input. Expanding non-food uses could create tensions between competing demands, raising the risk that industrial demand might drive up prices and limit household access to the crop.

With farmers set to be integrated into the bioethanol value chain, the challenge for the authorities will be to scale up industrial production without undermining food access.

Stéphanas Assocle