Nigeria Could Save $7.4 Billion Annually by Leveraging Ethanol as Biofuel, Says MEMAN

The Association of Major Energy Marketers of Nigeria says ethanol can be used as biofuel to help Nigeria reduce energy poverty and emissions. According to the Major Oil Marketers Association of Nigeria (MEMAN), during a recent quarterly webinar and press engagement, Nigeria could potentially save an estimated $7.4 billion annually by utilizing ethanol resources as an alternative biofuel.
Ethanol is a biofuel often used as a substitute or additive for gasoline in vehicles.
It is usually produced by fermentation of plant materials such as cassava, corn, sugarcane, and others. MEMAN notes that ethanol blended with biofuels as a variable energy source has the potential to transform Nigeria’s energy landscape and pave the way for a sustainable economy.

Experts speaking at the webinar revealed that Nigeria has what it takes to harness the potential of ethanol as a biofuel. Presenting a paper titled “Ethanol as Biofuel”, Agwu Ojowu, Principal Consultant at Africa Practice, emphasized that the development of the ethanol industry could save the country about 7.4 billion dollars per year.
“Nigeria’s cassava production, standing at 63 million metric tonnes annually, represents 26 percent of the global total. However, with 40 percent of this yield lost each year, there is a significant economic loss estimated at $7.4bn. Developing the ethanol industry could mitigate these losses, enhance economic stability, and capitalize on the depreciating currency to reduce costs,” Ojowu stated.
He notes that ethanol’s higher octane rating improves fuel quality and helps meet environmental standards by reducing sulfur content and greenhouse gas emissions.
These properties, he said, make ethanol an efficient and environmentally friendly alternative to gasoline, in line with Nigeria’s climate commitments.

Looking back, Ojowu recalls that Nigeria’s journey into the ethanol sector began with the 2007 biofuel policy, which stipulated a 10% blend of ethanol in fuel.
“Despite initial challenges, including the suspension of the policy in 2008, because of blending inconsistencies, the potential of ethanol remains significant. Ethanol’s cost-effectiveness compared to petrol has historically led to economic arbitrage, suggesting that a well-regulated biofuel market could be economically advantageous,” he said.
Ojowu added that ethanol has many benefits, including economic, environmental, and agricultural, without the need to modify the medium.
Executive Secretary of MEMAN, Clement Isong, also highlighted the role of renewable energy in addressing energy poverty in Nigeria.
He emphasized the importance of different energy sources, including biofuels, solar power, hydropower, and wind power, to create a balanced and sustainable energy mix.
“MEMAN is committed to engaging with industry stakeholders to advocate for energy solutions that meet Nigeria’s needs,” Isong said.
He expressed optimism about the future of renewable energy in Nigeria and continued efforts to increase press engagement and industry collaboration.