MEMAN says Nigeria ‘ll Gain $7.4 Billion Annually from Ethanol Production as Biofuel

Major Energies Marketers Association of Nigeria {MEMAN) is now exploring the spectrum of energy mix in Nigeria with focus to close the existing supply and demand gap in the Nigeria energy market.

To this end the Association has expressed optimism about the future of renewable energy and is therefore insisting that it holds the key solution in meeting the Nigeria’s energy needs.

According to MEMAN, ethanol as a biofuel is a transformative energy source with the potential that can shape the Nigeria’s energy landscape and pave the way for a sustainable and economically robust future.

Agwu Ojowu, Senior Consultant with a firm, AFRICA PRACTICE presented a paper yesterday at the MEMAN Competency Centre Series workshop with the theme “Ethanol as a Biofuel.”

Ojowu in his paper, pointed out that developing the ethanol industry could save the nation about $7.4 billion annually given that cassava one of the sources of ethanol has an estimated 40 percent about $7.4 billion of its yield lost from the 63 million metric tons of its annual production. Meanwhile Nigeria holds 26 percent of the global cassava production. ”However, 40 percent of this yield is lost each year, ethanol production could mitigate these losses, enhance economic stability, and capitalize on the depreciating currency to reduce costs” Ojowu said.

He highlighted the significant potential and benefits of ethanol as a renewable energy source for Nigeria. Ojowu underscored the importance of ethanol in addressing Nigeria’s energy needs while fostering economic growth and environmental sustainability.

He said that Nigeria’s foray into ethanol began with the 2007 biofuels policy, which mandated a 10 percent ethanol blend in fuel. “Despite initial challenges, including the suspension of the policy in 2008 due to blending inconsistencies, the potential for 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 concluded that ethanol presents numerous benefits, including economic, environmental, and agricultural advantages, without necessitating vehicle modifications.

The Executive Secretary of MEMAN, Clement Isong in his closing remarks at the workshop emphasized the critical role of renewable energy in addressing Nigeria’s energy poverty. He highlighted the importance of diverse energy sources, including biofuels, solar, hydroelectricity, and potential wind energy, to create a balanced and sustainable energy mix.

“MEMAN is committed to engaging with the press and 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 the continued efforts to enhance press engagement and industry collaboration.