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“Development of ethanol industry is capable of saving Nigeria about $7.4 billion annually”

Agwu Ojowu, Senior Consultant at Africa Practice, emphasized that the development of the ethanol industry as a biofuel could potentially save Nigeria approximately $7.4 billion annually, reported The Sun.

Speaking at the Major Energies Marketers Association of Nigeria (MEMAN) Competency Centre Series workshop themed “Ethanol as a Biofuel,” conducted via Zoom over the weekend, Ojowu highlighted the significance of cassava, a primary source of ethanol, noting that Nigeria accounts for 26% of global cassava production. However, he pointed out that about 40% of cassava yield, equivalent to $7.4 billion, is lost annually.

Ojowu suggested that ethanol production could help mitigate these losses and bolster economic stability, thereby reversing the depreciation of the Nigerian currency. He underscored the potential of ethanol to meet Nigeria’s energy requirements while fostering economic growth and environmental sustainability. Additionally, he outlined the benefits of ethanol, including economic, environmental, and agricultural advantages, without the need for vehicle modifications. Despite challenges encountered since Nigeria’s initial foray into ethanol with the 2007 biofuels policy, such as the suspension of the policy in 2008 due to blending inconsistencies, Ojowu remains optimistic about ethanol’s potential. He highlighted ethanol’s cost-effectiveness compared to petrol, suggesting that a well-regulated biofuel market could yield economic advantages through historical economic arbitrage.

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