Emerging bio-ethanol projects in Nigeria: Their opportunities and challenges

Despite being a major petroleum producing and exporting country, Nigeria has for a long time imported refined petroleum products for domestic consumption. The country has recently made an entrance into the bio-energy sector by seeding the market with imported ethanol until enough capability exists for the domestic production of ethanol. The Nigerian Biofuel Policy was released in 2007 calling for the domestic production of bio-ethanol to meet the national demand of 5.14 billion litres/year. Some investors have responded by investing over $3.86 billion for the construction of 19 ethanol bio-refineries, 10,000 units of mini-refineries and feedstock plantations for the production of over 2.66 billion litres of fuel grade ethanol per annum. Also, another 14 new projects are in the offing. Of the 20 pioneer projects, 4 are at the conception phase, 8 are in the planning phase, and 7 are under construction with only 1 operational. The potential benefits of the emerging bio-ethanol projects include investment in the economy, employment, energy security and boost rural infrastructure, while the major challenge is land take (859,561 ha). This is the first time an attempt is been made to document the emerging bio-ethanol projects in Nigeria.