Cassava ethanol can cut petrol prices, MEMAN says
By Aboki Forex —
The Major Energies Marketers Association of Nigeria (MEMAN) says adopting cassava-based ethanol in petrol blending could lower fuel costs and create new income for farmers. The association made the call at a summit in Lagos, organised with the US Grains and Bioproducts Council.
MEMAN said Nigeria would need about two billion litres of cassava ethanol annually if E10 petrol is fully adopted. Nigeria currently produces roughly 150 million litres of cassava-derived ethanol each year, far short of what would be required.
What is E10 fuel?
E10 is a blend containing 90 per cent petrol and 10 per cent ethanol. MEMAN's Executive Secretary, Clement Isong, said Nigeria's downstream petroleum industry is gradually preparing for the introduction of E10 fuel.
Widespread adoption of E10 would significantly increase demand for locally produced ethanol, creating fresh opportunities for cassava farmers, agro-processors and investors. Isong said one objective of the summit was to educate stakeholders, particularly farmers, about the growing market potential for cassava-based ethanol.
"We want farmers to understand that significant opportunities are emerging for cassava cultivation and ethanol production," Isong said.
Bridging the supply gap
Isong noted that bridging the supply gap could stimulate investments across agriculture and manufacturing while creating jobs and boosting rural incomes. He stressed that the transition to ethanol-blended petrol would only succeed if Nigeria develops a dependable ethanol supply chain capable of meeting future demand.
MEMAN said it would continue collaborating with technical experts, regulators and other stakeholders to ensure vehicles, fuel infrastructure and industry standards are prepared for the gradual rollout of E10 petrol.
Cleaner and better fuel
Ethanol technical consultant and adviser to the US Grains and Bioproducts Council, Rowena Torres-Ordóñez, explained that E10 consists of 10 per cent ethanol blended with 90 per cent petrol by volume. She noted that ethanol has a higher octane rating than conventional petrol, allowing it to improve the performance and quality of blended fuel.
Torres-Ordóñez added that ethanol is free from sulphur, benzene and aromatic compounds, making it a cleaner component that could contribute to better air quality and improved public health.
Beyond environmental advantages, she said ethanol blending supports local industries, creates employment opportunities and enhances Nigeria's energy security through reduced dependence on imported petroleum-based fuel additives.
Potential savings per litre
Torres-Ordóñez presented analysis indicating that ethanol blending could deliver economic gains of between ₦72 and ₦93 per litre, depending on prevailing tariff structures and Value Added Tax policies. According to her, the improvement in fuel octane alone contributes an estimated ₦63 per litre of the projected benefit.
Industry participants concluded that expanding Nigeria's local ethanol industry would create a sustainable market for cassava farmers, encourage greater investment in agro-processing and help diversify the country's energy mix while reducing reliance on conventional petroleum fuel components. For consumers and businesses, successful adoption of E10 could mean lower pump prices and stronger rural incomes, though much depends on closing the large gap between current production and the two billion litres needed.