"Save $7bn Yearly": Oil Marketers Suggest Conversion of Fuel From Corn, Sugarcane to Replace Petrol
- Marketers have proposed an alternative solution that holds promise for a significant reduction in the money Nigerians spend on fuel
- According to MEMAN, the solution could significantly transform Nigeria's energy sector and contribute to a sustainable economy
- Additionally, the stakeholders emphasise that this approach offers an opportunity for the federal government to save costs significantly
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.
The Major Energies Marketers Association of Nigeria (MEMAN) has indicated that ethanol has the potential to be utilised as a biofuel, aiding Nigeria in alleviating energy poverty and cutting down emissions.
During a recent quarterly press webinar and discussion, MEMAN highlighted that leveraging Nigeria's ethanol resources to supplement petrol could result in approximately $7.4 billion in annual savings.
Source: UGC
Ethanol, a biofuel often used as a substitute or additive for petrol in vehicles, is usually produced by fermenting plant materials such as cassava, corn, and sugarcane.
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The oil marketers' proposal comes amid surge in petrol prices in Nigeria following President Bola Tinubu administration's removal of fuel subsidy in May 2023.
MEMAN had previously recommended blending ethanol with petrol, asserting that the approach could considerably lower petrol costs nationwide.
Legit.ng also reported that the United States Grains Council and the Nigerian National Petroleum Company Limited (NNPCL) announced plan to collaborate on ethanol production.
MEMAN eyes $7bn savings from ethanol adoption
MEMAN stated that incorporating ethanol into biofuel can significantly transform Nigeria's energy sector and contribute to the development of a sustainable economy.
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According to The Guardian, experts at the webinar highlighted Nigeria's capability to harness its ethanol resources for biofuel production.
In a presentation titled "Ethanol as a Biofuel," Agwu Ojowu, a senior consultant with Africa Practice, emphasized that advancing the ethanol industry could save the country approximately $7.4 billion annually.
Ojowu stated:
“Nigeria’s cassava production, standing at 63 million metric tonnes annually, represents 26 per cent of the global total. However, with 40 per cent 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 capitalise on the depreciating currency to reduce costs.”
He highlighted that ethanol's higher octane rating enhances fuel quality and aids in meeting environmental standards by lowering sulfur content and greenhouse gas emissions.
According to him, these characteristics make ethanol an affordable and eco-friendly alternative to petrol, supporting Nigeria's climate goals.
Reflecting on the past, Ojowu noted that Nigeria's journey with ethanol started with the 2007 biofuels policy, which required a 10% ethanol blend in fuel.
Ojowu further explained that ethanol offers a range of benefits, encompassing economic, environmental, and agricultural advantages, all while not requiring any modifications to existing vehicles.
Filling stations begin selling cheap CNG
Meanwhile, Legit.ng reported that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) mandated filling stations nationwide to begin selling Compressed Natural Gas (CNG).
Engr Farouk Ahmed, the chief executive of NMDPRA, stated that filling stations must now enhance CNG availability for consumers.
He described the federal government's initiative to promote CNG usage as an alternative to petrol as revolutionary, emphasizing the government's commitment to alleviating the economic impact of petrol.
Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
