Nigeria Advances €256 Million Cassava-Ethanol Project Near Lagos
A memorandum of understanding covers a cassava-based bioethanol plant on a 200-hectare site at Itokin and a 15,000-hectare feedstock base across four Nigerian states. The €256 million project still lacks disclosed capacity, committed financing and a construction timetable.
Agreement links a Lagos plant to four-state cassava production
Nigeria has advanced plans for a cassava-based bioethanol complex near Lagos through a memorandum of understanding between public and private-sector participants. Ecofin Agency reported that NNPC New Energy Limited, a subsidiary of state-owned NNPC, and 3D HighTech Systems signed the agreement with the Ogun-Oshun River Basin Development Authority on September 29. The Rio Times identified the private participant as 3D NNPC Biofuels Limited and said NNPC Limited was listed elsewhere as a third signatory.
The proposed facility would occupy 200 hectares at Itokin in Lagos State. The river basin authority also plans to provide 15,000 hectares for cassava cultivation across Lagos, Ogun, Osun and Oyo states, creating a dedicated feedstock base around the processing operation. The authority is expected to contribute land, water and community support, while the private partner would provide funding, technology, technical expertise and an undertaking to purchase output.
The announced investment is €256 million. The Rio Times converted that amount to about US$289 million, while Ecofin Agency reported approximately $290 million. The plant would produce ethanol for blending with Premium Motor Spirit, Nigeria's term for gasoline. No production capacity, investor list, construction schedule or start date has been disclosed.
Feedstock strategy targets losses and smallholder participation
Nigeria is the world's largest cassava producer, but a significant share of its crop does not reach processors. Government officials estimate losses across the cassava value chain at about 40%. Because harvested roots deteriorate within days, locating processing capacity near farms could reduce waste while creating demand for seed, machinery, transport and agricultural services.
The project forms part of the Cassava Bioethanol Value Chain Development Project, approved as a concession by Nigeria's Federal Executive Council in April 2023. The Ministry of Budget and Economic Planning said in January 2026 that the broader program aims to integrate about 14 million smallholder farmers. Its plans include cooperation among universities, industry and government to distribute higher-yield cassava varieties and improve access to technology and capital.
Officials project more than 100,000 direct and indirect jobs across farming, logistics and processing, according to The Rio Times, although that estimate has not been independently assessed. The wider program also envisages commercial output from starch, captured carbon dioxide and animal feed derived from processing residues.
E10 pilot could determine commercial demand
Nigeria's 2007 National Biofuels Policy targeted a 10% ethanol blend in gasoline by 2020, but the target was not achieved. Ecofin Agency reported that the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NNPC Retail and the Standards Organisation of Nigeria began preparations in May 2026 for an E10 pilot at selected service stations. The trial is intended to assess a blend of 10% bioethanol and 90% gasoline, as well as the technical, regulatory and logistical requirements for wider use.
The regulator said domestic gasoline consumption averaged 56.74 million liters per day in October 2025, with imports supplying nearly 49%. The Ministry of Budget and Economic Planning estimates that ethanol blending could save more than ₦3 trillion in foreign exchange annually. Ecofin Agency valued that projection at about $2.1 billion, while The Rio Times put it at about US$2.3 billion; neither figure is an audited result.
The import-substitution case is also evolving as the Dangote refinery expands domestic gasoline supply. The Rio Times reported that the refinery supplied more of Nigeria's gasoline than importers in August, reducing part of the original import-saving rationale. For the Itokin project, the immediate tests are therefore financing, a published production capacity, firm construction dates and an enforceable blending framework capable of creating predictable ethanol demand.
