By Simeon Shodimu
Nigeria’s ethanol’s market has continued to thrive with indications of further rise in demand according to reports .
Clean Technology Hub analysis of 2024 alone made it known that ethanol demand in the country reached 400 million litres, but about 75 per cent of this demand (roughly 300 to 350 million litres) was met through imports, while domestic production accounts for the remaining share.
Ethanol is an essential raw material for production of beverages especially in spirits production. Pharmaceutical and hygiene-product manufacturers rely on it as a solvent and base ingredient in medicines. Cosmetics producers incorporate it across many formulations, and as fuel-blending discussions gather momentum, additional demand could emerge from the energy sector.
According to Data from the National Agricultural Extension and Research Liaison Services (NAERLS),.shows that Nigeria produces over 60 million tonnes of cassava yearly, making it the world’s largest cassava producer, and giving it access to a raw material that can support large-scale ethanol production.
Also,research by the Nigeria Cassava Investment Accelerator (NCIA)shows that under standard conversion conditions, one tonne of cassava can yield roughly 160 litres of ethanol. It revealed that at that conversion rate, replacing current ethanol imports will require about 1.8 – 2.0 million tonnes of cassava, equivalent to roughly three per cent of national production.
Conversion of cassava to ethanol is indeed a complex process with high capital requirements, compared to commonly used sugarcane molasses, which can be fermented directly, starch must first be extracted from crushed cassava roots and enzymatically converted into fermentable sugars. The product of fermentation is ethanol and carbon dioxide.
“Countries with large sugar industries use molasses. Cassava’s advantage lies in its availability. Nigeria produces cassava across multiple agroecological zones. Harvests can be staggered through coordinated planting throughout the year.
“When supply systems are properly organised, cassava offers a domestically available feedstock that reduces exposure to foreign exchange volatility and import logistics,” the report said.
Guardian online report of 29th March, 2026, reports that NCIA concerns about food security are often raised because cassava is also a staple crop. However, the volumes required to replace ethanol imports represent only a small fraction of national output, adding that the larger challenge is ensuring that industrial demand develops within structured supply systems rather than disrupting local food markets.
The report stated further that most visible signal that cassava-to-ethanol production can be commercially viable comes from operators already active in Nigeria’s ethanol market. Nosak Group, a major ethanol producer and operator of one of Nigeria’s largest distillery platforms, is building an integrated cassava supply chain through its subsidiary, Premier Plantations.
The company according to Guardian Online has reportedly acquired farmland in Edo State, developed outgrower partnerships, and is commissioning an additional cassava-to-ethanol facility. In our assessment, this move reflects a strategic judgement: securing domestic cassava supply can reduce long-term exposure to the volatility associated with imports.”
NCIA noted that for operators considering cassava as a feedstock, three operational questions must be addressed simultaneously – feedstock systems, plant utilisation and economics; and market alignment. Guardian stated .
“Feedstock systems – industrial ethanol plants require large volumes of cassava delivered consistently and within specification. Spot-market sourcing rarely provides the reliability required. Structured farmer networks, aggregation systems, logistics coordination, and quality incentives are essential.
“Plant utilisation and economics – the economics of ethanol production depend heavily on plant utilisation, energy costs, and conversion efficiency. Facilities that operate below capacity struggle to recover their fixed costs. In addition to the core ethanol output, by-products such as fermentation residues, which can be used as animal feed and captured carbon dioxide, for beverage production, can provide additional revenue streams and strengthen overall project economics.
“Market alignment – ethanol buyers have strict quality requirements. Beverage manufacturers need food-grade ethanol with traceability. Pharmaceutical and cosmetics buyers require compliance and batch-level consistency. Fuel blending, where it develops at scale, requires certification and reliable volumes. Operators must decide early which customer segments they are targeting, and engineer quality systems to match from the onset.”
NCIA stressed that cassava-to-ethanol production is already established in countries such as Thailand and Vietnam, demonstrating that the technology itself is proven. It added that Nigeria’s challenge lies in building the operational systems that make large-scale cassava processing reliable. “Industrial cassava processing depends on consistent feedstock supply, coordinated aggregation and logistics, credible offtake markets, and financing structures aligned with the realities of industrial production.
“Nigeria’s reliance on imported ethanol is therefore not inevitable. With the right systems in place, a small fraction of national cassava output could support significant domestic production. The task ahead is to convert agricultural abundance into reliable industrial supply, expanding Nigeria’s agro-industrial base and boosting rural incomes.” The report concludes
