Why Nigeria should stop importing ethanol its cassava produces

Despite being the world’s largest cassava producer, Nigeria is among the top global importers of ethanol, a cassava by-product.

The country has failed to capitalize on its cassava production, as it spends millions of dollars yearly importing ethanol and other derivatives, thereby putting pressure on Nigeria’s foreign exchange reserves and creating thousands of jobs that could have been generated if produced locally.

The country churned out 62.7 million metric tons of cassava in 2023, according to the most recent data from the Food and Agricultural Organisation.

Africa’s most populous nation ethanol demand reached 400 million litres in 2024, according to research by the Nigeria Cassava Investment Accelerator (NCIA), an initiative of the Lagos Business School, Pan-Atlantic University.

This figure is expected to continue growing as the country’s population grows and demand for renewable biofuel rises.

According to Clean Technology Hub, about 75 percent of local demand (roughly 300 to 350 million litres) is met through imports, while domestic production accounts for the remaining share.

Ethanol is used across industries. Beverage producers utilise it in spirits production, and pharmaceutical and hygiene product manufacturers rely on it as a solvent and base ingredient in their products.

Cosmetics producers incorporate it across many formulations. As fuel-blending discussions gather momentum, additional demand could emerge from the energy sector.

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Markets with diversified demand structures, such as Nigeria, can support domestic production, provided supply systems are organised to meet industrial requirements.

​Cassava to Ethanol
Research by NCIA shows that under standard conversion conditions, one tonne of cassava can yield roughly 160 litres of ethanol.

At that conversion rate, replacing current ethanol imports would require about 1.8 to 2 million tonnes of cassava, equivalent to roughly three percent of the country’s production.

However, converting cassava to ethanol is a complex process with high capital requirements. Unlike 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 products of fermentation are 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.

According to NCIA, when supply systems are properly organised, cassava offers a domestically available feedstock that reduces exposure to foreign exchange volatility and import logistics. ​

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.

The larger challenge is ensuring that industrial demand develops within structured supply systems rather than disrupting local food markets.

Market signal from the industry
The 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 has reportedly acquired farmland in Edo State, developed out-grower partnerships, and is commissioning an additional cassava-to-ethanol facility.

NCIA recently assessed the investment and said that securing a domestic cassava supply can reduce long-term exposure to the volatility associated with imports. ​

Questions for operators
For operators considering cassava as a feedstock, three operational questions must be addressed simultaneously.
First, 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.

Secondly, 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.

Thirdly, market alignment; ethanol buyers have strict quality requirements. Beverage manufacturers require food-grade ethanol with traceability, while pharmaceutical and cosmetics buyers require compliance and batch-level consistency.

And 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.

Countries already tapping opportunity
Cassava-to-ethanol production is already established in countries such as Thailand and Vietnam, demonstrating that the technology itself is proven. 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, according to NCIA.

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, NCIA added.

The task ahead is to convert agricultural abundance into a reliable industrial supply, expanding Nigeria’s agro-industrial base and boosting rural incomes.
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