Ogun-Osun River Basin Development Authority (OORBDA), 3D NNPC Biofuels Limited and Nigerian National Petroleum Company Limited (NNPCL) have signed a Memorandum of Understanding (MoU) for the establishment of a pound 256 million bioethanol plant at Itokin, Lagos State.
The agreement also provides for the cultivation of cassava on 15,000 hectares to supply feedstock for the plant.
Managing Director and Chief Executive Officer of OORBDA, Dr Adedeji Ashiru, described the partnership as a step towards strengthening Nigeria’s energy and food security.
He said OORBDA would provide 200 hectares at its Itokin project site for the building of the bioethanol plant, as well as 15,000 hectares from its land bank for large-scale cassava cultivation.
He said the project would combine the resources and expertise of the three partners, with 3D NNPC Biofuels, providing technical expertise, funding, technology and off-take assurance.
‘Today is not just an MoU signing. Today, we are planting the seed for Nigeria’s energy future, food security and industrial revolution,’ Ashiru said.
According to him, the project aligns with the Federal Government’s efforts to promote food security, energy security and wealth creation through the commercialisation of public assets.
Ashiru said the project would transform OORBDA from primarily a water management agency into a major participant in the country’s agro-industrial and energy value chain.
He said the initiative would also support Federal Government’s biofuel and energy transition policies by producing renewable bioethanol for blending with Premium Motor Spirit, thereby helping to reduce dependence on imported fuel.
The OORBDA chief added that the 15,000-hectare cassava cultivation programme would support an out-grower scheme involving farmers, women and youths in host communities.
He said the project was projected to generate more than 100,000 direct and indirect jobs across the agricultural, transportation, processing and industrial value chains.
‘From land preparation to planting, harvesting, transportation, processing and plant operation, this project is projected to create over 100,000 direct and indirect jobs for Nigerians,’ he said.
Ashiru further said the project would unlock the economic potential of land assets that had remained underutilised over the years.
He said OORBDA would provide the land, water resources, community support and other enabling conditions required for the successful implementation of the project.
Ashiru urged residents of Itokin, Epe and Ikorodu axis to support the implementation of the project.
Managing Director and Chief Executive Officer of 3D NNPC Biofuel Company Nigeria Limited, Mr Patrick Azi, said the company selected OORBDA after assessing the readiness of the country’s 12 River Basin Development Authorities to implement Federal Government’s agricultural and renewable energy objectives.
He said OORBDA was selected because of its coverage of four states, availability of arable land, irrigation infrastructure and proximity to major cassava-producing areas.
He said: ‘We have 12 RBDAs in Nigeria. We looked at all the RBDAs and found out who was ready for business and who was ready to implement the mandate Mr President has given.
‘We have now decided to approach Ogun-Osun River Basin Development Authority because, first, you are covering four Western states. Secondly, our processing plant will be situated not too far from the feedstock.
‘Ogun, Oyo and Osun are predominantly farming states, and they have some of the highest outputs of cassava production in Nigeria today.’
Azi said the bioethanol plant would be located in Lagos State, while other components of the project would be developed in Ogun State.
He added that the partnership would leverage OORBDA’s irrigation facilities, dams, extension workers, farmers and extensive land holdings to increase cassava production.
According to him, the company plans to work with farmers to improve yields per hectare and establish a reliable feedstock supply chain for the ethanol plant.
He says NNPC holds a 25 per cent equity stake in the joint venture, adding that the partnership will increase the presence of NNPC, NNPC New Energy and 3D NNPC Biofuels in the region.
Azi said the signing of the MoU was only the beginning of the project and that the partners intended to move quickly towards implementation.
He added that the partners were targeting the commencement of the project before the end of the year.