OGUN-OSUN RIVER BASIN, NNPC BIOFUELS SIGN €256M BIOETHANOL PLANT DEAL

The Ogun-Osun River Basin Development Authority and 3D NNPC Biofuels Limited have signed a Memorandum of Understanding for the development of a €256m bioethanol plant in the Itokin area of Lagos State.

The agreement, signed on Tuesday in Abeokuta, Ogun State, also covers the cultivation of cassava on 15,000 hectares of arable land across Lagos, Ogun, Osun and Oyo states.

Under the agreement, the Ogun-Osun River Basin Development Authority will provide 200 hectares of land at its Itokin project site for the construction of the bioethanol plant.

The authority will also make 15,000 hectares of land available from its land bank for large-scale cassava production to supply the facility with the required feedstock.

Speaking at the signing ceremony, the Managing Director and Chief Executive Officer of the authority, Adedeji Ashiru, said the project would support Nigeria’s energy and food security while promoting industrial development and job creation.

Ashiru said the plant would produce renewable bioethanol for blending with Premium Motor Spirit and could help reduce fuel import dependence and the country’s carbon footprint.

He added that the cassava farming component would create an outgrower scheme expected to involve thousands of farmers, women and young people across the participating communities.

According to him, the project is projected to create more than 100,000 direct and indirect jobs across activities including land preparation, farming, transportation, processing and plant operations.

The project will see the Ogun-Osun River Basin Development Authority provide land, water resources and community support, while 3D NNPC Biofuels will provide funding, technology, technical expertise and off-taker arrangements.

The Managing Director of 3D NNPC Biofuels Limited, Patrick Azi, said the company selected the authority after assessing the readiness of River Basin Development Authorities to support the Federal Government’s renewable energy and agricultural development plans.

Azi said the region was suitable because of its arable land, irrigation facilities and strong cassava production base across the four states.

He said the partnership would bring together farmers, land, irrigation infrastructure and technical resources to develop an integrated agricultural and industrial value chain.

Azi added that NNPC holds a 25 per cent equity stake in the joint venture and said the partners would work towards finalising the framework agreement and commencing the project within weeks, with plans to flag it off before the end of 2026.