The Federal Government has taken steps to increase the production of fuel-grade ethanol in Nigeria as part of efforts to reduce the country’s dependence on imported energy products and ease pressure on foreign exchange.
The Minister of Budget and Economic Planning, Abubakar Atiku Bagudu, made this known during a capacity-building workshop for stakeholders involved in the Cassava Bio-Ethanol Value Chain Development Project held in Nasarawa State between March 11 and 12, 2026.
The initiative focuses on producing Fuel Grade Ethanol (FGE) from cassava for blending with Premium Motor Spirit (PMS), commonly known as petrol.
A statement from the Ministry of Budget and Economic Planning signed by Julie Osagie-Jacobs Director, Information and Public Relations said the move will help lower Nigeria’s energy import bill, reduce demand for foreign currency and support efforts to stabilise the naira.
Bagudu, who was represented at the event by the Director of the Economic Growth Department of the ministry, Muhammed Auwal, said the programme is designed to help Nigeria develop a strong local bio-energy industry that will support the economy and create jobs.
