Nigeria faces a growing demand for ethanol, but continues to import the product despite having the capacity to produce it locally from cassava. The Nigeria Cassava Investment Accelerator (NCIA) has highlighted this contradiction, pointing to underutilised domestic potential. Cassava, a staple crop grown across the country, can be processed into ethanol for use in fuel, pharmaceuticals, and sanitizers. Yet Nigeria still spends foreign exchange on ethanol imports while farmers struggle to find consistent markets for their harvests. NCIA officials say the gap stems from weak linkages between agriculture and industrial policy, poor infrastructure, and inconsistent government support. One NCIA representative stated, "We are importing what our soil can produce, and that is not sustainable." The country's ethanol consumption is projected to rise, driven by demand in the health and energy sectors. Locally driven production could reduce import dependence and boost rural economies. However, current processing capacity remains far below what is needed to meet demand.
The real issue isn't Nigeria's inability to produce ethanol—it's the years of policy inaction despite clear warnings from bodies like the NCIA. With cassava readily available and ethanol demand rising, the failure to scale processing infrastructure means Nigeria keeps funneling money abroad. This isn't a technical shortfall; it's a political and bureaucratic one. Until ministries stop treating agriculture as subsistence rather than industry, the cassava paradox will keep draining the economy.
