Engagement In West Africa Highlights Ethanol Promotion In Nigeria

In Nigeria, the transition to a new, more economically progressive administration and the decision to remove the fuel subsidy and devalue the Naira have combined to improve the prospects of lifting the current suspension on Nigeria’s E10 mandate. In response, U.S. Grains Council (USGC) staff and member representatives visited Lagos and Abuja earlier this month to engage with policymakers and market players.

Nigeria had previously implemented an E10 policy in 2007, however, the policy was short-lived. The main objective of the Council’s recent mission to the country was to enable the reinstitution of its E10 policy. In addition to stakeholder engagements and enhancing market awareness, the mission built on the success of the Global Ethanol Summit, which was well attended by relevant Nigerian stakeholders.

“The Global Ethanol Summit featured senior-level officials from agriculture, environment and energy ministries around the world discussing environmental, human health and economic benefits of bioethanol use with industry leaders, which helped build relationships that didn’t exist before,” said USGC President and CEO Ryan LeGrand.

“Nigeria is the largest importer of gasoline in Africa and an exporter of crude oil. Our research has demonstrated the substantial economic, environmental and commercial benefits of moving to an E10 blend. A successful E10 fuel policy in Nigeria will also encourage neighboring countries to implement a similar approach, in line with the “Clean Fuels Directive” adopted by ECOWAS,” LeGrand said.

During the mission, the team visited the Dangote oil refinery, the largest single train refinery in the world, with significant capacity to blend ethanol into gasoline. The team also met with industry groups, government officials and U.S. Department of Agriculture Foreign Agricultural Service (USDA FAS) regional posts.

The Council has already and will continue to engage with key stakeholders such as the NMDPRA, NNPC Limited, MOMAN, the Ministry of Finance, the Standards Organisation of Nigeria, the Ministry of Agriculture and the Ministry of Trade and Investment, and remain ready and willing to provide further support, or information that might be required by the Nigerian government and the private sector to move the process forward. Based on current market dynamics, a transition to E10 will deliver immediate cost savings for traders and distributors, and consequently, the Nigerian consumer.

This mission allowed the Council to continue promoting ethanol’s octane economics and its environmental benefits in reducing greenhouse gas (GHG) and carbon dioxide (CO2) emissions, while supporting policy development in Nigeria.

“The successful introduction of an E10 policy will require an integrated approach across government, and the Council is committed to working with the government of Nigeria to accelerate socio-economic development and the growth of Nigeria’s energy sector, while supporting the attainment of environmental goals. We believe Nigeria has the key enablers required to develop a successful ethanol market and a strong domestic value chain that can be unlocked by advancing the effective implementation of an E10 policy for Nigeria’s gasoline,” said Ramy H. Taieb, USGC regional director for Europe, the Middle East and Africa