€256m Lagos Plant to Make Bioethanol for Blending with Petrol

A €256m Lagos plant is expected to make bioethanol for blending with petrol. The plant will produce renewable bioethanol for blending with Premium Motor Spirit, which is petrol.

Dr Adedeji Ashiru, Managing Director and Chief Executive Officer of the Ogun-Osun River Basin Development Authority (OORBDA), said this will help reduce dependence on imported fuel.

The partners plan to start the project before the end of the year, a report dated 1 October 2026 said. OORBDA, 3D NNPC Biofuels Limited and the Nigerian National Petroleum Company Limited (NNPCL) have signed a Memorandum of Understanding (MoU) for the €256 million plant at Itokin, Lagos State.

Fuel for blending with petrol

Ashiru said the project will support the Federal Government's biofuel and energy transition policies. He said it will do so by producing renewable bioethanol for blending with petrol.

He also said the project fits the Federal Government's drive to promote food security, energy security and wealth creation. He said this will come through the commercialisation of public assets.

"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.

Patrick Azi, Managing Director and Chief Executive Officer of 3D NNPC Biofuel Company Nigeria Limited, said the bioethanol plant will be in Lagos State. He said other parts of the project will be developed in Ogun State.

The agreement also provides for cassava farming on 15,000 hectares. The cassava will supply feedstock for the plant. Feedstock is the raw material that feeds a plant.

Azi said the partners will use OORBDA's irrigation facilities, dams, extension workers, farmers and large land holdings to increase cassava production.

He said the company plans to work with farmers to improve yields per hectare. It also plans to set up a reliable feedstock supply chain for the ethanol plant.

Ashiru said the 15,000-hectare programme will support an out-grower scheme. Under such a scheme, farmers grow crops for a company that buys them. He said it will involve farmers, women and youths in host communities.

Who provides what

OORBDA will provide 200 hectares at its Itokin project site for the plant. It will also provide 15,000 hectares from its land bank for large-scale cassava farming.

Ashiru said OORBDA will provide the land, water resources, community support and other conditions needed for the project to succeed. He said 3D NNPC Biofuels will provide technical expertise, funding, technology and off-take assurance. Off-take assurance means a promise to buy the plant's output.

Azi said NNPC holds a 25 per cent equity stake in the joint venture. Equity is a share of ownership. He said the partnership will increase the presence of NNPC, NNPC New Energy and 3D NNPC Biofuels in the region.

Azi said his company chose OORBDA after it assessed the readiness of Nigeria's 12 River Basin Development Authorities. He said the company wanted to find which one could carry out the Federal Government's agricultural and renewable energy objectives.

He said OORBDA was chosen for its coverage of four states, its arable land, its irrigation infrastructure and its closeness to major cassava-producing areas.

"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.

Ashiru said the project is projected to create more than 100,000 direct and indirect jobs. He said the jobs will cover agriculture, transport, processing and industry. He asked residents of Itokin, Epe and Ikorodu to support the project.

Azi said the MoU signing is only the beginning of the project. He said the partners intend to work quickly towards implementation.