The Ogun-Osun River Basin Development Authority (ORBDA) and 3D NNPC Biofuels Limited have signed a €256 million agreement to develop a large-scale bioethanol processing plant at Itokin in Lagos State, alongside a 15,000-hectare cassava cultivation scheme across four South-West states.
The Memorandum of Understanding (MoU), signed on Tuesday in Abeokuta, Ogun State, provides for ORBDA to allocate 200 hectares of land at its Itokin project site for the plant, while another 15,000 hectares from its land bank will support commercial cassava production in Lagos, Ogun, Osun and Oyo states.
The project is designed to establish an integrated agricultural and industrial value chain, with cassava from farmers across the four states supplying feedstock to the proposed bioethanol facility.
ORBDA Managing Director and Chief Executive Officer, Adedeji Ashiru, said the partnership would support Nigeria’s energy and food security objectives while creating opportunities for industrialisation, job creation and renewable energy development.
He said the project would also unlock the economic potential of underutilised government assets and support the production of renewable bioethanol for blending with Premium Motor Spirit (PMS).
According to Ashiru, the authority will provide land, water resources, community support and an enabling environment, while 3D NNPC Biofuels will bring technical expertise, financing, technology and off-taker assurance.
He said the 15,000-hectare cassava programme would establish a large-scale outgrower scheme involving farmers, women and young people across the participating states.
“From land preparation to planting, harvesting, transportation, processing and plant operation, this project is projected to create over 100,000 direct and indirect jobs for Nigerians,” Ashiru said.
The ORBDA chief executive added that the project could help reduce carbon emissions and foreign exchange expenditure associated with fuel imports by expanding the use of domestically produced renewable fuel.
The Managing Director and Chief Executive Officer of 3D NNPC Biofuels Limited, Patrick Azi, said ORBDA was selected after an assessment of Nigeria’s 12 River Basin Development Authorities and their capacity to support renewable energy and agricultural development.
He said ORBDA stood out because of its coverage across four South-West states, access to arable land and irrigation infrastructure, and the region’s established cassava production base.
Azi said the processing plant would be located in Lagos, while cassava would be cultivated by farmers across Lagos, Ogun, Osun and Oyo states.
He said ORBDA’s land, dams, irrigation facilities, extension workers and farmer networks would provide the foundation for the project, while 3D NNPC Biofuels would support land preparation, farmer development and measures to improve cassava yields.
Azi stressed that securing a consistent supply of cassava would be critical to the plant’s long-term operation.
He also disclosed that the Nigerian National Petroleum Company Limited (NNPC) holds a 25 per cent equity stake in the joint venture, describing the investment as an avenue for the national oil company to deepen its presence in communities across the region.
The partners are expected to develop the framework agreement and begin implementation within weeks, with the project targeted for a formal flag-off before the end of the year.
