The Kwara State Government is actively promoting investment in cassava processing industries.

In line with the Nigeria Federal Government's goal of increasing biofuel production by using cassava, a company called Casplex Limited is planning an exciting project in the central state of Kwara.

Kwara Casplex Limited, a subsidiary of the mother company is going to produce an annual amount of 30 600 MT of ethanol every year by using cassava as an input. Casplex also has similar projects which are at an advanced stage of implementation in Oyo and Ekiti States. The team of Nigerians has taken on Chinese partners to assist with the technical aspects of the project.

Currently foreign and domestic demand for both food and fuel grade ethanol seems inexhaustible. A recent federal government policy has enabled the Nigeria National Petroleum Corporation (NNPC) to blend 10% of ethanol to gasoline. At this ratio around 1.3 billion litres of fuel grade ethanol will be required for the country and this is estimated to increase to 2 billion litres by 2020.

"Our ethanol production is purely on a commercial basis," says Casplex Director Femi Awoniyi. "We are going to sell the ethanol produced from our plants to both domestic and international markets. Because of the high demand for ethanol as a gasoline blend, the NNPC will be a buyer as a last resort. We are also working on a buy-back arrangement with our Chinese partner."

Overcoming the electricity crisis

What makes the project special is the fact that the company is going to convert agricultural waste into electricity to power the facility. "We have taken notice of the energy crisis in Nigeria which is affecting the productivity of virtually all manufacturing sectors in the economy. In our technology we shall use the waste water from the ethanol plant, cassava peels and other agricultural waste as the raw materials to produce biogas energy which in turn is used as fuel for the generation of electricity," says Awoniyi.

"The use of biogas as an energy source is cheaper than normal electricity and will guarantee zero downtime. We shall also supply excess energy to host communities. Our project is 100% self-sufficient in energy utilisation."

Casplex is also intending on taking its commitment to being a supplier of sustainable energy a step further by re-using the C0₂ emitted by the facility. Says Awoniyi: "CO₂ gas is a by-product of ethanol processing, which could be collected, purified and sold to various businesses such as soft drink manufacturers and food processing industries. In Nigeria a large proportion of CO₂ is still imported just as in the case of ethanol."

Cassava – the wonder crop

Ethanol can be produced with a variety of crops found in Kwara State, so why did Casplex specifically decide on cassava? "Cassava is the cheapest raw material for ethanol production in terms of cost, availability and sustainability. The return on investment is much bigger when cassava is used as a raw material compared to sugar cane or corn," says Awoniyi.

Nigeria is the world's foremost producer of cassava with about 40 million tonnes of tubers harvested every year. Although it is widely used as a food source, the industrial application of the crop in Nigeria has been disappointingly low. There are many lucrative opportunities for the processing of cassava into flour, starch, citric acid and a various sugars. A new law is also forcing bread producers to add 10% of cassava flour to their mix.

To guarantee a constant supply of cassava for the project the company will implement three strategies. Casplex is going to grow cassava on its own farm of around 15 000 hectares. They are also going to use the "Outgrowers Scheme", an arrangement between farmers and biofuel companies. Contract farming schemes will also ensure a steady supply of the crop.

Kwara State Government – passionate about investment

Kwara State has repeatedly stated its commitment to attract investment to the state. According to Prof. Mohammed G. Yisa, Kwara State Commissioner for Agriculture and Natural Resources, "the government of Kwara State has created favourable conditions for investors."

Awoniyi confirms the commissioner’s statement. "Kwara State's response to investment has been remarkable. The administration keeps its door open to investors. The state government is contributing 15 000 hectares of land to our project as part of its equity share, and they have created the necessary enabling environment for us to operate."

The local population is also set to benefit from the construction of the ethanol facility. Kwara Casplex has included the local community as equity stakeholders in their programme to prevent a repeat of the Niger-Delta situation. Since the project is essentially a form of rural industrialisation Awoniyi sees job creation, increased economic development and the empowerment of rural communities as inevitable.

With innovative projects such as this continuing to spring up in Nigeria, the country's vision of being one of the world's 20 largest economies by 2020 might just well become a reality.