Ogun-Oshun River Basin, NNPC biofuels ink MoU for €256m bioethanol plant

The Ogun-Osun River Basin Development Authority (ORBDA) and 3D NNPC Biofuels Limited have finalized a strategic partnership to establish a €256m bioethanol plant in the Itokin area of Lagos State, backed by extensive cassava cultivation across the South-West region.

Formalized in Abeokuta on Tuesday, the agreement will see ORBDA provide 200 hectares of land at its Itokin project site for the processing plant, alongside 15,000 hectares of arable land from its land bank dedicated to large-scale cassava farming.

This arrangement aims to secure a steady feedstock supply while integrating water resources, technical expertise, and an outgrower scheme to empower thousands of farmers, youth, and women across Lagos, Ogun, Osun, and Oyo states.

Speaking at the signing ceremony, ORBDA Managing Director Dr. Adedeji Ashiru described the initiative as a cornerstone for Nigeria’s energy independence, food security, and industrial revolution.

He noted that the project is projected to generate over 100,000 direct and indirect jobs throughout its value chain, from land preparation and farming to processing and operations.

He further revealed that the plant will produce renewable bioethanol to blend with Premium Motor Spirit, curbing carbon emissions and conserving foreign exchange previously lost to fuel imports.

Echoing these sentiments, Patrick Azi, Managing Director and CEO of 3D NNPC Biofuels Limited, explained that ORBDA was chosen for its vast regional footprint, established irrigation infrastructure, and strong agricultural foundation.

With NNPC holding a 25 percent equity stake in the joint venture, Azi announced that project development frameworks are moving rapidly, with an official flag-off targeted before the end of the year.