Issues ahead of biofuels policy review
Nigeria is on the verge of reforming its biofuels policy as it has become exigent for the country to join the global search for better and cheaper energy sources in the wake of low oil price, militant attacks in the Niger Delta as well as depleting crude oil reserves.
The Petroleum Products Pricing Regulatory Agency (PPPRA) with critical stakeholders is already coordinating a biofuel policy review after the one approved in 2007 failed to drive the production of commercial biofuels.
Research has confirmed the reliability and acceptability of biofuels as a more environmentallyfriendly, cleaner and cheaper energy option for the country when compared with premium motor spirit (PMS) otherwise called petrol or other fossil fuels.
Biofuel which is a type of fuel derived from plant, animal matter and waste could be in the form of bioethanol (used as a replacement for petrol) and biodiesel (used as a replacement for diesel). Accordingly, the main feedstock for biofuel production in some developed countries include: Sugar cane (Brazil), Corn (US), Wheat (France), and Sweet potato (China). Research is ongoing in Malaysia to produce biofuel from palm oil.
The state of biofuels in Africa remains tenuous with South Africa being one of the few countries to commit to the development of biofuel with the approval of a national biofuels strategy in 2007.
Back to the drawing board
Nigeria had a policy on the bio-fuels development called the Nigerian Biofuels Policy and Incentives which was approved by the Federal Executive Council (FEC) on June 20th, 2007 and gazetted as a national biofuels policy at the same time.
The Nigeria National Petroleum Corporation (NNPC) was mandated to create an environment for the policy take-off with the aim to gradually reduce the nation’s dependence on imported gasoline, reduce environmental pollution and free up more crude for export.
But since 2007 when the policy was initiated, the country has not been able to muster the necessary will to properly articulate and implement it.
The Managing Director of Duyon Consult and a stakeholder in the biofuels value chain, Engr. Mike Oleikwu said that Nigeria had a policy in 2007 when the Kyoto Protocol was launched to promote the production of biofuel to replace the use of fossil fuel “but the policy was not implemented because of certain contingencies.”
The dissatisfaction of stakeholders with the gazette on the 2007 biofuel policy which they said was importdependent and importdriven necessitated a policy review.
In 2010 the PPPRA was given ministerial directive to undertake review of the Nigerian Bio-fuels Policy and Incentives (2007). The review was absolute and was concluded in the same year. But nothing concrete came out of it until the advent of this administration.
The minister of state for petroleum resources Ibe Kachikwu upon resumption, challenged the PPPRA to fast track the development of the policy and incentive document to provide an enabling environment for the biofuels industry to thrive. With the relentless efforts of the minister, the present administration has decided to give biofuels a new impetus to enable Nigeria and Nigerians only the benefits derivable therein.
Speaking on the importance of the anticipated policy at a recent biofuel stakeholders’ workshop, the Managing Director of Biodiesel Nigeria Ltd, Engr. Hussaini Solomon said the policy could put in place a structure for the nation to access foreign funds to develop domestic biofuel industry.
Also speaking at the workshop, the Acting Executive Secretary of the PPPRA Victor Z. Shidok said the new policy will be an all-encompassing one that captures the concerns of Nigerians regarding the production of biofuels. The latest biofuels policy review initiative is being undertaken with the ministry of petroleum resources, NNPC, states and federal government ministries and other stakeholders including feedstock farmers, blenders, depot owners and potential investors.
Biofuels: Nigeria’s hope, opportunities
Nigeria’s determination to diversify and reduce fuel importation has called for the urgency of an alternative energy source especially because of the dwindling price of crude oil and vandalization in the Niger Delta. An engineer, Dr. Mohammed M. Ibrahim said that biofuel production could be a catalyst for the commercialization and industrialization of Nigeria’s current subsistence agricultural and agro allied industry. Biofuel, he said will provide an opportunity for Nigeria to enter the growing global biofuel export market and improve its balance of trade with other nations.
The Head of Department, Environmental Engineering, University of Port Harcourt (Uniport) Dr. Ejikeme Ugwoha said while studies have shown that biofuels can be produced from garbage, Nigeria generates more waste than she can adequately handle.
“If utilized, Nigerian cities with numerous vast garbage dumps will be booming in biofuel production,” Ugwoha who is also the Assistant Director, Centre for Occupational Health, Safety and Environment, Institute of Petroleum Studies, Uniport added.
Bigger threats
In spite of the numerous advantages, and the existence of strong drivers for biofuel production in Nigeria, there are serious threats, a stakeholder Prince Olusola Akanmode said.
“The most readily available feedstock is food crops and therefore, enmeshed in the Food Versus Fuel debate. This constitutes a threat to sustainability,” he added.
Oxfam in a recent report forecasts that the price of staple foods will more than double in the next 20 years identifying biofuels as a factor and demanding that western governments end biofuel policies that divert food to fuel for cars. “We are sleepwalking towards an age of avoidable crisis,” Oxfam’s chief executive, Barbara Stocking said in the report.
But the National President Jatropha Growers Association of Nigeria Gen. Joshua Omosebi (rtd) said biofuel feedstock will in no way negatively affect the consumption of food by humans.