Fuel Scarcity: 5 Agricultural Alternatives to Petrol

By
agricultural alternative petrol

Premium Motor Spirit also known as petrol or locally regarded as fuel in Nigeria is the country’s most consumed product from crude oil. According to data sourced from the Nigerian National Petroleum Corporation (NNPC), the daily consumption of fuel in Nigeria was at 72.07 million litres in May, 2021. Majority of Nigerians use petroleum-based vehicles and power generators. 

There is a large dependence on petroleum in Nigeria, largely due to unstable power supply, Nigerians use power generating sets to power up their businesses and homes.

The nation is currently facing a looming threat of widespread petrol scarcity, due to imported petroleum products having excess methanol, the Independent Petroleum Marketers Association of Nigeria (IPMAN) have also come out to state that the fuel scarcity crisis may last another two weeks. We believe that it may be a smart decision for the country to start considering agricultural alternatives to petrol. This will not only tackle the fast-growing fuel crisis but also reduce the country’s dependence on crude oil as the major source of revenue for the government. 

Agricultural Alternatives to Petrol

Agricultural alternatives to petrol are commonly referred to as Biofuels and they include (but are not limited to) the following:

  1. Ethanol From Maize or Sugarcane
  2. Palm Oil
  3. Canola Oil
  4. Soybean Oil
  5. Cottonseed Oil
ethanol maize

Ethanol From Maize or Sugarcane

Maize is a rich source of ethanol-based biofuels, especially sugar rich maize. Thankfully, Nigeria happens to have this valuable grain in abundance. Nigeria is Africa’s largest producer of maize, followed by South Africa, Egypt, and Ethiopia. Ethanol can be obtained from maize through a process called fermentation. Yeast is used to ferment a mixture of the corn kernels and warm water, the ethanol produced is then blended with gasoline to produce a biofuel that can be used in existing car engines. Unlike petrol, this biofuel releases less carbon monoxide, nitrogen oxide, and sulphur into the environment. Thus, it minimizes air pollution.

Sugarcane is yet another rich source of bioethanol and noteworthily, producing ethanol from sugarcane is reportedly six times cheaper than using corn. However, massive amounts of greenhouse gasses are typically released into the atmosphere during the harvesting of sugarcane, so obtaining this biofuel from sugarcane can result in a lot of damage if appropriate safety measures are not taken. In Nigeria, sugarcane can be cultivated almost in all the states locally but commercially it is produced in; Kastina, Taraba, Kano, Adamawa, Jigawa, Kaduna, Kebbi, and Sokoto State.

palm oil

Palm Oil

According to the United States Department of Agriculture (USDA), Nigeria is the fifth largest palm oil producing country in the world, with 1.5% or 1.03 million metric tonnes of the world’s total output. This edible vegetable oil is commonly used to prepare numerous nigerian delicacies, not many are aware of its value as an energy-efficient biofuel. Palm oil based biodiesel is less polluting than gasoline and has helped develop the economies of countries like Malaysia and Indonesia.

Research has shown that bioel palm oil based biofuel has certain advantages over petroleum-based diesel. For example, its sulfur content is much lower, this is an advantage because the sulfur dioxide release from the use of petroleum-based diesel is a serious atmospheric pollutant which can lead to acid rain and is hazardous to human health. It also produces far less carbon residues, which means that it will leave less carbon build-up in a diesel engine than petroleum diesel. Palm oil-based biodiesel also has some physical and chemical disadvantages, such as a higher viscosity, a higher flashpoint, and a lower gross heat of combustion.

Canola Oil

Canola oil is a vegetable oil derived from a variety of rapeseed that is low in erucic acid. It is commonly used to cook food, however it is now recognized as an important biofuel source. Canola oil can be processed into low-carbon biofuels: biodiesel, renewable diesel and aviation fuel. It can also be utilized at petroleum refineries to lower the greenhouse gas emissions of transportation fuels.

Biofuels derived from plant oils do not usually fare well in cold climates because plant oils tend to be high in saturated fats, which allow ice crystals to form at low temperatures. Unlike other plant oils, Canola oil contains low amounts of saturated fats, which clearly gives it an advantage in colder environments than its alternatives. Canola-based biofuel can be used by passenger vehicles and trucks, as well as off-road equipment used in mining, forestry, construction, agriculture and marine industries. 

Soybean Oil

Soy biodiesel is a fuel alternative produced from soybean oil. Like other biofuels, Soybean oil is better for the environment because it is made from renewable resources and has lower emissions compared to petroleum diesel. To be transformed into usable biofuel, Soybean oil must undergo a chemical process called transesterification whereby glycerin is separated from the soybean oil. According to the International Institute of Tropical Agriculture, Nigeria is the largest producer of soybean in sub-Saharan Africa, followed by South Africa and according to UNL CropWatch, one bushel of soybeans can yield 1.5 gallons of biodiesel. Therefore, soybean oil could prove to be a valuable alternative to petrol in Nigeria.

cotton seed oil

Cottonseed Oil

Cotton is still a major cash crop in Nigeria even though its production seems to be dwindling in recent times. Cottonseed is non-edible and even poisonous to humans, this makes it a perfect agricultural alternative to petrol because its usage for large scale production of biofuel will not affect food production in any way. Out of various oil sources for biodiesel production, cottonseed oil is the most prominent source for biodiesel production in India. Biofuel can be obtained from crude cottonseed oil by transesterification with methanol in the presence of sodium hydroxide.

Biofuels are already being used as substitutes for petroleum and other fossil fuels in countless countries. These agricultural alternatives to petrol are biodegradable, sustainable and environmentally friendly, their production and usage could potentially allow us to decrease our dependence on Petroleum.

1 thought on “Fuel Scarcity: 5 Agricultural Alternatives to Petrol”

  1. Noah Michael Mutah

    This is indeed a breakthrough for our country if private companies can look into it and implement it with government support and approval.

    Reply

Leave a Comment

Your email address will not be published. Required fields are marked *

bg-logo

Stay in touch with us

Subscribe to our newsletter to receive Babban Gona's Blog updates.

View Fullscreen
View Fullscreen

Frank Altman

Board Director

Frank Altman is the founder and first CEO of Community Reinvestment Fund, USA. As CRF’s founder, Altman pioneered the development of a secondary market for community and economic development loans. Since 1988, under Altman’s leadership and in partnership with a network of more than 200 local community partners, CRF has funded more than $3.5 billion in loans to job-creating small businesses, non-profits, charter schools and affordable housing projects in 50 states plus the District of Columbia and more than 1,000 communities across the United States.
 
Altman helped design the creation of the federal New Markets Tax Credit to encourage private investment in low-income communities and is a founding member and first President of the New Markets Tax Credit Coalition. He is also a member of the Center for Community Development Investors at the Federal Reserve Bank of San Francisco and an advisor to the Social Innovation Initiative at Brown University and the Center for Impact Finance at the University of New Hampshire. His work has been featured in Inc. Magazine, where he was named one of its Entrepreneurs of the Year, and he received Fast Company’s Social Capitalist award.
 
Altman has been awarded the Economic Development Innovation Award from GIS Planning Inc. and fDi Intelligence for his contribution to the field of economic development. Altman is a Senior Fellow at Ashoka, the world-wide network of social entrepreneurs and a founding member of Kindred.
 
More recently, in September 2023, Altman authored a book published by Forbes and titled “A New Capitalism: Creating A Just Economy That Works For All.”It is available in physical and online book stores and on Audible.

Michael Jainzik

Board Director

Michael Jainzik works as an independent consultant and brings his extensive expertise in the areas of agricultural finance, international investments, risk management and corporate governance. He is currently based in Rome, Italy.
 
From 2001 to 2011, Michael worked as an investment professional at KfW Development Bank, focusing on international debt financing and equity investments in investment funds and banking institutions, mainly in the areas of agricultural finance and microfinance. From 2011 to 2015 he worked as Director of KfW’s office in Windhoek. In this role, he helped manage and develop KfW’s EUR 250 million portfolio in Namibia. From 2015 to 2017, he took on the position of Head of Corporate Development at Access Microfinance Holding, where he was responsible for structuring and leading a merger process between Access Holding and another company.
 
Prior to joining Babban Gona, Michael served as a non-executive director in Access Bank Azerbaijan (2006-2011, Chairman), Belarusian Bank for Small Business (2008-2011), Rural Impulse Fund II Luxemburg (2010-2011) and AB Bank Zambia (2011-2016).
 
Michael studied economics and management at the Universities of Lüneburg and Witten/Herdecke (Germany) and at ETEA – Universidad Loyola in Córdoba (Spain) and holds a Master’s degree in economics and management.

Bello Maccido

Board Member

 Mr. Maccido is an accomplished Corporate and Investment banker with over 31 years post graduate experience. He had at different times served on the Boards of FBN Holdings Plc, First Bank of Nigeria Plc and Legacy Pension Manager Limited and is currently the Chairman, FBN Merchant Bank Ltd. Mr. Maccido is a Fellow of both the Chartered Institute of Stockbrokers and the Chartered Institute of Bankers of Nigeria. Mr. Maccido holds a Law Degree (LL.B) and a Masters Degree in Business Administration (MBA) from Ahmadu Bello University, Zaria and Wayne State University, Detroit, Michigan, USA respectively. He is a Barrister at Law (BL) of the Supreme Court of Nigeria and an Alumnus of the Executive Business Programs of the Harvard Business School and the IMD, Lausanne, Switzerland.

Muhammad Sanusi, CON

Chairman of the Board

His Highness Muhammad Sanusi was appointed the 10th Governor and Chairman of the Board, Central Bank of Nigeria on 3 June 2009. He earned Bachelor’s and Master’s degrees in Economics from the Ahmadu Bello University, Zaria, and also has a first-class degree in Sharia and Islamic Studies from the African International University, Khartoum, Sudan.
 
From working as a lecturer at the Ahmadu Bello University, where he taught Economics, he joined the banking industry in 1985, and by January 2009 had risen to General Manager and Group Managing Director of First Bank of Nigeria PLC, Nigeria’s oldest and biggest bank. Mallam Sanusi has been conferred with a National Award of Commander of the Order of the Niger (CON) by the President of the Federal Republic of Nigeria and has also been awarded the “Global Central Bank Governor for 2010” by The Banker Magazine, a publication of the Financial Times.
 
He was also voted Central Bank Governor of the Year for Sub-Saharan Africa 2009 (an award he won again in 2010) by Emerging Markets, a publication of Euromoney Institutional Investors. In 2011, Mr. Sanusi was named Forbes Africa Person of the Year for 2011. He was also listed by TIME Magazine as one of the 100 most influential people in the world. Kola Masha (Managing Director) Prior to Babban Gona, Kola was a Managing Director and CEO of a major subsidiary in the Notore.

Lola Masha

Executive Director

 

Before joining Babban Gona, Lola was the Director for Trust and Safety at OLX Group, working across 30+ OLX markets to ensure that buyers and sellers can transact safely and securely on the platform. Prior to her global role at OLX, Lola was the Country Manager for OLX in Nigeria where she was responsible for driving all elements of the business including Business Development, Product Localization, Marketing and other relevant functions. OLX Group is one of the world’s leading online classifieds players. Through its brands including OLX, Avito, dubizzle and letgo, OLX Group is the home of online classifieds in high-growth markets.

These platforms are the leading destination for buying and selling used goods and services in 30 countries, and the #1 mobile app in its category in more than 20 markets. Globally ~ 11 million items are exchanged through its platforms every single month.

Prior to joining OLX, Lola spent 4 years at Google leading various Product Partnerships efforts across EMEA and Emerging Markets. Lola was one of the earliest Googlers in Sub-Saharan Africa when the technology company began its operations in the region.

Lola shaped the regional strategy, executed on several core initiatives and led business development efforts with key SSA partners including the telcos, OEMs, digital content providers and local entrepreneurs. Lola brings significant leadership experience in business development, entrepreneurship, operational transformation and product development across several industries including technology and financial services.

In addition to Africa, Lola has substantial international working experience in North America, Europe, and Asia. She also worked in the Chicago office of McKinsey & Company, where she spent time advising senior executives on extensive strategic management topics. Lola holds a Doctorate degree in Engineering from the UniversiAnnual Report 2019/2020 ty of California, Berkeley and a Bachelor of Science degree in Engineering from the University of Virginia. She is happily married with two kids.

Kola Masha

Managing Director

 Prior to Babban Gona, Kola was a Managing Director and CEO of a major subsidiary in the Notore Group, one of Nigeria’s leading agricultural conglomerates, where he raised US$24 Million to develop an integrated agricultural trading, production and processing business.

Furthermore, he led the development and execution of Notore’s commercial strategy across West and Central Africa, preparing the company to sell one million tons of fertilizer and establish a modern seed business.

He led the effort to raise $130 million in equity and the restructuring of $360 Million in debt. Kola brings significant leadership experience in venture capital, corporate finance, business development, marketing and operations, across four continents with multiple global companies, including GE, Notore and Abiomed. In addition, Kola brings extensive public sector experience as Senior Advisor to the Nigerian Minister of Agriculture.

In recognition for his leadership in driving positive change on the African Continent, he has received several global awards including the prestigious Eisenhower Fellowship, a leading leadership institute led by General Collin Powell and appointed to the Board of the African Enterprise Challenge Fund, a $250 Million fund that awards grants and repayable grants to private sector companies to support innovative business ideas in agriculture, agribusiness, renewable energy, adaptation to climate change and access to information and financial services. Kola holds an MBA (Honors) from Harvard and a Masters in Mechanical Engineering from the Massachusetts Institute of Technology.

Kola Masha

 

Prior to Babban Gona, Kola was a Managing Director and CEO of a major subsidiary in the Notore Group, one of Nigeria’s leading agricultural conglomerates, where he raised US$24 Million to develop an integrated agricultural trading, production and processing business.

Furthermore, he led the development and execution of Notore’s commercial strategy across West and Central Africa, preparing the company to sell one million tons of fertilizer and establish a modern seed business.

He led the effort to raise $130 million in equity and the restructuring of $360 Million in debt. Kola brings significant leadership experience in venture capital, corporate finance, business development, marketing and operations, across four continents with multiple global companies, including GE, Notore and Abiomed. In addition, Kola brings extensive public sector experience as Senior Advisor to the Nigerian Minister of Agriculture.

In recognition for his leadership in driving positive change on the African Continent, he has received several global awards including the prestigious Eisenhower Fellowship, a leading leadership institute led by General Collin Powell and appointed to the Board of the African Enterprise Challenge Fund, a $250 Million fund that awards grants and repayable grants to private sector companies to support innovative business ideas in agriculture, agribusiness, renewable energy, adaptation to climate change and access to information and financial services. Kola holds an MBA (Honors) from Harvard and a Masters in Mechanical Engineering from the Massachusetts Institute of Technology.