Fuel Scarcity: 5 Agricultural Alternatives to Petrol

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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

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Frank Altman

Non-Executive Director

Pioneer of secondary markets for community development and $3.5B+ in managed funding.

Frank Altman is the founder and first CEO of the Community Reinvestment Fund (CRF), USA, where he pioneered secondary markets for economic development loans. Under his leadership, CRF funded over $3.5 billion in loans across 50 U.S. states. He was instrumental in designing the federal New Markets Tax Credit and is an advisor to the Federal Reserve Bank of San Francisco.

Altman is an Ashoka Senior Fellow and the author of A New Capitalism: Creating A Just Economy That Works For All. He brings global expertise in risk management and capital structures to Babban Gona.

Michael Jainzik

Independent Non-Executive 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.

Alhaji Bello Maccido

Board Chairman

Over 32 years of executive leadership in corporate and investment banking.

Alhaji Bello Maccido is a distinguished leader in the Nigerian financial services sector. He currently serves as the Chairman of FBN Merchant Bank Ltd. and has previously held board positions at FBN Holdings Plc, First Bank of Nigeria Plc, and Legacy Pension Manager Limited.

He holds the traditional title of “Wakilin Sokoto” and is a Fellow of both the Chartered Institute of Stockbrokers and the Chartered Institute of Bankers of Nigeria.

Alhaji Maccido’s educational background includes an LL.B from Ahmadu Bello University and an MBA from Wayne State University. He is a Barrister at Law (BL) of the Supreme Court of Nigeria and an alumnus of executive programs at Harvard Business School and IMD Lausanne.

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

Non-Executive Director

Dr. Lola Masha is a seasoned technology leader with over 15 years of experience at the intersection of mobility, technology, and agriculture. She currently serves as a Partner at Antler, a global early-stage venture capital firm. Previously, she was the Regional General Manager for North, East, and West Africa at Bolt, overseeing strategic operations in a high-growth mobility sector.

Her career includes leadership roles as Director of Trust and Safety at OLX Group (overseeing 30+ markets) and Country Manager for OLX Nigeria. She was also one of the earliest employees at Google Sub-Saharan Africa. Dr. Masha holds a PhD in Chemical Engineering from the University of California, Berkeley, and a B.Sc. from the University of Virginia.

Kola Masha

Managing Director

First leader of a for-profit social enterprise to win the Skoll Award for Social Entrepreneurship.

Prior to co-founding Babban Gona, Kola was CEO of a subsidiary in the Notore Group, where he led a commercial strategy to sell one million tons of fertilizer and raised $130 million in equity.

He has held leadership roles at GE and Abiomed and served as a Senior Advisor to the Nigerian Minister of Agriculture.

Under his leadership, Babban Gona became the first for-profit social enterprise to win the prestigious Skoll Award for Social Entrepreneurship, recognizing the organization’s innovative approach to transforming smallholder farming in Nigeria.

He holds an MBA with Honors from Harvard and a Master’s in Mechanical Engineering from MIT.

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.