What are the Prospects and Challenges of Biofuels in Nigeria?

67 Pages Posted: 16 Nov 2011

See all articles by Kingsley Chigozie Onuoha

Kingsley Chigozie Onuoha

University of Dundee - Centre for Energy, Petroleum and Mineral Law & Policy (CEPMLP)/Lonadek Oil & Gas Consultants

Date Written: October 1, 2010

Abstract

So much attention has been drawn to the development of biofuel in recent times. Biofuel is seen as a means to alleviate global energy concerns, foster rural development and mitigate climate change. Since biofuel is changing the face of the energy sector in the world, Africa is not left out. Africa is on the verge of stepping into the biofuels industry in a big way, with every sector being placed in the use of cleaner renewable energy.

Nigeria, as the giant of Africa has mapped out comprehensive plans that will launch it into becoming one of the major players in the biofuels industry both at the continent and world levels. Despite strong indications of biofuels promotion, there are few countries currently participating in the production. However, production cost of biofuels is still relatively higher than those of fossil fuels and this poses a problem in the successful substitution of fossil fuels with biofuels. This work will focus on Nigeria’s biofuels industry by discussing the economic justification of promoting biofuels in terms of its costs and will investigate the challenges and opportunities abounding in the promotion of biofuels. Based on available data and information, we found that extensive biofuel usage induces huge financial costs. Presently biofuel production is not economically viable, and the drive for its production is driven by the policies of some countries that perceive it as the only possible alternative to fossil fuels and a way out from the declining world crude reserves.

Suggested Citation

Onuoha, Kingsley Chigozie, What are the Prospects and Challenges of Biofuels in Nigeria? (October 1, 2010). Available at SSRN: https://ssrn.com/abstract=1959778 or http://dx.doi.org/10.2139/ssrn.1959778

Kingsley Chigozie Onuoha (Contact Author)

University of Dundee - Centre for Energy, Petroleum and Mineral Law & Policy (CEPMLP)/Lonadek Oil & Gas Consultants ( email )

12 Jibowu Street,
Jibowu Yaba
Lagos
Nigeria
+2348187293543 (Phone)

HOME PAGE: http://www.lonadek.com

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