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Can the Nigerian biofuel policy and incentives (2007) transform Nigeria into a biofuel economy?

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  • Ohimain, Elijah I.

Abstract

Nigeria's economy is largely dependent on petroleum, yet the country is suffering from fuel supply shortages. In response to the transportation fuel supply difficulties in Nigeria, the country released the Nigerian Biofuel Policy and Incentives in 2007 to create favorable investment climate for the entrance of Nigeria into the biofuel sector. The paper assessed the progress made thus far by Nigeria, 4 years after the Nigerian biofuel was released in an attempt to answer the question whether the policy is adequate to transform Nigeria into a biofuel economy. The study found that little progress has been made, which includes commencement of the construction of 20 bioethanol factories, installation of biofuel handling facilities at two depots (Mosimi and Atlas Cove), and selection of retail outlets for biofuel/conventional fuel mix. The site construction of the announced biofuel projects is now slow and other progress is marginal. We therefore conclude that the Nigerian biofuel policy is unlikely to transform Nigeria into a biofuel economy unless the Government revert and refocus on biofuel and include additional financial incentives such as grants and subsidy to complement the tax waivers (income, import duty, VAT), loans, and insurance cover contained in the policy.

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  • Ohimain, Elijah I., 2013. "Can the Nigerian biofuel policy and incentives (2007) transform Nigeria into a biofuel economy?," Energy Policy, Elsevier, vol. 54(C), pages 352-359.
    • Handle: RePEc:eee:enepol:v:54:y:2013:i:c:p:352-359
    DOI: 10.1016/j.enpol.2012.11.051
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    References listed on IDEAS

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    Cited by:

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    2. Elum, Z.A. & Momodu, A.S., 2017. "Climate change mitigation and renewable energy for sustainable development in Nigeria: A discourse approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 72-80.
    3. Emodi, Nnaemeka Vincent & Boo, Kyung-Jin, 2015. "Sustainable energy development in Nigeria: Current status and policy options," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 356-381.
    4. Pries, Fred & Talebi, Alireza & Schillo, R. Sandra & Lemay, Margaret A., 2016. "Risks affecting the biofuels industry: A US and Canadian company perspective," Energy Policy, Elsevier, vol. 97(C), pages 93-101.
    5. Iye, Edward & Bilsborrow, Paul, 2013. "Cellulosic ethanol production from agricultural residues in Nigeria," Energy Policy, Elsevier, vol. 63(C), pages 207-214.
    6. Declerck, Francis & Hikouatcha, Prince & Tchoffo, Guillaume & Tédongap, Roméo, 2023. "Biofuel policies and their ripple effects: An analysis of vegetable oil price dynamics and global consumer responses," Energy Economics, Elsevier, vol. 128(C).
    7. Shehu, Basiru Gwandu & Clarke, Michèle L., 2020. "Successful and sustainable crop based biodiesel programme in Nigeria through ecological optimisation and intersectoral policy realignment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    8. Dioha, Michael O. & Kumar, Atul, 2020. "Sustainable energy pathways for land transport in Nigeria," Utilities Policy, Elsevier, vol. 64(C).
    9. Giwa, Adewale & Alabi, Adetunji & Yusuf, Ahmed & Olukan, Tuza, 2017. "A comprehensive review on biomass and solar energy for sustainable energy generation in Nigeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 620-641.
    10. Dick, Ndukwe Agbai & Wilson, Paul, 2018. "Analysis of the inherent energy-food dilemma of the Nigerian biofuels policy using partial equilibrium model: The Nigerian Energy-Food Model (NEFM)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 98(C), pages 500-514.
    11. Ahmed, Abubakari & Campion, Benjamin Betey & Gasparatos, Alexandros, 2017. "Biofuel development in Ghana: policies of expansion and drivers of failure in the jatropha sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 133-149.
    12. Nwozor, Agaptus & Oshewolo, Segun & Owoeye, Gbenga & Okidu, Onjefu, 2021. "Nigeria's quest for alternative clean energy development: A cobweb of opportunities, pitfalls and multiple dilemmas," Energy Policy, Elsevier, vol. 149(C).

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