Luka Biniyat
13 May 2008
Abuja — The Manufacturers Association of Nigeria (MAN) has affirmed that its members are ploughing in about N4.8 billion ($40 million) through the use of locally sourced cassava as raw materials for the mass production of ethanol in Nigeria. This was made known in a speech read recently in Abuja by the Director-General of MAN, Mr. Jide Mike at the first national conference on ethanol.
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He said that manufacturers had embraced the Federal Government's Cassava to Ethanol programme and were currently engaging over 10,000 cassava out-growers.
But, President of MAN, Alhaji Bashir Borodo, in his remarks, advised the Federal Government to stop the Nigerian National Petroleum Corporation (NNPC) from importing ethanol, as planned.
"The current tariff regime for rectified undenatured alcohol of 20% and 5% for crude denatured ethyl alcohol should be sustained to encourage local production," he added.
This, according to him, "is in view of the enormous investment by local ethanol producers in the backward integration policy of government.
"Ethanol manufacturers and blenders need to be encouraged and protected by government policies at all cost by removing all the impediments to growth so that in concept with other stakeholders, the most desired growth in our economy would be realised "Our group directly and indirectly employs more than 4, 000 Nigerians.
We provide employment to more than 200, 000 people in distribution trade. Our manufacturing plants process crude denatured ethanol, which serves as raw materials to pharmaceuticals, paints and perfumery industries in Nigeria. Thus, we are a linkage industry refining the raw, lowest grade ethanol into the highest grade through refining in our various factories.
Dunni Oyegbile, chairman, Ethanol Manufacturers and Blenders Association, in his remarks,said, "we have combined capacity to produce and meet the local demand. The combined capacity of our plants is currently put at 262 million litres per year while the market size is estimated at 200 million litres per year. From the above analysis, our combined capacity is 30 million litres higher than local market demand.
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