19 November 2009

Nigeria: NCGA Signs N56 Billion Contract For Cassava Kerosene

Abuja — Nigeria Cassava Growers Association (NCGA) has signed a N56 billion contract with the Cassava Agro Industries Services Ltd (CAISL) for the supply of 8 million tons of cassava tubers to the national Cassakero cooking fuel programme.

The Chief Executive Officer of Cassava Agro Industries Services Ltd (CAISL) Boma Simeon Anga said this at a press briefing yesterday in Abuja. He said the Cassakero initiative is a project designed to replace kerosene and wood fuel with an alternative ethanol liquid cooking fuel produced using cassava as the feedstock.

He said: "The new fuel will be locally produced. It will be cheaper, cleaner and safer than kerosene. The fuel will be applied for cooking, lighting, electricity generation, refrigeration and heating.

"The production of this fuel and the distribution of the accompanying ethanol based appliances will create employment and wealth."

The Cassakero project is targeting the installation of 10,000 small scale bio ethanol refineries in the 36 states of the federation including the FCT, over the next four years to produce daily ethanol cooking fuel requirement for 4 million families.

Mr Boma said intending investors can access the Cassakero Trust Fund.

"The Cassakero Trust Fund" is a private trust fund created by a Trust Deed to facilitate the contribution of the beneficiaries of the fund.

The size of this fund is N150 billion and it is specially designed to provide low cost, long term capital finance for the bio-ethanol refineries", he said.

He said the fund will attract an interest rate is 9.5 percent for up to 10 years without collateral. The facility provides a payment moratorium 2 years.

"The security for the facility will be 51 percent Non Profit Equity in The Refineries. The Custodian Bank for the Cassakero Trust fund is Diamond Bank PLC and the Trustees are Intercontinental Trustees", he said.

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