Nigeria attracts $300m investment into biofuel refinery — Alabi

Managing Director/CEO of Davidorlah Farms, Mr Oluwasegun Alabi, on Thursday disclosed that an American firm has expressed interest in investing $300 million for the establishment of a biofuel refinery in Nigeria.

Mr Alabi, who gave the hint during a media chat with Parliamentary Correspondents in Abuja, explained that the proposed biofuel refinery is to be located in Ogun State due to the availability of sufficient agricultural produce as raw materials for the biofuel company.

While expressing optimism about Nigeria’s potential in rejuvenating the economy through effective private sector participation in agriculture, he disclosed that Nigeria’s pineapple remains the best globally, adding that the subsector has a vast untapped value chain.

He explained that Davidorlah Farms has initiated a proposal through the Federal Ministry of Agriculture and the State Ministry of Agriculture to set up agricultural training centres across the 36 states of the federation and the FCT.

Mr Alabi added that the company has also built a hostel with a 100-capacity, which will provide accommodation for over 200 youths on its farm.

While expressing confidence that agriculture remains the bedrock of Nigeria’s economy, he stated that the agricultural sector “holds immense potential to significantly increase our Gross Domestic Product (GDP).”

Expressing displeasure over the status of the country’s foreign exchange earnings, he lamented that: “Despite the growth in agricultural exports, Nigeria faces a substantial trade deficit in the sector. In 2023, the value of agricultural imports exceeded exports by ₦1.037 trillion, marking the fifth consecutive year of such a loss.

“This imbalance is primarily due to the importation of processed and finished food products, such as wheat, sugar, and concentrate, to mention a few, which Nigeria has the capacity to produce domestically.”

“Oil may be Nigeria’s top source of foreign income, but agriculture is quietly rising as a powerful force. With Nigeria ranking fourth in the world for exports like cocoa, etc., there’s huge potential waiting to be unlocked. Yet, we still import a lot of food, a sign that our farms need more support and better infrastructure. By boosting our agricultural exports, we can reduce our heavy dependence on oil and protect our economy from global price shocks. Plus, the foreign income from these exports can be reinvested into modern tools, better roads, and smarter farming, helping our farmers grow more and earn more.

“Nigeria loses billions annually importing food. Davidorlah’s export-focused production model aims to reverse this trend. By meeting global standards in pineapple quality and logistics, we open doors to international markets, thus earning foreign exchange and strengthening the naira.”

He, however, expressed optimism that “with our vast arable land, favourable climate, and a resilient labour force, Nigeria is uniquely positioned to harness agriculture for sustainable economic growth. Agriculture is as old as the history of man and serves as the lifeblood of the economy. This is based on the fact that agriculture plays a major role in economic growth and development. As the provider of food, it is a cornerstone of human existence.

“Agriculture is a way of life that involves the production of animals, fisheries, crops, and forest resources for human consumption and supplying agro products required by other sectors. Agriculture is the cornerstone of Nigeria’s economy and the largest sector in Nigeria, contributing an average of 24% to the nation’s GDP and employing over 36% of the labour force.

“Boosting this sector can further diversify the economy, reduce dependency on the oil sector, and improve overall economic well-being, significantly influencing its Gross Domestic Product (GDP), employment rates, food security, and foreign exchange (forex) inflows.”

Expressing concern over Nigeria’s over-dependence on oil, with fluctuating global prices and limited sustainability, he observed that as a result of global warming, the World Bank is defunding fossil fuel projects, creating opportunities for the use of agricultural waste products—essentially turning waste into wealth.

“This has made Africa tackle this major problem by converting agricultural waste products into biofuel, biogas, and biochar. This has increased the need to turn agricultural waste into useful energy in more places around the world. Today, we are reminded that the key to a resilient and prosperous Nigeria lies not beneath the soil but on its surface—in agriculture.

“The agricultural sector currently remains the most viable tool for diversifying the economy, ensuring food security, and driving foreign exchange earnings. But we must ask: are we doing enough to unlock its full potential?

“Private agricultural organisations are major players in determining agricultural growth. At Davidorlah Farms, we are the leading pineapple fruit producer in Nigeria. We have made it our mission to contribute meaningfully to Nigeria’s food economy through large-scale pineapple production and the processing of pineapple concentrate for both local consumption and export, which opens doors for direct foreign investment.

“Davidorlah Farms, as a private-sector entity, plays a significant role in strengthening Nigeria’s economy through agriculture, particularly through its focus on pineapple cultivation and processing. By operating across the pineapple value chain—from primary production to fruit supply and concentrate manufacturing—the firm contributes to both food security and agro-industrial development.”

ALSO READ TOP STORIES FROM NIGERIAN TRIBUNE