Abstract

Energy is an important factor in all sectors of any national economy. With the rise in oil prices and the adverse effects of global climate change, Nigeria has an unprecedented opportunity of choosing a cleaner development pathway via low-carbon energy alternatives that can reduce the nation's dependence on imported gasoline, reduce environmental pollution while at the same time creating a commercially viable industry that can generate sustainable domestic jobs. The bio-fuel development programme is a unique attempt aim at integrating the agricultural sector of the economy alongside the downstream petroleum sector, while fostering the use of other renewable energy sources. This paper focuses on biofuel development from biomass feedstock with the objective of reviewing the current situation and probable future trends in Nigeria concerning the production of biofuels. A review of these potentials and challenges is presented, which lead to the conclusion that the production and use of biofuels in Nigeria could potentially provide an achievable proposal for economic growth, poverty reduction and environmental sustainability, if the appropriate policies and related institutional and technological innovations are promoted.

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