US firm plans to invest $300M in Nigeria’s biofuel refinery
Ogun-based refinery to convert agricultural waste into clean energy, as Davidorlah Farms pushes youth training, pineapple exports, and economic diversification through agriculture
ABUJA, Nigeria (MNTV) — A U.S.-based company has expressed interest in investing $300 million to establish a biofuel refinery in Nigeria, according to the Managing Director and CEO of Davidorlah Farms, Oluwasegun Alabi.
The planned facility, to be located in Ogun State, will convert agricultural waste into biofuel, biogas, and biochar, aiming to support Nigeria’s transition to a green economy.
Alabi made the announcement during a media briefing with Parliamentary Correspondents in Abuja on Thursday.
He said the project would help reduce Nigeria’s reliance on fossil fuels while creating jobs and supporting local farmers.
“This is an opportunity to turn agricultural waste into wealth,” Alabi stated, citing the withdrawal of international financial institutions like the World Bank from fossil fuel funding as a sign that Nigeria must pivot toward renewables.
The refinery site was chosen for its proximity to abundant agricultural raw materials. Ogun State’s agro-resources will be used to power the facility, with the goal of enhancing local value addition and strengthening the country’s renewable energy infrastructure.
Despite Nigeria being a top global producer of cocoa and pineapple, Alabi highlighted the country’s persistent agricultural trade deficit. In 2023, agricultural imports exceed exports by $651 million, marking five consecutive years of losses.
“We import what we can produce—wheat, sugar, concentrates,” he said. “There’s a pressing need for infrastructure that supports local processing and export.”
Davidorlah Farms, Nigeria’s leading pineapple producer, is also spearheading a national initiative to establish agricultural training centers across all 36 states and the Federal Capital Territory. The centers will provide youth with hands-on skills in agro-processing and export standards.
Alabi noted that agriculture contributes 24% to Nigeria’s GDP and employs over 36% of the labor force. He believes that with adequate investment and infrastructure, the sector could significantly reduce oil dependency and generate foreign exchange.
The planned biofuel refinery aligns with broader national efforts to boost clean energy, support farmers, and address foreign exchange volatility and climate change.
“Our farms hold more potential than our oil wells,” Alabi concluded. “If we invest smartly and sustainably, agriculture can be the cornerstone of a prosperous and self-reliant Nigeria.”
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