ECONOMIC VIABILITY OF BIOTECHNOLOGY APPLICATION IN THE ENERGY SECTOR OF NIGERIA IN FEDERAL CAPITAL TERRITORY, NIGERIA

Abstract

This study investigates the integration and economic viability of biotechnological applications in Nigeria’s energy sector, with a focus on the Federal Capital Territory (FCT). Using a descriptive research design and a mixed-methods approach, data were collected from 400 respondents through structured surveys, interviews, direct observations, and focus group discussions. Results show that biogas systems account for 57.1% of biotechnology-based energy use in the FCT, followed by biofuels (21.4%), microbial fuel cells (14.3%), and algae-based energy (7.2%). A cost-benefit analysis revealed that biogas production offers the highest return on investment (82.5%) despite contributing only 23% of annual revenue, making it the most financially viable option. Biomass gasification, while capital intensive (50.2% of investment), accounts for the highest environmental impact with 42.9% of CO₂ emission reductions and 41.7% of total job creation. The study highlights untapped bioenergy potential, hindered by limited policy enforcement, infrastructure gaps, and funding constraints, and recommends strengthened policy frameworks, targeted investments, and capacity-building initiatives.