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Cassava Starch Production In Nigeria, The Feasibility Report.

Cassava Starch Production In Nigeria, The Feasibility Report.

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Cassava (Manihort Esculentus (Euphorbiacea)) is grown in all the states of the Federation with the current production level being about 45 million metric tones per annum; a figure expected to double by 2020. Nigeria is the leading cassava producer in the world, producing a third more than Brazil and almost double the production capacity of Thailand and Indonesia.

Although it is the world leader in cassava production, 90% of the annual production in Nigeria is targeted for the domestic food market.

Description

Cassava holds extraordinary potential to catalyse Nigeria’s industrial transformation more than almost any other agricultural commodity. Often referred to as “white gold,” cassava has the capacity not only to fortify national food security but also to serve as a major non‑oil foreign exchange earner, a substantial source of job creation, and a catalyst for broad‑based economic development when its full industrial potential is harnessed effectively. Nigeria’s policymakers and private sector actors increasingly recognise cassava as a strategic crop capable of sustaining export growth, reducing import dependency, and deepening value‑added industrial manufacturing in sectors ranging from food processing to pharmaceuticals and bio‑materials.

This recognition is rooted in Nigeria’s unparalleled status as the largest producer of cassava in the world, with annual output exceeding 62.6 million metric tons in recent years — a figure that surpasses both Brazil and Thailand and anchors Nigeria as a global leader in cassava cultivation. Despite this immense production scale, the vast majority of cassava harvested in Nigeria remains destined for low‑value, traditional food uses such as garri, fufu, and tapioca — consuming roughly 90 % of output in domestic food applications — while only a small fraction is directed toward industrial value chains.

Recognising the gap between raw production and industrial utilisation, successive federal government initiatives over the past decade have prioritised the cultivation, processing, and export of cassava derivatives. This policy emphasis — often termed the “cassava revolution” — reflects a deliberate effort to reframe cassava’s role from subsistence food crop to a driver of structural economic change, including support for mechanisation, improved seed systems, processing infrastructure, and export‑oriented value chains. Public–private partnerships and programmes such as the Cassava Transformation Agenda and support from institutions like the Nigeria Cassava Investment Accelerator embody this strategic shift, aiming to strengthen linkages from farm to industry and position cassava as a competitive input in global markets.

Cassava is already central to the livelihoods of millions. Beyond its role as the most important root crop in Nigeria, it provides a critical source of income for rural households, particularly smallholder farmers and female processors, and contributes significantly to agricultural GDP. Although cassava accounts for a substantial share of Nigeria’s agricultural output, its conversion into processed industrial products remains limited, constraining its broader economic impact.

Amid efforts to unlock industrial demand, one of the most consequential targets has been cassava starch — a versatile derivative with wide applications across food and non‑food industries. Research and market analysis demonstrate that cassava starch has rising demand in sectors such as textiles (as sizing agents), paper production, pharmaceuticals (as excipients), food and beverage (as thickener and stabiliser), adhesives, and bio‑based materials. Industrial users increasingly seek locally sourced cassava starch as a cost‑competitive and sustainable alternative to imported corn and wheat starches.

Nigeria’s domestic demand for cassava starch has grown substantially, driven by industrial policies encouraging import substitution and local content utilisation. Although precise national estimates vary across studies, recent analyses indicate a strong demand–supply gap, with demand in the range of several hundred thousand tonnes annually while local supply struggles to keep pace. One report cited a demand gap on the order of 290,000 metric tons for cassava starch, underlying challenges in meeting industrial quality standards and consistent volumes.

On the global landscape, the cassava starch market continues to expand, with growing adoption in food processing, sustainability‑driven packaging, and bio‑based polymers. Industry research suggests that global native cassava starch output and utilisation have reached millions of metric tonnes annually, with significant regional growth in Asia‑Pacific and increasing interest in Europe and North America for gluten‑free and biodegradable applications. This trend complements Nigeria’s ambitions to participate more robustly in international value chains rather than exporting raw tubers or low‑value products.

Despite the clear industrial potential, Nigeria’s processing sector remains underdeveloped relative to global benchmarks. The country currently captures only about **2 % of the estimated US $180 billion global cassava processing market, even as it accounts for nearly 20 % of global cassava production. This shortfall reflects infrastructure constraints, technology gaps, and capacity utilisation challenges that limit consistent supply of industrial‑grade derivatives like starch.

Nevertheless, strategic opportunities abound. Expanding processing capacity for cassava starch can significantly reduce foreign exchange losses associated with starch and flour imports, stimulate investment in agro‑industry clusters, and promote more competitive manufacturing across textiles, foods, and pharmaceuticals. Enhanced supply chain organisation, improved quality control, and modern processing technologies can elevate Nigeria’s cassava sector from primarily subsistence focus to one anchored in value addition and export competitiveness.

While cassava has long been integral to Nigeria’s agricultural foundation, its industrialisation potential remains vastly underexploited. With supportive policy frameworks, intensified investment, and strategic market orientation, cassava — particularly through derivatives like industrial starch — offers a sustainable pathway to deepen economic diversification, strengthen non‑oil export capacity, and unlock widespread employment and value creation across the Nigerian economy.

Table of Content

Table of Content

EXECUTIVE SUMMARY

Business Overview

1.1 Description of the Business
1.2 Vision and Mission Statement
1.3 Business Objective
1.4 Value Proposition
1.5 Critical Success Factor of the Business
1.6 Current Status of Business
1.7 Description of the Business Industry
1.8 Contribution to Local and National Economy

Marketing Plan

2.1 Description of product
2.2 Product Packaging and delivery
2.3 The Opportunity
2.4 Pricing Strategy
2.5 Target Market
2.6 Distribution and Delivery Strategy
2.7 Promotional Strategy
2.8 Competition

Production Plan

3.1 Description of the Location
3.2 Raw Materials
3.3 Production Equipment
3.4 Production Process
3.5 Production Cost
3.6 Stock Control Process
3.7 Pre-Operating activities and expenses
3.7.1 Operating Activities and Expenses
3.8 Milestones

Organizational and Management Plan

4.1 Ownership of the business
4.2 Profile of the promoters
4.3 Key Management Staff
4.3.2 Management Support Units
4.4 Details of salary schedule

Financial Plan

5.1 Financial Assumption
5.2 Start up Capital Estimation
5.3 Source of Capital
5.4 Security of Loan
5.5 Loan Repayment Plan
5.6 Profit and Loss Analysis
5.7 Cashflow Analysis
5.8 Viability Analysis

Business Risk and mitigation factor

6.1 Business Risks
6.2 SWOT Analysis

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Report Details

Report Type: Feasibility Report
Formats of Delivery: MS WORD
No. of Pages: 33
Product Code: FORA/09/2012/022
Publisher: Foraminifera Market Research
Release Date: 02/10/2013; Updated Every 3- Months
Language: English
Delivery time: 24– 48hours

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