Cassava industry insights and trends

Nigeria is the world’s largest cassava producer, harvesting over 60 million metric tons annually. Yet the country captures just two percent of the $180 billion global cassava processing market.

For decades, cassava has been treated as a subsistence crop, processed into traditional staples like garri and fufu. That perception is now shifting.

A new wave of investment and enterprise is reimagining cassava as a strategic industrial input — with the potential to unlock $6 billion in value across food, pharmaceuticals, and energy.

With processors scaling capacity, consumer preferences evolving, and private capital entering the space, cassava is beginning to shed its subsistence label and emerge as a growth sector.

From plot to platform

Cassava is grown across 24 states in Nigeria, particularly in Oyo, Ogun, Kogi, and Benue. These regions combine dense smallholder activity with emerging commercial estates, offering strong supply potential.

In recent years, leading processors and agri-holdings have begun integrating backward — acquiring or leasing farmland, while organising smallholder out grower schemes to secure supply.

Although national yields remain low at around 6 tons per hectare, targeted interventions in stem distribution, soil health, and mechanisation are making a difference.

Demonstration projects show that yields can double or triple with consistent input access and agronomic support. This hybrid sourcing model — blending in-house production with structured smallholder supply — is fast becoming the foundation for Nigeria’s cassava industrialisation push.

Quiet expansion, growing demand

While cassava processing has historically lagged, a quiet transformation is underway. The shift isn’t just about scale — it’s about relevance. Cassava derivatives are now entering formal supply chains in food manufacturing and beyond. A standout example is high-quality cassava flour (HQCF).

As the cost of wheat fluctuates and foreign exchange remains scarce, manufacturers are turning to HQCF as a local substitute.

Dufil Prima Foods, a major player in Nigeria’s noodle market, recently opened a 200-ton-per-day HQCF plant in Ogun State. Flour Mills of Nigeria is similarly investing in flour and starch capacity to localise inputs.

In Oyo State, Psaltry International has built Africa’s first cassava-based sorbitol plant, supplying multinational buyers in the food and pharmaceutical sectors. These moves signal more than market diversification — they reflect a shift toward long-term commercial confidence in cassava as an industrial raw material.

Despite growing momentum, cassava’s industrial leap faces a number of persistent challenges. Logistics is a major constraint. Cassava is bulky and highly perishable, yet rural road networks remain underdeveloped. In peak harvest periods, poor access leads to spoilage and erratic supply — making planning difficult for processors.

Energy costs are another barrier. Many processing zones lack reliable grid power, forcing operators to depend on diesel generators. This drives up production costs and undermines price competitiveness. Compounding the issue is low-capacity utilisation; most plants run well below optimal levels due to inconsistent feedstock and infrastructure gaps.

Financing is also misaligned with cassava’s lifecycle. The crop takes up to 12 months to mature, but most credit on the market is short-term and expensive. For both farmers and processors, this creates liquidity gaps that disrupt operations and limit expansion.

Together, these constraints reinforce a deeper challenge: Nigeria’s cassava economy lacks the enabling infrastructure — physical, financial, and regulatory — needed to scale.

Mechanising the middle

Among the most promising developments is the rise of midstream innovations that reduce waste, stabilise supply, and improve processor margins. One such solution is mobile processing.

These truck-mounted mini-factories convert fresh cassava into semi-processed forms like cake or flour directly at the farmgate. Pilots in Oyo and Benue have shown that mobile units can significantly reduce spoilage, lower logistics costs, and extend shelf life — all while improving farmer income.

Another emerging tool is digital supply chain management. A handful of processors are now deploying software platforms to monitor farmer deliveries, track input use, and forecast raw material volumes.

By building real-time visibility into the sourcing process, these platforms help processors plan more effectively, reduce side-selling, and become more bankable to external lenders. These are not silver bullets — but they point to a future where innovation in the “messy middle” of the value chain unlocks efficiency, transparency, and growth.

Time to act is now

Cassava has long been central to Nigerian diets. Now, it has the potential to become central to its economy. Rising demand, strategic investments, and domestic innovation are laying the groundwork for a sectoral transformation.

For investors, cassava is no longer just a food crop — it is a manufacturing input and a hedge against import dependency. For processors, it represents a pathway to scale through local sourcing and value addition. And for policymakers, it offers a route to industrialisation grounded in an already familiar crop.

But momentum must be matched by action. Scaling cassava industrialisation will require bold investment, supportive infrastructure, and a shared vision across government, business, and development partners. The opportunity is clear. The time to act is now.

About NCIA: The Nigeria Cassava Investment Accelerator is based at Lagos Business School, Pan-Atlantic University. It is supported by Gates Foundation and implemented in partnership with the Boston Consulting Group. NCIA works to unlock cassava’s full industrial potential by addressing investment barriers and building inclusive, market-driven systems.