…experts say value addition gap opens opportunity for investors
Despite producing one-fifth of global cassava output and being the largest producer, Nigeria accounts for only two percent processing market share.
This according to stakeholders underscores the country’s challenges of turning the abundant tubers into industrial by-products.
Nigerian industries have continued to import large quantities of starch, flour, and ethanol, citing the inability of local suppliers to consistently meet standards.
This puts pressure on the country’s foreign exchange reserves, money that could have been saved if the country could tap into the opportunities in cassava production.
“Nigeria is uniquely positioned to emerge as a global powerhouse in industrial cassava production,” said Olayinka David-West, a professor and dean of Lagos Business School, Pan-Atlantic University.
Read also: Nigeria misses out on $180bn global cassava processing market
She noted that Nigeria is yet to become a powerhouse in processing, owing to technology gaps in the processing of by-products derived from cassava.
According to her, the gaps present an immense and largely untapped opportunity for investors across the cassava value chain.
“This significant gap underscores the remarkable investment potential for companies ready to leverage Nigeria’s inherent advantages and spearhead the expansion of industrial-scale cassava processing,” she said.
Nigeria churn out 62.7 million metric tons of cassava in 2023, according to data from the Food and Agricultural Organisation.
Why it matters
Nigeria’s natural competitive advantages in cassava production are built on several foundational pillars.
The country boasts over 500 years of cassava cultivation heritage, reflecting deeply ingrained expertise across farming communities.
“This long-standing tradition underscores the nation’s readiness to scale and industrialise cassava farming,” said Olayinka Majekodunmi, partner at Boston Consulting Group.
Majekodunmi noted that the country also has a large-scale production capacity of the tuber despite low yield per hectare.
According to him, over 14 million smallholder farmers, representing about 46 percent of Nigerian farming households, are actively engaged in cassava cultivation.
He noted that this ensures a broad and sustainable base for scaling up industrial production.
Apart from having centuries of indigenous expertise and large-scale production capacity, Nigeria already possesses established networks comprising processors, transporters, marketers, and consumers.
These established supply and demand channels present a ready platform for new investments and expansions.
Read also: Local cassava production falls short of industries’ demand
The cultivation of the fresh tubers also spans approximately 30 percent of Nigeria’s total cultivated land area, highlighting ample scope for scaling production.
Additionally, cassava’s resilience across all of Nigeria ecological zones ensures year-round production and supply stability.
In the area of research, Africa’s biggest economy already has donors supporting the R&D ecosystem in developing improved cassava tubers and fortification of the crop with essential nutrients for body development.
“Organisations like the Gates Foundation have actively supported research and development, seed systems, and mechanisation advancements, significantly bolstering productivity potential and yield improvements,” Majekodunmi said.
Challenges open opportunity
Despite its clear advantages, Nigeria’s cassava industry faces notable hurdles that investors can strategically address.
The most critical challenges include low industrial utilisation rates—currently under 10 percent—and considerable yield gaps, said David-West.
According to her, the country’s average yield of 6 tons per hectare compared to the global average of 25 tons per hectare.
She noted that with investments in technology adoption and advanced agronomic practices, the issue of low yields will be fully addressed.
“These challenges present significant opportunities for innovation and value addition through advanced agronomic practices, technology adoption, and infrastructure development.”
Read also: Why cassava farmers may abandon the crop that once promised wealth
“The opportunity to drive industrial-scale cassava production in Nigeria has never been more attractive.”
“Whether your strategic interest lies in capturing domestic market share or serving international markets, such as China, Europe, and North America, the time to act is now.”
She urged investors to capitalise on existing momentum, engage with local stakeholders, and benefit from Nigeria’s enabling business environment.
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