Nigeria misses out on $180bn global cassava processing market

With a current production capacity of 62.69 million and holding the position of the largest producer of cassava in the world, Nigeria is missing out of the $180 billion global cassava processing market.

The country’s cassava value chain, although hampered by local consumption, has the potential to drive economic growth and attract foreign investments.

Stakeholders in the value chain say that with improved yield, provision of credits for farmers and accessibility of lands, the country could tap into the $180 billion processed market.

The conversion of fermented cassava into high-quality products—such as High-Quality Cassava Flour (HQCF), cassava starch, bioethanol, and sweeteners (glucose and sorbitol) — could aid in cushioning forex scarcity in Nigeria.

“Nigeria, as the world’s largest cassava producer, generates approximately 18 percent of global cassava output but captures merely 2 percent of the crop’s vast $180 billion global processing market,” said Olayinka David-West, dean of Lagos Business School, Pan-Atlantic University.

David-West reiterated that despite cassava’s substantial production scale—feeding millions daily through staple foods like Garri and fufu and sustaining the livelihoods of approximately 14 million smallholder farmers—over 90 percent of Nigeria’s cassava harvest remains relegated to low-value and food-grade uses.

“This significantly constrains farmer incomes and limits broader economic impact,” she added.

Escalating global demand for industrial cassava products offers Nigeria a significant market opportunity to expand beyond traditional uses, she says.

According to the International Trade Centre, global cassava derivative exports have grown over 20 percent annually in recent years, underscoring robust international demand for industrial cassava products.

Meanwhile, Olayinka Majekodunmi, partner at Boston Consulting Group, emphasised that cassava in its HQCF form serves as a strategic alternative to imported wheat flour, essential for Nigeria’s bakery and snack sectors.

This is imperative as Nigeria imports 98 percent of its wheat needs, amounting to an average of $2 billion annually.

“HQCF presents substantial import substitution potential, potentially unlocking a $600 million market. Currently, utilisation remains low at 5 percent, yet scaling to 20 percent is achievable, given existing facilities are underutilised by approximately 50 percent,” he said.

On the investment opportunities in cassava starch, he explained that it is commonly used in paper, textile and pharmaceutical industries.

“Domestic production significantly lags demand, which grows at approximately 5.2 percent annually, representing a substantial market gap. Capturing this gap could realistically secure an additional $485 million, bolstering local manufacturing capabilities.”

But to conveniently tap into this pool of wealth, stakeholders argue that production must first of all be ramped up.

How production can be bolstered

Although current cassava yields average 6 tons per hectare compared to a global benchmark of 25 tons per hectare. The Food and Agriculture Organisation (FAO) estimates that bridging this yield gap could boost production by an additional 11 million metric tons.

“Key investments are needed in superior, disease-resistant varieties, mechanization, agronomic training, and post-harvest handling improvements to reduce losses,” David-West said.

She said cassava processing costs in Nigeria remain high, often quadrupling in off-grid areas due to unreliable power supply.

Hence, most processing facilities operate 50 percent below capacity, further lowering efficiency.