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September 1, 2025

Cassava’s Industrial Awakening: Nigeria to transform cassava into $6bn industrial powerhouse

Cassava’s Industrial Awakening: Nigeria to transform cassava into $6bn industrial powerhouse

By Prisca Sam-Duru

For decades, cassava has been the quiet pillar of Nigerian agriculture. It has remained a staple on the table but a footnote in the economy. Today, that narrative is changing. Nigeria, already the world’s largest cassava producer with over 60 million metric tons annually, is poised to transform this humble root into a $6 billion industrial powerhouse.

Despite its dominance in raw production, Nigeria captures just 2% of the $180 billion global cassava processing market. But a new wave of investment, innovation, and enterprise is reimagining cassava not as a subsistence crop, but as a strategic input for food, pharmaceuticals, and energy.

According to insights from the Nigeria Cassava Investment Accelerator (NCIA), the sector is undergoing a quiet revolution; the type that could reshape the country’s industrial landscape.

The Nigeria Cassava Investment Accelerator which is based at Lagos Business School, Pan-Atlantic University, 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.

From Farmland to Factory Floor

Cassava is cultivated across 24 Nigerian states, with Oyo, Ogun, Kogi, and Benue leading the charge. These regions blend dense smallholder activity with emerging commercial estates, creating a robust supply base. To secure consistent raw material, processors are now integrating backward – acquiring farmland and organising out grower schemes.

Although national yields float around 6 tons per hectare, targeted interventions in stem quality, soil health, and mechanisation are proving transformative. Demonstration farms show yields can double or even triple with proper support. This hybrid sourcing model — combining in-house cultivation with structured smallholder networks, is laying the foundation for Nigeria’s cassava industrialisation.

Processing Gains Momentum

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).

NCIA reports indicate that 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 life cycle. 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 both 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, while improving farmer income.

Another emerging tool is digital supply chain management. NCIA findings reveal that 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 point to a future where innovation in the “messy middle” of the value chain unlocks efficiency, transparency, and growth.

Cassava has always been central to Nigerian diets. Now, it’s ready to become central to its economy. For investors, it’s a hedge against import dependency. For processors, it’s a pathway to scale. And for policymakers, it’s a route to inclusive industrialisation.

But vision must be matched by action. Scaling cassava’s industrial potential will require bold investments, supportive infrastructure, and coordinated efforts across government, business, and development partners.