How Foreign Investors Can Tap Into Nigeria’s $7b Cassava Prospect

Despite its clear advantages as a global powerhouse in cassava production, the industry faces hurdles that need to be strategically addressed by investors. The most critical challenges include low industrial utilisation rates—currently under 10 per cent — and considerable yield gaps, with Nigerian yields at approximately six tonnes per hectare compared to a global average of 25 tonnes per hectare.

These challenges present significant opportunities for innovation and value addition through advanced agronomic practices, technology adoption, and infrastructure development.

Based on available data, Nigeria is uniquely positioned to emerge as a global powerhouse in industrial cassava production. As the world’s leading cassava producer—responsible for roughly 18 per cent of global production with an impressive yearly output of 61 million metric tons, the country presents an immense and largely untapped opportunity for investors in agribusiness.

According to industry players, the country’s industrial cassava market, valued at over $7b yearly, boasts vast potential for derivatives such as sweeteners, starch, high-quality cassava flour (HQCF), and bioethanol, catering both to local consumption and lucrative export markets.
Yet, despite its dominance in raw production, Nigeria captures a mere two per cent of the global cassava processing market, currently valued at approximately $183b.

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.

The Dean of Lagos Business School, Pan-Atlantic University, Professor Olayinka David-West, who disclosed that the country has a compelling case for cassava Investment, said Nigeria’s natural competitive advantages in cassava production are built on several foundational pillars – Centuries of Indigenous Expertise, Large-scale Production Capacity, Robust Existing Value Chains, Abundant Arable Land and Climatic Adaptability and Strengthening R&D Ecosystem.

She said: “Nigeria 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.

“Over 14 million smallholder farmers, representing about 46 per cent of Nigerian farming households, are actively engaged in cassava cultivation, ensuring a broad and sustainable base for scaling up industrial production.”

She noted that Nigeria already possesses established networks comprising processors, transporters, marketers, and consumers, adding that these established supply and demand channels present a ready platform for new investments and expansions.

“Cassava cultivation spans approximately 30 per cent of Nigeria’s total cultivated land area, highlighting ample scope for scaling production. Additionally, cassava’s resilience across all Nigerian ecological zones ensures year-round production and supply stability.

“Organisations like the Gates Foundation have actively supported research and development, seed systems, and mechanisation advancements, significantly bolstering productivity potential and yield improvements.”

On his part, Partner, Boston Consulting Group, Mr Olayinka Majekodunmi, said recognising the transformative potential of industrial cassava, Nigeria’s government, alongside international development partners, has prioritised initiatives aimed at creating a conducive environment for investment.

He listed key government initiatives to include – Cassava Bio-Ethanol Value Chain Development Project, to enhance bioethanol production efficiencies and feedstock availability across critical states.

“The Special Agro-Processing Zones (SAPZ) Programme, backed by notable institutions including the African Development Bank (AfDB), IFAD, and IsDB, represents a $538m investment to upgrade infrastructure, streamline policies, and catalyse industrial cassava processing.

“Significant Development and Philanthropic Investments – Investments exceeding $150m from AfDB, Gates Foundation, Mastercard Foundation, UKAID, and the African Agricultural Technology Foundation (AATF) are strengthening productivity, mechanisation, and processing capabilities. These efforts, undertaken in collaboration with institutions like IITA, NRCRI, CGIAR, and Sahel Consulting, focus on key production states such as Oyo, Osun, Ekiti, Cross River, Kogi, and Kaduna.

“Increasing Private Sector Involvement – Leading FMCG firms are progressively adopting backward integration into cassava processing. Notably, Dufil commenced operations of a 200 tonnes/day HQCF plant in 2024, representing approximately N13b investment. Flour Mills of Nigeria (FMN) is similarly committing about $100m to industrial starch processing. Concurrently, mid-sized processing firms like Greenhills are emerging to address local market needs, enhance feedstock availability, and optimise production costs,” Majekodunmi said.
Professor David-West averred that 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. Investors can capitalise on existing momentum, engage with local stakeholders, and benefit from Nigeria’s enabling business environment.”

She added that as part of moves to address the challenges, the Nigeria Cassava Investment Accelerator (NCIA), spearheaded by Lagos Business School and supported by the Gates Foundation, stands ready to guide investors through navigating this promising sector.

Through the move, interested stakeholders can engage the accelerator to pinpoint strategic entry points, build crucial relationships, and operationalise investment