Despite its substantial production scale–feeding millions daily through staple foods like Garri, fufu and sustaining the livelihoods of approximately 14 million smallholder farmers, over 90 per cent of Nigeria’s cassava harvest remains relegated to low-value, food-grade uses.
This, according to industry players, significantly constrains farmer incomes and limits broader economic impact. To commemorate the World Cassava Day, stakeholders are calling on Nigerians to tap into the opportunities embedded in industrial cassava products, in the face of its escalating global demand. To them, this offers the country a significant market opportunity to expand beyond traditional uses.
According to the International Trade Centre, global cassava derivative exports have grown over 20 per cent yearly in recent years, underscoring robust international demand for industrial cassava products.
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They added that the potential for high-value cassava derivatives—such as High-Quality Cassava Flour (HQCF), cassava starch, bioethanol, and sweeteners (glucose and sorbitol) is enormous, and driven by industries actively seeking reliable, cost-effective local alternatives.
These four key products, among the cassava derivatives present immediate high-growth opportunities, collectively representing a market of approximately $2b.
The Dean of Lagos Business School, Pan-Atlantic University, Professor Olayinka David-West, disclosed that the HQCF serves as a strategic alternative to imported wheat flour, essential for Nigeria’s bakery and snack sectors.
She added that with Nigeria importing roughly 98 per cent of its wheat consumption—valued at approximately $2b yearly, HQCF presents substantial import substitution potential, potentially unlocking a $600m market.
“Currently, utilisation remains low at five per cent, yet scaling to 20 per cent is achievable, given existing facilities are underutilised by approximately 50 per cent.
“Cassava Starch – widely used in sectors such as paper, textiles, pharmaceuticals, adhesives, and food additives, local cassava starch offers significant competitive advantages. Domestic production significantly lags demand, which grows at approximately 5.2 per cent yearly, representing a substantial market gap. Capturing this gap could realistically secure an additional $485m, bolstering local manufacturing capabilities.
“Sweeteners (Glucose and Sorbitol) – Nigeria’s rapidly growing sweetener market (18% yearly growth) remains predominantly import-dependent (95% imported), driving up costs for manufacturers. Cassava-based sweeteners offer a cost-effective alternative, priced considerably lower than imported sucrose. Companies such as Coca-Cola have indicated strong interest in sourcing locally, underscoring this segment’s immediate scalability and representing a clear $500m market opportunity.”
Prof. David-West said Nigeria imports about 26 per cent of its ethanol for beverages, pharmaceuticals, and fuel blending, exposing the economy to price volatility. She added that cassava-based bioethanol offers significant economic advantages, costing approximately $0.06 per litre less than imported ethanol. Given Nigeria’s existing ethanol market valued at $420m, she added that substantial expansion opportunities exist for investors to scale local production.
To fully harness these derivative markets, a Partner at Boston Consulting Group, Mr Olayinka Majekodunmi, said interventions across three critical dimensions – yield and productivity enhancement; processing efficiency and cost reduction; and capital unlocking and risk reduction, are essential.
He said: “Current cassava yields average six tonnes per hectare compared to a global benchmark of 25 tonnes 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, mechanisation, agronomic training, and post-harvest handling improvements to reduce losses (currently up to 40%). These measures will ensure consistent, high-quality feedstock supply for industrial processing, significantly raising farmer incomes.
“Cassava processing costs in Nigeria remain high, often quadrupling in off-grid areas due to unreliable power supply. Most processing facilities operate below 50 per cent capacity, further lowering efficiency. Strategic investments in modern processing technologies, renewable energy infrastructure, and agro-industrial clusters are vital. Shared infrastructure and economies of scale can significantly improve competitiveness, reducing reliance on imports.”
Majekodunmi averred that access to affordable finance remains a major challenge, noting that developing tailored financial instruments such as patient capital and concessional loans, coupled with securing long-term off-take agreements, will mitigate risks. “Government support through tax incentives, reduced tariffs on processing equipment, and streamlined regulatory processes will further catalyze private sector investments.
“In lieu of the aforementioned, there are three key categories of opportunities that exist for market participants today – secure supply – strengthening raw material reliability; expand processing – scaling capacity and efficiency; and capture value – forging strategic market linkages.”
On how to tap into the opportunities, Prof. David-West said the Nigeria Cassava Investment Accelerator, led by the Lagos Business School and funded by the Gates Foundation, provides comprehensive support for navigating the cassava industrial landscape, identifying investment opportunities, and establishing key industry linkages.
She added that through this, investors can leverage the structured support mechanisms to significantly de-risk their investments, maximise market potential, and build sustainable, competitive operations.
