Nigeria Cassava Industry Overview

Nigeria is the world's largest cassava producer, utilizing its adaptable crop for food, feed, and industrial purposes, with farming concentrated in the southern regions and major states like Anambra and Benue. The sector faces challenges with post-harvest handling and market gluts due to the perishable nature of the root, which requires timely processing to avoid spoilage and wasted harvests. Despite these hurdles, cassava's resilience to drought and pests, its ability to grow in various conditions, and increasing market demand offer significant potential for improved yields and economic growth for Nigerian farmers.

In this Article, we will explore, general overview of the Nigerian Cassava Industry, the Farming Challenges, the competitive landscape, recent trends, and the untapped investment opportunities that await those looking to invest in Nigeria's booming cassava industry.

Nigerian Cassava Farming Overview

• Agro-Ecological Suitability. Cassava is highly adaptable, tolerating low soil fertility, drought, and pest/disease pressures, making it a preferred crop over other seasonal staples like yam.
• Farming Practices. Cassava is planted using stem cuttings, typically in four distinct planting seasons across the various geo-ecological zones. The crop can be grown in various soil types, with well-drained loamy or sandy loam soils being optimal.
• Planting Materials. The availability of quality stem cuttings is crucial, with initiatives focusing on training entrepreneurs to supply disease-free materials to farmers.
• Uses. The crop serves multiple purposes, from being a staple food product (boil, fry, or processed into flour and gari) to being used as livestock feed and an ingredient in industrial products like glue, adhesives, and starch.

Challenges Facing the Industry

• Inadequate Infrastructure. Weak infrastructure, including poor transportation networks, insufficient storage facilities, and unreliable energy supply, hinders growth and increases losses.
• High Processing Costs. High energy costs for processing and a lack of modern, automated processing technologies contribute to the sector's inefficiencies.
• Financing Gaps. Limited access to finance and investment remains a significant barrier to scaling up processing capacity and adopting new technologies.
• Perishability. Cassava roots must be processed within 24 hours of harvest, as they deteriorate rapidly, making storage and transportation difficult without immediate processing facilities.
• Market Volatility. A lack of processing capacity and infrastructure can lead to gluts, where overproduction causes prices to plummet and significant wastage of harvested crops.

Opportunities

Nigeria's cassava production is a thriving sector that plays a crucial role in the country's agricultural landscape. As one of the world's largest cassava producers, Nigeria offers abundant opportunities for investors to tap into this versatile crop's potential.

Global Leadership in Production

Nigeria leads the world in cassava production, accounting for over 18% of global output, yet captures only a small fraction of the global processing market value.

Transition to Industrial Use

There is a significant shift in perception, moving from cassava as a traditional, subsistence food (like garri and fufu) to a valuable industrial raw material for producing bioethanol, high-quality flour, industrial starches, and pharmaceuticals.

Economic Potential.

Investing in processing, improving infrastructure like roads, and adopting new cassava varieties can unlock billions in economic potential for the country, tapping into the high industrial demand for cassava products.

Government Support

Government investment in boosting production, processing, and export capacity, along with supporting new cassava varieties, is vital to realize cassava's full economic benefits.

Production & Scale

Nigeria leads the world in cassava production, with the crop grown across 24 of its 36 states, with significant production in states like Oyo, Ogun, Kogi, and Benue. Though it is most dominant in the southern parts of the country.

Investment and Growth. The industry is experiencing a wave of new investment, with processors integrating backward into farming and organizing smallholder out grower schemes to ensure supply.

• Export Trade. The export market for cassava and its derivatives presents a lucrative opportunity. Nigeria's position as a major cassava producer can be leveraged to tap into international markets. By meeting quality standards, complying with regulatory requirements, and fostering strong trade relationships, Nigerian cassava products can gain a competitive edge globally. Exploring opportunities in regional markets within Africa and beyond, such as Europe and Asia, can lead to increased export earnings and foreign exchange inflows.
• Value Addition and Processing. Investing in modern processing technologies, equipment, and infrastructure can elevate the quality, diversity, and marketability of cassava products. Developing value-added products like cassava flour, starch, chips, ethanol, and animal feed can unlock significant economic potential and cater to evolving consumer preferences.
• Integration of Technology and Innovation. Adopting technological advancements and innovative practices in cassava cultivation and processing can boost productivity and efficiency. Introducing improved farming techniques, precision agriculture methods, and mechanization can increase yields and reduce post-harvest losses, leading to improved profitability.
• Stakeholder Collaboration and Partnership. Enhancing collaboration among various stakeholders in the cassava sector is vital for future growth. Partnerships between research institutions, farmers' associations, processors, government agencies, and private sector players can facilitate knowledge sharing, technology transfer, and best practices dissemination, creating a conducive environment for investment and policy support.
• Processing Technology Upgrades. Investments in contemporary processing technologies, such as automated drying equipment and mechanized peeling and chipping machines, can improve productivity and product quality while reducing post-harvest losses.
• Supply Chain Infrastructure. Developing robust supply chain infrastructure, including cold chain logistics, transportation networks, and storage facilities, can significantly reduce post-harvest losses and ensure year-round access to high-quality cassava, making it an enticing area for investment.
• Value-Added Product Development. By investing in research and development of value-added cassava products like gluten-free flour, modified starches, biofuels, and biodegradable packaging materials, companies can expand their market reach and generate higher revenue.
• Renewable Energy. Cassava processing enterprises can embrace sustainability by investing in renewable energy projects like biogas plants or biomass power generation, which not only benefits the environment but also enhances the industry's overall sustainability.

Main Cassava Processing Products in Nigeria

• Garri. Garri is a widely consumed food in Nigeria, made from cassava tubers. The production process involves several steps: cleaning and washing the cassava, peeling, grating, fermenting, dewatering, frying, and finally, sieving to achieve the desired texture. Traditionally, garri is white, but it can also be produced in a yellow variety by adding palm oil during the frying stage. This versatile food is commonly eaten in various forms, such as a cereal with water and sugar, or as a dough-like meal known as 'eba' when mixed with hot water, making it a central part of the Nigeria diet.
• Cassava Flour. Cassava flour is a gluten-free ingredient. It is widely used in the production of various food items such as noodles, biscuits, and bread. The production process involves several critical steps, including cleaning, washing, peeling, cutting, crushing, dewatering, drying, and sieving, which collectively ensure the flour's high quality and consistency. This method not only enhances efficiency but also maintains the nutritional value and natural flavour of the cassava flour, making it an ideal choice for gluten-free diets.
• Cassava fufu flour. Cassava fufu flour is closely related to cassava flour, with the primary distinction being that fufu flour undergoes a fermentation process. In Nigeria, the production of cassava fufu flour typically involves several steps, starting with the cleaning and washing of cassava, followed by peeling and cutting. The fermentation process, which can vary in time and temperature depending on local practices, is a crucial step that imparts the distinct flavour and texture associated with fufu flour. After fermentation, the cassava is crushed, dewatered, dried, and sieved to achieve the final product. This traditional method, deeply rooted in Nigerian culinary culture, results in a flour that is frequently consumed in many households in Nigeria.
• Cassava starch. Cassava starch is a fine powder derived from cassava roots through a process of extraction, dewatering, and drying. It has a broad range of applications in both food and non-food industries, including paper manufacturing, printing, textiles, cosmetics, and ethanol production. The production of cassava starch involves several key stages, starting with the cleaning and washing of cassava, followed by cutting, crushing, and the removal of fibres and sand. The starch is then refined, dewatered, dried, and sieved to achieve the final product. Each step is critical in ensuring the purity and quality of the starch, making it suitable for diverse industrial uses.
• Cassava chips. Cassava chips are produced by cleaning, peeling, and slicing harvested cassava roots, they offer uses such as animal feed. Once dried, these chips can be stored for extended periods, making them a practical and sustainable option for various applications. The process of drying not only preserves the cassava but also enhances its value, providing a reliable resource for industries that rely on this crop for feedstock or biofuel production. Additionally, the ability to store dried cassava chips for longer periods ensures a steady supply, even during off-harvest seasons, contributing to food security and economic stability

Pathways to Growth

• Technological Upgrades. Investing in modern processing technologies, such as mechanized peeling and drying equipment, can enhance productivity and product quality.
• Supply Chain Development. Building robust supply chain infrastructure, including cold chain logistics and improved storage, is crucial to reduce post-harvest losses and ensure a steady supply of quality cassava.
• Stakeholder Collaboration. Enhanced partnerships between research institutions, farmers, processors, government agencies, and private companies are essential for sharing knowledge, technology, and best practices.
• Strategic Investment. Targeted investments in improved agronomic practices, precision agriculture, and mechanization can boost yields and farm profitability