Cassava is one of Nigeria’s most important staple crops, with millions of her people relying on it daily as a food source and a raw material for industry.
But beyond food, cassava processing offers a lucrative business opportunity—and if you’ve ever thought of venturing into agro-processing, cassava is one of the most profitable places to start.
In this guide, you’ll learn everything you need to know about starting a cassava processing business in Nigeria—from the opportunities and market demand to the step-by-step setup process, required equipment, production flow, and how to reach your market.
Why Cassava? Understanding the Market Opportunity
Nigeria is the world’s largest producer of cassava, accounting for over 59 million metric tons annually (FAO, 2023). Grown in nearly every state, cassava is drought-resistant, matures within 6–12 months, and offers a steady supply chain for industrial processing.
Industrial Uses of Cassava in Nigeria
Products derived from cassava are many and can be applied in the following industrial areas:
-
Food Processing: Cassava is used to produce fufu, gari, starch, high-quality cassava flour (HQCF), cassava chips, and ethanol.
-
Pharmaceuticals: It can serve as a binding agent in tablets making
-
Adhesives & Packaging: Modified cassava starch is used in paper and cardboard manufacturing.
-
Biofuel: Cassava is a source for bioethanol production.
-
Livestock Feed: Processed cassava peels and chips serve as animal feed.
Growing Demand: A Billion-Naira Industry
As Nigeria intensifies efforts to reduce wheat imports and enhance local production, cassava-based alternatives are steadily gaining traction. Cassava flour is increasingly being blended into wheat flour for bread and pastries, while breweries and distilleries are substituting imported barley and corn syrup with cassava glucose and starch.
The Nigerian government continues to promote cassava value chain development through various programs, including the Central Bank’s Anchor Borrowers Programme (now suspended), and initiatives by the Federal Ministry of Agriculture and Rural Development.
Types of Cassava Processing Businesses
You can specialize in one or more of the following:
| Cassava Product | Processing Output | Common Markets |
| Garri | Roasted granules | Open markets, supermarkets |
| Fufu | Fermented mash/flour | Urban kitchens, export |
| Cassava Starch | Industrial starch | Paper, textiles, adhesives |
| Cassava Flour (HQCF) | Gluten-free flour | Bakeries, food companies |
| Ethanol | Biofuel/industrial use | Pharmaceutical & chemical companies |
| Animal Feed | Cassava peel mash, chips | Livestock farms, feed companies |
How to Start a Cassava Processing Business in Nigeria
1. Conduct a Feasibility Study
Begin with thorough research to assess market for the cassava product of your interest. Ensure that there is adequate local supply of cassava tubers and explore available processing options. Identify your target buyers, including distributors, FMCG companies, open markets, and exporters.
2. Choose Your Niche/Product
It is advisable to focus on one or two products initially. For example, you could produce garri and fufu, which have high local demand, or target industrial clients with high-quality cassava flour (HQCF) or starch. Alternatively, you may consider producing animal feed, which has a relatively low entry cost and steady market demand.
3. Register Your Business
Begin by choosing a suitable business name and registering it with the Corporate Affairs Commission (CAC). Also obtain NAFDAC registration to ensure regulatory compliance, and if you plan to operate a medium- or large-scale processing plant, secure the necessary environmental clearance.
4. Secure Location and Facility
Choose a site that is close to cassava farms to minimise transport costs. Ensure the facility has adequate space for storing raw materials, processing activities, drying operations, packaging, and housing of equipment.
5. Procure Equipment & Machinery
The equipment you need will depend on your chosen product line, but generally includes a cassava washer and peeler, grater or crusher, pressing machine, fermentation tanks, frying or starch drying machines, sieving machines, milling machine for flour or fufu production, packaging and sealing machines, as well as a power generator or solar backup system. There is also an adequate supply of locally fabricated equipment for most cassava processing products, which can be explored if you are setting up on a budget.
Expect to invest between N5 million to N25 million on equipment for a semi-automated production line.
6. Hire and Train Workers
Your staffing needs will include plant operators, quality control personnel, and casual workers for loading and unloading activities. For larger processing plants, you will also require administrative and logistics staff to ensure smooth operations.
7. Begin Test Production
Start with test batches to standardise product quality and ensure that your packaging complies with NAFDAC, SON, or relevant international standards if you plan to export.
8. Develop a Road-to-Market Plan
Identify and prioritise your target markets, which may include open markets for products like garri and fufu, bulk buyers such as bakeries and food processors, export opportunities for cassava flour, starch, and fufu powder, as well as online distribution through platforms like Jumia and other food or agro marketplaces.
Sales Strategies:
-
Distributors & wholesalers
-
Branding and attractive packaging
-
B2B contracts with bakeries, breweries, FMCGs
-
Partnerships with agro-exporters
Startup Cost
For a small to medium scale cassava processing plant, the estimated initial investment is as follows:
| Item | Cost Estimate (₦) |
| Land (optional if leased) | 2,000,000 – 5,000,000 |
| Facility setup | 3,000,000 – 8,000,000 |
| Equipment & machinery | 5,000,000 – 25,000,000 |
| Vehicle/logistics | 2,000,000 – 7,000,000 |
| Working capital | 3,000,000 – 10,000,000 |
| Licensing & admin | 500,000 – 1,000,000 |
| Total Estimate | ₦15 million – ₦50 million |
Challenges to Expect
You may face seasonal fluctuations in cassava prices, unreliable power supply, and difficulties with quality control and standardisation. Distribution bottlenecks are also common. Additionally, while access to capital can be a challenge, there are intervention funds available from institutions such as BOI, CBN, and NIRSAL to support cassava processing businesses.
Explore Backward Integration: Invest in Cassava Farming
One smart strategy for entrepreneurs venturing into cassava processing is backward integration—that is, investing in your own cassava farm to guarantee raw material supply.
Relying solely on external suppliers can expose your business to price volatility, quality inconsistencies, and seasonal shortages. By owning or partnering in cassava cultivation, you:
-
Secure steady supply of fresh tubers
-
Reduce cost per ton of raw materials
-
Control quality from farm to factory
-
Take advantage of government incentives for agriculture
You can start with a small farm (5–10 hectares) or contract farming arrangements with local farmers. This integration makes your processing plant more resilient, efficient, and profitable in the long run.
While the CBN’s Anchor Borrowers Programme has been discontinued, there are many opportunities through state government agricultural schemes, private equity funds, development finance institutions, and cooperative farming models to support cassava cultivation.
Whether you lease land or collaborate with local farmers, backward integration positions your cassava processing business for sustainable long-term growth.
Conclusion
The opportunities available in Nigeria’s cassava industry value chain is vast. With government support, growing local and industrial demand, and availability of raw materials, you can build a profitable and scalable business in cassava processing—whether you start with garri processing, industrial starch, HQCF, or ethanol.
What matters is taking the right first step, starting small if needed, and growing strategically.
Are you ready to take the next step? At Kobotalk Management Services, we help entrepreneurs like you turn ideas into thriving businesses. We offer:
-
Market research
-
Feasibility studies
-
Business plan development
-
Go-to-market strategy support
-
Access-to-finance advisory
Contact us today to get started on your cassava processing journey with expert guidance every step of the way.
Buchi creates content and leads the Team at Kobotalk Management Services; a business development and investment consultancy firm. He provides strategic advisory to help SME's, small business owners and HNI's grow profitable business and make informed investing decisions.
