Cassava Chips Production in Nigeria; The Feasibility Report.

Cassava is the most important root crop in Nigeria, serving as both a staple food and a significant source of income for rural and urban households. Beyond its role in food security, cassava provides livelihoods for millions of smallholder farmers and processors across rural communities.

Currently, cassava contributes approximately 45% of agricultural GDP in Nigeria, primarily for domestic consumption. However, its industrial processing and utilization remain largely underdeveloped. Nigeria is the largest producer of cassava in the world, with an output of 54 million tonnes in 2012, highlighting the country’s dominance in global cassava production.

One challenge with cassava is its high perishability. The root contains about 55% water, making it highly perishable and prone to rapid deterioration just a few days after harvest. To mitigate post-harvest losses and increase economic returns, there is a growing need to process cassava into shelf-stable products.

Cassava chips represent one of the most practical solutions. These are dried, irregular slices of cassava root, typically not exceeding 4–5 cm in length. Producing cassava chips not only extends the shelf life of the tubers but also creates additional revenue streams for farmers and other stakeholders in the cassava value chain.

The demand for cassava chips extends across several industries. It serves as a key raw material in distilleries, pharmaceuticals, food processing, and particularly the animal feed industry. The production process is relatively straightforward, and the necessary equipment can often be fabricated locally, making it a viable investment for both small and medium-scale enterprises.

This report seeks to examine the financial viability of establishing a cassava chips production plant in Nigeria, using fresh cassava tubers as the primary raw material.

The proposed plant is designed with a production capacity of 10 tons per day, operating 8 hours per day at 90% of installed capacity in the first and second years of operation. An input-output ratio of 1:0.45 is assumed, meaning that for every ton of cassava tubers processed, 0.45 tons of dried cassava chips are produced.

Finished cassava chips would be packaged in 50 kg printed polypropylene woven sacks, with an inner layer of protective polyethylene material to maintain quality and prevent moisture absorption during storage and transport.

By converting highly perishable cassava into value-added, shelf-stable products, investors and entrepreneurs can reduce losses, meet industrial demand, and generate sustainable income, making cassava chips production a lucrative opportunity in Nigeria’s agro-industrial sector.

Table of Contents

EXECUTIVE SUMMARY 1.0 Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Business Objective 1.4 Critical Success Factor of the Business 1.5 Current Status of Business 1.6 Description of the Business Industry 1.7 Contribution to Local and National Economy 2. Marketing Plan 2.1 Description of product 2.2 Product Packaging and delivery 2.3 The Opportunity 2.4 Pricing Strategy 2.5 Target Market 2.6 Distribution and Delivery Strategy 2.7 Promotional Strategy 2.8 Competition 3. Production Plan 3.1 Description of the Location 3.2 Raw Materials 3.3 Production Equipment 3.4 Production Process 3.5 Production Cost 3.6 Stock Control Process 3.7 Pre-Operating activities and expenses 3.7.1 Operating Activities and Expenses 3.8 Project Implementation Schedule 4.0 Organizational and Management Plan 4.1 Ownership of the business 4.2 Profile of the promoters 4.3 Key Management Staff 4.3.2 Management Support Units 4.4 Details of salary schedule 5. Financial Plan 5.1 Financial Assumption 5.2 Start - Up Capital Estimation 5.3 Source of Capital 5.4 Security of Loan 5.5 Loan Repayment Plan 5.6 Profit and Loss Account 5.7 Cash Flow Analysis 5.7 Viability Analysis 6.0 Business Risk and mitigation factor 6.1 Business Risks 6.2 SWOT Analysis

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