Cassava Flour Production In Nigeria, The Feasibility Report.

High Quality Cassava Flour (HQCF) is a finely milled, unfermented flour produced from fresh cassava tubers. It is white, odourless, and free from impurities, making it suitable for a wide range of industrial and food applications. Unlike traditional cassava flour, HQCF is processed under controlled conditions to meet specific quality standards required for baking, food manufacturing, and industrial use.

Nigeria is currently the world’s largest producer of cassava, with an estimated annual output of about 40 million tonnes. This abundant availability of cassava tubers ensures a steady and reliable supply of raw materials for the production of High Quality Cassava Flour, making large-scale production highly feasible.

In line with efforts to reduce dependence on imported wheat and conserve scarce foreign exchange, the Federal Government of Nigeria has introduced policies promoting the use of cassava flour as a partial substitute for wheat flour. This national initiative has significantly increased interest in the development and expansion of the HQCF industry.

Research has shown that High Quality Cassava Flour can be effectively substituted for a portion of wheat flour in bakery products such as bread and confectioneries. In addition, HQCF has proven useful in non-food industrial applications, including paperboard and plywood manufacturing, where it serves as a binder and filler.

Despite its strong potential, the HQCF industry in Nigeria is still largely dominated by small-scale producers, most of whom operate with capacities of less than 0.1 tons per day. These small processing units are typically located across cassava-producing regions of the country, where access to raw materials is readily available.

The demand for High Quality Cassava Flour in Nigeria is substantial and continues to grow. A major driver of this demand is the government’s policy mandating the inclusion of cassava flour in wheat flour for the production of composite flour used by flour mills, especially in bread and confectionery production.

Current estimates put the annual national demand for HQCF at approximately 750,000 tonnes, while local supply is estimated at only about 50,000 tonnes. This indicates a significant supply gap and highlights the vast investment opportunities in the sector.

Furthermore, at just a 10% inclusion rate in wheat flour, the demand from flour millers alone is estimated at about 550,000 tonnes annually. Beyond the food sector, additional demand comes from industries such as paperboard and plywood manufacturing, further strengthening the market potential for HQCF in Nigeria.

Overall, the production of High Quality Cassava Flour presents a compelling business opportunity, driven by strong government support, abundant raw materials, and a significant gap between demand and supply.

Table of Contents

Table of Content EXECUTIVE SUMMARY Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Business Objective 1.4 Value Proposition 1.5 Critical Success Factor of the Business 1.6 Current Status of Business 1.7 Description of the Business Industry 1.8 Contribution to Local and National Economy 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 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 Milestones 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 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 Analysis 5.7 Cashflow Analysis 5.8 Viability Analysis Business Risk and mitigation factor 6.1 Business Risks 6.2 SWOT Analysis

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