Cassava Noodles Production in Nigeria; The Feasibility Report.

Cassava is the most important root crop in Nigeria. Beyond serving as a staple food for both rural and urban households, it is also a major source of income for farmers and processors, particularly in rural communities.

Cassava contributes significantly to Nigeria’s agricultural sector, accounting for about 45% of agricultural GDP for food and domestic use. Despite this strong contribution, the industrial processing and utilization of cassava remain relatively underdeveloped.

Nigeria currently produces approximately 40 million tonnes of cassava tubers annually, making it the largest producer globally. In line with the Federal Government’s efforts to reduce import dependency and conserve scarce foreign exchange, there is a national policy drive to increase the production and use of cassava starch as a viable alternative to imported corn starch.

Starch is the primary component of cassava and possesses excellent thickening and binding properties, making it highly valuable in both food and industrial applications. It is widely used in the production of convenience foods, baby foods, adhesives, and other industrial products. Modified starch derivatives such as dextrin further enhance its utility, especially in adhesive manufacturing.

Market research indicates that cassava starch has extensive applications across multiple industries. In the food sector, it is used in the production of bread, macaroni, noodles, custard, sauces, snacks, and traditional foods such as ogi.

One of the most significant growth areas for cassava starch utilization is in the production of instant noodles. Instant noodles are pre-cooked and dried noodle products typically sold with seasoning powder and/or flavoring oil. They can be prepared quickly by soaking in hot water or reheating and, in some cases, consumed directly from the package.

Traditionally, instant noodles are produced using wheat flour, palm oil, and salt, with seasoning mixes containing salt, monosodium glutamate, sugar, and other flavor enhancers. However, the rising cost and fluctuating availability of wheat—driven by global demand from brewing, confectionery, and other industries—have placed significant pressure on noodle manufacturers in Nigeria.

Over the years, instant noodles have become a dominant food item in Nigerian households due to their convenience, affordability, and ease of preparation. Since their introduction into the Nigerian market over two decades ago, they have evolved into a staple food consumed across all age groups and income levels.

The Nigerian noodle industry currently comprises about 17 manufacturers, employing over 30,000 people directly and more than 200,000 distributors nationwide. The industry also supports a wide value chain, including flour milling companies, oil refineries, palm oil plantations, packaging firms, and carton manufacturers. Annual consumption is estimated at between 260,000 and 280,000 tonnes.

A major challenge facing the industry is the dependence on imported wheat flour as the primary raw material. This reliance exposes manufacturers to foreign exchange risks and price volatility. As a result, there is increasing interest in alternative raw materials.

Cassava starch offers a viable solution, as it can be used as a partial substitute for wheat flour in noodle production. When blended with wheat flour, it reduces overall production costs while maintaining product quality, thereby enhancing profitability and sustainability.

The proposed production plant for cassava-based noodles will include key equipment such as a cooling rack, noodle extruder with dough mixer, stainless steel working tables, oven, blanching tank, jacketed boiler with gas burner, noodle packaging machine, weighing machine, accessories, generator, project vehicles, and wooden pallets.

The plant is designed with a production capacity of 15 tons per day and will operate at 80% of installed capacity for 300 working days annually. At full operation, the facility is projected to produce approximately 360,000 cartons per year, with each carton containing 20 packs of 500 grams of cassava-based noodles. The production process is based on an input-output ratio of 1:1.5.

This report seeks to evaluate the financial viability of establishing a plant for the production of instant noodles using High Quality Cassava Starch and durum wheat flour in Nigeria, with the aim of reducing dependence on imported wheat while leveraging Nigeria’s abundant cassava resources.

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 Analysis 5.7 Cash Flow Analysis 5.8 Viability Analysis 6.0 Business Risk and mitigation factor 6.1 Business Risks 6.2 SWOT Analysis

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