Cassava Tapioca Production in Nigeria; The Feasibility Report.

Cassava is the most important root crop in Nigeria. In addition to being a staple food consumed in both rural and urban households, it serves as a major source of income for farmers and processors, particularly in rural communities.

Cassava contributes significantly to Nigeria’s agricultural sector, accounting for an estimated 45% of agricultural GDP in terms of food and domestic use. However, despite its abundance and economic importance, the level of industrial processing and value addition remains relatively low, presenting substantial opportunities for investment.

Tapioca is a starch extracted from the cassava root and is regarded as one of the purest forms of starch-based food. It has a neutral taste and strong gelling properties, making it highly suitable as a thickening agent in both sweet and savory food products. Being almost 100% carbohydrate, tapioca is naturally free from fat, gluten, and protein, which makes it particularly attractive for health-conscious consumers and for use in gluten-free food formulations.

Traditionally, tapioca is used in products such as tapioca pudding, bubble (boba) tea, and a variety of confectioneries and desserts. However, with the advancement of industrial food processing, its applications have expanded significantly. Tapioca is widely used in soups, sauces, and gravies to enhance texture and consistency, offering superior thickening power at a lower cost compared to flour and other alternatives. It is also incorporated into processed meat products such as burger patties and chicken nuggets, where it acts as a binder and stabilizer.

In addition, tapioca is commonly used in dough formulations—particularly in gluten-free products—to improve texture, elasticity, and moisture retention.

Given Nigeria’s position as the world’s largest producer of cassava, the availability of raw materials for tapioca production is assured. This creates a strong foundation for establishing a profitable tapioca processing business.

This report seeks to examine the financial viability of establishing a tapioca production plant in Nigeria, utilizing cassava tubers as the primary raw material. The proposed plant is designed to operate at a production capacity of three (3) tons per day, running a single shift of eight (8) hours, and operating at 80% of installed capacity during the first and second years of operation.

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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