Cassava Tuber Cultivation And Cassava Starch 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.

Nigeria currently produces about 40 million tonnes of cassava tubers annually, making it the largest producer of cassava in the world. In line with the Federal Government’s efforts to reduce import dependency and conserve scarce foreign exchange, there is a growing need to increase the local production of cassava starch as a viable alternative to imported corn starch.

Globally, an estimated 60 million tonnes of starch are extracted annually from a wide range of cereals, roots, and tubers. These starches are used in a wide variety of applications, including as stabilizers in soups and frozen foods, coatings for pharmaceuticals and paper, adhesives for stamps and plywood, stiffening agents in textiles, raw materials for ethanol production, and even as binders in construction materials such as concrete. Of this volume, approximately 10% is derived from cassava roots, a crop widely recognized as a staple for millions of low-income populations across Africa, Asia, and Latin America.

In Nigeria, cassava is cultivated in about 24 of the 36 states, requiring relatively low inputs and minimal labor compared to many other crops. It remains a critical food security crop for millions of Nigerians. Despite this abundance, the country continues to import an estimated USD 680 million worth of products such as flour, starch, glucose, and animal feed annually—many of which can be produced locally from cassava.

The cassava starch industry in Nigeria is still largely dominated by small-scale producers, most operating at capacities below 0.1 tons per day. These processing facilities are typically located in cassava-producing regions where access to raw materials is readily available.

Demand for cassava starch in Nigeria is substantial, with national requirements estimated at over 350,000 tonnes per annum. However, domestic production currently meets less than 20% of this demand, leaving a significant supply gap and creating strong investment potential in the sector.

Cassava starch possesses excellent thickening and binding properties, making it highly valuable across multiple industries. In the food industry, it is used as a thickener and binder in products such as bouillon cubes, baby foods, sauces, and processed meals. In the textile industry, starch is used as a yarn sizing and finishing agent, improving weaving efficiency and fabric quality. Notably, cassava starch is often preferred over corn starch in textile applications because it provides a smoother finish without altering fabric color. Additionally, starch is widely used in the production of adhesives.

Cassava starch is a whitish, fine powder used extensively in the food, pharmaceutical, pulp and paper, and textile industries. While it was traditionally used mainly for food and domestic purposes, such as laundry starch, its industrial applications have gained increasing attention in recent years. Today, it is used as a thickening agent in food processing, a component in pharmaceutical syrups, and a key input in textile manufacturing.

This report seeks to examine the financial viability of establishing an integrated cassava farm and cassava starch production plant in Nigeria, using fresh cassava tubers as the primary raw material. The objective is to leverage Nigeria’s abundant cassava resources to meet growing domestic demand, reduce imports, and create a sustainable and profitable agro-industrial venture.

Table of Contents

EXECUTIVE SUMMARY 1.0 Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Value Proposition 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 2.0 Agricultural Practice 2.1 Land Preparation 2.2 Collection of stems 2.3 Planting 2.4 Manures and Fertilizers 2.5 Weeding 2.6 Climate / Irrigation 2.7 Harvesting and Yield 2.8 Herbicides 2.9 Soil Type 2.10 Diseases and Pests 3. Marketing Plan 3.1 Description of product 3.2 Product Packaging and delivery 3.3 The Opportunity 3.4 Pricing Strategy 3.5 Target Market 3.6 Distribution and Delivery Strategy 3.7 Promotional Strategy 3.8 Competition 4. Production Plan 4.1 Description of the Location 4.2 Raw Materials 4.3 Production Equipment 4.4 Production Process 4.5 Production Cost 4.6 Stock Control Process 4.7 Pre-Operating activities and expenses 4.7.1 Operating Activities and Expenses 4.8 Project Implementation Schedule 5.0 Organizational and Management Plan 5.1 Ownership of the business 5.2 Profile of the promoters 5.3 Key Management Staff 5.3.2 Management Support Units 5.4 Details of salary schedule 6. Financial Plan 6.1 Financial Assumption 6.2 Start -Up Capital Estimation 6.3 Source of Capital 6.4 Security of Loan 6.5 Loan Repayment Plan 6.6 Profit and Loss Analysis 6.7 Cash Flow Statement 6.8 Viability Analysis 6.0 Business Risk and mitigation factor 7.1 Business Risks 7.2 SWOT Analysis

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