Soy Flour Production in Nigeria; The Feasibility Report.

Soybean (Glycine max) is a leguminous crop classified as an oilseed rather than a pulse. Native to East Asia, particularly China, it has been cultivated for thousands of years and remains a major crop in the region. Historically, soybean was valued not only for food but also as a nitrogen-fixing crop in rotation systems, enhancing soil fertility. On a dry weight basis, soybean contains approximately 40% protein, 20% oil, 35% carbohydrate, and 5% ash, with its protein being heat-stable, allowing it to retain nutritional quality even under high cooking temperatures.

While soybean production and utilization began in East Asia as early as the 11th century, the crop expanded to other parts of the world during the 18th and 19th centuries. It was introduced to Europe in the 1700s and to the United States in 1804. The crop reached Africa from China in the late 19th century, with documented cultivation in Algeria in 1896 and in South Africa in 1903. In Nigeria, soybean was first planted in 1908 in Ibadan, Oyo State, initially cultivated for export under the support of the Groundnut Board.

Today, soybean is widely cultivated across Nigeria, particularly in the Middle Belt, with Benue State accounting for nearly 40–45% of national production. Current estimates place Nigeria’s annual soybean production at approximately 1.2 million metric tonnes, making the country one of the leading producers on the African continent. The crop has gained prominence not only as a source of nutrition but also as a critical industrial raw material.

Soybeans are highly versatile, and a wide range of products can be derived from them, including soy cake, soy oil, full-fat soy, soy meal, soy flour, soy milk, tofu, and textured vegetable protein. Among these, soy flour is particularly valuable for the food industry. Soy flour proteins are used as raw materials in the production of baked goods, cereals, flour blends, and protein concentrates and isolates. They also serve functional roles, such as controlling color in foods, improving texture, and even acting as natural bleaching agents in bread production.

The demand for soy flour in Nigeria is substantial and growing, driven by the increasing consumption of protein-rich foods, fortified baby foods, and the expansion of the food processing industry. Raw materials for production—soybeans—are abundant locally, and the technology for processing soy flour is straightforward. Many of the required equipment can be fabricated locally, making entry into the market feasible and cost-effective.

The proposed soy flour production plant is designed to produce 2 tons per day at full capacity, operating at 75% capacity utilization. The facility will run a single 8-hour shift for 300 working days per year, ensuring a consistent supply of high-quality soy flour to meet the rising demand in Nigeria’s food industry.

Investing in soybean cultivation and soy flour production in Nigeria represents a strategically viable venture, combining strong market demand, readily available raw materials, and proven processing technologies, while also contributing to food security, nutritional improvement, and industrial development in the country.

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 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 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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