Nigeria’s global cassava dominance threatened by industrial constraints

Nigeria, the undisputed global leader in cassava production, harvested an estimated 62.7 million metric tonnes of the crop in 2023. Yet, this immense output belies a critical national challenge, as the country accounts for just two percent of the global cassava processing market share. The worrisome disparity underscores a persistent and economically detrimental gap between Nigeria’s raw agricultural potential and its industrial-scale utilisation capabilities.

Despite centuries of ingrained cassava cultivation experience and a vast network comprising over 14 million smallholder farmers, Nigeria’s industrial cassava processing capacity languishes at below 10 per cent, according to industry stakeholders. This inefficiency, analysts warn, threatens to perpetuate Nigeria’s reliance on costly imports of relevant industrial products such as starch, flour, and ethanol, all of which could be derived locally from the nation’s abundant cassava supply, thereby draining foreign exchange reserves.

Olayinka David-West, professor and dean of Lagos Business School at Pan-Atlantic University, assessed the systemic issues, recently.  “Nigeria is uniquely positioned to emerge as a global powerhouse in industrial cassava production, but it has yet to leverage this advantage due to technology gaps,” David-West stated. She emphasised that the current processing shortfall exposes inherent weaknesses in technology adoption and the integration of value chains within the agricultural sector.

According to industry reports, cassava cultivation is a cornerstone of Nigerian agriculture, accounting for 30 per cent of the country’s total cultivated land area and spanning nearly all ecological zones, which theoretically ensures year-round supply stability. However, local industries consistently report that domestic processors frequently fail to meet the required quality and volume standards demanded by manufacturers. This forces industrial users to import essential inputs, thereby placing additional pressure on Nigeria’s already strained foreign exchange reserves.

Olayinka Majekodunmi, partner at Boston Consulting Group, pointed to Nigeria’s deep-rooted cassava farming tradition, spanning over 500 years, coupled with well-established networks of transporters, processors, and consumers. He argued that these foundational elements provide a strong platform for scaling industrial production. “The country’s broad base of smallholder farmers and resilient supply channels highlight its readiness to industrialize cassava farming at scale,” Majekodunmi affirmed.

However, industry stakeholders are unanimous that bridging the yield gap is paramount. Nigeria’s current average cassava yield stands at approximately six metric tonnes per hectare, a figure significantly below the global average of 25 tonnes per hectare. Experts contend that this substantial gap can be effectively closed through the widespread adoption of improved agronomic practices, targeted research, and enhanced mechanization across the cultivation process. Organizations such as the Gates Foundation have been actively funding research and development initiatives aimed at enhancing cassava varieties and fortifying the crop with essential nutrients, thereby boosting productivity and improving its industrial viability.

Industry observers emphasise that merely increasing raw production will not suffice to capture the full economic value of cassava. “Low industrial utilization rates highlight significant opportunities for value addition,” David-West reiterated. She stressed that substantial investments in advanced processing technologies and critical infrastructure are indispensable to transform raw cassava into higher-value by-products such as starch, ethanol, sweeteners, and industrial-grade flours.

Beyond meeting rising domestic demand, Nigeria’s cassava industry harbours immense export potential. Analysts project that tapping into lucrative global markets, including China, Europe, and North America, could generate significant revenue inflows and substantially reduce the country’s persistent trade imbalance. Realising this opportunity, however, necessitates substantial capital investment, effective technology transfer, and robust policy support to upgrade existing processing facilities and address entrenched supply chain bottlenecks.

Encouragingly, local processors and investors are increasingly being urged to forge partnerships with farming communities to develop integrated value chains. Stakeholders believe this collaborative approach will ensure a consistent and reliable supply of raw materials while simultaneously meeting the stringent quality standards required by industrial clients. With Nigeria’s unique year-round production potential and established distribution channels, investors possess a strong foundation upon which to rapidly scale operations. Industry leaders continue to press both government and private sector players to prioritise crucial areas such as infrastructure development, research and development (R&D), and rural mechanisation to fully unlock the country’s cassava value chain potential.

The urgency of leveraging cassava’s potential is particularly notable in the baking industry. Emmanuel Onuorah, President of the premium Bread-Makers Association of Nigeria (PBAN), underscored the need for locally sourced ingredients, especially cassava, to reduce bread production costs. While PBAN members are actively exploring cassava as an alternative to imported wheat, Onuorah stressed that the widespread availability of cassava in dry form and commercial quantities remains a significant hurdle.

In a direct plea to the Federal Institute of Industrial Research Oshodi (FIIRO), Onuorah emphasised that alternative ingredients must be not only easily accessible but also cost-effective. He specifically noted that bakers require these ingredients in dry form to obviate the added expense of storage. 

Highlighting the critical importance of collaboration, Onuorah called upon FIIRO to join forces with bakers to address the challenge of ensuring consistent and commercially viable supplies of dry cassava. This partnership, he argued, would facilitate the widespread adoption of locally sourced ingredients in bread production, ultimately reducing Nigeria’s heavy reliance on imported wheat and mitigating the associated economic challenges. “Our members are ready to innovate, but the government and research bodies must provide the necessary infrastructure and policies,” he stated.

Echoing these sentiments, Babafemi Oke, Southwest Chairman of the All Farmers Association of Nigeria (AFAN), stated that the revival of Nigeria’s cassava flour policy is contingent upon the government demonstrating a genuine commitment to supporting the initiative. Oke believes this can be achieved by providing a fair and competitive price for cassava flour that matches levels offered under previous administrations, thereby incentivising farmers and processors.

A crucial component in this revival, Oke argues, is the provision of cassava processing facilities in close proximity to farmers. This would enable them to process the highly perishable cassava crop on the very day it is harvested, preserving its quality and ensuring its suitability for flour production. “Without access to these facilities, farmers are not able to convert their cassava into flour on time, which can result in spoilage and quality loss,” he lamented.

Segun Adewunmi, former president of the Nigeria Cassava Growers Association, reiterated the necessity for a collaborative effort spanning government, agricultural research institutes, and financial institutions. This partnership, he proposed, must collaborate to provide the requisite resources and support for farmers to consistently grow high-quality cassava. 

Beyond direct investment in farmers, Adewunmi stressed the imperative for rigorous research into the optimal use of cassava flour in bread production. This, he noted, would ensure that cassava flour can meet the same standards as wheat flour, thereby creating a viable and sustainable alternative for the bread industry and, ultimately, reducing Nigeria’s considerable reliance on imported wheat, transforming a raw agricultural giant into an industrial powerhouse.

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Nigeria’s global cassava dominance threatened by industrial constraints

Nigeria, the undisputed global leader in cassava production, harvested an estimated 62.7 million metric tonnes of the crop in 2023. Yet, this immense output belies a critical national challenge, as the country accounts for just two percent of the global cassava processing market share. The worrisome disparity underscores a persistent and economically detrimental gap between Nigeria’s raw agricultural potential and its industrial-scale utilisation capabilities.

Despite centuries of ingrained cassava cultivation experience and a vast network comprising over 14 million smallholder farmers, Nigeria’s industrial cassava processing capacity languishes at below 10 per cent, according to industry stakeholders. This inefficiency, analysts warn, threatens to perpetuate Nigeria’s reliance on costly imports of relevant industrial products such as starch, flour, and ethanol, all of which could be derived locally from the nation’s abundant cassava supply, thereby draining foreign exchange reserves.

Olayinka David-West, professor and dean of Lagos Business School at Pan-Atlantic University, assessed the systemic issues, recently.  “Nigeria is uniquely positioned to emerge as a global powerhouse in industrial cassava production, but it has yet to leverage this advantage due to technology gaps,” David-West stated. She emphasised that the current processing shortfall exposes inherent weaknesses in technology adoption and the integration of value chains within the agricultural sector.

According to industry reports, cassava cultivation is a cornerstone of Nigerian agriculture, accounting for 30 per cent of the country’s total cultivated land area and spanning nearly all ecological zones, which theoretically ensures year-round supply stability. However, local industries consistently report that domestic processors frequently fail to meet the required quality and volume standards demanded by manufacturers. This forces industrial users to import essential inputs, thereby placing additional pressure on Nigeria’s already strained foreign exchange reserves.

Olayinka Majekodunmi, partner at Boston Consulting Group, pointed to Nigeria’s deep-rooted cassava farming tradition, spanning over 500 years, coupled with well-established networks of transporters, processors, and consumers. He argued that these foundational elements provide a strong platform for scaling industrial production. “The country’s broad base of smallholder farmers and resilient supply channels highlight its readiness to industrialize cassava farming at scale,” Majekodunmi affirmed.

However, industry stakeholders are unanimous that bridging the yield gap is paramount. Nigeria’s current average cassava yield stands at approximately six metric tonnes per hectare, a figure significantly below the global average of 25 tonnes per hectare. Experts contend that this substantial gap can be effectively closed through the widespread adoption of improved agronomic practices, targeted research, and enhanced mechanization across the cultivation process. Organizations such as the Gates Foundation have been actively funding research and development initiatives aimed at enhancing cassava varieties and fortifying the crop with essential nutrients, thereby boosting productivity and improving its industrial viability.

Industry observers emphasise that merely increasing raw production will not suffice to capture the full economic value of cassava. “Low industrial utilization rates highlight significant opportunities for value addition,” David-West reiterated. She stressed that substantial investments in advanced processing technologies and critical infrastructure are indispensable to transform raw cassava into higher-value by-products such as starch, ethanol, sweeteners, and industrial-grade flours.

Beyond meeting rising domestic demand, Nigeria’s cassava industry harbours immense export potential. Analysts project that tapping into lucrative global markets, including China, Europe, and North America, could generate significant revenue inflows and substantially reduce the country’s persistent trade imbalance. Realising this opportunity, however, necessitates substantial capital investment, effective technology transfer, and robust policy support to upgrade existing processing facilities and address entrenched supply chain bottlenecks.

Encouragingly, local processors and investors are increasingly being urged to forge partnerships with farming communities to develop integrated value chains. Stakeholders believe this collaborative approach will ensure a consistent and reliable supply of raw materials while simultaneously meeting the stringent quality standards required by industrial clients. With Nigeria’s unique year-round production potential and established distribution channels, investors possess a strong foundation upon which to rapidly scale operations. Industry leaders continue to press both government and private sector players to prioritise crucial areas such as infrastructure development, research and development (R&D), and rural mechanisation to fully unlock the country’s cassava value chain potential.

The urgency of leveraging cassava’s potential is particularly notable in the baking industry. Emmanuel Onuorah, President of the premium Bread-Makers Association of Nigeria (PBAN), underscored the need for locally sourced ingredients, especially cassava, to reduce bread production costs. While PBAN members are actively exploring cassava as an alternative to imported wheat, Onuorah stressed that the widespread availability of cassava in dry form and commercial quantities remains a significant hurdle.

In a direct plea to the Federal Institute of Industrial Research Oshodi (FIIRO), Onuorah emphasised that alternative ingredients must be not only easily accessible but also cost-effective. He specifically noted that bakers require these ingredients in dry form to obviate the added expense of storage. 

Highlighting the critical importance of collaboration, Onuorah called upon FIIRO to join forces with bakers to address the challenge of ensuring consistent and commercially viable supplies of dry cassava. This partnership, he argued, would facilitate the widespread adoption of locally sourced ingredients in bread production, ultimately reducing Nigeria’s heavy reliance on imported wheat and mitigating the associated economic challenges. “Our members are ready to innovate, but the government and research bodies must provide the necessary infrastructure and policies,” he stated.

Echoing these sentiments, Babafemi Oke, Southwest Chairman of the All Farmers Association of Nigeria (AFAN), stated that the revival of Nigeria’s cassava flour policy is contingent upon the government demonstrating a genuine commitment to supporting the initiative. Oke believes this can be achieved by providing a fair and competitive price for cassava flour that matches levels offered under previous administrations, thereby incentivising farmers and processors.

A crucial component in this revival, Oke argues, is the provision of cassava processing facilities in close proximity to farmers. This would enable them to process the highly perishable cassava crop on the very day it is harvested, preserving its quality and ensuring its suitability for flour production. “Without access to these facilities, farmers are not able to convert their cassava into flour on time, which can result in spoilage and quality loss,” he lamented.

Segun Adewunmi, former president of the Nigeria Cassava Growers Association, reiterated the necessity for a collaborative effort spanning government, agricultural research institutes, and financial institutions. This partnership, he proposed, must collaborate to provide the requisite resources and support for farmers to consistently grow high-quality cassava. 

Beyond direct investment in farmers, Adewunmi stressed the imperative for rigorous research into the optimal use of cassava flour in bread production. This, he noted, would ensure that cassava flour can meet the same standards as wheat flour, thereby creating a viable and sustainable alternative for the bread industry and, ultimately, reducing Nigeria’s considerable reliance on imported wheat, transforming a raw agricultural giant into an industrial powerhouse.

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