Industrial Cassava Stakeholders Association of Nigeria

22/08/2026

COST AND PROFIT EVALUATION FOR PREMIUM QUALITY WHITE FERMENTED GARRI PRODUCTION

The cost analysis for producing 1 ton of premium fermented white garri, based on an average production volume of 15 tons monthly, becomes significantly more challenging when the supply price of cassava tubers is between N50,000 and N60,000 per ton. At a 5:1 conversion ratio as obtainable in the raining season, cassava alone costs N250,000–N300,000 per ton of finished garri.

This makes raw-material sourcing one of the most important determinants of profitability, particularly when premium garri is being produced for quality-conscious domestic and export markets.

With cassava at N50,000 per ton, the other production costs comprising peeling, firewood, diesel, machine operation, utilities, finished-product packaging and fermentation sacks bring direct production cost to about N482,500 per ton.

Adding N20,000 for the owner's salary allocation, based on 15 tons monthly, and N20,000 for miscellaneous expenses, maintenance, minor consumables and wastage gives an estimated fully loaded cost of N522,500 per ton. At N60,000 cassava, the corresponding fully loaded cost rises to approximately N572,500 per ton.

At N500/kg, the business would therefore lose approximately N22,500–N72,500 per ton, depending on cassava price. At N550/kg, the outcome ranges from approximately N27,500 profit to N22,500 loss per ton.

At N600/kg, profitability improves to approximately N77,500–N27,500 per ton. These figures demonstrate that at current cassava prices, the domestic commodity market may provide insufficient margin unless production efficiency and raw-material procurement are substantially improved.

The situation changes significantly if the product can command N700/kg, particularly from export buyers who place greater value on consistent whiteness, fermentation quality, hygiene, food safety, packaging and reliable specifications.

At N700/kg, each ton generates N700,000 revenue. Against the estimated fully loaded cost of N522,500–N572,500, the business would generate approximately N127,500–N77,500 profit per ton, depending on cassava price.

At 15 tons monthly, this represents approximately N1.91 million–N1.16 million monthly profit, making the premium export-oriented model substantially more attractive.

However, the N700/kg opportunity should not be interpreted simply as an opportunity to charge a higher price. Export buyers will normally expect consistency, traceability, appropriate packaging, food-safety compliance, documentation and dependable supply.

Meeting these requirements may introduce additional costs for laboratory testing, certification, export-standard packaging, logistics and quality assurance. Nevertheless, the additional value captured from a genuine premium market can more than compensate for these costs if the product is properly differentiated and the market is secured.

The strategic implication is therefore that premium fermented white garri should increasingly be treated as a value-added product rather than a commodity. At a 5:1 conversion ratio, securing cassava at N50,000–N60,000 remains critical, while moving toward 4:1 could save N50,000–N60,000 per ton.

Combined with an export-oriented selling price of N700/kg, this could potentially push the margin substantially higher and provide greater protection against fluctuations in cassava and energy costs.

The business is therefore most resilient when it combines efficient processing, controlled raw-material costs, premium positioning and access to higher-value export markets. The real opportunity is not simply to produce more garri, but to produce a consistently premium product that commands a premium price in markets willing to pay for quality.

Kazeem Lamidi

21/08/2026

IMPORTED CORN STARCH, CASSAVA AND THE DANGER OF LOSING OUR INDUSTRIAL SOVEREIGNTY

Outright dependence on imported corn starch for industrial utilization in Nigeria’s food and pharmaceutical industries should concern every serious stakeholder. It is not merely about import substitution or protecting local processors; it is fundamentally about industrial sovereignty and supply-chain resilience.

The COVID-19 experience should have taught us that when global supply chains are disrupted, countries excessively dependent on imported critical raw materials quickly discover the real cost. God forbid another COVID-like pandemic or other importation disruptions, only then may we fully appreciate the damage caused by policies that encourage import dependence while weakening domestic production.

The concern becomes even more serious when we consider Nigeria’s cassava value chain. Farmers and processors have invested years building production capacity around the expectation that our enormous cassava resource would increasingly support industrial raw-material development.

But when imported alternatives receive policy advantages that make them cheaper than locally produced substitutes, the consequences travel all the way back to the farm. The danger is that we may celebrate today's apparent abundance—or temporary availability of cheaper competing raw materials—without considering what happens to production capacity tomorrow.

At that point, the question will change from “Why is cassava expensive?” to “Where is the cassava?” Agricultural production does not respond instantly to industrial demand. Once farmers leave, restoring acreage, confidence and investment takes time.

Interestingly, we appear to be repeating a similar experiment with maize. The current availability of maize at relatively attractive prices can create the impression that Nigeria has solved its grain supply challenge. Yet part of this situation is influenced by importation facilitated by the zero import tariff regime.

If those imports suddenly stop because of geopolitical tensions, export restrictions, foreign exchange constraints, shipping disruptions or another global emergency, we may discover that apparent abundance is not necessarily the same as domestic production strength.

The consequences would extend far beyond maize farmers. Feed manufacturers could face higher raw-material costs; poultry and livestock producers could experience another wave of cost escalation; processors could struggle to secure sufficient grain; and consumers would eventually absorb the impact through higher food prices.

This is why Nigeria must distinguish between short-term price relief and long-term supply-chain resilience. Importation can be useful for bridging temporary supply gaps and stabilizing markets, but when import policy systematically undermines domestic production, the country may be exchanging today's cheaper raw material for tomorrow's strategic vulnerability.

Kazeem Lamidi
+2348100975775

21/08/2026

BUILDING THE BRIDGE BETWEEN THE NIGERIAN CASSAVA STARCH PROCESSING INDUSTRY AND PHARMACEUTICAL INDUSTRY — PART 2

Following my earlier conversation on pharmaceutical-grade cassava starch, I believe concerned associations such as INCSAN, NCIA, PVAC and other relevant platforms should consider a joint working committee bringing cassava processors, pharmaceutical manufacturers, NAFDAC, RMRDC, NNMDA, NIPRD, SON, universities, development finance institutions and technical partners together.

Its mandate should be to identify technical gaps, agree on specifications, assign responsibilities, mobilize resources and take selected processors through product development and pharmaceutical validation.

The committee could operate as a technical coordination team supported by a broader stakeholder council. Its first task should be to establish what pharmaceutical starches are imported, what pharmaceutical companies require, what local processors can produce and where the gaps exist in processing, laboratory testing, quality assurance and regulatory compliance.

Selected processors and pharmaceutical companies can then undertake controlled trials, with the Raw Materials Research and Development Council (RMRDC) and research institutions supporting development while NAFDAC provides regulatory guidance. RMRDC’s previous work on pharmaceutical-grade starch from Nigerian raw materials provides a useful local precedent.

The risks and pre-emptive impediments can be reduced through clear terms of reference, defined deliverables, confidentiality arrangements, independent technical evaluation and milestone-based funding. The ex*****on should follow a simple progression of diagnoze, develop, validate, qualify and commercialize.

Begin with a national technical and market assessment, select one or two processors for pilot development, establish analytical and quality benchmarks, produce trial batches and allow pharmaceutical companies to conduct formulation and performance testing before commercial qualification. Development partners such as UNIDO can support technology transfer, quality infrastructure, GMP development and investment mobilisation.

I believe INCSAN and other concerned associations have an opportunity to initiate this conversation constructively. The objective should not be to tell pharmaceutical companies what they should buy, but to understand what Nigeria must produce, how it should be produced and what support is required to make it acceptable.

Pharmaceutical manufacturers should equally participate in shaping the product because they understand the quality, functionality and regulatory requirements. If INCSAN, NCIA, PVAC and other organisations can collectively push for a structured working committee supported by NAFDAC, RMRDC, NNMDA and credible development partners, I believe this is achievable.

Kazeem Lamidi
Business Development Officer (INCSAN)
+2348100975775

17/08/2026

INCSAN MEMBERSHIP: YOUR STRATEGIC ADVANTAGE IN NIGERIA’S CASSAVA ECONOMY

Nigeria’s cassava economy is entering a phase where access to the right information, markets, partnerships, influence and opportunities can make the difference between simply participating in the industry and building a resilient and competitive business. This is why membership of the Industrial Cassava Stakeholders’ Association of Nigeria (INCSAN) should not be viewed merely as belonging to an association, but as a strategic business decision for anyone who is serious about the future of cassava in Nigeria.

As an INCSAN member, your business becomes part of a platform that connects key players across the cassava value chain and creates opportunities that individual businesses may find difficult to access on their own. Membership provides opportunities for market access and business linkages for cassava-based products such as High Quality Cassava Flour (HQCF), cassava starch and other derivatives. It also provides a stronger platform for policy representation and advocacy, ensuring that the interests of processors, farmers, manufacturers, investors and other stakeholders are better represented in conversations around policies, regulations, tariffs, standards and other issues affecting the operating environment.

In an industry where market conditions can change rapidly, access to reliable industry intelligence is becoming increasingly important. INCSAN provides a platform for stakeholders to share knowledge, understand market movements, identify emerging trends, anticipate supply constraints and make better-informed business decisions. Through strategic networking and partnerships, members can connect with farmers, processors, industrial off-takers, investors, researchers, technology providers, government institutions and other important players within the ecosystem.

Membership also creates opportunities for business growth through structured programmes, projects, collaborations, capacity-building initiatives and market-development activities. These platforms can help businesses improve processing efficiency, product quality, technology adoption, operational performance and overall competitiveness. At the same time, being part of an organised industry platform increases the visibility and positioning of a business within Nigeria’s industrial cassava ecosystem and among relevant decision-makers.

Another important advantage is the opportunity to participate in collaborative platforms that can unlock access to technical support, innovation, research, funding opportunities and strategic partnerships. No single company can solve all the challenges confronting Nigeria’s cassava industry alone. The future of the sector will depend increasingly on collaboration between producers, processors, industrial users, government agencies, research institutions, investors, technology providers and other stakeholders.

INCSAN also has an important role to play in creating demand for cassava products by supporting coordinated advocacy for greater industrial and consumer adoption of cassava and its derivatives. Nigeria cannot achieve meaningful cassava industrialisation simply by producing more cassava. We must build sustainable markets for what farmers and processors produce, strengthen linkages between raw-material suppliers and industrial off-takers, improve product quality and consistency, encourage local industries to use locally produced cassava derivatives and create an environment where investment in the value chain can thrive.

At the heart of all these efforts is collective representation. When stakeholders speak individually, their concerns can easily be overlooked. When an organised industry speaks with a common and informed voice, its concerns, ideas and recommendations carry greater weight. This is one of the strategic advantages of belonging to INCSAN.

The Nigerian cassava industry is evolving, and the businesses that will remain relevant in the years ahead will not necessarily be those that simply produce the most. They will be those that understand the market, build the right relationships, access timely information, adapt to policy and market changes, develop reliable partnerships and position themselves within the broader industrial ecosystem.

That is the space INCSAN is building.

If your business is serious about growth, resilience, market access and long-term relevance in Nigeria’s cassava economy, this is the table you should be sitting at. INCSAN brings together the players, relationships, knowledge, influence and opportunities that individual businesses may struggle to access on their own.

Don’t just participate in Nigeria’s cassava economy. Position your business to help shape where the industry is going next.

Learn more about the Association through www.icsan.com.ng. To become a member of the Association, you can also call or WhatsApp +234 706 075 3660, +234 810 097 5775 or +234 803 410 1017 for more information, or send an email to [email protected] or [email protected].

Kazeem Lamidi
Business Development Officer - INCSAN

26/07/2026

WHEN ECONOMICS IS NOT THE PROBLEM

A question that naturally arises from the current market situation in the Nigeria cassava sector is this: with the price of fresh cassava tubers now at one of its lowest levels in recent times, are the prices of cassava products such as starch and High Quality Cassava Flour (HQCF) not economical enough?

The answer is yes—by most commercial measures, they are. At current raw material prices, the economics are generally favourable for processors, and locally produced cassava starch and HQCF now competitively priced against imported alternatives. While the high cost of energy continues to erode processors' margins, the products themselves remain economically viable from both a profitability and market competitiveness point of view.

Unfortunately, economics is not the only factor determining buying decisions. In the case of cassava starch and HQCF, import politics and vested commercial interests continue to influence the market.

Despite the availability of quality locally produced cassava starch and HQCF at competitive prices at the moment, some manufacturing companies still jettison these locally produced cassava derivatives in favour of imported products. In many cases, this preference has less to do with price or quality and more to do with entrenched import interests.

This is why lowering the cost of production alone will not unlock the full potential of Nigeria's cassava processing industry. The sector also needs deliberate policies, fair trade practices, and stronger commitment to local sourcing so that domestic manufacturers can compete on a level playing field.

Until these structural issues are addressed, the full economic benefits of Nigeria's cassava industry will remain unrealized.

Kazeem Lamidi

26/07/2026

WHY DO GARRI AND FUFU FLOUR SOMETIMES COMMAND HIGHER PRICES THAN CASSAVA STARCH AND HQCF?

A common misconception in the cassava industry is that the most technologically complex products should command the highest prices. In reality, markets reward demand, market access, and customers' willingness to pay. This explains why premium fufu flour, and increasingly high-quality garri, can sell at prices comparable to or even higher than cassava starch and High Quality Cassava Flour (HQCF).

The difference lies in the markets these products serve. Cassava starch and HQCF are industrial commodities sold to manufacturers who constantly benchmark them against substitutes. In Nigeria, starch competes with imported corn starch. Internationally, Nigerian cassava starch faces stiff competition from major exporters such as Thailand, Vietnam and Indonesia, whose scale and lower production costs keep global prices lower. As a result, Nigerian starch producers face pricing pressure in both domestic and export markets.

Garri and fufu flour operate in a different market environment. They enjoy strong domestic demand as staple foods while also benefiting from growing export demand among Nigerians and other West African communities abroad, serving consumer markets willing to pay a premium for authentic Nigerian foods.

This gives garri and fufu flour a pricing advantage. Consumers seeking authentic garri or fermented fufu flour are not comparing them with corn starch or wheat flour. They are buying a specific food experience and cultural identity. Industrial buyers, however, focus primarily on price, specifications and functionality. Every increase in starch or HQCF prices is immediately measured against competing alternatives, limiting producers' ability to pass on higher production costs.

This explains why a ton of premium export-grade garri can sell at prices comparable to—or even above—a ton of food-grade cassava starch. It is not because garri or fufu flour is more difficult to produce, but because both benefit from two strong demand drivers: a resilient local market and an expanding export consumer market. Cassava starch, on the other hand, is constrained by commodity pricing globally and by competition from imported corn starch locally.

The lesson for Nigeria's cassava industry is that the highest-priced cassava products are not always those with the most advanced processing technologies, but those with the strongest market positioning. While investment in starch and HQCF remains critical for industrial development, equal attention should be given to strengthening export markets for consumer products such as garri and fufu flour, while improving the competitiveness of Nigerian cassava starch through lower production costs, better logistics, consistent quality and supportive trade policies.

Ultimately, markets pay for value, not effort. The product that enjoys the strongest demand and the greatest pricing power—not necessarily the one that is hardest to produce—will often command the highest prices.

Kazeem Lamidi

24/07/2026

THE MISREPRESENTATION OF NIGERIA'S CASSAVA STARCH CAPACITY: A NARRATIVE THAT UNDERMINES LOCAL INDUSTRY

One of the recurring narratives used to justify the importation of starch into Nigeria is that local cassava starch processors do not have the capacity to meet national demand. That narrative deserves to be examined against the available facts.

Nigeria's annual demand for cassava starch is only a little above 350,000 metric tonnes. At the same time, the combined installed production capacity of existing local cassava starch factories is already estimated to be around 300,000 metric tonnes. With additional investments currently in the pipeline, Nigeria is much closer to self-sufficiency than many people acknowledge.

The real challenge is therefore not an absolute lack of production capacity, but the inability of many existing processors to operate at optimum capacity. High production costs, inconsistent raw material supply, energy challenges, inadequate financing, and unfavourable government policy have continued to limit capacity utilization. These are issues that require deliberate policy intervention, not increased dependence on imports.

Rather than promoting a narrative that creates room for unnecessary importation, it is in Nigeria's economic interest to strengthen the local industry. Supporting domestic cassava starch manufacturers through well-designed policies, improved access to finance, infrastructure, stable energy, and market protection where appropriate will encourage existing plants to maximize production while attracting new investors into the sector.

Every tonne of starch produced locally creates value across the cassava value chain. It provides a reliable market for farmers, creates jobs in processing, transportation, engineering, packaging, and logistics, stimulates rural economic development, conserves foreign exchange, and strengthens Nigeria's industrial base. Conversely, unnecessary importation transfers these economic benefits to other countries while weakening domestic investments.

Where genuine concerns exist regarding product quality or industry standards, the solution is not import substitution through foreign products but stronger institutional collaboration. Agencies such as the National Agency for Food and Drug Administration and Control (NAFDAC), the Standards Organisation of Nigeria (SON), and the Raw Materials Research and Development Council (RMRDC) have important roles to play in working with processors to improve product quality, harmonize standards, encourage research, and build confidence among industrial users.

Nigeria has the raw materials, the entrepreneurial capacity, the processing experience, and a growing investment pipeline to become self-sufficient in cassava starch and eventually emerge as a regional export hub. What the industry requires is not a narrative of insufficiency, but policies that unlock existing capacity and create an enabling environment for sustained investment.

If our objective is truly to grow the Nigerian economy, create employment, and deepen industrialization, then our priority should be to build the competitiveness of local cassava starch producers—not to create avoidable opportunities for imported alternatives.

Kazeem Lamidi
Business Development Officer (INCSAN)
https://wa.me/2348100975775

22/07/2026

WHEN THE CHIPS ARE DOWN

There is an old saying that "when the chips are down," people discover what they are truly made of. Today, that expression carries a strikingly literal meaning for everyone in Nigeria's cassava value chain. The chips are indeed down—not just as an expression describing difficult times, but also in the prices of fresh cassava tubers and several other cassava products. For many farmers and processors, 2025 and this 2026 have tested their resilience and the ability to adapt.

In 2024, the conversation was completely different. Fresh cassava commanded unprecedented prices. Farmers were just smiling to the bank and processors struggled to secure enough raw materials. Expansion became the order of the day. More hectares were cultivated, as processors also increased capacity.

By the beginning of 2025 when many of the user companies of cassava derivatives switched to patronizing imported alternatives, and processors of cassava starch and HQCF lost chunk of their markets, demand for cassava tubers dropped beyond usual and price also dropped far below 50% of the previous year. Farmers become discouraged and many processors struggle to operate at 30% of their installed capacity. Many even closed completely.

Perhaps what we are witnessing is not simply a fall in prices but a reminder of a lesson that the industry has not fully embraced the needed reality; that production and market development must grow together. Also the need for strengthen operational efficiency at both production and processing levels. It is not enough for farmers to only pursue increase in size of farmland cultivated, quantity yield per hectare is a major determining factor for the profitability of the investment. Same way that it is important for processors to pursue all possible means of operational cost reduction – cost of energy is a major productivity hindering factor, hence the need to investment alternative energy sources more seriously.

Equally, it is good to note that production without corresponding market expansion inevitably leads to pressure on prices. A value chain cannot rely on occasional shortages to remain profitable. Sustainable growth comes from creating consistent demand, expanding industrial applications, developing export markets and building stronger linkages across the value chain. Therefore, the current situation should not be viewed as a reason for despair but as an opportunity for reflection. Farmers may need to place greater emphasis on productivity rather than simply increasing cultivated area, while strengthening relationships with reliable off-takers before planting. Processors may need to focus even more on operational efficiency and market expansion.

Government also has a critical role to play. The enormous investments already made by private sector players deserve an enabling policy environment that encourages local processing, supports industrial utilization of cassava derivatives, facilitates exports and protects strategic domestic industries from unfair competition. Infrastructure, affordable finance, research, and predictable policies remain essential ingredients for building a globally competitive cassava economy.

One thing this downturn has reminded us is that price alone is not the true measure of the health of an industry. Extremely high prices can cripple processors just as extremely low prices can discourage farmers. What the cassava sector truly needs is a balanced market where every participant earns a fair return and where businesses can plan with confidence rather than reacting to cycles of boom and bust.

Thankfully, there are many reasons to remain optimistic. The conversation around HQCF inclusion is becoming stronger. When the policy is passed as we are hoping demand will increase which will also translate to more volume offtake at the farmers’ end. Efforts being made to create new markets for different cassava products through research and development will also translate to more offtake at both processors and farmers levels.

Every industry experience seasons of abundance and seasons of adjustment. What determines its future is not the difficulty of the moment but how stakeholders respond to it. The Nigerian cassava industry has demonstrated remarkable resilience in the last two years. There is every reason to believe that this period will also pass.

When the chips are down, we must resist the temptation to lose sight of the bigger picture. Nigeria remains the world's largest producer of cassava, and the opportunities before us are still enormous. If we continue to build markets with the more determination, increase our operations efficiency, further strengthen collaboration across the value chain and sustain the ongoing advocacy for supportive policies, the years ahead could mark the beginning of a more stable, competitive and globally relevant cassava economy.

The chips may be down today, but the future of Nigeria's cassava sector is certainly not.

Kazeem Lamidi
Business Development Officer - INCSAN

28/06/2026

12/06/2026

HOW MUCH VALUE CAN NIGERIA CAPTURE FROM EVERY TON OF CASSAVA PRODUCED?

The true economic potential of cassava is not determined by the volume of tubers harvested alone, but by the amount of economic value, jobs, livelihoods, industries, and social development created from every tons produced.

The cassava value chain represents a progression of value creation; from the farmer cultivating the crop, to the local processor transforming it into food, to industrial operators converting it into raw materials and high-value derivatives. Each level creates different layers of economic and social impact, but the greatest opportunity lies in continuously moving cassava higher up the value ladder.

At the primary production level, cassava farming provides the foundation of the entire ecosystem. Millions of smallholder farmers, farm labourers, and rural service providers depend on cassava cultivation for income and livelihood. The sector supports rural employment and contributes significantly to food security. However, despite the huge number of farmers and millions of tons produced annually, the economic value captured at this stage remains relatively low. The challenge is therefore not only producing more cassava, but ensuring that farmers participate more effectively in the value created beyond the farm gate.

Moving into local processing, cassava begins to generate broader economic and social value through products such as garri, fufu, lafun, and other traditional food products. This level supports thousands of processors, many of whom are women and small businesses, while also creating employment opportunities for traders, transporters, and market operators. These processors play a critical role in sustaining local food systems and community economies. However, the value generated remains largely concentrated in informal and low-margin markets.

The next stage is industrial processing, where cassava transitions from being primarily a food crop into an industrial raw materiasl. Operators producing High-Quality Cassava Flour (HQCF), cassava starch, ethanol, and other industrial products create a larger economic footprint despite their lower numbers comparatively. These businesses generate skilled high value employment, attract investment, and support technology development. At this level, cassava creates value beyond consumption by becoming an essential input for manufacturing and industrial growth.

The highest value capture occurs at the advanced industrial derivative level, where cassava is transformed into specialized products such as modified starches, glucose syrup, sorbitol, bio-based chemicals, and other industrial applications. This stage supports and produces highly skilled professionals with impressive income. It increases opportunities for export competitiveness and Nigeria participation in global industrial markets.

Looking ahead, the future of cassava lies in building a cassava-based bio-economy, where new opportunities emerge from areas such as cassava leaf utilization, biodegradable materials, renewable energy applications, and other emerging bio-industrial solutions. This represents a transition from viewing cassava simply as a food crop to recognizing it as a strategic industrial resource.

The fundamental question for Nigeria is therefore not only how many tons of cassava we produce, but how much economic and social value each ton can create across the entire ecosystem.

A ton of cassava sold as fresh roots creates value once, mainly supporting farm-level livelihoods. A ton processed into traditional food products creates additional value through local businesses and community employment. A ton converted into industrial ingredients creates multiple layers of value through manufacturing, skilled jobs, and sectoral linkages. A ton transformed into advanced derivatives creates an ecosystem of innovation, investment, and global competitiveness.

Kazeem Lamidi