Despite being a huge producer of cassava, Nigeria still imports some cassava-based products. The country is one of the world’s top producers of the crop, contributing over 26% of the crop globally and estimated to have produced over 63 million tons in 2021. At the same time, the nation’s import rate has increased, with $54,200 worth of cassava imported in 2022, placing it as the world’s 121st largest importer, primarily from Belgium, Brazil, Cameroon, Niger, and the United Kingdom. The crop ranked 1063rd among Nigeria’s imports in the same year.
The sector has not reached its maximum potential, the nation has not yet completely capitalized on the worldwide market for the crop and its derivatives, and its local supply has not kept up with the enormous local demand. The barriers include low-quality standards, inadequate value chain integration, processing infrastructure, and the need for certain derivatives, which the local sector finds difficult to meet in terms of quantity or quality. As a result of inadequate local production of these in-demand industrial products—such as starch and ethanol—Nigeria imports the crop’s derivatives. For example, ethanol is utilized extensively in the beverage, biofuel, and pharmaceutical industries, but the supply falls well short of the demand locally.
Majority of starch is imported due to a larger demand.
Over 90 percent of the cassava produced in Nigeria is processed into food and consumed domestically, despite the country being the world’s greatest producer and harvester of the crop. In comparison, Nigeria uses less than 1% of its resources separately for Export to other nations and, at best, 10% of its resources for industrial production. The crop and its byproducts are becoming more and more in demand locally, but the supply is not keeping up. Majority of Nigeria’s starch is imported due to a larger demand than supply. There is a 500,000 metric tonnes annual supply-demand discrepancy for premium cassava flour, with fewer than 15,000 metric tonnes being supplied.
Currently, it is projected that Nigeria needs 350,000 tons of cassava starch annually, compared to a national supply of roughly 300,000 tons. It is known that one significant byproduct of processing cassava is cassava starch. But there are not sufficient processing facilities in the nation for processing it into the industrial products that industries need, like ethanol, starch, and high-quality cassava flour (HQCF). As a result of this gap, firms are forced to import the industrial products, which demand sophisticated processing standards and cutting-edge Technology than Nigeria currently has to provide.
Present level of industrialization is below estimated potential.
In fact, Nigeria’s current industrialization and commercialization of the crop’s processing and output is woefully not adequate. Although there has been some recent progress, Nigeria’s present degree of industrialization and commercialization of outputs and processing is still below its estimated potential. Most of the local production is consumed locally, mostly as food, rather than being processed for use in industries and companies. Nevertheless, initiatives are still underway to extend the cassava value chain into more commercial and industrial uses.
Enhancing the industrialization of the crop’s production in Nigeria necessitates tackling multiple significant obstacles throughout the value chain, ranging from agricultural methods to processing, infrastructure, and market accessibility. Investments should be made primarily in cutting-edge processing technologies to increase productivity, cut waste, and guarantee that the final product adheres to global standards. Promoting public-private partnerships as a means of financing the Construction of facilities for processing is also essential. This can involve forming partnerships with regional companies, international financiers, and the government to develop industrial centers equipped to process the production of starch, flour, and ethanol.
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It is also crucial to widen the variety of items derived from the crop for domestic and international markets by focusing more on the crop’s derivatives utilized in the medicinal, textile, and biofuel industries rather than only food goods. For example, ethanol can be utilized as a biofuel and in cosmetics and pharmaceuticals, while starch can be used in textiles. Nigeria can leverage its huge output to become a global leader in cassava-based products, strengthening its Economy and creating jobs in the process. This can be achieved by focusing on growing industrial processing, enhancing product quality, and developing export prospects.