Despite strong policy signals and growing interest, the High Quality Cassava Flour (HQCF) remains a largely nascent market owing to persistent challenges around cost, quality, and supply reliability.

This was gathered through an insight from the Nigeria Cassava Investment Accelerator (NCIA), an initiative of the Lagos Business School, Pan-Atlantic University, which lamented that industrial uptake has been limited not for lack of demand, but owing to inconsistent and uncompetitive supply.

The report indicates that current industry estimates suggest that actual HQCF inclusion in composite flour today is around one per cent, equivalent to a market value of up to US$35m.

“If Nigeria achieves the 20 per cent substitution target proposed in the bill, market potential could scale up to US$1.18b by 2030, unlocking value across the cassava supply chain and positioning HQCF as a major driver of industrial growth.

“HQCF is primarily consumed by small- and medium-scale producers, especially in the bread and baked goods segment, which accounts for over 50 per cent of current usage. Artisanal bakers remain the dominant consumer group, purchasing HQCF directly through open market channels and typically using five to 30 per cent substitution blends to cut costs and align with policy incentives.

“Despite the fragmented nature of this market, the bread segment presents the largest immediate opportunity, with a potential market of ~351K tons and US$236m in revenue,” the report stated.

The report noted that buyers frequently cite three critical deterrents – inconsistent product quality, price volatility, and fragmented supply chains, adding that many local processors struggle to meet industrial standards for granulation, moisture content, and shelf life—factors essential for large-scale baking or blending.

“These issues stem from limited investment in quality control, fragmented production systems, and a lack of standardised processing infrastructure. Pricing is another structural barrier. HQCF has hovered between nine per cent and more expensive than wheat flour, largely due to inefficient feedstock sourcing, underdeveloped logistics, and weak coordination across actors. Without scale or cost-efficiency, processors face difficulties offering a competitive product, undermining both buyer confidence and policy ambitions.

“Unlocking this market will require more than regulation. It will demand targeted innovation across the value chain, from processing technologies to input supply models. Investments in R&D are essential to localise recipes and adapt HQCF to Nigeria’s consumer and industrial taste profiles.

“The cassava chips market presents a scalable entry point: it offers improved shelf life, enables pre-processing close to farms, and simplifies logistics, reducing some of the biggest friction points in the current system.”

It further revealed that as encouraging signs are emerging, processors like Sofari are investing in scalable chip-based approaches to improve handling, drying, and product consistency. “Research institutions such as International Institute for Tropical Agriculture (IITA) are advancing cassava varieties better suited for flour production. But realising full market potential will require more coordination, greater scale, and sustained investment to translate innovation into impact.

“The opportunity is clear. But without structural shifts on the supply side, even the strongest policy push won’t be enough to turn HQCF into Nigeria’s next industrial success story.”