Unlocking Nigeria's Industrial Starch Potential: A Lucrative Export Opportunity

Nigeria has seen a significant surge in manufactured goods imports, with the country spending over N24.57 trillion on manufactured goods imports in 2024. Conversely, exports, including non-oil products, have not seen a corresponding increase. Research has shown that Nigerian products, including industrial starch, have gained improved patronage in the international market, necessitating the need for more investors in the production of processed cassava products for export. The demand for industrial starch is high worldwide, with significant demand in Europe, Asia, and the USA, as well as locally. Starch has a wide range of industrial uses, including textile, bookbinding, and pharmaceutical industries.

Key Takeaways:

• The demand for industrial starch is worldwide, with significant demand in Europe, Asia, and the USA, as well as locally.
• Starch has a wide range of industrial uses, including textile, bookbinding, and pharmaceutical industries.
• Nigeria has a large amount of small and medium-scale funds available for injection into small and medium-scale industries' development, with over N500 billion released by the federal government through the CBN.
• The production capacity of the machine under consideration is a full capacity of 10 tons of starch per day, implying that about 75,000 metric tons will be produced in a year.
• The total sales revenue at full capacity would be $18.6 million within the first year of operation, with a gross profit of about N7.51 Billion in less than 2-3 years of operation.
• Funding for the project can be accessed through various financial institutions and Special Project Funding Organisations.

Statistics:

• Nigeria spent over N24.57 trillion on manufactured goods imports in 2024.
• The country earned N885.23 billion on manufactured (non-oil) exports in 2024.
• The demand for industrial starch is over 18.3 billion metric tons per annum, with a supply gap of 28.2 million metric tons in 2023 and 26.5 million metric tons in 2022.
• The production capacity of the machine under consideration is a full capacity of 10 tons of starch per day, implying that about 75,000 metric tons will be produced in a year.
• The total sales revenue at full capacity would be $18.6 million within the first year of operation.

Sources:

• Nigeria's financial times (2024)
• Research carried out on Nigerian products, including industrial starch
• Bankable feasibility studies reports
• Federal government of Nigeria (2024)
• Special Project Funding Organisations (2024)