The Starch Gap Is
a Business Opportunity
Nigeria demands 300,000+ metric tonnes of industrial starch annually. Local processors supply less than 20%. The rest is imported at great cost. Nexium produces the difference.
Import Bill (NBS 2024)
(FMARD Cassava Roadmap)
production (FAO 2023)
growth 2026–2033
A Structural Gap Three Decades in the Making
Nigeria sits on the world's single largest cassava production base. And yet, industrial starch — produced from cassava — is one of Nigeria's largest non-oil import categories.
Every year, Nigeria's food manufacturers, pharmaceutical companies, paper mills, and adhesive producers pay a premium for imported starch from Thailand, Vietnam, and China — product that could be, and should be, made at home.
This is not a market that needs to be created. It is a market that already exists, that is growing, and that is entirely served by foreign producers. Nexium captures that value for Nigeria.
Market Data Points
Four Sectors. One Consistent Buyer.
Nigeria's industrial starch demand is broad-based and growing — from food processing to pharmaceuticals to manufacturing.
Food & Beverage
Starch as thickener, stabiliser, and binder in processed foods — noodles, custard, stock cubes, instant beverages, baked goods, and sauces. Nigeria's rapidly urbanising population drives sustained demand growth.
Pharmaceuticals
Tablet binder and excipient in pharmaceutical manufacturing. Nigeria's domestic pharma sector is expanding rapidly — and imports the majority of its starch excipient from Asia. Nexium's food-grade output is pharma-eligible from Day 1.
Paper & Textiles
Starch as sizing agent in paper manufacturing and warp sizing in textile weaving. As Nigeria's manufacturing base expands, this sector represents a significant import substitution opportunity.
Adhesives & Construction
Wood-based panels, corrugated packaging, and construction adhesives all require industrial starch. Growing construction activity and packaging demand from Nigeria's consumer goods sector support sustained offtake.
Why the Gap Persists — And Why Nexium Closes It
We're honest about the market's structural challenges. Here is how Nexium addresses each one.
| Challenge | Nexium's Response |
|---|---|
| Inconsistent cassava supply | Aggregation partnerships with 1,440+ farmers within a 50 km outgrower network — contracted supply, not spot market |
| Power reliability | 671 KW dedicated diesel generation provides continuous, independent power — not dependent on grid reliability |
| Access to capital | Structured financing approach combining institutional debt and equity — targeting an optimised cost of capital and minimising equity dilution |
| Market access | Direct commercial relationships with industrial buyers pre-established; Export Registration Licence received July 2025 |
| Equipment and technical risk | Industrial-grade Chinese processing equipment from a specialist cassava starch manufacturer — vendor selection in final stage |
| Regulatory environment | Oyo State TransCom programme member (Feb 2026) — government support, facilitation, and investment incentives |
Validating Market. Nexium's Niche.
Most cassava starch production in Nigeria today is at sub-industrial scale — artisanal processors supplying local markets, without the consistency, volume, or certification profile industrial buyers need.
Large players — Flour Mills of Nigeria, Dufil — are beginning to show interest in starch. This validates the market, not threatens Nexium's position. Nexium's 2.5 TPH capacity positions it as a mid-tier specialist with the agility and quality focus that large conglomerates cannot replicate.
Nexium's competitive moat is not merely scale — it is the combination of certified-quality output, reliable supply, pre-committed buyer relationships, and a well-capitalised balance sheet that enables competitive pricing.
✓ Nexium Advantage
Food-grade and pharma-eligible output from a single production line — one plant, two addressable market tiers
✓ Nexium Advantage
Specialist cassava starch processing equipment specified to guarantee consistent output — ≥92% whiteness, ≥98% fineness every batch
✓ Nexium Advantage
Structured capital approach allows pricing discipline — positioned to price competitively without the margin pressure of a pure-equity stack
✓ Nexium Advantage
Oyo State TransCom membership provides access to government facilitation, land, and infrastructure support
The Case in Summary
Business Model
Revenue model: Cassava starch processing and sale to Nigerian industrial buyers at import-parity pricing ($800/t)
Volume growth: 60% utilisation (7,200 t/yr) in Year 1 → 95% utilisation (14,250 t/yr) by Year 5
Pricing power: Local product positioned at import parity — buyers save on logistics and lead times
Two-grade strategy: Food-grade from Day 1; pharmaceutical-grade with NAFDAC certification in Year 2
Key Differentiators
Capital efficiency: Institutional debt and equity structure designed to minimise dilution and optimise returns — full details shared in investor deck
Oyo State TransCom: Active government programme membership — investment facilitation and infrastructure support
Pre-committed offtake: Commercial buyer pipeline established ahead of production launch
What we seek: Strategic investors who add networks, sector expertise, and governance depth — not only capital
Financial projections, deal structure, and capital requirements are shared exclusively via the investor deck — available on request through the contact form.
We Are Selectively Speaking with Investors
Nexium is not a speculative bet on African agriculture. It is a capital-light processing operation in a supply-constrained market, backed by a structured financing strategy and a pipeline of committed buyers. If this is the kind of opportunity you invest in, we would like to speak with you.
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