Why garri business is profitable amidst the high inflation in Nigeria?

Nigeria’s economic landscape paints a grim picture headline inflation at 22.97% , farm produce prices surging 28.98% in five months , and over 33 million Nigerians facing acute food insecurity . Yet within this turmoil, one staple food business—garri—defies the odds. Here’s why garri business remains a profitable venture despite economic headwinds.

garri business amist high inflatation in Nigeria

1. Unshakeable Demand Elasticity

Garri is Nigeria’s quintessential survival food

- Price Resilience As a low-cost carbohydrate, demand of garri surges when inflation erodes purchasing power. Households substitute expensive staples like rice with garri, maintaining sales volume even as prices rise.

- Nutritional Necessity With food inflation at 21.14% year-on-year , garri’s role as a calorie-dense, affordable meal (often consumed with inexpensive accompaniments like coconut or roasted fish) cements its market.

- Urban-Rural Dual Market Urban populations pay premium prices for processed garri, while rural producers benefit from low production costs and direct sales.

unshakeable demand for garri

2. Supply Chain Advantages

Unlike most crops devastated by insecurity, cassava cultivation exhibits unique strengths

- Geographic Flexibility Northern Nigeria’s farming crisis (e.g., Benue’s 51.8% food inflation in April ) disproportionately affects grain production. Cassava thrives in safer southern states, avoiding conflict hotspots.

- Lower Logistics Vulnerability Garri’s supply chain is less disrupted by interstate hurdles like illegal checkpoints and multiple taxation—key focuses of recent governors’ interventions .

- Minimal Import Dependency While Nigeria spent ₦1.67 trillion on food imports in Q1 2025 , garri relies on local cassava, insulating it from currency volatility and global supply shocks.

garri production line in Nigeria

3. Value-Add Profit Margins

Garri processing transforms low-value roots into high-margin products

- Export Opportunities Agricultural stakeholders report a ₦668.34 billion garri processing sector surplus , driven partly by demand for processed goods like garri. Exporters earn forex, selling to diaspora markets in Europe Americas at 3x local prices.

- Product Diversification Producers boost margins by offering premium variants (e.g., ijebu garri), fermented blends, or instant mixes—catering to both low-income and urban premium segments.

- Waste Reduction Cassava peels and pulp feed livestock, creating secondary income streams.

garri for export

4. Policy Tailwinds and Cost Controls

Recent government actions inadvertently favor garri businesses

- Interstate Trade Reforms Governors'commitments to dismantling illegal checkpoints and streamlining levies will reduce transportation costs—a major contributor to food inflation.

- Duty-Free Inputs The 150-day duty-free import window for agricultural machinery lowers equipment costs for garri processing.

Generally speaking, garri business remains profitable amidst the high inflation in Nigeria. If you want to know more about garri processing, welcome to visit our Nigerian Branch Office in Ogun State! Henan Jinrui's oversea sales manager will give you more info about investment advice and equipment purchase!