How agro-allied firm is redefining food processing using backward integration

To say Nigeria remains import dependent in the area of food is stating the obvious, as receipts from food and beverage import bill rose significantly in 2025, reaching ₦5.27 trillion in the first nine months alone. This represents a sharp increase from the ₦4.71 trillion recorded during the same period in 2024, reflecting an 11.74% year-on-year growth driven by rising demand for imported primary food items.

While the government implemented temporary waivers (for 150 days) on certain food imports to reduce local prices, the overall trend indicated a higher dependency on foreign food sources in 2025, according to data from the National Bureau of Statistics (NBS).

Interestingly, as the federal government begins to look inwards to fill the gap in the area of provision of raw materials locally and exportation of finish products to strengthen the naira, the management of Agbeyewa farm which just recently acquired Matna Food Processing company to boost cassava processing, has taken the bull by the horns: through keen, deliberate devotion to the ideals and ideas of backward integration to drive food security ultimately.

The subject of backward integration has consistently taken the center stage at various fora with stakeholders reviewing the importance of backward integration in the agricultural sector. This, of course, has led to several correspondences and different opinions from players in the manufacturing and agricultural sectors.

It is pertinent to note that a venture into backward integration is a cumbersome task, but the result is always overwhelming. The process of setting up the value chain for backward integration is capital intensive and takes time to actualise as local manufacturers often face the task of paying back possible loans from commercial banks at 20 – 35% interest rate. However, importers do not suffer such fate as they import, pay duties and hit the market running (making money instantly).

At the last count, manufacturing giants like Nigerian Breweries, FrieslandCampina Wamco Plc, Nestle, PZ Wilmar; Dangote Group and Flour Mills of Nigeria, have shifted drastically to local inputs for their products. Others are; De-United Food, Chi Limited, Presco Oil, Okomu Oil, and BUA Group.

Enter Matna Food Processing company…

The capital intensive nature to backwards integration notwithstanding, many local manufacturers and multinationals in Nigeria like the Agbeyewa Farms Limited, located in Ekiti, appears to have taken the bull by the horns.

One of the company’s strategic business moves late last year was the acquisition of Matna Foods Company Limited, located in Akure, Ondo State.

Matna Foods is a Nigerian agro-allied processing company specialising in the production of international-standard, multi-purpose cassava starch. Incorporated in 1998 and operational since 2002, the company was founded by Chief (Dr) Joseph O. Sanusi, CON, and the late Mr. Tae Won Cho, ahead of Nigeria’s national cassava development initiatives. The company plays a critical role in linking local cassava farmers to industrial markets.

The new owner, the Agbeyewa Industries Limited, a subsidiary of Cavista Holdings, is a leading agro-allied company committed to transforming agriculture in Africa. With a strong focus on innovation, the company is spearheading a Cassava Revolution—aimed at transforming the process of cassava cultivation, aggregation, processing, and market integration, driving food security and economic development across the continent.

Through its Corporate Social Responsibility (CSR) initiatives, led by the Agbeyewa Farms Community Development Foundation (AFCDF), the company also drives impactful programs in education, economic empowerment and environmental sanitation.

The acquisition of Matna, one of the oldest cassava starch processing companies in Nigeria, by Agbeyewa is believed to have marked a significant strategic milestone for Agbeyewa as part of its broader vision to integrate agricultural production, processing, and industrial utilisation within Nigeria’s cassava value chain, linking large-scale cassava cultivation in Ekiti State with industrial processing capacity in Ondo State.

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According to the new owner, the regional synergy is expected to unlock new efficiencies, expand local sourcing, and stimulate economic activity for all players in the cassava value chain. It was also stated that the acquisition aligns strongly with the Federal Government’s drive to strengthen food security, reduce imports, and deepen agro-industrial value chains, particularly within the cassava ecosystem—one of Nigeria’s most strategic crops.

Agbeyewa, located in Ekiti State, has grown into a transformational agriculture business, and operates the largest cassava farm in Nigeria. Guided by its four pillars of large-scale cultivation, aggregation, processing and agro-allied investment, the company has implemented an innovative in-grower/out-grower model and forged high-impact partnerships, including a Memorandum of Understanding with the Government of Ekiti State to cultivate 100,000 hectares of farmland over the next decade.

Chairman of Agbeyewa and Cavista Holdings, Niyi John Olajide, described the acquisition as a strategic investment in Nigeria’s economic future:

“This is about building a resilient agricultural value chain that creates real impact. From increased cassava offtake to expanded processing and industrial supply, this acquisition supports food security, import substitution, and—most importantly—creates jobs, jobs, and more jobs for Nigerians.  We are investing to grow capacity, expand opportunities for farmers, and create sustainable employment across communities.”

Commenting on the transaction, Chief Sanusi said: “For some time, we have been deliberate about finding the right partners to take Matna Foods to its next phase of growth. We were not looking for just a buyer, but a partner with the scale, discipline, and long-term vision to grow the business sustainably. Agbeyewa stood out because of its commitment to agriculture, its strong execution capacity, and its alignment with the original vision behind Matna. We are confident that this acquisition positions the company for renewed growth and greater impact.”

Due to rising demands of stash, a recent research by experts indicated that over reliance on foreign imports could frustrate government policy on backward integration as well as creating unnecessary barriers in the local manufacturing sector. This must have informed the decision of the management of Agbeyewa farms to search for a suitable location with good access to the manufacturing hubs in Lagos, Ogun and Oyo States for easy access to raw materials.

In an interview with the new Managing Director of Matna Foods, Mr. Seyi Aiyeleso, he explicitly shared insights into the journey to agricultural processing. “Our decision to go into processing didn’t start the day we acquired Matna but rather, the background had been laid with the establishment of Agbeyewa Farms a few years ago.

“While we rely on what comes out of our farm as a major chunk for our manufacturing activity, we are also currently working with farmers in the entire value chain to source for more cassava. This is poised to keep the factory running with the volume of raw materials required for production.”

According to Aiyeleso, as capital intensive as the project appears to be, the gains far outweigh the pains in the long run.