EVALUATION OF FEDERAL GOVERNMENT CASSAVA TRANSFORMATION

INITIATIVE ON MICRO-SMALL CASSAVA PROCESSING ENTERPRISES’

PERFORMANCE IN SOUTHWEST, NIGERIA (1999-2015)

OKHANKHUELE, OMONIGHO TONIA

B. Sc. Purchasing and Supply Management (xxxxxxx)
PMT/12/

A THESIS SUBMITTED TO THE DEPARTMENT OF PROJECT MANAGEMENT

TECHNOLOGY, SCHOOL OF MANAGEMENT TECHNOLOGY. IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF DOCTOR OF
PHILOSOPHY (Ph. D) IN MANAGEMENT SCIENCES OF THE FEDERAL
UNIVERSITY OF TECHNOLOGY, AKURE, NIGERIA

JANUARY, 2018

i
 CERTIFICATION

1. (By the Student):

This work has not been presented elsewhere for the award of a degree, or any other purpose.

Candidate’s Name: Okhankhuele, Omonigho Tonia

Signature…………………………………………………………Date……………………..

2. (By the Supervisor (s):

We certify that this work has been carried out by Miss OKHANKHUELE, Omonigho Tonia

in the Department of Project Management Technology (Management Science Option), of the

School of Management Technology of The Federal University of Technology, Akure.

Major Supervisor’s Name: Professor Z. O. Opafunso

Signature---------------------------------- Date………………………...

Co-Supervisor’s Name: Dr O. O. Akinrinola

Signature---------------------------------- Date………………………...

Co-Supervisor’s Name: Dr. O. J. Ojo

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 Signature---------------------------------- Date………………………...

ACKNOWLEDGEMENTS

First and foremost, I wish to express my gratitude and appreciation to God Almighty for

his mercy, immense favour, good health and knowledge to embark on this thesis and complete it.

May His Holy name be praised.

I wish to express my sincere gratitude to my supervisor, Professor, Z. O Opafunso, my co-

supervisors, Dr. O. O. Akinrinola; Dr. O. J. Ojo, and Professor Steven Van Passel, of Hasselt

University, Belgium, for their thoroughness in supervising this thesis. My prayer for them is that

God will bless them, and be with them always at the point of their needs.

I cannot but express my gratitude to all the lecturers in the Department of Project

Management Technology, Business Administration, Entrepreneurship, Transport Management

Technology, Economics and Accounting, under the Headship of the Dean of School of

Management Technology, Professor, T. M. Obamuyi. You all contributed immensely to this

work, especially during my thesis presentations. These contributions made this thesis to be robust.

Also, my thanks goes to all members of the administrative staff of the School of Management

Technology, and all members of staff of the Center for Environmental Economics, Hasselt

University, Belgium, for their co-operation throughout the period of carrying out this thesis. My

sincere appreciation goes to Mr. T. A. Ayedu, Dr. A. D. Dada and Mr. O. P. Ologunwa for their

enormous contribution to this thesis. Also, my classmates for their encouragement and advices.

Last but not the least is my immediate family who has always been my pillar. You were

there for me throughout the period of my thesis. Your encouragement, prayers, support financially
iii
and spiritually was amazing. I would not have been able to concentrate on this study on the effect

of Federal Government’s cassava transformation initiative on Micro-Scale cassava processing

enterprises’ performance in Southwest Nigeria (1999-2015), without your support. Thank you and

God bless you.

DEDICATION

This work is dedicated to God Almighty for His Amazing Grace, Favour and Strength throughout

my academic pursuit.

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 Abstract
The study assessed the effect of the Federal Government Cassava Transformation Initiative
(FGCTI) on cassava tubers’ availability to Micro-Scale Cassava Processing Enterprises (MSCPEs)
in Southwest (made up of Oyo, Ogun, Ondo, Lagos, Osun and Ekiti State) Nigeria, and identified
the factors influencing efficient processing of cassava by MSCPEs in the study area. It also
determined the effect of the FGCTI on the efficiency of MSCPEs in the study area; examined the
effect of the FGCTI on the profitability of the MSCPEs in the study area; and assessed the
influence of the FGCTI on the marketing of cassava products, of the MSCPEs in Southwest
Nigeria. The study adopted a survey technique. The study population comprised 1,749 respondents,
made up of 1,083 beneficiaries, 634 members of staff of Agricultural Development Projects (ADPs) in
the six States, and 32 community leaders, within the communities where the MSCPEs that participated
in the initiative, are located. A sample of 292 was selected, using Yaro Yamane (1967)’s formula (n
= N/1+N(e2). Where: n = Sample Size, N = Population of the Study, and e = error margin @ 5%
(0.05). Thirdly, since the beneficiaries in each State were not equal, the beneficiaries were
selected from each state using proportionate stratified sampling technique. That is, Oyo
(315/1083*292 = 85), Ogun (119/1083*292 = 32), Osun (226/1083*292 = 61), Ekiti
(104/1083*292 = 28), Ondo (226/1083*292 = 61) and Lagos (93/1083*292 = 25). In addition, 12
community leaders, and thirty key ADPs officers making 334 respondents were selected. Structured
sets of questionnaire were used to obtain data from respondents. Also, personal interviews were
conducted with the 12 community leaders and thirty key ADPs officers. Data collected were
analyzed using frequencies, percentages, mean score values, standard deviation, charts, Data
Envelopment Analysis (DEA) and Gross Margin. Analysis of Variance (ANOVA) was used to
test the hypotheses. The study revealed that there was a significant (p-value = .012) difference in
cassava tubers availability to the MSCPEs in Southwest Nigeria, before and after the FGCTI.
There was also a significant difference (p-value = from .000 to .001) in the distance travelled to
purchase cassava tubers by the beneficiaries, and there was a significant difference (p - value = .
000, for all the beneficiaries in the study area) in the average quantity of cassava tubers,
purchased kg per month by the beneficiaries. The result also disclosed that, high cost of
production, was the highest rated factor that affect efficient processing of cassava in the study
area, followed by, high Cost of Diesel/Petrol. The least scored factor was, inability to produce

v
good quality product, followed by high Cost of Charcoal. Moreover, the result revealed that there
was a significant difference in the constant return to scale, variable return to scale, and scale
efficiency of the MSCPEs (p – value = .003, .003 and .010 respectively) in the study area, before
and after the FGCTI. The study also found out that there was significant difference in the gross
margin (p-value .005), and profit (p – value .000). Also, the average benefit cost ratio,
profitability ratio and rate of return for all the beneficiaries in the six states increased from 1.37,
0.37, and 0.56 respectively before the initiative, to 1.41, 0.41and 0.71 respectively after the
initiative. This implies that the FGCTI helped to increase the profitability of MSCPEs in
Southwest Nigeria. Furthermore, the study disclosed that, there was a significant difference in the
local marketing of cassava products, by the MSCPEs before and after the initiative. The p-value
for the number of outlets before and after the FGCTI, was .008, quantity supplied was .004, while
the p-value for amount supplied was .050. Moreover, the result revealed that there is no significant
difference in the international marketing of cassava products, by the MSCPEs before and after the
initiative, because the p-value for number of outlets, quantity supplied and amount supplied
before and after the initiative were, .264, .321 and .221 respectively. The study concluded that, the
FGCTI assisted in enhancing the MSCPEs’ performance in Southwest Nigeria, and therefore
recommended further government’s support for the MSCPEs in order to further enhance their
efficiency and effectiveness.

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 TABLE OF CONTENTS

Page (s)

Title Page i

Certification ii

Acknowledgements iii

Dedication iv

Abstract v

Table of Contents vii

List of Tables xiii

List of Figures xvi

List of Plates xvii

Abbreviations xviii

CHAPTER ONE: INTRODUCTION

1.1 Background to the Study 1

1.2 Statements of Research Problem 4

1.3 Research Questions 5

1.4 Objectives of the Study 6

1.5 Research Hypotheses 7

1.6 Significance of the Study 7

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1.7 Scope of the Study 8

CHAPTER TWO: LITERATURE REVIEW

2.1 Conceptual Review of Literature 9

2.1.1 Definition of micro, small and medium scale enterprises, initiative,

transformation, performance, efficiency, gross margin and marketing 9

2.2 Empirical Review of Literature 12

2.2.1 Empirical studies on the effect of the presidential cassava transformation

initiative on cassava farmers and processors’ output, availability of inputs,

poverty alleviation, efficiency and marketing 12

2.2.2 Factors militating against efficient production and processing of cassava in

Nigeria 16

2.2.3 Empirical studies on efficiency of small-scale cassava and related crop’s

farmers and processors in Nigeria 21

2.2.4 Empirical studies on profitability of small-scale cassava farmers and

processors in Nigeria 23

2.2.5 Past studies on the effect of the presidential cassava transformation

initiative on the local and international marketing of Nigeria’s cassava

products 25

2.2.6 Past studies on the problems associated with marketing and sales of

Nigerian cassava products in the local and international markets 27

2.2.7 Success story of the 2003 Nigeria cassava transformation initiative 29

2.3 Theoretical Review 32

2.3.1 Structuralist theory 32

2.3.2 Classical theory 33

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 2.3.3 Active learning theory 34

2.4 Conceptual Framework 35

2.5 Gap in the Literature 37

CHAPTER THREE: RESEARCH METHOD

3.1 The Study Area 38

3.2 Research Design 41

3.3 Population of the Study and Sample Size 41

3.4 Sampling Techniques 41

3.5 Method of Data Collection 44

3.6 Validity of the Research Instrument 46

3.7 Reliability of the Research Instrument 47

3.8 Model Specification 47

3.8.1 Data Envelopment Analysis (DEA) 47

3.8.2 Gross Margin Analysis (GMA) 50

3.8.3 Analysis of Variance (ANOVA) 52

3.9 Method of Data Analysis 53

CHAPTER FOUR: RESULTS AND DISCUSSION

4.1 Socio-Economic Characteristics of the Beneficiaries of the FGCTI 54

4.1.1 Distribution of personal characteristics of the community leaders 57

4.1.2 Distribution of socio-economic characteristics of the key ADPs officers 57

4.2 Beneficiaries’ Area of Specialization 59

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4.3 Distribution of Availability of Cassava Tubers to the Beneficiaries of the FGCTI

initiative before and after the cassava transformation initiative as rated by the

beneficiaries of the initiative 63

4.3.1 Distribution of the availability of cassava tubers to the MSCPEs,

before and after the FGCTI as rated by the community leaders 66

4.3.2 Distribution of the availability of cassava tubers to the MSCPEs,

before and after the FGCTI as rated by the key ADPs officers 66

4.3.3 Availability of cassava tubers to the MSCPEs, before and after the

FGCTI as rated by all the respondents 68

4.3.4: ANOVA result on the differences in the availability of cassava tubers before

and after the FGCTI, based on the rating of all the respondents 70

4.4 Average Distance Traveled in Kilometers, by the Beneficiaries to Purchase

Cassava Tubers, before and after the Cassava Transformation Initiative 73

4.5 ANOVA Result on the Differences in Average Distance Traveled (in Kilometers

(km)) by the Beneficiaries to Purchase Cassava Tubers, Before and After the

FGCTI 75

4.6 Average Quantity in Kilogrammes (Per Month) Purchased by the Beneficiaries,

before and after the Cassava Transformation Initiative 77

4.7 ANOVA Result on the Differences in Average Quantity Purchased

(in kilogrammes (KG) per Month by the Beneficiaries to Purchase Cassava

Tubers, Before and After the FGCTI. 80

4.8 Factors Affecting Efficient Processing of Cassava by Micro-scale Cassava

Processing Enterprise in Southwest Nigeria as observed by the Beneficiaries 82

4.9 Distribution of the Factors Influencing Efficient Processing of Cassava, as

Rated by the Community Leaders 89

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4.10 Distribution of the Factors Influencing Efficient Processing of Cassava, as

Rated by the Key ADPs Officers 91

4.11 Distribution of the Factors Influencing Efficient Processing of Cassava, as

Rated by all the Respondents 93

4.12 Technical Efficiency of the MSCPEs in all the Southwest States in Nigeria,

before and after the FGCTI, using Constant Returns to Scale Technical

Efficiency (crste), Variable Returns to Scale Technical Efficiency (vrste)

and scale efficiencies 97

4.12.1 Distribution of average slacks for quantity of outputs (kg) and sales

(naira) per week of the MSCPEs in all the southwest States in Nigeria,

before and after the PCTI 102

4.12.2 Distribution of average slacks of inputs for labour, number of equipment

and cost of production of MSCPEs in all the States, before and after the

FGCTI 105

4.12.3 Distribution of Peers and weights of the MSCPEs before and

after the PCTI 105

4.12.4 ANOVA result on the differences in technical efficiency from constant

return to scale (crste), technical efficiency from variable return to scale

(vrste), and scale efficiency 108

4.13 Average Sales per Week in Naira (N), Total Variable Cost, Total Fixed Cost and

Total Cost of the Micro-Scale Cassava Processing Enterprises in the Study Area,

Before and After the FGCTI 108

4.14 Effect of FGCTI on the Profitability of the Micro-Scale Cassava Processing

Enterprises in the Study Area. 111

4.15 ANOVA Result on Profitability of the Micro-Scale Cassava Processing

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 Enterprises in the Study Area, Before and After the FGCTI 116

4.16 Influence of the FGCTI on the Local Marketing of Cassava Products, Produced

by the Micro-Scale Cassava Processing Enterprises in the Study Area 118

4.17 ANOVA Result on the Local Marketing of Cassava Products, Produced by the

Micro-Scale Cassava Processing Enterprises in Southwest Nigeria, Before and

After the FGCTI 123

4.18 Influence of the FGCTI on the International Marketing of Cassava Products,

Produced by micro-scale Cassava Processing Enterprises in the Study Area, Before

and After the Initiative 126

4.19 ANOVA Result on the International Marketing of Cassava Products, Produced by

the Micro-scale Cassava Processing Enterprises in Southwest Nigeria, Before and

After the FGCTI 129

4.20 Reliability Test on Questions used to evaluate the Effect of Federal Government’s

Cassava Transformation Initiative on the MSCPES in the Study Area 129

4.21 Limitations to the Study 131

4.22 Expected Contribution to knowledge 131

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of Findings 133

5.2 Conclusion 136

5.3 Recommendations 136

5.4 Suggestions for further research 137

References 138
Appendices 150

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 LIST OF TABLES

Table Title Page

2.1 Classification of SMEs by Assets and Employment 10

4.1 Distribution of Socio-Economic Characteristics of the Beneficiaries of the

FGCTI 56

4.2 Distribution of the Socio-Economic Characteristics of the Community

Leaders 58

4.3 Distribution of the socio-economic characteristics of the key ADPs

Officers 60

4.4 Distribution of beneficiaries’ area of specialization 61

4.5 Distribution of the availability of cassava tubers before and after the

FGCTI, as rated by the beneficiaries 64

4.6 Distribution of the availability of cassava tubers before and after the

FGCTI, as rated by the community leaders 67

4.7 Distribution of the availability of cassava tubers before and after the

FGCTI, as rated by the key ADPs officers 69

4.8 Distribution of the availability of cassava tubers before and after the

FGCTI, as rated by all the respondents 71

4.9 ANOVA result on the differences in the availability of cassava tubers

xiii
 before and after the FGCTI, based on the rating of all the respondents 72

4.10 Distribution of average distance traveled in kilometers, by the

beneficiaries to purchase cassava tubers, before and after the FGCTI 76

4.11 ANOVA result on the differences in average distance traveled

(in Kilometers (km)) by the beneficiaries to purchase cassava tubers,

before and after the FGCTI 78

4.12 Distribution of average quantity of cassava purchased in kilogrammes

(per month), by the beneficiaries, before and after the FGCTI 81

4.13 ANOVA result on the differences in quantity purchased per Month

(in Kilogrammes (kg)) by the beneficiaries of the FGCTI, to

purchase cassava tubers, before and after the FGCTI 83

4.14 Distribution of factors influencing efficient processing of cassava,

in Southwest Nigeria, as rated by the beneficiaries of the initiative 90

4.15 Distribution of the factors influencing efficient processing of cassava,

as rated by the community leaders 92

4.16 Distribution of the factors influencing efficient processing of cassava,

as rated by the ADPs key officers 94

4.17 Distribution of the factors influencing efficient processing of cassava, as

rated by all the respondents 96

4.18 Technical Efficiency for the MSCPEs in all the Southwest States of Nigeria,

before and after the PCTI, using crste, vrste and scale efficiencies 103

4.19 Distribution of average slacks of quantity of outputs (kg) and sales (naira)

per week for the MSCPEs in all the Southwest States in Nigeria, before

and after the PCTI 104

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4.20 Average Slacks of inputs before and after FGCTI for labour, number of

equipment and cost of production 106

4.21 Peers and weights of the MSCPEs before and after the FGCTI 107

4.22 ANOVA result on the technical efficiency of the MSCPEs in Southwest

Nigeria, before and after the FGCTI, using crste, vrste and scale

efficiencies 109

4.23 Distribution of Average Sales per Week in Naira (N), Total Variable Cost,

Total Fixed Cost and Total Cost of the Micro-Scale cassava processing

enterprises in the study area, before and after the FGCTI 110

4.24 Profitability Analysis (N) of micro scale cassava processing enterprises

before and after the FGCTI, using gross margin analysis 117

4.25 ANOVA result on the differences in the profitability of the micro-scale

cassava processing enterprises in the study area, before and after the

FGCTI 119

4.26 Distribution of the influence of the FGCTI on the local marketing of

cassava products, produced by the micro-scale cassava processing

enterprises in the study area 124

4.27 ANOVA result on the differences in the local marketing of cassava

products, produced by the micro-scale cassava processing enterprises

in Southwest Nigeria, before and after the FGCTI 125

4.28 Distribution of the influence of the FGCTI on the international marketing of

cassava composite products, produced by Micro-Scale cassava processing

enterprises in the study area, before and after the initiative 128

4.29 ANOVA result on the distribution of the difference in the international

xv
 marketing of cassava products, produced by the Micro-Scale cassava

processing enterprises in Southwest Nigeria, before and after the FGCTI 130

4.30 Results of the Reliability Test on Questions used to Evaluate the Effect

of Federal Government’s Cassava Transformation Initiative on the

MSCPEs in the Study Area 132

LIST OF FIGURES

Figure Title Page

2.1 A Conceptual Framework for Enhanced Micro-scale Cassava

Processing Enterprises in Southwest Nigeria 36

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 LIST OF PLATES

Plate Title Page

3.1 Map of Nigeria, showing Southwestern Nigeria 42

3.2 Map showing the six States in Southwestern Nigeria 43
3 Cassava tubers 176

4 Local method of peeling cassava 177

5 Local method of washing and peeling cassava tubers 178

6 Local method of frying garri 179

7 Enhanced method of frying garri 180

8 Local method of fermenting cassava tubers 181

9 Washed cassava tubers 182

10 Bagged grated cassava ready to be dewatered by hydraulic press 183

11 Local method of drying cassava products 184

12 A motorized grater used to crush cassava roots into wet mash 185

13 An automatic garri roaster 186

14 A hydraulic press used to dewater cassava mash 187

xvii
 ABBREVIATIONS

ADP Agricultural Development Projects

CBN Central Bank of Nigeria

CGA Cassava Growers Association

CMP Cassava Multiplication Project

DEA Data Envelopment Analysis

FAO Food and Agriculture Organization

FAOSTAT Food and Agricultural Organization Statistics

FGCTI Federal Government Cassava Transformation Initiative

FIIRO Federal Institute of Industrial Research, Oshodi 

GM Gross Margin

GMA Gross Margin Analysis (GMA)

IFAD International Fund for Agricultural Development

IITA International Institute of Tropical Agriculture

KG Kilogramme

CRIN Cocoa Research Institute of Nigeria

MPCs Micro Processing Centers

MSSEs Micro and Small-Scale Enterprises

xviii
NCAM National Center for Agricultural Mechanization

NHR National Horticultural Research

NISER Nigerian Institute of Social and Economic Research

NPC National Population Commission

PIC Presidential Initiative on Cassava

RMRDC Raw Materials Research and Development Council

RTEP Root and Tubers Expansion Programme

SSEs Small-Scale Enterprises

TVC Total variable cost

UNIDO United Nations Industrial Development Organization

USAID United States Agency for International Development

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