The purpose of this study is to determine the problems and prospects of establishing garri processing industry at Ugbene in Abakpa, Enugu Metropolis. In carrying out the study, care was therefore taken to ensure that relevant and adequate date were collected and analysed. Thus, the researcher obtained such data from primary and secondary sources. The research method adopted was the survey method in which the sample was selected through random sampling. The data collection instrument included questionnaire and interview as well as the library. After analyzing the data the following findings were made: The existing garri industry at Ugbene in Abakpa, Enugu locality is dominated by small scale processors producing for personal consumption and for sale in the local market. – Lack of capital militates against establishment of modern garri industry operating with modern equipment. – The government does not give adequate incentives for the establishment of garri processing industries. – Other problems include lack of technical skill in operating modern garri processing facilities, conservative attitudes of peasant processors, lack of storage facilities, high transport cost, high price of cassava, and palm oil as well as high cost of land. – There are prospects for establishing garri-processing industries at Ugbene in Abakpa, Enugu Metro Polis because it is a profitable venture. The prospects include availability of raw materials, the large local and external market for selling of garri, availability of transport system and adequacy of labour supply.