FG Deepens Livestock Reforms, Addresses Middlemen Bottlenecks

News in brief:

-The Nigerian government has announced reforms aimed at reducing the influence of middlemen in Nigeria’s livestock value chain.

-Plans include live-weight livestock pricing, digital livestock tracking and new investment opportunities across the sector.

The Federal Government of Nigeria has announced new measures aimed at addressing the influence of middlemen in Nigeria’s livestock value chain, as part of broader reforms designed to improve food affordability and strengthen market efficiency.

Idi Mukhtar Maiha, the Minister of Livestock Development, disclosed the initiative during the maiden edition of the Minister–Livestock Farmers’ Connect held recently.

Maiha said the dominance of intermediaries within the livestock market has created price distortions that often leave producers with minimal earnings while middlemen capture the largest share of profits before products reach processors and consumers.

“In many cases, the producer does the hard work but earns the least, while the middleman takes the highest margin. This ultimately drives up prices and creates artificial scarcity in the market,” he said.

Direct Market Linkages & Live-Weight Pricing System Proposed for Farmers

To address the imbalance, the ministry said it is encouraging livestock producers to adopt end-to-end business models that enable direct engagement with processors, abattoirs and large-scale buyers.

According to the minister, such arrangements would improve farmers’ incomes, stabilise market prices and enhance transparency across the livestock value chain.

As part of the reform agenda, the ministry also revealed plans to introduce a live-weight pricing system for livestock, aligning Nigeria’s practices with international standards.

Maiha explained that the system would ensure that animals are sold based on measurable weight, eliminating guesswork and reducing opportunities for exploitation within livestock markets.

Investment Opportunities Identified Across the Sector

Beyond market reforms, the minister highlighted several untapped investment opportunities within Nigeria’s livestock industry.

He identified pasture seed production, fodder supply, dairy aggregation, leather processing and livestock by-products as key areas where investors, particularly young entrepreneurs, can participate.

Maiha noted that Nigeria’s expanding fodder market also presents strong export opportunities to Gulf countries, where demand for animal feed remains high. He added that the leather industry alone has the potential to generate up to 700,000 jobs if fully developed.

The minister also reiterated the government’s commitment to transitioning from open grazing to more structured livestock production systems.

According to him, the approach will reduce transhumance, improve productivity, strengthen animal health management and help mitigate farmer-herder conflicts.

Funding Channels Available for Investors

On financing, the minister said several funding windows are available to support livestock investors.

These include facilities from the Bank of Agriculture (BoA), the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), the Development Bank of Nigeria and intervention funds linked to programmes supported by the World Bank.

However, he emphasised the need for well-structured business plans, including clearly defined off-take agreements, to reduce investment risks.

Digital Livestock Tagging to Address Cattle Rustling

The minister also addressed security concerns affecting the livestock sector, particularly cattle rustling and rural insecurity.

He announced plans to deploy digital livestock tagging and traceability systems that will enable proof of ownership, real-time animal tracking and recovery of stolen livestock.

Pilot implementation of the system is expected to begin in selected states within six months.

Digital Platform Planned for Livestock Sector

Maiha further disclosed that the Livestock Public Digital Infrastructure would soon be launched as a central platform to support stakeholder engagement, data access and investment facilitation.

He said the platform would enable investors and stakeholders within and outside Nigeria to access information on the livestock sector and identify investment opportunities remotely.

In her welcome remarks, the Permanent Secretary of the ministry, Chinyere Ijeoma Akujobi, said the town hall meeting reflected the ministry’s commitment to transparency and inclusive dialogue in shaping policies for the livestock industry.

She added that the platform enables the ministry to receive input directly from farmers, veterinarians, animal scientists, producers, exporters and other stakeholders.

The Minister–Livestock Farmers’ Connect was organised in partnership with Farm Alert and the Livestock Productivity and Resilience Support Project, and is expected to serve as a recurring forum for stakeholder dialogue aimed at accelerating the transformation of Nigeria’s livestock sector.