FG Partners Manufacturers to Boost Dairy Investment, Cut Imports

News in brief:

-FG and manufacturers are collaborating to scale investment in Nigeria’s dairy sector and reduce reliance on imports.

-Nigeria currently spends about $1.5 billion annually on dairy imports amid a significant gap between local production and demand.

The Federal Government of Nigeria has announced plans to collaborate with the dairy sub-sector group of the Manufacturers Association of Nigeria (MAN) to scale up investment in the country’s dairy industry and meet growing domestic demand.

Minister of Livestock Development, Idi Mukhtar Maiha, disclosed this during a meeting with a delegation from MAN in Abuja.

Nigeria Faces Major Dairy Supply Gap

Maiha said Nigeria remains one of Africa’s largest markets for dairy products but continues to depend heavily on imports due to low local production.

According to him, the country spends approximately $1.5 billion annually on dairy imports, highlighting the urgent need to strengthen domestic production capacity.

He noted that strategic partnerships with industry players are essential to revitalise the sector and unlock its full economic potential.

The minister has identified several areas for investment, including the revitalisation of 38 moribund livestock facilities, the establishment of milk collection centres, and the expansion of breeding programmes for cattle, goats and pigs.

He added that the government plans to rehabilitate 417 grazing reserves, which will be made available to investors through public-private partnerships.

Other priority areas include feed and fodder production, milk processing and seed multiplication.

Maiha highlighted poor rural infrastructure as a major constraint affecting dairy production, particularly during the rainy season when transportation challenges lead to significant milk losses.

He emphasised the need for improved milk collection systems and increased capacity building for farmers to enhance productivity across the value chain.

MAN Highlights Production Deficit

Speaking on behalf of the dairy manufacturing industry, Ore Famurewa of the sub-sector group, said Nigeria consumes between 1.6 million and 1.7 million metric tonnes of milk annually.

However, she noted that local production stands at only 600,000 to 700,000 metric tonnes, leaving a substantial supply deficit.

Famurewa stated that Nigeria has strong potential for dairy development, citing its estimated 20 million cattle population, vast agricultural land and growing consumer market.

She identified key challenges facing the sector, including low productivity per animal, inadequate infrastructure, limited access to finance, security concerns and weak value chain integration.

Famurewa stressed that addressing these issues would require coordinated efforts between the government, investors, development partners, and local farming communities.

She added that the engagement with the ministry was aimed at strengthening collaboration and advancing the implementation of Nigeria’s National Dairy Policy to drive sustainable growth in the sector.