Nigeria’s dairy sector faces 60% production deficit amid US$1.5B import bill

NIGERIA – The Manufacturers Association of Nigeria has raised the alarm over the poor state of Nigeria’s dairy industry, warning that low milk productivity per animal and other structural bottlenecks have left the country with a production deficit of approximately 60 per cent and an annual dairy import bill exceeding US$1.5 billion.

The association stated that Nigeria produces only about 700,000 metric tonnes of milk annually, compared to a national consumption of 1.6 million metric tonnes, despite having more than 20 million cattle and vast agricultural resources capable of supporting a thriving dairy industry.

According to the Abuja Liaison Office article in the MAN News April–June 2026 edition, many local cattle breeds produce less than one litre of milk daily, compared to 20 to 30 litres produced by dairy cows in developed countries.

MAN said, “Despite the enormous potential, several structural challenges continue to constrain the growth of Nigeria’s dairy sector. These are low milk productivity per animal. For example, while dairy cows in developed countries can produce 20–30 litres of milk per day, many local breeds in Nigeria produce less than one litre per day on average.”

The association added that inadequate dairy infrastructure, limited milk collection systems, poor cold-chain logistics, insufficient storage facilities, limited access to finance for dairy farmers, security and grazing challenges, and weak value-chain integration continue to hamper growth in the sector.

It noted that Nigeria spends more than $1.5bn yearly importing milk and dairy products, mostly in powdered form, describing the situation as both a challenge and an opportunity for local investors.

MAN said the country possesses strong fundamentals for dairy development, including an estimated 20 million cattle, extensive grazing and agricultural land, a large and growing consumer market, and an expanding food and beverage manufacturing industry.

The association stated, “Several global and local companies have already made significant investments in Nigeria’s dairy sector, including initiatives in dairy farming, milk collection, and processing facilities. These investments demonstrate strong confidence in the dairy market and its long-term growth prospects.”

It identified investments by Nestlé Nigeria, which committed more than N1.8bn to dairy development projects and demonstration farms, Arla Foods, which invested over US$15 million in Kaduna State within five years, and WAMPCO-Campina Plc, which committed more than N80bn to support smallholder dairy farmers through its backward integration programme.

MAN urged the Federal Government, private investors, development partners and farming communities to work together to unlock the industry’s potential.

The association recommended strengthening public-private partnerships, supporting backward integration programmes by dairy processors, investing in dairy clusters, ranching systems and pasture development, expanding milk collection and cold-chain infrastructure, providing financial and technical support to smallholder dairy farmers, and encouraging research, innovation and capacity building.

MAN stated, “The dairy sub-sector in Nigeria represents one of the most underdeveloped yet highly promising investment frontiers in Africa. While global demand for dairy products continues to rise, Nigeria still relies heavily on imports despite possessing a massive consumer market and favourable production potentials.”

It added that coordinated investments in livestock development, dairy processing, cold-chain systems, dairy technology and value-added manufacturing could transform Nigeria from a major dairy importer into a competitive regional dairy powerhouse.

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