Education
Abisola Fashina: The missing link to Nigeria’s dairy growth – EnviroNews
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Nigeria’s dairy sector is valued at between US$1.5 and US$2 billion annually, yet it remains a fraction of what it could be. Despite this potential, the country still spends about US$1.5 billion each year on dairy imports, while annual consumption reaches approximately 1.6 billion litres of milk and dairy products.
Domestic production, estimated at roughly 700 million litres annually, meets less than half of national demand. This supply gap highlights Nigeria’s dependence on imports and presents a significant opportunity to strengthen the domestic dairy industry.
Over the years, government programmes, donor-funded projects, and private sector investments have sought to improve the sector. However, their impact has remained limited because the enabling structures are still developing. Without reliable cold chain systems, efficient milk collection networks, and adequate processing facilities, it becomes difficult to convert production into scalable commercial value.
Abundant Milk Supply, Fragile Systems
In Northern Nigeria, dairy farming is deeply embedded in pastoral and agro-pastoral livelihoods, with pastoralists accounting for most local milk production through low-input traditional systems. Dairy households typically produce between 8 and 10 litres of milk daily, although output varies depending on herd size, breed, feed availability, animal health, seasonality, and management practices.
The challenge is not milk availability but the inability of formal market systems to collect, preserve, and process it efficiently. As a result, much of the milk flows through informal channels where significant value is lost because of poor storage, weak logistics, and limited market access. While dairy farming has historically been subsistence-oriented, this is beginning to change.
Recent dairy sector interventions have begun to demonstrate what is possible when farmers are connected to functioning market systems. One example is the Advancing Local Dairy Development in Nigeria (ALDDN) programme, which engaged approximately 60,000 beneficiaries across 15,000 farmer households in seven states and supported the production and aggregation of more than 15 million litres of milk.
Its experience reinforces a simple lesson: when farmers have access to milk collection, aggregation, cold chain infrastructure, transportation, processing capacity, and reliable market linkages, they respond by increasing production and commercial participation. Today, milk supply is beginning to outpace the infrastructure needed to aggregate, preserve, transport, and process it efficiently, creating significant investment opportunities across the dairy value chain.
Where the Real Opportunities Are
Large-scale processing capacity remains limited. Much of Northern Nigeria’s dairy processing is still small-scale and informal, leaving fresh milk either lost or sold through informal markets because it cannot be processed quickly enough. There is a clear opportunity for modern processors capable of producing value-added products such as pasteurised milk, yoghurt, and cheese.
Reliable payment systems are equally important. For many producers, especially pastoralists and women milk collectors, participation in formal markets depends on prompt and reliable payment. Digital payment systems, supported by accessible banking and Point-of-Sale services, can encourage farmers to increase supply.
As one ALDDN beneficiary in Zaria noted: “If payments are made on time, we are encouraged to supply more milk and can plan our supply activities more effectively.”
Logistics and cold chain infrastructure remain major bottlenecks. Milk is highly perishable, yet many producers transport it over long distances without refrigeration, resulting in spoilage and quality deterioration. Investment is needed in milk collection centres, cold storage facilities, refrigerated transport, and improved rural road networks.
As a smallholder farmer from Birnin Kudu, Jigawa State, explained: “During the peak periods, we supply at least 200 litres of fresh milk, but the Milk Collection Centre’s capacity is not enough to serve all dairy farmers here in Birnin Kudu. This leaves us with no choice but to sell to the open market.”
Market development also remains an untapped opportunity. Success requires more than increasing milk production. It requires stronger consumer-facing brands, quality assurance, retail partnerships, product development, and marketing that builds confidence in locally produced dairy products. Companies such as L&Z, Sebore Farms,
Integrated Dairies Limited, SAJ Foods, and FrieslandCampina WAMCO, through their investments in local milk sourcing, have demonstrated that consumers are willing to purchase locally produced dairy products when quality standards are consistently maintained and products are readily available.
The evidence emerging from recent dairy sector interventions shows that Nigerian dairy farmers are willing and able to participate in commercial markets when the right market systems are in place. Sustaining that momentum will require continued investment in milk collection, cold chain infrastructure, processing capacity, transportation, market development, and reliable payment systems. By strengthening these links across the value chain, Nigeria can reduce its dependence on imports, improve rural incomes, create jobs, and build a more competitive dairy industry.
As Dr. Winnie Lai-Solarin, an expert in livestock and dairy in Nigeria, aptly noted: “Nigeria’s dairy industry is at a crucial turning point, ready for transformation. By adopting market-driven innovation, quality, and standards, we can unlock a thriving market, empower rural communities, and build a resilient dairy sector that nourishes our nation and inspires Africa.”
Abisola Fashina is a seasoned Monitoring, Evaluation, Research and Learning Analyst, wielding experience and a fervent passion for instigating positive change within the agricultural sector
