Nigeria's Dairy Sector Faces $1.5bn Import Challenge

The Manufacturers Association of Nigeria (MAN) has raised concerns regarding the state of Nigeria's dairy industry, reporting a production deficit of approximately 60%. Nigeria produces around 700,000 metric tonnes of milk annually, while consumption stands at 1.6 million metric tonnes.

Despite having over 20 million cattle, local breeds average less than one litre of milk per day compared to 20-30 litres from dairy cows in developed countries. MAN identified several structural challenges, including inadequate dairy infrastructure, limited milk collection systems, poor cold-chain logistics, and insufficient storage facilities.

The country incurs an annual dairy import bill exceeding $1.5 billion, primarily for powdered milk. However, MAN noted the potential for growth, citing investments from companies like Nestlé Nigeria, which has committed over N1.8 billion to dairy projects, Arla Foods with over $15 million in Kaduna State, and WAMPCO-Campina Plc's investment of more than N80 billion to support smallholder farmers.

MAN called for collaboration among the Federal Government, private investors, and farming communities to enhance the dairy sector.