What is the state of dairy production in Nigeria?

With an estimated 18 million cattle, Nigeria has one of Africa’s largest livestock populations. Yet domestic milk production stands at  700,000MT. Essentially, meeting less than 40% of national demand, leaving a ~60% deficit that is primarily filled by over $1.5 billion in annual imports. At the same time, average milk consumption per person in Nigeria is only 8.7 litres per year, starkly lower than the African average (~28–40 litres), the global average (~44 litres), and the FAO’s recommendation of 210 litres for adequate nutrition. The numbers present an uncomfortable paradox: how can a country so rich in cattle be so poor in milk?

Milk is a critical source of protein, calcium, vitamins, and fat, especially for children and pregnant women. In a country grappling with high rates of malnutrition and food insecurity, the limited access to affordable dairy products is a public health concern.

This article explores the roots of Nigeria’s dairy dilemma by answering three key questions: Why is milk consumption low despite a vast cattle population? What is the current state of the dairy industry, given its dependence on imports? And what would it take to build a sustainable, productive sector capable of meeting national demand? 

Why is milk consumption low despite Nigeria’s vast cattle population? 

The question of why Nigerians don’t consume more milk can feel circular. Do people avoid dairy because it's not part of the diet, or did it never become part of the diet because it was never really available? In truth, it’s both. Nigeria’s dairy consumption habits have been shaped by limited availability, high cost, and its historical absence as a dietary staple.

The primary reason for low consumption, despite a large cattle population, stems from the nature of the cattle themselves and the systems used to raise them. Around over 90% of Nigeria's cattle are indigenous breeds, like the Fulani Zebu, primarily raised for meat and resilience, not high milk yields. These animals produce significantly less milk yielding just about 1–2 litres per cow per day, a far cry from the 20–30 litres from specialized dairy breeds in industrialized systems. Thus resulting in low availability of fresh milk to meet national demand.

Milk is often overlooked in many Nigerian diets, largely due to inaccessibility and a national preference for energy-dense, carbohydrate-rich staples like yam, rice, and cassava. Dairy has never been a traditional fixture in everyday meals. While some households use powdered milk in tea or cereal, this consumption is uneven as the high cost of imported milk makes it inaccessible to a large portion of the population. Without consistent access to affordable, quality dairy, milk remains an occasional addition rather than a dietary norm.

What is the state of Nigeria’s dairy sector?

A snapshot of Nigeria’s dairy sector reveals an underdeveloped sector heavily reliant on imports.  Local milk production meets less than 40% of national demand, leaving a deficit that is primarily filled by over $1.5 billion in annual imports, predominantly of powdered milk. 

Over 90% of Nigeria’s local milk production originates from smallholder pastoralists in traditional systems, predominantly in the northern savannah areas. Where herds are nomadic and milk collection for commercial purposes is not a priority; only around 12% are actively milked for dairy.

Women are the primary actors in this space; they milk the cows, process the milk, and handle its distribution. Much of the milk is consumed within the household, hawked in local communities, or turned into fermented drinks like nono and kunu. These are cultural staples, but they rarely enter formal markets or large-scale distribution chains. While this provides livelihoods, their extensive, low-input methods, coupled with the inherent low yields of indigenous cattle breeds, mean their collective output remains far below the nation's needs. 

Moreover, most of these pastoralists live and operate on the fringes of the formal economy, in remote parts of Northern Nigeria where poverty, low education levels, and limited infrastructure shape daily life. This geographical and socio-economic isolation severely limits integration between producers and processors: milk collection networks are weak or non-existent, quality control is inconsistent, cold chain infrastructure absent and formal buyers rarely reach pastoralists at scale. 

These problems are compounded by limited extension services, unhygienic handling practices, poor farm management skills, and the high costs associated with veterinary care and artificial insemination impede the development of a sustainable and competitive dairy industry in Nigeria. Creating a skewed market where imported dairy is both more accessible and, paradoxically, more affordable than locally sourced alternatives.

While smallholder farmers remain the backbone of primary milk production, the formal processing space is dominated by companies like Promasidor (cowbell, loya milk), Arla (dano milk), and FrieslandCampina WAMCO (peak milk, three crowns milk). A critical challenge for many of these processors, however, is their heavy reliance on imported milk powder for reconstitution, a direct consequence of the inconsistent supply and quality of local raw milk. Nevertheless, some, notably FrieslandCampina WAMCO  and Arla, have begun investing in backward integration programs, sourcing milk locally and supporting dairy farmers with improved breeds, training, and equipment. 

Guiding these efforts are government entities, with the newly created Federal Ministry of Livestock Development, alongside the Federal Ministry of Agriculture and Food Security, playing key roles in policy formulation and the implementation of initiatives like the National Livestock Transformation Plan (NLTP), which aims to modernize livestock production, including the dairy sub-sector, through promoting ranching, genetic improvement, and improved animal health.

How can we build a sustainable dairy sector?

Nigeria’s dairy sector can only become self-sufficient and sustainable through a coordinated, multi-pronged strategy that tackles deep-rooted systemic challenges. This requires intentional policy design and consistent implementation across four key areas: infrastructure investment, farm-level productivity, financial inclusion, and market rebalancing in favor of locally produced milk.

Policy progress is underway. The launch of Nigeria’s first National Dairy Policy in June 2024 is a milestone. It aims to support the entire value chain, improving milk quality, incentivizing processors to source locally, and boosting farmer productivity. However, its success depends on consistent implementation, adequate funding, and strong enforcement mechanisms.

The foundation is infrastructure. Without functional cold chains, improved rural roads, and reliable electricity (especially off-grid solutions like solar), fresh milk cannot move safely from farms to consumers. Pilot projects, such as mobile cooling units and decentralized milk collection centers, have shown promise but require long-term investment from both government and private actors.

At the farm level, productivity remains low. Indigenous cattle like the Gudali can produce more milk, up to five liters of milk daily, with better feed, veterinary care, and selective crossbreeding, compared to the current two liter average. Expanding extension services and providing targeted training to pastoralists will be key to increasing yields sustainably.

Financial inclusion is equally critical. Most smallholder pastoralists live below the poverty line, less than $1.50 a day, and lack access to banking or mobile services. Micro-credit schemes, stronger dairy cooperatives, and the expansion of mobile money platforms are needed to enable them to invest in inputs and scale their production.

Lastly, the local market must shift. Powdered milk currently dominates due to its price, shelf life, and lower risk for distributors. For local dairy to compete, the government must offer incentives for local production, price supports, and consumer education to build confidence in fresh, local milk.

With the right mix of investment, policy, and market reform, Nigeria can build a resilient dairy industry, one that creates jobs, reduces imports, and ensures nutritional security.