Business News of Monday, 16 March 2026
Source: www.vanguardngr.com
Amidst efforts to diversify Nigeria’s economy, there are indications that dominance of foreign imported livestock products has been extended.
Financial Vanguard’s findings from the National Bureau of Statistics, NBS, show that livestock and related products imports rose to N1.71 trillion in 2025, up by 14.5 per cent from N1.49 trillion in 2024.
Sector stakeholders said Nigeria is suffering from wide diary gap which necessitated imports to bridge the gap.
Financial Vanguard learnt that the country currently hosts 273 million animals but it is contending with about 60 percent diary gap.
The breakdown of the estimated 273 million animals shows goats dominating at a population of 138.95 million, sheep 64.93 million and cattle 54.81 million.
Poultry numbers is estimated at 250 million birds.
Dairy gap fuels import surge
Further investigation showed that the dairy subsector remains the weakest link. The Ministry of Livestock Development, confirmed that Nigeria spends over $1.5 billion annually on dairy imports.
According to the Food and Agriculture Organisation, FAO, about 60 per cent of dairy products consumed locally are imported, as domestic production of roughly 0.5 million tonnes falls short of the estimated annual demand of 1.3 million tonnes.
FAO further noted that average milk yield per cow in Nigeria is about 213 litres per year — less than one-tenth of the global average — reflecting low productivity levels.
GDP contribution masks fragility
Despite the import surge, the livestock sector remains economically significant. According to the NBS, the sector contributed N11.9 trillion or 5.6 per cent to the nation’s Gross Domestic Product, GDP, in 2024 and it is expected to show further increase when the 2025 GDP figures are released.
However, experts warn that contribution to GDP does not equate to competitiveness or export strength.
Brazil, with over 238 million cattle, contributed about $185.7 billion to GDP from livestock in 2024 and is a global export powerhouse.
Nigeria’s largely informal and low-productivity structure, analysts say, leaves it trailing far behind.
Stakeholders who spoke to Financial Vanguard said Nigeria’s growing dependence on imported livestock products stems from deep-rooted structural weaknesses that continue to undermine domestic production.
Chief among these are entrenched cultural practices, low productivity, insecurity, policy inconsistencies, and prolonged neglect of the livestock value chain.
Traditional nomadic grazing, largely practiced by Fulani herders who control a significant share of the nation’s cattle population, has slowed the transition to settled ranching systems that enable controlled feeding, scientific breeding, and higher yields.
The migratory system disrupts feeding patterns, weakens animal health supervision, and limits productivity, according to FAO.
The sector operators also noted that rising feed costs, driven by currency depreciation and reliance on imported inputs, have forced many operators to scale down.
Govt must invest in ranching, others — NABG
To stem the rising tide of livestock import, President, Nigeria Agribusiness Group, NABG, Arc Kabir Ibrahim, called for massive government investment in ranching, improved breeds, feed stock development, and inclusive economic reforms to support livestock businesses, warning that poorly assessed foreign investments could pose risks.
He stated: “The weak purchasing power of the citizenry is a factor militating against businesses in Nigeria and the livestock sector is not immune to this.
“The high cost of animal feed impedes productivity too. The poultry industry, which is supposed to provide the cheapest form of protein, is almost moribund to the extent all livestock business is simply crawling.
“Unless you are able to adequately scale productivity you cannot become sustainable.
“The most important intervention is the provision of sustainable feed stock and some form of good breed of livestock that combines efficiency and resilience.
“The government must invest in ranching, veritable breed generation as well as creation of fodder or grassing for large and small ruminants while improving the purchasing power of the Naira as well as growing the economy in an inclusive manner to enhance productivity in the livestock sector.
“The poultry sector strategy needs reappraisal as some of the efforts in attracting foreign direct investment from Brazil may be counterproductive if due diligence is not done.
“The fish or aquaculture sector needs proper attention in terms of investment and reawakening.”
Sector held back by weak policies, insecurity — FGDRI
The President-General of the Fulbe Global Development and Rights Initiative, FGDRI, Dr Salim Umar, said Nigeria’s livestock sector suffers from inconsistent policies, poor institutional coordination, underinvestment, insecurity, cattle rustling, and poor infrastructure.
Umar urged the government to reposition livestock as an economic asset, not merely a security issue, and called for evidence-based policymaking, stronger financing mechanisms, and development-driven interventions to curb insecurity.
He said: “Nigeria’s livestock sector is constrained by weak and inconsistent policies, limited institutional coordination, and prolonged underinvestment. Insecurity, farmer–herder conflicts, and cattle rustling disrupt production systems and deter private investment.
“Productivity remains low due to poor genetics, inadequate feed and water resources, weak veterinary and animal health services, and minimal adoption of modern husbandry practices.
“These challenges are compounded by poor infrastructure, limited access to finance and insurance, market inefficiencies, and negative narratives that marginalize pastoral communities”.
However, he expressed optimism that if the right thing is done, the sector will become a huge money spinner and employment generation.
“The business environment is promising but not yet fully enabling. While rising demand for animal protein and renewed policy attention present strong opportunities, insecurity, infrastructure deficits, regulatory uncertainty, and financing gaps continue to constrain growth”.
Political will for right policies, implementation needed – Enahoro
In his appraisal of the state of Nigeria’s livestock industry, a member of Governing Board, Veterinary Council of Nigeria, who is also a Senior Animal Health Specialist at the Food and Agriculture Organization, FAO, Dr Gani Enahoro, said sustainable progress requires robust, inclusive, corruption-free policies, a bottom-up approach, and measurable progress metrics, citing Sudan’s livestock reform experience as an example of structured transformation.
“What we need to do to change for good is currently being done with a presidential commitment in words and deeds to support livestock development programmes. President Bola Tinubu has consistently emphasized this. But beyond the talk is the walk, and the political will to put the right barometer for determining the progress in timelines.
“The Minister is a practical livestock farmer who understood the terrain so well. But beyond all of these, some fundamentals must still be addressed if we are to get to El Dorado”.
Strengthen veterinary systems — Vet Konect
The Founder of Vet Konect, Dr Terese Shadrach Akpem, highlighted inadequate veterinary infrastructure, poor disease surveillance, climate pressures, weak extension services, and lack of coordination as pressing threats.
She recommended stronger veterinary systems, digital animal health platforms, youth and women empowerment, One Health approaches, and improved financing to unlock productivity and resilience.
“Major constraints include inadequate animal health infrastructure, skills gaps, poor extension services, limited market access, weak disease surveillance systems, climate pressures, and insufficient coordination across animal, human, and environmental health sectors.”
She also said the solution to most of the challenges facing the sector is to scale up “digital animal health solutions, strengthening veterinary systems, enforcing quality standards for veterinary medicines, investing in youth and women-led enterprises, and embedding One Health approaches can unlock productivity and sustainability.
“The environment is improving but remains constrained by fragmented policies, weak veterinary service coverage, limited financing for livestock SMEs, and insufficient digital integration across the sector.
“However, growing government interest in livestock development presents an opportunity for reform.”