Nigeria's Dairy Industry: Current Landscape and Future Prospects
Nigeria, recognized as one of Africa's largest economies, is actively working to enhance its dairy industry. Despite having approximately 20 million dairy cattle, the country produces only about 600,000 metric tons of milk annually. This low productivity presents a significant opportunity for improvement through the adoption of modern farming techniques and technology. The sector is primarily comprised of smallholder farmers who currently rely on traditional methods.
Milk Processing and Cheese Production
Nigeria's milk processing capacity stands at around 390,000 metric tons per year. Cheese production is limited and remains largely artisanal. However, there is potential for growth by strengthening local processing capabilities to meet the increasing demand.
Milk Powder and Whey Production
The production of milk powder and whey in Nigeria is currently negligible, with the majority of demand being fulfilled through imports. Efforts are underway to establish local production facilities, which aim to reduce the country's dependency on imports and move towards self-sufficiency.
Key Players in the Dairy Industry
Significant players in Nigeria's dairy market include FrieslandCampina WAMCO, Chi Limited, L&Z Integrated Farms, and Fan Milk PLC. These companies play a crucial role in enhancing domestic milk processing capabilities and frequently support local dairy farmers through backward integration programs. Notable farms such as Shonga Farms, Nagari Integrated Dairy Farm, and Arla Dairy Farm are leading the way in sustainable dairy farming through advanced techniques and modern practices.
Import and Export Dynamics
Nigeria imports approximately $1.5 billion worth of dairy products annually due to its limited local production capacity. Although not a major exporter, the country marked $3 million in dairy exports from Uruguay. Several initiatives are underway to revitalize the dairy industry and reduce this import dependency.
Significant Market Developments
Several significant partnerships and initiatives highlight the ongoing transformation in Nigeria's dairy sector. Nigeria has partnered with Indonesia to boost dairy production in Kebbi State through advanced livestock programs. Nestlé Nigeria, in collaboration with the federal government, launched a demonstration dairy farm in Abuja and continues to upskill youth through its Technical Training Program in Agbara.
FrieslandCampina WAMCO introduced the affordable Peak Mini Milk to enhance local milk consumption. Danone, despite recent global market withdrawals, is expanding its operations in Nigeria. Nestlé's partnership with the Federal Ministry of Livestock Development has resulted in increased revenues for milk producers, growing from N70,000 in 2019 to N250,000 in 2024.
Arla Foods is driving local milk supply efforts and aims to reduce the $1.5 billion import dependency by investing in local manufacturing and dairy farming. Their initiatives include a pioneering dairy farm in Kaduna, which serves as a demonstration model for successful dairy farming in Nigeria. The European Union has also pledged ongoing support to Nigerian dairy farmers, focusing on overcoming key production challenges and enhancing the dairy value chain.
Promasidor Nigeria has bolstered the country's dairy industry through significant investments in the Ikun Dairy Farm, aligning with the national dairy development programme to ensure sustainable growth. Ogun State plans to launch the largest dairy and cattle ranches in Nigeria, starting with 5,000 cattle in Ipokia and Yewa South.
Overall, Nigeria's dairy industry is poised for growth with substantial investments and strategic initiatives aimed at improving local production and reducing reliance on imports. Arla Foods has introduced Cool Cow Yoghurt in Nigeria, made with 100% fresh milk from its Kaduna farm. Arla Foods launched a new locally produced yoghurt in Nigeria. The product is sourced from the Arla-Dano Farm in Kaduna state, with a state-of-the-art yoghurt production facility inaugurated in the same region. Arla's initiative aims to strengthen the local dairy value chain and support food security in Nigeria.
Modified: 2026/02/19