Nigeria's Dairy Market Overview

Nigeria, one of Africa's largest economies, is actively working to bolster its dairy industry. The country aims to significantly cut down its $1.5 billion annual expenditure on imported dairy products by investing in local production and processing infrastructure.

Milk Production and Dairy Cattle

Nigeria currently produces about 600,000 metric tons of milk annually. With approximately 20 million dairy cattle, primarily managed by smallholder farmers using traditional practices, there is a substantial opportunity for increasing productivity through improved farming techniques and the adoption of technology.

Milk Processing and Cheese Production

The milk processing sector in Nigeria is developing, with an estimated processing capacity of 390,000 metric tons per year. Although cheese production is limited and largely artisanal, there is potential for growth through enhanced local processing capabilities.

Milk Powder and Whey Production

Currently, Nigeria's production of milk powder and whey is negligible, with most demand met through imports. However, plans are underway to establish local production facilities to achieve self-sufficiency and reduce reliance on imports.

Key Dairy Enterprises

Prominent dairy companies in Nigeria include FrieslandCampina WAMCO, Chi Limited, L&Z Integrated Farms, and Fan Milk PLC. These companies play a vital role in enhancing domestic milk processing capabilities and often engage in backward integration programs to support local dairy farmers.

Dairy Farms

Notable dairy farms like Shonga Farms, Nagari Integrated Dairy Farm, and Arla Dairy Farm are setting benchmarks for sustainable dairy farming in the region through advanced farming techniques and modern practices.

Import and Export Data

Nigeria is not a major exporter of dairy products due to its limited local production capacity. Conversely, the country imports approximately $1.5 billion worth of dairy products annually, focusing on milk powder, cheese, butter, and other processed goods.

Significant Dairy Market Events

Several initiatives are revitalizing Nigeria's dairy industry through partnerships with multinational companies. For instance, Nigeria has partnered with Indonesia to enhance dairy production in Kebbi State using advanced livestock programs. Nestlé Nigeria, in collaboration with the federal government, has launched a demonstration dairy farm in Abuja and continues to upskill Nigerian youth through its Technical Training Program in Agbara. Efforts are also in place to address challenges such as anthrax outbreaks and cattle malnutrition.

FrieslandCampina WAMCO has introduced the affordable Peak Mini Milk to increase milk consumption among the local populace. French multinational Danone is enhancing its commitment to Nigeria, aiming to deepen its operations despite recent withdrawals by other global companies. Additionally, Nestlé has partnered with Nigeria's Federal Ministry of Livestock Development to improve the quality and volume of milk production, leading to increased revenues for milk producers from N70,000 in 2019 to N250,000 in 2024.

The European Union has pledged ongoing support to Nigerian dairy farmers, focusing on key production challenges and enhancing the dairy value chain. UAC of Nigeria has acquired Chivita Hollandia from Coca-Cola, marking a significant move in its growth agenda.

Modified: 2025/08/10


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