FG’s $2.5bn investments drive seen lifting dairy farming

President Bola Tinubu has announced that the Federal Government has secured a $2.5 billion investment commitment to establish six modern meat-processing factories across Nigeria within the next five years.
The initiative will include three poultry facilities, two beef facilities, and one pork processing plant, signaling a major push to industrialize Nigeria’s livestock sector.

Speaking at the Arla-Dano Open Day in Damau, Kaduna State, the President emphasized that the investment would also include technical partnerships with JBS, the world’s largest meat-processing company, to strengthen local capacity and competitiveness.

Tinubu lamented Nigeria’s current milk deficit, describing it as a “paradox” that a nation with millions of cattle still spends $1.5 billion annually on dairy imports. Nigeria’s milk production currently stands at 0.7 million litres annually, with an average per capita milk consumption of 8.7 litres, far below the World Health Organisation’s recommended 210 litres per person per year.

He further explained that the establishment of the Ministry of Livestock Development was part of a strategic plan to reduce import dependence, address farmer-herder conflicts, and create new economic opportunities through livestock value chains.

The Arla Farm in Damau — a collaboration between Kaduna State, Arla Foods, and the Danish government — has become a model for sustainable dairy production, integrating 1,000 household farmers and providing improved cattle, pastures, veterinary services, and market access.

The President also highlighted ongoing international collaborations, including the EU-VACE TARED Project (€18.3 million) and the FAO Hand-in-Hand Initiative, both focused on transforming Nigeria’s agricultural value chains in dairy, tomato, cassava, maize, and fisheries.

Tinubu commended Kaduna State for turning Damau into a thriving dairy hub and reaffirmed the administration’s vision to make Nigeria self-sufficient in meat and dairy production.
Source: Business Day

Expert Review for Agri-Food Stakeholders
Nigeria’s livestock industry is entering a defining phase. For decades, the country’s vast herds and potential have remained largely untapped, constrained by weak infrastructure, fragmented value chains, and limited industrial processing. President Tinubu’s recent announcement of a $2.5 billion investment deal signals a coordinated effort to finally align policy, partnership, and production toward a single national goal — livestock self-sufficiency and food security.

1.  Strategic Significance of the Investment:
   This move represents one of the largest commitments to Nigeria’s livestock sector in decades. By targeting both meat and dairy value chains, it aligns private investment with public reform — a key requirement for sustainable transformation.
2.  The Role of JBS Partnership:
   Collaboration with JBS, a global leader in meat processing, introduces much-needed industrial discipline and technology transfer. However, success will depend on how Nigeria adapts these global systems to local realities — particularly in logistics, energy, and livestock traceability.
3. Dairy as a National Nutrition Security Issue:
   Tinubu’s emphasis on Nigeria’s milk deficit is crucial. Beyond commerce, dairy production touches public health, child nutrition, and poverty reduction. Bridging the milk gap must be viewed as a social development goal, not just an agricultural target.
4.  Kaduna’s Dairy Model — A National Blueprint:
   The Damau Household Milk Farm, supported by Arla and Denmark, demonstrates how cluster-based livestock development can integrate households into formal value chains. Scaling this model across regions could redefine how rural communities benefit from commercial agriculture.
5. Institutional Coordination and the Livestock Ministry:
   The creation of the Ministry of Livestock Development is timely. Yet its impact will depend on synergy — how it works with the Ministries of Agriculture, Trade, and Environment to build cohesive, evidence-based livestock policies.
6. Climate and Sustainability Lens:
   With projects like the Partnership for Green and Productive Dairy, the integration of climate resilience into livestock systems marks a shift from survival farming to sustainable agribusiness. It also opens access to green financing and carbon credits for future expansion.
7. The Path Forward — Policy to Practice:
   For the $2.5 billion investment to translate into results, Nigeria must strengthen extension services, data systems, and market linkages. Investments must not only build factories but also build farmers who can supply them competitively.

Conclusion
Nigeria’s journey toward livestock self-sufficiency has been long and uneven. Yet this latest step — backed by strategic investments, strong partnerships, and policy alignment — offers renewed hope that agriculture can finally become both a source of nutrition and national prosperity. If execution matches ambition, this could be the turning point where Nigeria stops importing milk and starts exporting confidence in its food systems