The Manufacturers Association of Nigeria (MAN) has raised concerns over the poor state of Nigeria’s dairy industry, warning that structural challenges have left the country with an estimated 60 per cent milk production deficit and an annual dairy import bill exceeding $1.5 billion.
According to MAN, Nigeria produces only about 700,000 metric tonnes of milk annually, compared with national consumption of approximately 1.6 million metric tonnes, despite having more than 20 million cattle and significant agricultural resources capable of supporting a competitive dairy sector.
The association, in its MAN News April–June 2026 edition, identified low milk productivity per animal as one of the biggest challenges affecting the industry. It noted that many local cattle breeds produce less than one litre of milk daily, compared with dairy cows in developed countries that can produce between 20 and 30 litres per day.
MAN said inadequate dairy infrastructure, limited milk collection systems, poor cold-chain logistics, insufficient storage facilities, limited access to finance, security challenges and weak integration across the dairy value chain continue to restrict sector growth.
The association described Nigeria’s reliance on imported milk products, particularly powdered milk, as both a challenge and an opportunity for local investment.
Despite the challenges, MAN said Nigeria has strong advantages for dairy development, including its large cattle population, available agricultural land, growing consumer market and expanding food and beverage manufacturing industry.
The association highlighted investments by major industry players as evidence of growing confidence in Nigeria’s dairy potential. These include Nestlé Nigeria, which committed more than N1.8 billion to dairy development projects and demonstration farms; Arla Foods, which invested over $15 million in Kaduna State within five years; and WAMPCO-Campina Plc, which committed more than N80 billion to support smallholder dairy farmers through its backward integration programme.
MAN urged the Federal Government, private investors, development partners and farming communities to collaborate in unlocking the sector’s potential.
The association recommended stronger public-private partnerships, increased investment in dairy clusters, ranching systems, pasture development, milk collection networks, cold-chain infrastructure and financial support for smallholder farmers.
MAN also called for greater investment in research, innovation and technical capacity building, noting that Nigeria’s dairy industry remains one of Africa’s most underdeveloped but promising investment opportunities.
The association said coordinated investment in livestock development, dairy processing, technology and value-added manufacturing could help Nigeria reduce its dependence on imports and position the country as a competitive regional dairy producer.
