The Federal Government and Nestlé Nigeria Plc have signed a Memorandum of Understanding to improve animal genetics and enhance farmers’ productivity, marking a significant shift in the country’s livestock development approach. The agreement, signed on Wednesday, establishes a dairy skills development centre that will provide hands-on training for farmers on ranch management and dairy production, regardless of breed, addressing a critical skills gap that has constrained the sector’s growth.
Minister of Livestock Development Idi Maiha described the initiative as an intervention aimed at tackling a major challenge in Nigeria’s dairy industry: the shortage of practical technical skills required to operate modern ranches and dairy farms. He noted that Nigeria currently lacks specialised institutions where individuals can acquire hands-on training in large-scale dairy farm management, breeding, fodder production, and animal health. The centre is expected to help train Nigerians to manage livestock as a modern enterprise and increase investor confidence in the sector, with the first set of trainees expected to graduate within one year.
The initiative aligns with President Bola Tinubu’s livestock transformation agenda, which aims to improve productivity and reduce conflicts associated with livestock production. For decades, Nigeria’s dairy sector has been characterised by low-yield cattle breeds, open grazing systems, and frequent farmer-herder clashes that have undermined agricultural productivity and rural stability. By focusing on genetics improvement and modern ranch management, the partnership addresses both the supply-side constraints and the structural conflicts that have historically plagued the sector.
Nestlé Nigeria Managing Director Wassim Elhusseini said the partnership marks a transition from intent to execution, following a letter of intent signed with the ministry in 2025. He disclosed that Nestlé has invested over N1.8 billion in dairy development since 2019 through its livestock development project. The investment has yielded measurable results, including the aggregation of over one million litres of raw milk, training of more than 2,000 pastoralists, and vaccination of over 36,000 cattle. The new centre is expected to expand these gains and strengthen Nigeria’s dairy value chain.
From an economic perspective, the partnership addresses multiple policy objectives simultaneously. Nigeria spends billions of naira annually on dairy imports, including powdered milk and related products, representing a significant drain on foreign exchange reserves. A more productive domestic dairy industry would reduce import dependency, conserve foreign currency, and create employment opportunities along the value chain—from feed production and animal husbandry to processing and distribution. The focus on genetics improvement is particularly significant, as improved breeds can yield substantially more milk per animal, transforming the economics of dairy farming.
The initiative also carries important implications for rural development and conflict resolution. Nigeria’s pastoralist communities have faced increasing pressure from land use changes, desertification, and competition with crop farmers. By providing training in modern ranch management and supporting more intensive, settled production systems, the partnership offers a pathway away from open grazing and toward more commercially viable, less conflict-prone livestock operations. This aligns with broader government efforts to transition the livestock sector from subsistence to commercial enterprise.
For Nestlé, the investment represents a strategic commitment to local sourcing and value chain development. As a major processor of dairy products, the company has a direct interest in building a reliable, high-quality domestic milk supply. The partnership model—combining government facilitation, private sector investment, and technical training—offers a template that could be replicated across other agricultural value chains where Nigeria currently depends heavily on imports.
