Nigeria targets US$3B pastoral livestock investment as feed costs expose sector gaps

NIGERIA – Stakeholders are mobilising up to $3 billion in private sector-led investment to transform Nigeria’s pastoral livestock economy over the next three to five years, with feed costs and productivity constraints emerging as key priorities for reform.

The investment push was a central focus at a three-day forum in Abuja organised by the African Union Inter-African Bureau for Animal Resources (AU-IBAR)under its Africa Pastoral Markets Development (APMD) Platform, supported by the Gates Foundation. 

The event brought together producers, processors, financiers and policymakers to negotiate deals, strengthen supply chains and unlock market opportunities.

Nigeria holds West Africa’s largest livestock population, with about 54 million cattle and 250 million poultry birds, according to Shekamang Ayuba, Director of Livestock Extension and Business Development at the Federal Ministry of Livestock Development. 

The sector supports around 75 million livelihoods and contributes roughly 5% to GDP, valued at about US$32 billion.

Despite this scale, structural inefficiencies persist, particularly in feed and productivity.

“Milk yields from local cattle are less than 10% of global averages, while feed costs account for between 60% and 70% of total production expenses, leaving producers highly vulnerable to price shocks,” Ayuba said.

Feed constraints central to livestock transformation

Feed availability, cost and quality remain among the most critical bottlenecks limiting Nigeria’s livestock productivity. 

High dependence on imported inputs, weak feed processing capacity and seasonal shortages continue to constrain output across dairy and meat systems.

Stakeholders at the forum emphasised that unlocking investment across the feed value chain, from raw material production to feed manufacturing and distribution, will be essential to improving efficiency and reducing costs.

Ayuba pointed to the National Livestock Master Plan, developed with support from ILRI and the Gates Foundation, as a key framework for addressing systemic challenges, including feed supply, animal health, and market access.

He also highlighted the National Livestock Growth Acceleration Strategy, which aims to scale the sector into a US$74 billion to US$90 billion industry by 2035 through public-private partnerships.

The six-year, US$500 million World Bank-supported Livestock Productivity and Resilience Support Project (L-PRES), launched in 2022, is already targeting productivity gains and commercialisation across 20 states, with expected benefits for 1.43 million people.

Stakeholders stressed that government efforts alone will not be sufficient.

“The future of the industry depends on bold, private sector-led investment across the entire chain, from feed to market linkages,” Ayuba said.

Mohammed Eidie, private sector engagement expert at AU-IBAR, said the Abuja forum focused on business-to-business matchmaking to generate bankable deals.

“The APMD Platform exists to ensure that market-driven transformation in pastoralism is not left to chance. What we are facilitating in Abuja is the infrastructure of trust, the handshakes and contracts that make a sector function,” he said.

Industry players also highlighted infrastructure gaps, particularly in processing. 

Raymond Odulate noted that licensed abattoirs face high operating costs due to unreliable electricity and water supply, limiting their ability to scale and meet export standards.

With supply agreements under discussion and reforms aligning, stakeholders say the planned investment could reshape Nigeria’s livestock and feed systems into more efficient, market-driven and resilient sectors.

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