The Federal Government has entered into a strategic partnership with Nestlé Nigeria Plc to establish a dairy technical skills development centre in the Federal Capital Territory, a move aimed at closing Nigeria’s capacity gap and reducing its heavy reliance on dairy imports.
- +FG, Nestlé partnership targets productivity gains in dairy value chain
The agreement, formalised through a memorandum of understanding, signals a shift toward skills-driven intervention in a sector long constrained by low productivity and weak value chain integration.
The agreement, formalised through a memorandum of understanding, signals a shift toward skills-driven intervention in a sector long constrained by low productivity and weak value chain integration.
Idi Mukhtar Maiha, minister of livestock development, said the initiative is designed as a structural response to inefficiencies that have limited output despite Nigeria’s large livestock base.
He noted that average milk yield remains between one and two litres per cow daily under traditional pastoral systems, a level far below the global benchmark. This, he said, is driven by poor husbandry practices, weak feed systems, limited access to water, climate pressures, and low adoption of modern techniques such as artificial insemination and herd health management.
The cumulative effect, according to the minister, is a persistent supply deficit that has pushed Nigeria’s dairy import bill to about 1.5 billion dollars annually.
Maiha said the new centre will function as a practical training hub, with a curriculum designed to prioritise hands-on experience over theory. He added that trainees will undergo a 70 percent practical and 30 percent classroom-based training model aligned with international dairy standards.
The programme is expected to build competencies across the dairy value chain, including breeding, calf management, feed optimisation, milk hygiene, and processing, with the broader goal of transitioning the sector toward commercially viable and globally competitive production systems.
From a business perspective, the intervention is expected to improve upstream productivity, enhance raw milk supply consistency, and strengthen linkages between smallholder producers and industrial processors.
Wassim Elhusseini, managing director and chief executive officer of NESTLE NIGERIA PLC, said the centre forms part of the company’s long-term investment in local sourcing and supply chain development.
He disclosed that the company has invested over N1.8 billion in dairy cluster development around key grazing reserves, with measurable gains recorded in producer incomes and output levels.
According to him, participating farmers have seen monthly earnings rise from about N70,000 to N250,000 between 2021 and 2024, while organised cooperatives have aggregated over one million litres of raw milk.
He added that more than 2,000 pastoralists have been trained, over 36,000 cattle vaccinated, and critical infrastructure such as boreholes, milk collection centres, and cooling systems deployed to improve quality and reduce post-harvest losses.
Elhusseini noted that pilot interventions, including a demonstration farm launched in 2025, have shown that improved breeding and feeding systems can raise milk yield from one litre to as much as 10 litres per cow daily, significantly improving commercial viability.
Chinyere Ijeoma Akujobi, permanent secretary at the Federal Ministry of Livestock Development, said the success of the initiative will ultimately be measured by income growth among farmers, improved nutrition outcomes, and the expansion of viable dairy enterprises.
Stakeholders in the sector say the partnership aligns with the National Dairy Policy under the National Development Plan, which prioritises private sector participation, local capacity building, and import substitution.
Industry analysts note that if effectively implemented, the initiative could unlock significant value across the dairy ecosystem, from primary production to processing, while reducing foreign exchange pressures linked to dairy imports.
The collaboration also reflects a broader trend of public-private partnerships aimed at de-risking agriculture and positioning it as a more investable sector within Nigeria’s economy.
