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

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President Bola Tinubu has announced that Nigeria has secured $2.5 billion in investments to establish six modern meat-processing factories across the country over the next five years. The initiative includes three poultry plants, two beef facilities, and one pork factory — part of a broader plan to boost the nation’s dairy and livestock value chain. Tinubu revealed the development during the Arla-Dano Open Day held at Arla Farms in Damau, Kaduna State, commending the state’s efforts to position itself as a dairy hub.

The President lamented Nigeria’s heavy reliance on milk imports, which cost the nation about $1.5 billion annually despite its vast livestock population. He described the situation as a “paradox that must be corrected,” noting that local milk production currently stands at 0.7 million litres — far below the country’s nutritional needs. Tinubu said the government’s new investments would also include technical partnerships with JBS, the world’s largest meat-processing company, to improve local productivity and quality standards.

Highlighting the creation of the Ministry of Livestock Development, Tinubu said the government’s goal is to unlock Nigeria’s livestock potential, reduce dependence on imports, and foster sustainable peace between farmers and herders. “Our vision is taking shape through collaborations like the Arla Farm initiative, which is already yielding tangible results,” he said. He praised Kaduna State’s commitment to transforming Damau into a dairy production hub through projects like the Damau Household Milk Farm and Dairy Development Programme.

The Damau Household Milk Farm, a collaboration between the Kaduna State government, Arla Foods, and international partners, supports 1,000 households with improved cattle breeds, veterinary services, and social amenities. The Danish government is backing the effort with two major dairy development projects aimed at promoting climate-resilient and sustainable milk production. These projects — including the Partnership for Green and Productive Dairy in Nigeria — are designed to boost farmers’ capacity while documenting lessons to guide future agricultural reforms.

Tinubu further announced the launch of the €18.3 million EU-VACE TARED Project to promote climate-smart agriculture and expand Nigeria’s agricultural value chains, including dairy, cocoa, ginger, and tomato production. He added that the government’s partnership with the FAO under the Hand-in-Hand Initiative is focused on mobilising investment in five key sectors — tomato, cassava, maize, dairy, and fisheries — to drive food security, reduce poverty, and create sustainable livelihoods for millions of Nigerians.

source: Business day

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