Nigeria’s Federal Government has announced a sweeping set of reforms aimed at tackling price distortions and inefficiencies in the livestock sector, with a particular focus on reducing the influence of middlemen and improving returns for producers.
Speaking at the maiden edition of the Minister–Livestock Farmers’ Connect held recently, the Minister of Livestock Development, Idi Mukhtar Maiha, identified intermediaries in the value chain as a key driver of rising food prices and artificial scarcity.
“In many cases, the producer does the hard work, but earns the least, while the middleman takes the highest margin. This ultimately drives up prices and creates artificial scarcity in the market,” the minister said.
To address the imbalance, the government is promoting a transition to end-to-end business models that enable livestock producers to establish direct supply relationships with processors, abattoirs, and large-scale buyers. According to Maiha, this approach will improve farmer incomes, enhance transparency, and stabilise market prices.
As part of the reforms, the ministry also announced plans to introduce a live-weight pricing system for livestock, aligning Nigeria with global best practices. The initiative is expected to eliminate arbitrary pricing and reduce exploitation by ensuring animals are sold based on measurable weight.
The minister further highlighted significant investment opportunities across the sector, including pasture seed production, fodder supply, dairy aggregation, leather processing, and livestock by-products. He noted that these segments present viable entry points for entrepreneurs, particularly young Nigerians seeking opportunities in agriculture.
Maiha reiterated the government’s commitment to transitioning from open grazing to more structured livestock production systems, stressing that improved management practices would boost productivity, reduce disease spread, and help mitigate farmer-herder conflicts. “While humans can move, animals perform better when they are properly managed in structured environments. This improves productivity, reduces disease spread, and enhances overall sector efficiency,” he said.
He also revealed that Nigeria’s fodder market is expanding rapidly, with growing domestic demand and export potential to Gulf countries. In addition, he noted that the leather industry alone could generate up to 700,000 jobs, underscoring its importance to economic diversification and industrial growth.
On financing, the minister outlined several funding avenues available to investors, including support from the Bank of Agriculture, the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending, the Development Bank of Nigeria, and intervention programmes backed by the World Bank. He, however, emphasised the need for structured business models and clear off-take arrangements to minimise investment risks.
Addressing security concerns, Maiha acknowledged the persistent threat of cattle rustling and rural insecurity, announcing plans to deploy digital livestock tagging and traceability systems. The initiative will enable real-time tracking, proof of ownership, and recovery of stolen animals, with pilot implementation expected within six months.
In a further push towards modernisation, the minister disclosed that a Livestock Public Digital Infrastructure platform will soon be launched to serve as a central hub for stakeholder engagement, data access, and investment facilitation.
