Nigeria’s livestock sector could contribute as much as $32 billion to the country’s Gross Domestic Product (GDP) within the next 10 years if the private sector is adequately positioned to drive growth, supported by an enabling business environment.
The Chief Executive Officer of the Centre for the Promotion of Private Enterprises (CPPE), Dr Muda Yusuf, stated this in an interview with Vanguard Agrobiz, stressing that private investment would be critical to unlocking the sector’s vast potential.
Yusuf said attracting substantial private capital into livestock production would require deliberate government action to address the structural challenges limiting the sector.
He noted that countries around the world support agriculture, including livestock, through infrastructure, research, access to finance, risk mitigation and other public-sector interventions.
“Government should facilitate properly planned livestock production and processing clusters for cattle, poultry, goats and other livestock,” Yusuf said.
According to him, such clusters should provide secure and appropriately titled land, water supply, veterinary and animal-health services, reliable electricity, feed-production and storage facilities, cold-chain infrastructure, processing and slaughtering facilities, as well as efficient transport and market logistics.
Yusuf also expressed concern over the high cost of borrowing in Nigeria, saying commercial lending rates of between 30 and 35 per cent were incompatible with livestock production cycles and expected returns.
He called for concessionary, long-term financing supported by the government through development finance institutions, credit guarantees, blended-finance structures and livestock insurance.
Also speaking on measures needed to stimulate investment in the sector, the Chairman of the Farmers and Herders Initiative for Peace and Development (FHIPD-Africa), Dr Salim Umar, urged the government to introduce attractive incentives and other forms of support for investors.
Umar described the establishment of a dedicated federal ministry for livestock development as a positive step, saying the private sector could leverage programmes introduced by the ministry to invest across the industry’s largely untapped value chain.
He said the government should provide incentives capable of attracting investors while promoting modern livestock farming practices.
“Massive awareness towards modern livestock farming, ranching and upgrading of livestock research institutions should be prioritised,” Umar said.
Both experts emphasised the importance of creating an enabling environment capable of attracting private capital and supporting investment across livestock production, processing and other areas of the value chain.
