The Nigerian Producers Association estimated the dairy industry deficit at 60%.

According to the Manufacturers Association of Nigeria (MAN), published in the April–June 2026 issue of MAN News, national milk production stands at only 700,000 metric tons against an annual consumption of 1.6 million tons. Despite having over 20 million head of cattle and vast agricultural lands, the sector is failing to meet domestic market demand.

A key obstacle to the sector's development is low livestock productivity: many local breeds yield less than one liter of milk per day, while in developed countries this figure reaches 20–30 liters. In addition to genetic factors, experts identify a number of infrastructure constraints. These include underdeveloped milk collection systems, a shortage of storage capacities, the absence of effective cold chain logistics, as well as difficulties in accessing financing for farmers, security issues, and challenges in organizing grazing.

Currently, Nigeria is forced to spend over 1.5 billion dollars annually on milk imports, primarily in powdered form. At the same time, industry representatives point to the country's significant investment potential, driven by a growing market and the development of the food industry.

Several companies are already implementing projects to modernize dairy farming in Nigeria. Nestlé Nigeria has invested over 1.8 billion naira in the development of the dairy sector and demonstration farms. Arla Foods has channeled over 15 million dollars into projects in Kaduna State, while WAMPCO-Campina Plc has invested more than 80 billion naira to support smallholder farms through backward integration programs.

To overcome the crisis, MAN recommends developing public-private partnerships, implementing ranching and pastoral systems, expanding milk collection infrastructure, and improving the technical literacy of farmers. According to the association's experts, coordinating efforts in technology, processing, and logistics could transform Nigeria from a major importer into a regional hub for milk production.