…as CBN invests N40bn in dairy sub-sector
Nigeria has a milk supply deficit of 1.1 million metric tonnes. This is in spite of over N40 billion the Central Bank of Nigeria (CBN) invested in Dairy Sub-sector in the last three years.
Director, Development Finance Department, at the CBN, Mr. Philip Yila Yusuf, who revealed this at the commemoration of 2023 World Milk Day in Abuja, said the bank made the investments through its various intervention programmes in the dairy value chain.
This year’s World Milk Day with the theme: “Sustainable Dairy: Good for Planet, Good for you,” addressed the need for deliberate efforts to make milk production, collection and processing climate smart.
The event was coorganised by the Federal Ministry of Agriculture and Rural, Commercial Dairy Ranchers Association of Nigeria (CODARAN), Abuja Chamber of Commerce and Industry (ACCI) and Sahel Consulting Agriculture and Nutrition Limited.
Yusuf said at the present, Nigeria produces only 600,000 metric tonnes of milk annually as against the market demand of 1.7 million metric tonnes.
According to Yusuf who was represented by Mr. Hassan Tom, Assistant Director, the CBN was every ready to support the development of the dairy industry in Nigeria. “That is why,” he said, Bank has engaged local and international partners to implement its “Dairy Value Chain Development Initiative” towards ensuring value chain linkages by facilitating private sector led project financing for Dairy Sector Development.”
He said the CBN has been very active in supporting the agricultural sector, hence it came up with different intervention programmes aimed at facilitating funding for numerous projects include the Commercial Agriculture Credit Scheme (CACS), Agribusiness Small and Medium Enterprises Investment Scheme (AGSMElS), Real Sector Support Facility-Differentiated Cash Reserve Requirement (RSSF-DCRR), among others.
Speaking specifically on the celebration of the World Milk Day, Yusuf said it has further provided an avenue to strengthen and foster alliances and expand the Bank’s opportunities to the global field.
He said the celebration would offer new opportunities towards more viable and sustainable financing strategies for the dairy businesses in Nigeria, towards self-sufficiency.
“We wish to reiterate the significance of deepening collaboration local and international development partners as a catalyst towards achieving the common objective of National Security and self-sufficiency,” he assured.
Earlier in his address, the Permanent Secretary in the Federal Ministry of Agriculture and Rural Development (FMARD), Dr. Ernest Umakhihe, said the attempts by the FMARD and its partners to intensify backward integration, look inwards and develop the indigenous dairy industry in line with Federal Government policy on increased use of local content has started yielding positive results.
Umakhihe explained that the FMARD has supported capacity building and empowerment programmes for dairy farmers on hygienic milk production and processing; construction and equipping of milk collection centres in areas with comparative advantage for dairy; feed-milling facilities for production of ruminant feeds, pasture collection centres, animal handling centres, cattle feedlots, climate smart poultry and goat houses, among others.
Other activities embarked upon by the Ministry, according to him, include the capacity building on pasture production, processing and conservation Nationwide; support for artificial insemination of dairy cows to improve milk production and breeds of cattle under the National Livestock Breed Improvement Programme (NALBIP).
He said the Federal Executive Council had recently approved the National Dairy Policy to guide the operation of the dairy sub-sector.
According to him, “The Policy is to scale up milk production, collection and processing in the country and create an enabling environment for increased activities along the dairy value chain.”
The Permanent Secretary assured that the Federal Ministry of Agriculture and Rural Development would continue to collaborate with relevant MDAs organisations, institutions and associations in addressing the nutritional needs of Nigerians through milk and dairy development.
In his remarks, the National President of Commercial Dairy Ranchers Association of Nigeria (CODARAN), Muhammadu Abubakar, said CODARAN has been in the forefront of creating an enabling and business friendly environment for the dairy sub-sector in Nigeria.
He said the resolutions of the previous World Milk Day have served as inputs for impactful policy advocacy on the dairy sub-sector.
On his part, National President of All Farmers Association of Nigeria(AFAN), Kabir Ibrahim, said much of Nigeria’s foreign exchange is spent on the importation of dairy products.
Ibrahim underscored the need for Nigeria to provide incentives to pastoralists and milk producers to attain self-sufficiency in milk production.
He called on the government to assist the private sector that is working relentlessly to ensure milk production, collection and preservation in the country.