Home Business News BUSINESS & ECONOMY FG targets livestock, leather and fodder investments to boost non-oil exports

FG targets livestock, leather and fodder investments to boost non-oil exports

ANALYSIS: Non-Oil Revenue Surpasses Oil Income By N52.86bn in 2020
ANALYSIS: Non-Oil Revenue Surpasses Oil Income By N52.86bn in 2020

KEY POINTS

  • The Federal Government is seeking private investment in livestock processing, leather manufacturing and fodder production to expand non-oil exports and create jobs.
  • Livestock Minister Idi Maiha said an abattoir processing about 500 cattle daily could support an estimated 10,000 direct jobs, depending on its operating model.
  • NACCIMA reported that Nigeria’s non-oil exports reached $6.1 billion in 2025, up from $5.46 billion in 2024.
  • NIRSAL said Nigeria had fewer than one tractor per 1,000 hectares of arable land, highlighting the need for agricultural mechanisation and financing.

MAIN STORY

The Federal Government is seeking greater private-sector investment in livestock processing, leather manufacturing and fodder production to strengthen domestic industries, create jobs and increase Nigeria’s non-oil export earnings.

The Minister of Livestock Development, Idi Maiha, made the call on Thursday in Abuja at the AGROMEQA Expo 2026, themed “Technology and Investment for Agro-Expo”. Organised by the Agricultural Trade Group of the Abuja Chamber of Commerce and Industry (ACCI), in collaboration with JMT Plus Farms and Agro-Allied, the expo aimed to promote mechanisation, innovation and export development.

Maiha said Nigeria’s large domestic market offered opportunities for livestock businesses to expand production and meet growing demand. However, he stressed that the sector needed stronger animal identification, disease surveillance, laboratory testing and traceability systems to improve product safety and meet international export standards.

Citing Uganda, Kenya and Tanzania as examples, the minister said investment and effective organisation had helped African countries make progress in dairy and red meat production. He also identified leather manufacturing as an opportunity for Nigeria, which supplies leather to European and Asian markets.

According to Maiha, an earlier assessment valued the industry’s potential at more than $1 billion. He urged investors to move beyond semi-processed leather into finished products such as footwear, bags and upholstery, supported by improved hide preservation, modern tanning equipment and advanced manufacturing technologies.

Fodder production was another area he identified for investment, noting that it could generate employment while supporting livestock production. Maiha said investments in fodder, meat processing and leather manufacturing could reinforce one another across the value chain. He added that an abattoir processing about 500 cattle daily could support an estimated 10,000 direct jobs, depending on its operating model.

“Livestock investment can improve food security, conserve foreign exchange, expand non-oil exports and create opportunities for women and young people.

“Also, investors should provide capital, technology and expertise,” he said.

Maiha reaffirmed the ministry’s commitment to strengthening animal health, setting standards and improving the investment climate. He also pledged to work with industry stakeholders to develop the livestock sector.

The expo’s organisers linked agricultural investment to both economic development and community security. Dr Olasetemi Thompson, ACCI vice-president for agriculture and livestock and chairman of JMT Plus Group of Companies, said the initiative could encourage more productive use of farmland and reduce communities’ vulnerability to criminal activities by creating economic opportunities.

“The initiative is the maiden edition of the programme and has been designed to become an annual event,” Thompson said.

The discussion also extended beyond livestock to the wider agricultural value chain, particularly mechanisation, processing and export infrastructure. Dr Jani Ibrahim, president of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), called for increased private-sector investment in these areas to raise productivity, strengthen non-oil exports and create employment.

Ibrahim said Nigeria’s non-oil exports reached a record $6.1 billion in 2025, compared with $5.46 billion in 2024, citing figures from the Nigerian Export Promotion Council. Agricultural commodities contributed significantly to export earnings, with cocoa beans generating about $1.99 billion, cashew nuts $456.9 million and sesame seeds $300.3 million.

He said investment in tractors, harvesters, irrigation systems and precision agriculture could improve farm productivity. Machinery leasing, he added, could make modern equipment more accessible to smallholder farmers who may be unable to purchase expensive machinery outright.

Ibrahim also identified inadequate storage, processing and transportation infrastructure as major constraints, calling for investment in drying facilities, cold rooms, warehouses and food-processing plants to reduce post-harvest losses.

He urged banks, investors and development finance institutions to expand equipment leasing, warehouse-receipt financing and other funding arrangements suited to farmers and agribusinesses. He also stressed the need for investment in quality assurance, certification, traceability technology and logistics to help Nigerian exporters meet international standards, reduce product rejections and secure long-term supply contracts.

The need to close the mechanisation gap was reinforced by Ewaen Imohe, executive director of operations at the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), who said Nigeria had fewer than one tractor per 1,000 hectares of arable land.

Imohe called for appropriate financing and improved agricultural productivity, arguing that clustering farmers into cooperatives could strengthen their access to mechanisation, irrigation and finance. He added that NIRSAL’s Land Bank Initiative had mapped more than 100,000 hectares for commercial agricultural production.

He urged stakeholders to develop innovative financing models and digital platforms to improve equipment utilisation, reduce costs and strengthen agricultural exports, particularly under the African Continental Free Trade Area (AfCFTA).

The discussions at the expo highlighted the links between agricultural production, processing capacity, financing and export readiness. While Nigeria has opportunities to increase earnings from livestock and agricultural commodities, participants stressed that turning these opportunities into sustainable growth would require investment in technology, infrastructure, skills and systems that allow producers to meet market requirements.

THE ISSUES

Nigeria’s agricultural export ambitions depend not only on producing more commodities but also on processing them locally, maintaining consistent quality and meeting international standards.

In livestock, better animal health monitoring and traceability systems are necessary to improve product safety and support access to export markets. In leather manufacturing, moving from semi-processed hides to finished goods could allow more value to be retained within the domestic economy.

Mechanisation and inadequate infrastructure remain broader constraints. Limited access to machinery, storage, processing facilities and suitable financing can reduce productivity and increase post-harvest losses. Investment in these areas could help farmers and agribusinesses raise output and improve their ability to supply domestic and international markets.

WHAT’S BEING SAID

“Livestock investment can improve food security, conserve foreign exchange, expand non-oil exports and create opportunities for women and young people.” – Idi Maiha, Minister of Livestock Development

WHAT’S NEXT

The Ministry of Livestock Development has pledged to work with industry stakeholders to strengthen animal health, standards and the investment environment. Investors, financial institutions and agricultural organisations have also been urged to expand financing for mechanisation, processing, storage and export infrastructure.

The effectiveness of these efforts will depend on whether investment commitments translate into improved production capacity, lower post-harvest losses, more local processing and stronger access to export markets.

BOTTOM LINE

The Federal Government is seeking private capital and technology to develop Nigeria’s livestock and wider agricultural value chains. Investment in processing, leather manufacturing, fodder, mechanisation and export infrastructure could create jobs and increase non-oil earnings, but progress will depend on addressing financing, productivity and quality-control constraints.

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