$10bn investment opportunity in dairy in Nigeria

Dairy Coalition Workshop – Lagos, September 2025


Hosted by Arla, Danone, and FrieslandCampina

In early September 2025, Arla, Danone, and FrieslandCampina convened a high-level workshop in Lagos, facilitated by sùúrù, to address one of Nigeria’s most pressing challenges: how to localize milk production to strengthen food security, improve nutrition, boost rural livelihoods, and grow the economy.

Why It Matters

  • 75% of Nigerians are food insecure and nearly 1 in 3 children under five are stunted, pointing to severe protein deficiency.
  • Nigerians consume only 6–10 litres of milk per person per year, far below the 90–180 litres recommended for a healthy and sustainable diet.
  • Nigeria produces ~500k MT of milk annually, but imports more than half of its total dairy needs.

The Opportunity

If Nigeria’s dairy sector met both nutrition and sustainability targets, the market could expand 25-fold, representing a potential $10 billion investment opportunity. Achieving this requires annual production growth of 8% for the next 50 years.

Pathways Forward

The workshop identified several building blocks for progress:

  • Boosting yields through artificial insemination, genetics, and improved animal care.
  • Scaling farms by supporting smallholders, mid-sized operations, and larger commercial farms.
  • Transitioning livestock by converting part of Nigeria’s cattle herd into dual-purpose dairy animals.
  • Investing in cold chain, processing, feed systems, and farmer training.

Next Steps

Participants agreed on the need to:

  • Pilot investment projects that can demonstrate impact at scale.
  • Mobilize blended finance (grants, debt, equity) to unlock the $10bn opportunity.
  • Strengthen public–private partnerships to create an enabling environment for sustainable dairy.