Milk prices soar as Nigerians battle economic hardship

NIGERIA – Four months after the federal government assured Nigerians of significant food price reductions, the situation has only worsened, with milk prices continuing to climb. 

This follows a July 15 promise to stabilize food costs within 180 days. Instead, food prices have skyrocketed, exacerbating the financial strain on low-income households.

The economic crisis has left families struggling to afford basic necessities, leading to severe malnutrition among children. 

Inflation, a depreciating naira, and soaring fuel prices have compounded the problem. Social amenities remain non-existent, transportation costs have surged, and access to affordable healthcare has diminished. 

Social scientists warn that these conditions could pose existential threats, especially as some states fail to implement the N70,000 minimum wage.

Amid the turmoil, Nigeria’s dairy industry is witnessing a shift. The rising cost of foreign exchange (FX) is forcing milk importers to turn to local producers. 

Historically, Nigeria imports about 60% of its annual 1.7 billion liters of milk consumption, spending US$1.5 billion on imports. 

However, the current exchange rates are making imports less viable, prompting a renewed focus on local milk production.

Udeme Etuk, Managing Director of Chanan Elo’a Integrated Farm Limited, noted that importing milk used to be cheaper than sourcing it locally. 

“When forex was lower, it was easy to import milk from Europe. Today, importing is expensive, and companies are partnering with local herders and farmers,” Etuk said.

Dianabasi Akpainyang, Executive Director of the Commercial Dairy Ranchers Association of Nigeria (CODARAN), echoed these sentiments. 

He explained that the cost of imported milk distorts the market, making it hard for local producers to compete. 

“Nigeria became a dumping ground for sub-standard milk products, losing $2 billion annually in foreign exchange. But now, companies are sourcing locally, which could boost the local industry and create jobs,” Akpainyang said.

Despite the challenges, imported milk continues to bridge the gap between local production and demand, with Nigeria producing only 600 million liters annually against a demand of 1.7 billion liters. 

The price of locally sourced milk ranges from N350 to N1,500 per liter, depending on the location.

Industry stakeholders argue that increased reliance on local dairy could strengthen Nigeria’s milk industry. 

However, they caution that sustainable growth will require deliberate government policies to support local farmers and reduce reliance on imports.

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