Unlocking a $90bn Livestock Opportunity Amid Africa’s Financing Gap

Rising demand is driving Africa’s livestock expansion, but limited financing continues to restrict its potential, especially in Nigeria’s quest to unlock a $90 billion opportunity. This challenge took centre stage at a high-level forum in Abuja, where producers, processors, financiers and policymakers met to forge deals and rebuild trust, Bennett Oghifo reports

Africa’s livestock sector is expanding rapidly, driven by rising demand for animal protein, population growth and urbanisation. Yet beneath this steady growth lies a persistent financing gap that threatens productivity, value addition and the sector’s broader economic potential—particularly in Nigeria, where unlocking a $90 billion opportunity hinges on mobilising private capital and fixing structural inefficiencies.
This paradox took centre stage at a three-day high-level forum in Abuja, where producers, processors, financiers and policymakers met to negotiate deals, forge supply agreements and rebuild trust across a fragmented value chain. The gathering underscored a shared concern: while livestock numbers are rising, investment and coordination are lagging behind. The meeting, organised by the African Union Inter-African Bureau for Animal Resources (AU-IBAR) under its Africa Pastoral Markets Development (APMD) Platform, is part of a four-year Gates Foundation-backed initiative to transform pastoral economies into market-driven, inclusive and resilient systems.

The theme is “Facilitate Private Investment in Pastoral Market Systems through Structured Financing Partnerships and B2B Market Matchmaking.”

Data from the Food and Agriculture Organization, supported by commercial statistical repositories, show that Africa’s livestock population has grown consistently since 2019, with momentum extending into 2024 and 2025. By 2022, the continent’s poultry population had reached about 2.4 billion birds, far outpacing other species. Goats stood at roughly 506 million, sheep at 419 million, cattle at 299 million and pigs at about 42 million. Between 2019 and 2023 alone, Africa added approximately 28 million cattle, 39 million goats and 26 million sheep. By 2025, estimates suggest 325–330 million cattle, 540–550 million goats and more than 2.5 billion poultry birds.

These figures reflected a structural shift toward poultry and small ruminants, driven by shorter production cycles, lower capital requirements and greater resilience to climate variability.
Within this continental expansion, Nigeria remains a pivotal player. According to the National Bureau of Statistics, aligned with FAO datasets, the country’s livestock population was estimated at about 273.8 million animals in 2022 and 2023, with modest growth since then. Goats accounted for nearly 139 million, sheep 64.9 million and cattle 54.8 million, while poultry production remained dominant at over 680 million birds. This scale reinforces Nigeria’s position as one of Africa’s largest livestock producers, even as countries such as Ethiopia and Sudan lead in specific segments like cattle.

Despite this scale, deep inefficiencies persist. Director , Livestock Extension and Business Development Federal Ministry of Livestock Development, Shekamang Ayuba, captured the contradiction: “Nigeria holds West Africa’s largest livestock population, with about 54 million cattle and over 250 million poultry birds, supporting the livelihoods of nearly 75 million households and contributing close to five percent of GDP, valued at roughly $32 billion. Yet we still import about 60 percent of our dairy needs. That gap reflects deep structural inefficiencies across the value chain.”

He further highlighted the productivity challenge: “Milk yields from local cattle are less than 10 percent of global averages, while feed accounts for between 60 and 70 percent of total production costs. This leaves producers highly exposed to price volatility and limits their capacity to scale.”

Ayuba pointed to ongoing reforms but warned they are not enough on their own. “Government has begun laying the foundation for transformation through the National Livestock Master Plan and the Livestock Productivity and Resilience Support Project. However, public investment alone will not be sufficient. The future of the sector depends on bold, private-sector-led financing across feed systems, processing infrastructure and market linkages,” he said.

AU-IBAR aims to transform pastoral economies into market-driven, inclusive and resilient systems through structured financing partnerships and business-to-business matchmaking.
Policy Pillar Lead,APMD, Prof. Ahmed Elbeltagy, stressed the urgency of coordinated investment. “Livestock development is no longer optional for Nigeria; it is a strategic imperative. Strengthening productivity and attracting investment into animal production systems are central to building a resilient and competitive agricultural economy,” he said.

Consultant to the forum, Umaru Hassan, pointed to a critical structural weakness: “The sector continues to suffer from unreliable and fragmented data, including basic metrics such as livestock pricing across regions. This information gap reinforces the perception of livestock as a high-risk investment and discourages financial institutions from engaging.”

Private Sector Engagement Expert AU-IBAR, Mohammed Eidie, emphasised the forum’s practical focus. “We are moving beyond dialogue to tangible outcomes. This platform is designed to connect producers, buyers and financiers in ways that lead to real contracts. We are building the infrastructure of trust that allows markets to function efficiently,” he said. “Our goal is clear: more supply agreements, more financing partnerships and policy reforms that unlock the sector’s full potential across Africa.”
From the private sector, Managing Director ,Rahama Integrated Farm Limited, Munir Babba Danagundi, underscored the urgency of access to capital. “What the sector urgently needs is market-based, long-term financing for producers, processors, input suppliers and service providers. With the right financial support, we can significantly improve productivity, expand processing capacity and strengthen the marketing of livestock products across the country,” he said.

Offering a financing pathway, Head of Agric (North) Strategy, Partnership and Solid Mineral Finance at Sterling Bank Nigeria Plc, Dr. Joshua Zira, called for a more structured, partnership-driven model. He argued that the current lending environment is failing farmers and processors who need affordable capital to scale production.

“What we are looking at is how financing—structured financing—can be delivered through partnerships. Funding agriculture has to go through what we call ecosystem financing,” he said.

At the heart of his proposal is an integrated framework linking banks, development finance institutions, processors, producers and smallholder farmers into a coordinated system. “When funding comes in, there will be producers ready to produce, with guarantees from off-takers. These are the mechanisms we can use to scale production and advance the economy through livestock development,” he explained.
Zira added that such a model significantly lowers borrowing costs. Through a partnership with the Development Bank of Nigeria under the LPRES financing facility backed by the World Bank, Sterling Bank is able to offer credit at more competitive rates. “It’s actually double digit—about 16 percent all-in—which is far below the Monetary Policy Rate of 26.5 percent,” he noted.

As discussions in Abuja made clear, Africa’s livestock sector is not short on potential. What it lacks is coordinated investment, reliable data and efficient market structures. Bridging these gaps could unlock billions in value, transform rural livelihoods and position Nigeria—and the continent—as a global force in livestock production.