FG Blames Middlemen for High Livestock Prices

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The Federal Government has blamed middlemen for rising livestock prices and artificial scarcity, saying they take most of the profit while farmers earn less, as it unveiled fresh reforms to restructure Nigeria’s livestock value chain.

Speaking at the maiden edition of the Minister–Livestock Farmers’ Connect held on Tuesday, 24th March 2026, the Minister of Livestock Development, Idi Mukhtar Maiha, said the growing influence of intermediaries has distorted prices and weakened the sector’s efficiency.

He said, “In many cases, the producer does the hard work, but earns the least, while the middleman takes the highest margin. This ultimately drives up prices and creates artificial scarcity in the market.”

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The Minister explained that the current system allows multiple layers of intermediaries to control supply chains between farmers and end users, leading to inflated prices of meat and other livestock products across the country.

According to him, the government is now prioritising reforms that will cut off excessive middlemen influence by encouraging direct linkages between livestock producers and buyers such as processors, abattoirs, and large-scale distributors.

He noted that this shift towards a more direct, end-to-end business model will ensure that farmers receive fair value for their produce while consumers benefit from more stable and affordable prices.

“This approach will not only improve farmer incomes but also stabilise prices and enhance overall market transparency,” Maiha said.

As part of the reforms, the Ministry also announced plans to introduce a live-weight pricing system for livestock sales. The system is expected to standardise how animals are valued in the market by ensuring that pricing is based on measurable weight rather than estimation.

The Minister said the move will eliminate widespread guesswork in livestock transactions and reduce opportunities for exploitation within the value chain.

Beyond tackling middlemen activities, the government also used the platform to draw attention to investment opportunities within the livestock sector, particularly in areas that have remained underdeveloped despite growing demand.

Maiha identified pasture seed production, fodder supply, dairy aggregation, leather processing, and livestock by-products as key segments with strong commercial potential.

He said these areas present viable entry points for entrepreneurs, especially young Nigerians looking to participate in agriculture beyond traditional farming.

The Minister also reaffirmed the government’s commitment to transitioning from open grazing to more organised livestock production systems, noting that the current practice limits productivity and contributes to recurring conflicts.

“While humans can move, animals perform better when they are properly managed in structured environments. This improves productivity, reduces disease spread, and enhances overall sector efficiency,” he said.

He explained that adopting ranching and other controlled systems will not only improve output but also strengthen animal health management and reduce the risks associated with transhumance.

On market expansion, Maiha disclosed that Nigeria’s fodder market is witnessing rapid growth, with increasing domestic demand and strong export potential to Gulf countries.

He added that the leather industry also holds significant promise, with the capacity to generate up to 700,000 jobs if properly harnessed.

Addressing concerns around access to finance, the Minister listed several funding channels available to investors in the livestock sector, including the recapitalised Bank of Agriculture, facilities supported by the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending, the Development Bank of Nigeria, and intervention programmes backed by the World Bank.

He, however, stressed that access to these funds depends largely on the ability of investors to present structured and bankable business plans, particularly with clear off-take arrangements.

“Investors must demonstrate where their products will go. Having a defined market is critical to reducing risk and ensuring sustainability,” he said.

The Minister also acknowledged ongoing security challenges affecting livestock production, particularly cattle rustling and rural insecurity, which continue to discourage investment and disrupt supply chains.

To address this, he announced plans to deploy digital livestock tagging and traceability systems that will enable authorities and livestock owners to track animals, confirm ownership, and recover stolen stock.

According to him, pilot implementation of the initiative is expected to begin in selected states within the next six months.

In addition, the Ministry revealed plans to launch a Livestock Public Digital Infrastructure aimed at improving access to data, enhancing transparency, and connecting stakeholders across the value chain.

Maiha said the digital platform will allow investors, both within and outside Nigeria, to explore opportunities, access relevant information, and engage directly with key players in the sector without physical limitations.

“You do not need to be physically present to participate in Nigeria’s livestock economy. Through the digital platform, anyone can explore opportunities, connect with stakeholders, and position themselves within the value chain,” he said.

Earlier in her remarks, the Permanent Secretary of the Ministry, Dr Chinyere Ijeoma Akujobi, said the engagement reflects the government’s commitment to inclusive dialogue and stakeholder participation in shaping livestock policies.

She noted that the platform provides an opportunity for farmers, veterinarians, producers, and other stakeholders to contribute to ongoing reforms and ensure that policies are responsive to realities on the ground.

The Minister–Livestock Farmers’ Connect, organised in partnership with Farm Alert and the Livestock Productivity and Resilience Support Project, is expected to serve as a recurring platform for engagement between the government and industry players as reforms progress.

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