Commodity Development Initiative: Livestock and Dairy
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Overview
As part of its developmental role, the Central Bank of Nigeria (CBN) in collaboration with key stakeholders in the livestock and dairy industry established the Livestock/Dairy Development Initiative in 2019 to address the nation's over-reliance on milk importation, conserve foreign exchange and create employment opportunities. The initiative is being implemented in partnership with major dairy investors to achieve a targeted 1,700,000MT milk production by 2024. For this purpose, the Bank will support dairy investors through the provision of low-cost funding and facilitate linkages with development partners/non-governmental organizations (NGOs) on capacity building and skill/technology transfer within the industry.
Objective of the Initiative
The core objectives of the Bank's Livestock/Dairy Development Initiative include:
- Promote private investments in the industry;
- Develop herds and improve breeds of cattle;
- Increase dairy production and processing capacity of investors;
- Reduce dairy products import bill;
- Catalyze inclusive growth in the Nigerian dairy industry;
- Organize smallholder dairy farmers into clusters to facilitate off-take arrangements and linkage to stakeholders in the value chain.
Frequently Asked Questions (FAQs)
Questions | Answers | |
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1 | What is the Livestock/Dairy development initiative? | An initiative by the CBN, focusing on Development of the Livestock/Dairy Value Chain towards promoting food security and employment generation. |
2 | When was it initiated? | 2019 |
3 | What is the major objective of the initiative? | To address the nation's over-reliance on milk importation, conserve foreign exchange and create employment opportunities. |
4 | Who is the managing agent for the initiative? | CBN is the managing agent for the funding interventions i.e. DCRR, CACS, AADS, ABP & AGSMEIS. |
5 | Who are the key players/stakeholders under the initiative? | State Governments (Ranch Development), Livestock Farmers, Dairy Companies (Dairy and Derivatives), NGOs (Private Investors), PFIs (Funding partners), Research Institutes. |
6 | Who is an eligible participant under the programme? | Any Company/Individual along the Value Chain that meets the requirements for funding under the aforementioned CBN intervention programmes. |
7 | What category of the value chain can be funded under the scheme? | All aspects of the value chain can be funded. |
8 | What is the obligor limit under the programme? | The obligor limits will be determined by the provisions of the guiding modalities for the interventions under the programme;
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9 | What is the tenure of facilities under the programme? | The tenure will be determined by the provisions of the guiding modalities for the interventions under the programme;
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10 | What is the lending interest rate under the programme? | 5% per annum all in, to revert to 9% by March 1, 2022. |