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

  • 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
    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? the 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;
    • RSSF-DCRR-Maximum of N10Bn.
    • CACS-Maximum of ₦2Bn.
    • AADS-Dependent on what the obligor's collateral can accommodate.
    • ABP-Dependent on the Economics of Production (EoP) and number of hectares (land size).
    • AGSMEIS-Maximum of ₦3m.
    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;
    • RSSF-DCRR-Minimum of 10 years.
    • CACS-Dependent on Gestation Period.
    • AADS-Maximum of 5 years.
    • ABP-Dependent on Gestation Period.
    • AGSMEIS-Maximum of 7 years.
    10 What is the lending interest rate under the programme? 9% per annum .