MCI Opportunities in Nigeria Series – Part 7 of 7
Nigeria’s dairy sector isn’t just about milk—it’s about unlocking one of the country’s biggest opportunities for better nutrition, stronger livelihoods, and inclusive growth. This post concludes our MCI Opportunities in Nigeria series, where we’ve explored how tackling nonconsumption can spark new markets across sectors like eyecare, diagnostics, mobility, pharmacies, poultry, and solar. We end with dairy, an industry central to both nourishment and national development.
The value within the gap
Nigeria’s dairy sector reflects one of the world’s largest gaps in both nutrition and agricultural development. While the US consumes an average of 291 liters of milk per person, Nigeria consumes just 8.7 liters. This translates into a massive market of nonconsumption and unmet nutritional need.
This gap is driven by economic and infrastructural barriers. Low local production, high import costs, weak cold chain systems, limited financing, and traditional cattle management practices make dairy both scarce and expensive. As a result, millions—especially low-income households, children, and women—struggle to access affordable milk. The consequences are severe: 37% of children under five are stunted, 22% of adolescents lack sufficient calcium, and more than 65% of women over 60 suffer from osteoporosis.
Meeting this demand could be transformative. Raising per capita milk consumption to just 35 kg annually would unlock a $5.6 billion market, nearly equal to the sector’s current value. This scale-up would require increasing national milk consumption by 6 billion kg, representing a transformative opportunity for producers, processors, and retailers The market is already projected to grow at 10.13% annually between 2025 and 2029, and our research reveals that investing in dairy market-creating innovations would have the potential to create over 258,000 jobs across the value chain—from small holder farmers and veterinarians to logistic and retail officers.
Innovation as the key to growth
Unlocking this opportunity requires end-to-end value chain innovation. Entrepreneurs like Matura Agro are proving what’s possible through a community impact driven approach, while larger players such as Nestlé, FrieslandCampina, and Danone’s Fan Milk are investing in local sourcing under Nigeria’s 2023–2028 National Dairy Policy. But scaling will mean bridging persistent gaps in farmer training, land access, technology adoption, and infrastructure.
Formalizing production, investing in cold chain infrastructure, improving feed quality, and providing targeted financing could dramatically increase yields and incomes. Opportunities exist across the ecosystem—fodder cultivation, feed processing, veterinary services, commercial milking, milk collection and distribution, and retail sales. Each step in the chain has the potential to bring in more producers and consumers who are currently excluded from the market.
The dairy sector’s potential lies in its ability to simultaneously address malnutrition, rural poverty, and job creation. By targeting nonconsumption—bringing affordable, nutritious dairy products to those who can’t access them today—innovators can expand the market in ways that benefit both producers and consumers, both entrepreneurs and the communities they serve.
As with every sector in this series, the takeaway is clear: market-creating innovations don’t just grow industries—they grow economies, build resilience, and improve lives.
This concludes our “Unlocking opportunity” series on market-creating innovations in Nigeria. You can read the other posts here:
Unlocking Opportunity: A New Vision for Eyecare in Nigeria
Unlocking Opportunity: Diagnosing a Market Gap in Nigeria
Unlocking Opportunity: How Poultry Can Catalyze Prosperity in Nigeria
Unlocking Opportunity: Pharmacies for better health
Unlocking Opportunity: Solar and the power of nonconsumption in Nigeria
Unlocking Opportunity: Why mobility is key to Nigeria’s prosperity
