Butter, dairy spreads and milk fats market in Nigeria

Earlier Report Observations

The market volume for butter, dairy spreads, and milk fats in Nigeria contracted significantly from 36 757 t in 2018 to 26 473 t in 2021. This decline was primarily driven by a sharp drop in imports, which fell from 13 415 t to 2 758 t over the same period. Government restrictions on dairy imports introduced in 2020 limited foreign exchange allocation for importers, reducing inbound shipments. Additionally, inflationary pressures that began in 2021 negatively affected consumer purchasing power and dairy product sales, further constraining market size.

Market volume stabilized around 26 000 t in 2022 and 2023, with a slight increase to 26 433 t in 2023. Domestic production remained relatively steady, supported by initiatives like the Advancing Local Dairy Development in Nigeria (ALDDN) Programme launched in 2020, which aimed to transform the dairy sector by empowering smallholder farmers. However, ongoing economic challenges and high inflation continued to weigh on consumer demand, limiting market growth.

In 2024, imports fell further to 1 836 t, even as the Central Bank of Nigeria lifted foreign exchange restrictions on dairy imports in March, reversing earlier policies. The government also established the Federal Ministry of Livestock Development and launched the National Dairy Policy (2023-2028) to boost local production and address sector obstacles. Despite these measures, high food inflation and removal of fuel subsidies increased production costs, affecting prices and consumption.

Production butter, dairy spreads and milk fats in Nigeria

In kind, 2017-2020, t

Top producers of butter, dairy spreads and milk fats, 2017-2020

World map of production of butter, dairy spreads and milk fats, 2017-2020

Nigeria's production of butter, dairy spreads, and milk fats has grown for the third year in a row. In 2020, the country produced 23 867 tons of these products, marking a 1.3% increase from the previous year. Looking at the period from 2017 to 2020, overall production rose by 3.1%, with an average annual growth rate of 1.0%.

Annual dynamics of production in Nigeria in kind, 2017-2020, t

Exports butter, dairy spreads and milk fats from Nigeria

Exports in kind, t

Annual dynamics of product's exports from Nigeria in kind, 2017-2020, t

From 2017 to 2020, Nigeria's exports of butter, dairy spreads, and milk fats were almost entirely directed to Togo, which accounted for 100.0% of the total volume.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Nigeria in kind, 2017-2020

Exports in value, K $ US

Annual dynamics of product's exports from Nigeria in value, 2017-2020, K $ US

During the 2017–2020 period, Togo dominated Nigeria's exports of butter, dairy spreads, and milk fats in value terms, consistently making up 100.0% of the total.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Nigeria in value, 2017-2020

Imports butter, dairy spreads and milk fats to Nigeria

Imports in kind, t

The import market for butter, dairy spreads, and milk fats in Nigeria displayed volatility from 2017 to 2020. Imports reached their lowest point in 2017 and peaked in 2018, with a 3.9-fold difference between these years. In 2020, Nigeria imported 8 515 tons, which was 8.5% higher than the previous year. The highest volume was recorded in 2018 at 13 415 tons. The largest year-over-year decline occurred in 2019, dropping by 41.5%, while the biggest increase was in 2018, surging by 292.0%.

Annual dynamics of product's imports to Nigeria in kind, 2017-2020, t

From 2017 to 2020, the main sources for Nigeria's imports of butter, dairy spreads, and milk fats in volume terms were Indonesia (51.8% of imports), New Zealand (15.9%), and France (8.4%). Together, these three countries accounted for 76.0% of total imports.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Nigeria in kind, 2017-2020

Imports in value, K $ US

The value of imports for butter, dairy spreads, and milk fats in Nigeria showed significant fluctuations from 2017 to 2020. Imports hit their lowest point in 2019 and reached their maximum in 2018, with a 2.6-fold amplitude between these years. In 2020, the total value of imports was 15 808 thousand US dollars, representing a 107.3% increase from the previous year. The minimum value was recorded in 2019 at 7 625 thousand US dollars, while the peak was in 2018 at 19 715 thousand US dollars. The largest decline occurred in 2019, falling by 61.3%.

Annual dynamics of product's imports to Nigeria in value, 2017-2020, K $ US

Between 2017 and 2020, New Zealand (46.5% of import value), Indonesia (19.0%), and France (12.8%) were the primary sources for Nigeria's imports of butter, dairy spreads, and milk fats in value terms. Combined, they made up 78.4% of total imports.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Nigeria in value, 2017-2020