Nigeria: Price Distortion - Govt Moves Against Middlemen in Livestock Sector

26 March 2026

The Federal Government has announced plans to tackle the role of middlemen in price distortions and artificial scarcity in the livestock sector as part of broader reforms to improve food affordability.

The Minister of Livestock Development, Idi Mukhtar Maiha, made this known at the inaugural Minister-Livestock Farmers' Connect held on Tuesday.

He identified the dominance of intermediaries in the livestock value chain as a major challenge, noting that producers often earn less despite bearing the bulk of production costs.

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

Maiha said the ministry is promoting "end-to-end business models" that will enable farmers to establish direct links with processors, slaughterhouses and large-scale buyers.

He explained that the approach would improve market transparency, stabilise prices and increase farmers' incomes.

The minister also disclosed plans to introduce a live-weight pricing system for livestock, in line with international best practices.

He said the system would ensure animals are sold based on measurable weight, thereby reducing uncertainty and curbing exploitation within the value chain.

Maiha highlighted investment opportunities in pasture seed production, fodder supply, dairy aggregation, leather processing and livestock by-products, describing them as viable entry points for entrepreneurs, especially youths.

He also reiterated the Federal Government's commitment to transitioning from open grazing to more structured livestock production systems to reduce conflicts and improve productivity.

"While humans can move, animals perform better when managed in structured environments. This improves productivity, reduces disease spread and enhances overall efficiency," he said.

He added that Nigeria's fodder market is expanding, with growing domestic trade and export potential to Gulf countries.

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