The Federal Ministry of Livestock Development says it will collaborate with the Ministry of Finance and the Central Bank of Nigeria (CBN) to secure single-digit interest rates and long-term financing for operators in the livestock sector.
Gatekeepers News reports that Idi Maiha, minister of livestock development, disclosed this on Tuesday during a tour of the ABIS ultra-modern livestock processing factory in Lekki, Lagos.
Maiha said affordable financing, extended repayment periods and loan moratoriums were necessary to enable livestock businesses to expand and become more sustainable.
“We do know that there are challenges. We are now going to work with the Minister of Finance, to make sure that capital loans in the agricultural sector are effective. There is no way you can establish an abattoir and have 25% interest rate,” Maiha said.
“There is no way you can go ranching or feedlotting and pay 16 to 20% interest rate and get three to four years’ repayment. We need pension capital. We need single digits. We need long-term repayment. At least minimum 10 years. That is when that farm will mature.”
The minister inspected the facility’s abattoir, which he said processes about 250 cattle daily, and commended ABIS Group for introducing modern practices to livestock processing and creating employment opportunities, particularly for women.
He said the ministry was also working towards establishing certified abattoirs and laboratories across the country to improve livestock processing, quality control and distribution.
“We are talking about having laboratories everywhere so that we stop bringing lorries and trailers. You bring process and culture. You pick up your phone and you order meat. You order processed meat,” he said.
“You can see here all the by-products. The blood, the faeces, the horns, the hooves, the skin, everything is processed. It is also raw materials for other industries.”
Maiha said the ministry would continue to pursue its mandate of transforming agriculture into a modern, profitable and sustainable industry capable of supporting food security and creating jobs.
ABIS seeks government support
Emmanuel Nelson, chairman and founder of ABIS Group, said government-backed single-digit financing would accelerate transformation in Nigeria’s livestock industry.
Nelson also called for the rehabilitation of roads used to transport livestock and improved access to land to enable operators to expand their businesses.
He urged livestock farmers and herders to adopt modern production systems rather than continue with what he described as “roaming through the forest”.
The ABIS chairman commended the federal and Lagos State governments for supporting livestock operators through regulatory approvals and urged both levels of government to sustain efforts to modernise the sector and expand employment opportunities.
Nelson said ABIS Group, a livestock processing hub in Lagos, had created jobs for hundreds of youths and women over the past five years.
