The Minister of Livestock Development, Alhaji Idi Muktar Maiha, has said the ministry will work with the Federal Ministry of Finance and the Central Bank of Nigeria (CBN) to secure single-digit interest rates and long-term financing for livestock businesses.
Maiha made this known on Tuesday during a facility tour of the ABIS Ultra-Modern Livestock Processing Factory in Lekki, Lagos.
The minister said affordable financing was essential to enable investments in abattoirs, ranching and feedlot operations to become viable.
He said the government would explore pension capital, loan moratoriums and longer repayment periods, noting that livestock investments require sufficient time to mature.
“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 per cent interest rate,” Maiha said.
“There is no way you can go ranching or feedlotting and pay 16 to 20 per cent 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.”
During the tour, Maiha inspected the facility’s abattoir, which processes about 250 cattle daily in a certified hygienic environment. He commended ABIS Group for introducing modern processing methods to the livestock industry and creating employment opportunities, particularly for women.
He said the ministry would support the establishment of certified abattoirs across the country as part of efforts to modernise livestock processing.
“You can see how neat the facility is, whether you are talking about poultry, whether you are talking about fish, or goats, or beef. That is the way to go,” he said.
Maiha also called for the development of laboratories and modern processing facilities that would reduce the need to transport live animals over long distances.
He said processed meat and other livestock products could be ordered and delivered to consumers, while by-products such as blood, faeces, horns, hooves and hides could be processed into raw materials for other industries.
The minister said the ministry would continue pursuing its mandate of transforming the livestock sector into a modern, profitable, sustainable and globally competitive industry capable of contributing to food security, employment creation and rural development.
Speaking during the visit, Chairman and Founder of ABIS Group, Ambassador Emmanuel Usman Nelson, said access to single-digit loans would accelerate transformation in Nigeria’s livestock sector.
Nelson also called on the government to rehabilitate deteriorating roads to facilitate the transportation of livestock and improve access to land for businesses seeking to expand.
He urged livestock farmers and herders to adopt modern production systems rather than relying on open grazing.
Nelson commended the Minister of Livestock Development and the Lagos State Government for supporting livestock operators through regulatory approvals, while urging greater efforts to modernise the sector and create more employment opportunities.
He said ABIS Group, a livestock processing hub in Lagos, had provided employment for hundreds of youths and disadvantaged women who had operated businesses within the hub over the past five years.