It appears that the present economic crisis has caused inadequate funding of veterinary services leading to their ineffectiveness, high livestock morbidity and mortality and the consequent low productivity in the livestock sub-sector. In an apparent effort to ensure better funding of veterinary services, some donor-assisted projects in north-western Nigeria, have started experimenting with structural reform by introducing cost-recovery and inviting private veterinarians to establish practices. While there is inherent logic in making those who use veterinary services to pay for them, it appears that the full implications of privatization of veterinary services have not been sufficiently examined. The objectives of this study, therefore, were to examine the response of pastoralists to the cost of veterinary services, the economic feasibility of private practice and the institutional environment necessary for the success of privatization. The study also compared the effectiveness of veterinary services between an area where reform in terms of cost-recovery has been attempted and where no reform has been made. A field survey covering Fulani pastoralists and veterinary personnel was conducted in north-western Nigeria between 1996 and 1997. Cluster sampling, based on the major provider of veterinary services, was used in selecting 150 herders in the Zamfara Grazing Reserve (covering Kaura Namoda, Zurmi and Birnin Magaji Local Government Areas) where Zamfara Environmental Protection Agency has introduced cost-recovery, and 150 from Wurno, Rabah and Goronyo Local Government Areas where the Sokoto State Ministry of Agricultue is the major provider. The veterinary personnel who were randomly sampled consisted of six professional veterinarians and nine paraprofessionals working with the Sokoto State Ministry of Agriculture, Usmanu Danfodiyo University Sokoto and Zamfara Environmental Protection Agency. The data collected were analysed using descriptive statistics, multiple regression and farm (break-even) budgeting. The study revealed that the provision of veterinary services in the area was dominated by the three state governments (that is, Sokoto, Kebbi and Zamfara) working through their respective ministries of agriculture or through donor-assisted projects such as the Zamfara Environmental Protection Agency and the Second Pilot Livestock Development Project (SPLDP), The services of the state governments, however, is now mainly reduced to annual vaccination campaigns with the exception of skeletal curative services provided by zonal veterinary clinics located in the three state capitals. There was one professional to 53,315 veterinary livestock units (VLUs) and one paraprofessional to 15,328 VLUs; both ratios exceeded the recommended ratios suggesting under-supply of veterinary personnel. It was found that veterinary services, as measured by proximity to a functional veterinary service post, number of sick animals,as well as calving and calf mortality rates, were more effective where cost-recovery has been attempted. Majority (75%) of the herders considered it proper for them to pay for veterinary services and some even paid for goods with negative or positive externalities suggesting that a wide range of veterinary services could be suitable for privatization. The demand functions estimated revealed low response of herders to cost of service which is a further indication of their willingness to pay. The study revealed that private provision was potentially feasible since the actual veterinary livestock units per unit area exceeded the number of units required to breakeven. Infact, providers could make reasonable additional incomes Some of the necessary institutional mechanisms examined were with respect to the determination of who should be allowed to establish a private practice, provider selection and regulation procedures, provision of basic infrastructural facilities, information dissemination mechanisms, and provision of take-off capital. Regarding the selection and regulation of private providers, short-term competitive franchise bidding in which herders or their cooperatives and the Nigerian Veterinary Medical Association would play active roles was advocated