Contract farming (CF) is a sort of vertical integration in agricultural commodity chains that provides a business with strong control over several operational processes, including the production process, the features of the items, quantity, quality, and timeliness of project execution. Birds were first domesticated by humans as farm animals, and as a result, many years ago, the contemporary practice of raising birds began with the harvesting of their eggs and young from their natural habitat. The Nigerian poultry industry falls into three main categories: small-, medium-, and large-scale, which are also referred to as backyard, semi-commercial, and commercial respectively. Contract farming emerged as an alternative to traditional or spot market-based agricultural production and was introduced into Nigeria under a variety of business names, including CHI, AMO, ANIMAL CARE, and ZARTECH, among others. Nigeria consumes 192.69 MT of poultry meat and egg products annually, resulting in enormous environmental impacts that have not been adequately addressed because of the growing use of contract farming. Contract farming has always received a lot of attention from academics and policymakers. Even though contract farming acknowledges the transfer of technology, prospects for increased revenue, and improved access to inputs, a great deal of research has focused on the risks that smallholder farmers face. In recent years, debate has erupted regarding the benefits and dangers of factory poultry production considering rising awareness of the challenges it poses to public health and the environment. This review reveals that backyard flocks of chickens can thrive independently of large-scale poultry operations. Survival traits including tiny size, hardiness, sluggish growth, low mature body weight, tolerance, or resistance to common local disease organisms and parasites define local chickens.