A total of 40 samples of animal feed and milk (20 of each) were randomly collected from four small dairy farms and analyzed for aflatoxin B₁ and M₁ respectively. The mean average of AFB₁ and AFM₁ were 41.38 ± 9.6, 1.07 ± 0.6, 7.48 ± 3.5 and 1.19 ± 0.9 ppb; 51.6 ± 10.8, 21.48 ± 4.5, 35.72 ± 7.3 and 8.63 ± 3.9 ppt in the examined animal feed and milk samples respectively. The incidence of AFB₁ and AFM₁ was detected in 80% (16) and 65% (13) of the examined animal feed and milk samples respectively. On the other hand, 25% (5) and 20% (4) of the examined animal feed and milk samples were exceeded the limits recommended by FAO/WHO. The relationship between the levels of AFB₁and AFM₁in the examined animal feed and milk were discussed. Also the effect of AFM₁ on the human health was discussed. There is need to create awareness and establish routine monitoring of animal feeds and milk to reduce risk to animal and consequently human response.