Nigeria - ADF Approves US$ 32.48 million Loan for Food Security Programme

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Tunis, 18 October 2006 – The Board of Directors of the African Development Fund (ADF), the concessional window of the African Development Bank (AfDB) Group, on Wednesday in Tunis, approved a loan of 22 million Units of Account (UA*), equivalent to US$ 32.48 million to support the National Programme for Food Security (NPFS) in three states in Nigeria:  Ekiti, Ondo and Cross River.

The objective of the programme is to increase agricultural output and the incomes of rural households and beneficiary communities with a view to improving national and household food security and reducing rural poverty on a sustainable basis.

The Bank’s five-year interventions will cover the following components:

  • Community development and institutional support: fostering community empowerment, group formation and development, training, capacity building at State, local government and farmer levels, and availing market support services;
  • Land and water development: establishment of 18 production sites in selected local government councils through land and water development, infrastructure development and provision of agricultural equipment, inputs and services;
  • Production enhancement and diversification: providing opportunities for crop diversification, animal production, aquaculture and agro-forestry;

The Bank’s support to the expansion phase of the NPFS will be provided to Ekiti, Ondo and Cross River States, on the basis of their high rating in a benchmarking exercise undertaken by the Nigerian Government and donors, in which eight states were prioritized for development interventions based on good performance in policy, budgetary and fiscal management, service delivery, and communication and transparency. Other considerations relate to the extreme poverty status of Ekiti, the participation of Ondo State in the Bank-funded NERICA Rice Project, the presence of a sea port development project in Ondo State, and the proposed Nigeria-Cameroon road project in Cross River State.

The total cost of the project is estimated at 27.58 million UA, equivalent to US$ 40.71 million. The ADF loan will finance 80 percent of the project. The remaining amount will be derived from contributions from different arms of Government amounting to UA 4.466 million or 16 percent, while the beneficiaries will contribute UA 1.109 million or 4 percent of total project cost.

The ADB Group began operations in Nigeria in 1971. To date, its cumulative commitments in the country stand at US$ 2. 86 billion in 67 operations. 

Project Brief

  • Name of Project: Support to the National Programme for Food Security in Ekiti, Ondo and Cross River States (NPFS)
  • Location: The project will be implemented in Ekiti, Ondo and Cross River States
    Executing Agency: Federal Ministry of Agriculture and Rural Development (FMARD) - FCDA Secretariat, Area 11 - P.M. B. 135, Garki, Abuja, Nigeria - Tel: +234 9 3142405 - Fax: +234 9 3142532
  • Starting Date: January 2007.
  • Duration: 5 Years
    Procurement of Goods, Works and Services: Procurement of Works, Goods and Consultancy services financed by the ADF resources will be carried out in conformity with Bank Group Rules of Procedure for the Procurement of Works, Goods or, as appropriate Rules of Procedure for the Procurement of Consultants, using Standard Bank Bidding Documents.
  • Consultancy Services Required: Consultancy Services will be provided in the following fields: research/extension linkages, training of farmers and extension workers, Annual Auditing, Mid-Term Review and the Project Completion Report.

* 1 UA = 1.47637 US$ = 189.072 NGN as at 18/10/2006

External Relations and Communication Unit – Tel.: +216 71 10 29 16 – Fax: +216 71 10 37 52 – E-mail:


Felix Njoku Phone: +216 71 10 26 12