• Reference: P-NG-AAB-003
• Appraisal Date: 16/08/2013
• Board Presentation: 11/12/2013
• Status: LendingLEND
• Implementing Agency: FEDERAL MINISTRY OF AGRICULTURE
• Location: Bida-Badeggi, Adani-Omor, Agbadu Zones

PROJECT DESCRIPTION

The ATA has established private sector led Staple Crop Processing Zones (SCPZs) model as the entry point towards achieving its goals with emphasis on infrastructure development and productivity enhancement as well as produce processing as enablers of the crop value chains. The mission agreed with the Government of Nigeria that the Bank will contribute to the achievement of the objectives of the ATA through its on-going portfolio in the sector and an ATA Support Program made up of two components viz:

(i) Rice Value Chain Development Program; and

(ii) Agricultural Value Chain and Income Enhancement Program. The design and implementation of the two operations would conform with Government's new strategic framework for the ATA, and in particular, the Staple Crop Processing Zones model

Overall Sector Goal and Objectives

The overall sector goal of the proposed AVCDP is to contribute to the private sector driven agriculture sector growth for poverty reduction, food security and commodity import substitution. The development objective is to enhance incomes of smallholder farmers (including women and the youth) and small/medium scale processors that are engaged in the production, processing, storage and marketing of rice and cassava products on a sustainable basis. The project shall focus on attracting more youths into the agricultural value chains aimed at improving the current worrisome youth unemployment status.

The proposed ATASP will ensure that the value chain programs support gender equity goals of

(i) addressing the distinctive needs of women and youth;

(ii) fostering equitable participation of women, men and the youth in all levels of the value chain;

(iii) include men in defining the 'problem' and 'solution' of gender inequality in access to resources especially land;

(iv) support women's economic advancement;

(v) design equitable benefit sharing mechanisms; and promote gender equitable market-driven solutions.

The proposed programme components, objectives and expected outcomes were reformulated into five as follows:

Component 1 - Infrastructure Development: Activities will link the cluster groups and farmers in all the identified schemes to the SCPZs; provide road access for farmers to evacuate their products and facilitate transportation of inputs and outputs; reduce reliance on rain-fed production and increase rice and cassava production through irrigation; provide health and education facilities as well as potable water for farming families and improve sanitation to the cluster areas. Provide reliable and cost-effective energy within the cluster area; minimize/eliminate adverse environmental effects of project activities and sustain land productivity and safe water availability. Expected outcomes include enhanced access to regular and adequate infrastructure services, thereby reducing the cost of doing agribusiness.

Component 2 - Production Enhancement: Activities in the component will improve access to land acquisition and availability; increase output and productivity and promotion of intensification and mechanisation; improve technical capacity and managerial skills for increased productivity; improve farmers access to improved services and inputs; selection of project site with less environmental, social and health impacts; promote sound and safe agricultural practices. Primary research activities are the demonstration of proven production methods to farmers in the clusters; and development of high dry matter and early maturing rice and cassava varieties with the collaboration of international and national research institutes such as IITA and AfricaRice. Key outcomes are sustained increases in returns to resources employed in agricultural production; increased rice output by increasing productivity from 2.0 t/ha to 10 t/ha (double cropping), and cassava from 12 t/ha to 35 t/ha using improved varieties.

Component 3 - Value Addition and Private Sector Promotion: Activities in the component will promote profit oriented enterprise activities and businesses; create and sustain access of value chain operators to timely and relevant agribusiness development and support services; promote practical skill and knowledge acquisition in agribusiness; ensure that the youth and women have access to improved productive resources and skills, while gainfully employed in the value chain; enhance adequate access to financial services, credit and insurance; enhance the capacity of institutions to provide institutional skills for youths and women; reduce post-harvest losses, improve product quality and enhance product marketability and choices; promote good packaging handling and storage practices; improve market penetration and access for produce and agribusiness operators; promote good agricultural and manufacturing practices (GAPs and GMPs), including certification, locally, regionally and internationally; promote the transmission of regular and reliable market information; provide enabling environment for private sector investment. Expected outcomes include improved agribusiness entrepreneurship, enterprise profitability and competitiveness as well as private sector participation within the SPCZ system.

Component 4 - Youth Employment and Women Participation: There are indications of limited youth engagement in farming with the consequences that there are aging farmers' groups across the country. The project would therefore develop strategies that would attract and retain youths in the sector. Activities in this component will improve practical skill and knowledge acquisition in agribusiness for youths and women; promote knowledge-based and science-driven agriculture and improve synergy between science, training and practice; ensure youth and women have market access and maximize profit in the value chain process. The expected outcomes are gainful employment through effective youth and women participation in agriculture and related businesses of youth and women through effective amelioration of hindrances including finance, health and related issues.

Component 5 - Programme Management, Monitoring and Evaluation: Activities in this component will effectively and efficiently coordinate and implement the programme within the specified period; effectively and efficiently track the delivery of inputs, activities and outputs; evaluate the delivery of outputs, outcomes and impact against set goal and targets; ensure regular flow of funds; effective control of project funds; proper financial books/records; maintain appropriate internal control system; ensure transparency in procurement (of goods and services) and adherence to due process; institute checks and balances of project funds and ensure that funds are used efficiently for the purpose they were approved; guarantee adequate staff strength and capacity for implementation. Gender, youth, environmental, knowledge management and communication considerations will be integrated in all aspects of project management. The expected outcome is improved efficiency and effectiveness of programme implementation as well as the inclusiveness and sustainability of the programme.

Enhancement of agricultural value chain incomes and competitiveness. Incomes of small holder farmers and small/medium scale entrepreneurs engaged in processing and marketing of rice and cassava enhanced on a sustainable basis

PROGRAMME RATIONALE

The government under its present Transformation Agenda has refocused its priorities into five core sectors among which the foremost is the modernization of agriculture. To implement the long term economic blueprint (Vision 20: 2020), the National Planning Commission (NPC) developed a New Medium-Term Plan (MTP) for the period 2010 - 2013; whilst the Federal Ministry of Agriculture in a participatory manner developed the National Agricultural Sector Strategy (NASS) and a five point agricultural agenda which is largely consistent with the four Comprehensive African Agricultural Development Plan (CAADP) pillars, which are (1) Land water management, (2) Rural infrastructure and trade-related capacities for market access, (3) Increasing food supply and reducing hunger, and (4) Agricultural research, technology dissemination and adoption. The key programmes of the 5-Point Agenda are: Developing Agricultural Policy and Regulatory Systems (DAPRS), Food Systems Network (FOODSNet), Rural Sector Enhancement Programme (RUSEP), Agricultural Commodity Exchange Market (ACCOMEX), Raising Agriculture Income and Sustainable Environment (RAISE), Maximising Agricultural Revenue in Key Enterprises (MARKETS), and Water, Aquaculture and Environmental Resource Management.

The strategic thrust of the Government aims to make Nigeria one of the 20 most advanced economies by 2020 and highlights the primary role of agriculture as the engine of growth and poverty reduction. In its Agriculture Transformation Agenda, the Federal Ministry of Agriculture and Rural Development (FMARD) stated its vision as "Achieve a hunger-free Nigeria, through an agricultural sector that drives income growth, accelerates the achievement of food and nutritional security, generates employment and transforms Nigeria into a leading player in global food markets to grow wealth for millions of farmers". The proposed intervention is in consonance with Government's policy to address every component of the entire agricultural value chain for crops, livestock (including poultry) and fisheries, respectively.

PROJECT BENEFITS

The intervention is expected to create over 3.5 million jobs with many more jobs to come from other value chains under implementation. The programme aims to provide over 300 Billion Naira (US$ 2 billion) of additional income in the hands of Nigerian farmers. Over 60 Billion Naira (US$ 380 million) is to be injected into the economy from the substitution of 20% of bread wheat flour with cassava flour. These would have enabled Nigeria to be food secure by increasing production of key food staples by 20 million tons: rice 2 million metric tons; cassava, 17 million metric tons and sorghum, 1 million metric tons.

AGBOMA Patrick Chukuka - OSAN2

Amount
UAC 194,470,000