MINISTERIAL PLATFORM FOR THE 2012 NATIONAL DEMOCRACY DAY CELEBRATION AND FIRST ANNIVERSAY OF PRESIDENT

GOODLUCK JONATHAN’S ADMINISTRATION: INPUT FROM THE FEDERAL MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT

INTRODUCTION

Agriculture is an important sector of Nigerian economy with high potentials for employment generation, food security, poverty reduction and industrialization of the country. The Agricultural Transformation Agenda [ATA] of the Federal Ministry of Agriculture and Rural Development is directly building on Mr. President’s Economic Transformation Agenda.

2. The vision in the transformation strategy is to achieve a hunger-free Nigeria through an agricultural sector that will drive income growth, accelerate achievement of food and nutritional security, generate employment and transform Nigeria into a leading player in global food markets to grow wealth for millions of farmers. The Agricultural Transformation Agenda is designed to make the Agricultural sector a business project as against development project to promote private investment in agriculture, to execute integrated projects via value chain processes, generate employment, and transform Nigeria into a net exporter of agricultural commodities. 3. As part of the Federal Government of Nigeria’s effort to revamp the agriculture sector, ensure food security, diversify the economy and enhance foreign exchange earnings, the FMARD embarked on a Transformation Agenda with a focus on the development of agricultural value chains. The transformation action plan is focused on key aspects of value chains, including the provision and availability of improved inputs (seed and fertilizer), increased productivity and production, as well as the establishment of staple crop processing zones. It also addresses reduction in post-harvest losses, improving linkages with industry with respect to backward integration, as well as access to financial services and markets. The Transformation Agenda targets rural communities particularly women, youth and farmers associations, as well as improving rural institutions and infrastructure.

The transformation agenda sets out to create over 3.5 million jobs from the rice, cassava, sorghum, cocoa and cotton value chains, with

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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. We 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

The action plan focuses on some priority agricultural commodities namely; rice, cassava, sorghum, cocoa cotton, maize, oil palm, dairy, beef, leather, poultry and fisheries. The operations of the Agricultural Transformation Agenda are based on the following principles and modalities:-

Prioritization of Commodity Value Chains [CVCs] along comparative advantage in the six geo political zones of the country as follows:-

North-East: cotton, onion, tomato, sorghum, rice, cassava, livestock and fisheries

North-West: cotton, onion, tomato, sorghum, rice, cassava, livestock and fisheries

North-Central: maize, soya bean, rice, cassava, livestock, and fisheries

South-East: oil palm. Cotton, rice cassava, livestock and fisheries

South-West: oil palm, cocoa, rice, cassava, livestock and fisheries

South-South: oil palm, cotton, rice, cassava, livestock and fisheries

Reform in the input supply sector to stop direct government involvement in the procurement, supply and distribution of fertilizer and seeds to farmers. This involves provision of 50% support for seeds and fertilizers for farmers. Empowerment of the Private sector to sell their inputs directly to farmers and build their supply chains to get to rural areas. Provision of risk sharing guarantee to leverage loans from banks for seed and fertilizer companies and agro-dealers

We are establishing privated sector led Commodity Trade and Market Development Corporations for the various commodity value chains which will coordinate the entire value chains in Nigeria, and enhance Nigeria’s competitiveness, while expanding and stabilizing income for our farmers. We have just finalized the terms of reference

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for the study and will be advertising for consultants to undertake feasibility studies in the next two weeks.

We are working with the Central Bank of Nigeria on the introduction of the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending [NIRSAL] to de-risk agricultural financing and mitigate against the impact of natural disasters on losses of agricultural investments by facilitating low-interest credit to farmers through commercial banks and the liberalization of the insurance sector to increase farmers access to cost effective agricultural insurance schemes in the country. We have just negotiated the first deal to tune of N1.7 Billion to provide single digit interest financing for Cassava dried cheap exporters to mop up excess cassava from the farmers.

Establishment of 18 Staple Crop Processing Zones [SCPZ] all over the country as a cluster-based value chain strategy to attract private investors set up food processing plants in areas of high food production, link farmers in clusters to food manufacturing plants, create jobs and drive rapid rural economic growth. Operators in these Staple Crop Processing Zones will receive Fiscal, Investment and Infrastructure incentives:

Establishment of a National Farmers Data Base through the registration of farmers and the harmonization of existing information/data on Agric census and farmers cooperatives for the effective implementation of the Agricultural Transformation Agenda.

Use of Guarantee Minimum Price [GMP] to stabilize prices and to absorb excess output of agricultural produce and encourage increased production of commodities in a manner that would benefit the stakeholders involved in the ATA value chain process.

Promotion of agricultural mechanization through the use of farm machinery, implements, and processing machines for the production of crops, livestock and fish as well as their finished products. We are identifying existing and new private sector operators that will provide mechanization support through leasing hiring and rentals to the farmers.

Revitalization and modernization of agricultural extension services to empower farmers on the adoption and application of research results, technologies, and techniques for agricultural production.

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ACHIEVEMENTS TO DATE

4. The implementation of ATA and the achievements of the Value Chain Mechanism are as follows: -

Cassava Value Chain

i. Objectives / Strategies create sustainable demand in the industrial food, beverage, and

chemical sector for cassava and cassava-based products and build effective cassava value-chains for High Quality Cassava Flour (HQCF), Starch, Sweeteners, Fuel Ethanol, Dried Chips for export and animal feed, and traditional food product.

encourage the use of modern technology in manufacturing activities and reposition Nigeria among the world’s leading producers and processors of cassava.

use of cassava starch in reasonable proportion as replacement of corn starch in making domestic and industrial starch;

use of high fructose cassava syrup as substitute for sugar consumed by beverages and drink industries;

use of cassava ethanol to support the 10% ethanol content policy in gasoline-ethanol blending for automotive industry.

ii. Achievements utilization of high quality cassava flour [HQCF] as 20%

substitution of wheat flour for making bread and confectionaries through public private partnership arrangement with multinationals and R&D institutions. IITA, Butterfield and UTC are leading in the efforts to commercialize the cassava bread. As we speak, UTC cassava bread is on some major streets in Nigeria.

We are facilitating the establishment of 18 High Quality Cassava Plants with capacity to process 240 tons tons/day to meet 1,440,000 tons per year. The Plants locations are as detailed below.

S/N STATE APPROXIMATE LOCATION1 Abia Abriba2 Akwa-Iobm Uyo3 Anambra Ahiala4 Benue Makurdi5 Cross-river Obubura6 Delta Mbiri7 Edo Iraoko

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8 Ekiti Itapaji9 Enugu Ebenebe 10 Kogi Agbadu11 Kwara Sare12 Lagos Epe13 Nassarawa Gbude14 Ogun Ijebu-Igbo15 Ondo Ore16 Osun Iwo17 Oyo Oke-Ogun18 Oyo Iseyin

We are upgrading a total of 105 SMEs producing High Quality Cassava Flour in 23 States of the Federation from a total of 31,500mt per annum to 63,000mt per annum.

We are promoting increased marketing opportunities of starch, sweeteners, and flour plants. Coca-Cola is investing in high fructose cassava syrup plants of 30,000mt per annum. Nestle is substituting imported starch with cassava starch to the tune of 5,000mt. The total sugar requirement for soft drink bottlers and juice manufacturers in Nigeria is estimated at 200,000 tons of sugar p/a. A replacement of half of this by HFCS from cassava, would create a 100,000 ton demand for cassava tubers.

We have helped the cassava chips exporters to find market for their products. Currently cassava exporters have secured LPOs to the tune of 1 Million mt from China. Government has assisted them to secure financing for this business under NIRSAL guarantee to the tune of N1.7Billion. These groups have also been trained.

We are also promoting the use of cassava grits as poultry feeds. We are working with cassava grit producers to meet the supply of 480,000mt at 25,000 per mt as required by the Poultry Associations of Nigeria.

Government is working with other collaborators to provide a one-stop shop for exporters to reduce bottlenecks associated with the process.

working with State coordinators in the 23 States on possibility of promoting clusters for production of gari, lafun, fufu and abacha as well as agronomy trials in 23 states with priority in out-growers scheme;

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Rice Value Chain

i. Objectives / Strategies Raise average paddy yield between 5.0 MT/ha and 6.0 MT/ ha in low

land and irrigated ecology areas; improve rice quality, target affordable price to make it competitive; and make Nigeria self-sufficient in rice production. We are targeting production of 825million MT by 2012.

Use improved rice varieties FAROs 44, 52, 57, L29, and L34 adaptable and acceptable to farm, millers and consumers

organizing farmers into clusters around medium and large scale mills so that they can readily access growth enhancement support inputs such as improved seeds, fertilizer, agrochemicals and modern methods of rice production from extension services.

ii. Achievements Government is utilizing the N10b industrial credit facility by Bank

of Industry [BOI] Ltd to finance the establishment of 17 rice mills of which one plant had been commissioned in Ebonyi State. Two rice mill projects are on-going, while investment into the remaining 14 rice mill projects with additional 480,000 milling capacity would be promoted through the public private partnership arrangement. Nigeria’s rice has good quality and taste to compete with imported rice. Import substitution to save $2.5 Billion per year.

Securing the commitment of Messrs Dominon, the largest rice producer in Kenya, to invest $40 million in rice production in Taraba State with a view to facilitating large cultivation of rice involving several small scale farmers to supply raw materials to processing plants. This would require 30,000 hectares of land and training of 1,250 farmers in commercial farming. Only 3,000 hectares will be managed and owned by the investor while the balance of 27,000 hectares will be farmed by Nigerian farmers.

Government had facilitated the acquisition of machineries and equipment from China for setting up 100 rice mills to process 2.1m MT of parboiled rice. Forty (40) of these will be ready in the next 10 months. The Statewide distribution is as follws:

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  STATE PROPOSED ALLOCATION SUGGESTED LOCATION

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1 ABIA 2 Bende2 ADAMAWA 3 Fufore, Yola3 AKWA IBOM 2 4 ANAMBRA 2 Omor, Amichi5 BAUCHI 4 6 BAYELSA 2 Yenagoa, Elebele7 BENUE 4 Gboko, Makurdi, Otukpo, Obagaji8 BORNO 3 Ngala9 CROSS RIVER 3 Bansara

10 DELTA 2 Ughelli11 EBONYI 3 12 EDO 2 Auchi13 EKITI 1 Igbimo14 ENUGU 2 Adani15 FCT 2 Abaji16 GOMBE 2 17 IMO 2 18 JIGAWA 3 Hadejia19 KADUNA 4 Saminaka20 KANO 4 Sharada, Kura21 KATSINA 3 22 KEBBI 3 Zauro Polder23 KOGI 3 Idah24 KWARA 5 Lafiagi, Pategi25 LAGOS 2 26 NASARAWA 3 Keana27 NIGER 7 Wushishi, Wuya, Badeggi28 OGUN 3 Imope, Itori29 ONDO 1 Igbokoda30 OSUN 2 31 OYO 2 Oyo32 PLATEAU 3 33 RIVERS 2 34 SOKOTO 3 Kware35 TARABA 2 Wukari36 YOBE 3 37 ZAMFARA 3

Government is supporting research and development activities on rice varieties through collaboration with the Yuan Longping Centre in China for setting up a Hybrid Development Centre in the Nigeria Cereals Research Institute, Badeggi, Niger State, to produce high yield varieties of rice.

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The Federal Government, Anambra State Government and a private investor had facilitated the resuscitation of Omoh Rice Mill located in the Sate, through the provision of water and electricity and other incentives to reactivate the mill.

Cocoa Value Chain

i. Objectives / Strategies Doubling output from 250,000 MT to 500,000 MT by 2015 through

the use of the eight new cocoa varieties.

Improving the livelihood of 250,000 farm house holds through enhanced yield per hectare and to achieve additional income of at least US$ 450 annually.

Creating 390,000 jobs through increased production, processing, and marketing activities.

Establishing Cocoa Producing and Exporting Countries Council involving world producers to regulate the volume of cocoa output and prices;

collaboration of Government and private firms at the Federal and State levels to develop and operate State Seed Gardens for the sourcing and rapid multiplication of cocoa seeds to meet the targets of the Agricultural Transformation Agenda;

Rehabilitation of 200,000 hectares using high yielding materials, and the stimulation and expansion of the target output to double production using cloned materials.

strengthening of local capacity for grading cocoa beans, build farmers capacity to produce, and put in place demonstration farms throughout designated States;

establishment of cocoa agribusiness center scheme that would encourage young graduates to go into cocoa farming on a 10 ha of land to be provided by the State Governments; and

Encouragement of private manufacturing firms to engage in backward integration and support production.

ii. Achievements

The cocoa value chain is working assiduously toward the implementation of the cocoa action plan in 22 States in 2012 as follows:

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a. The release of 8 new high yielding cocoa hybrids by CRIN will transform cocoa production across the 14 Cocoa producing States. The new varieties are capable of yielding 2,000kg/ha as compared to 350kg/ha for old varieties. The new varieties mature in 2.5 years compared to 4 years for the old varieties.

b. Rehabilitation of some 86,110 hectares nation-wide in partnership with State Governments and private sector in 2012.

c. Provision of free 2.6 million seed pods of improved planting materials for the 86,110 hectares to be rehabilitated and 56,920 hectares to be opened up.

d. We have developed a technical plan to make an inventory of cocoa farmers and cocoa resources in State and Local Government Areas.

e. We have developed Terms of References for the incorporation of Cocoa Marketing and Trade Development Corporation as well as the establishment of Cocoa Producing and Exporting Countries (COPEC). We are finalizing arrangement for the hosting of the meetings of Agricultural Ministers to discuss this further in June, 2012.

Cotton Value Chain

i. Objectives/Strategies improve cotton production through productivity enhancement by

supporting research and institutional capacity, and promote industrial value chains of cotton and bye-products.

facilitate and ensure efficient /effective marketing through functional Private Public Partnership (PPP) .

drive production using Integrated Contract Cotton Farming approach using functional ginneries as production hubs.

expand cultivable areas in the North West and North East and South West ecological zones of the country and extend such to other ecological zones that have potentials for cotton production.

encourage seed buy back arrangement for breeder stock, foundation stock, and certified stock towards increasing local seed production.

facilitate a phased acquisition of domestic capacity for ginneries as a hub of mass production of cotton lint.

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Aggressive multiplication of pure cotton seed using public private partnership

Promoting clean cotton by withdrawal of polypropylene bags and substituting with cotton cloth harvest bags through the ginneries. Requirement- 2.62 million cotton bags(Locally sourced).

Providing cotton farmers with GES (Seed and Fertilizers)

ii. Achievements Seed development/supply

Government is providing 1,750 mt of certified seeds through an MOU with a private company - WACOT

Government is about signing the Bio-safety law to enable us join the league of BT cotton producing countries.

Engagement of states

We have mobilized cotton producers from 11 States covering NW, NE & SW Zones. These include Niger, Kaduna, Zamfara, Katsina, Kano, Jigawa, Borno, Adamawa, Gombe, Oyo & Ogun.

Clean cotton project Government has launched the process of producing Cotton Cloth

Harvest Bags to replace polypropylene leather bags. Ginneries repositioning

We have been engaging the Ginners Association on PPP for cotton production and processing.

Sorghum Value Chain

i. Objectives / Strategies increase the output of sorghum through the combination of local

and exotic varieties to develop and use high yielding hybrid varieties. The goal is to make Nigeria the largest processor of food sorghum in the world. We are working in 6 states of Borno, Adamawa, Bauchi, Kano, Kauna and Zamfara.

Diversify the sorghum sector into three value chains, namely, fortified foods (high energy blend foods like soy-akamu for school feeding; malt, malt beverages and malt drinks (non-alcoholic) like ‘DawaMalt’; and High Quality Sorghum Flour (HQSF) for instant ‘Tuwo Meal’ , extruded foods like noodles and macaroni, baking bread with wheat (up to 20%) and baking wheatless bread (sorghum bread).

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Fast track the release of two newly developed sorghum hybrids. Use of mobile threshers, stimulating up to 500,000 metric tons of industrial use of sorghum in malt, malt beverages and drinks. Stimulate up to 1,500,000 metric tons of industrial use in fortified foods (soybean flour blends with sorghum flour for high energy foods), instant Tuwo Meal, Extruded Foods and Steamed Foods like couscous and burabusko (sorghum grits).

Diversification of production and processing areas from the critical ecological zones of North East and North West to other parts of the country to harness national potentials and maximize benefits to farmers, processors and markets across the small, medium and large scales of the economy.

Organizing States into clusters within which the farmers are organized into groups of out-growers coordinated by state contacts around priority Local Government Areas for production and processing; also to link the farmers with grain markets and flour millers, food manufacturers and maltsters as investors in the sorghum industry.

ii. Achievements Fast-tracked the release of sorghum varieties of CSR 01, CSR 02,

KSV 400, and KSV 8. These Hybrid Sorghum gives yield of 2.5 tons per hectare compared to current 450 kilograms per hectare for existing varieties.

Developed Implementation Agreements with five private sector food manufacturers (Honey Well Foods Ltd., Lagos and DALA Foods Ltd. Kano), maltster (Life Care Ventures Ltd. Ota), millers (Crown Flour Mills and Honey Well Flour Mills both in Lagos) and premixes producers (Bio-Organics in Ibafo,), for their collaboration in implementing the sorghum transformation value chain activities.

Collaborate with Aba Malting Plant to establish malting plant of combined capacity of 100,000 MT of sorghum malt in 2012.

Fisheries and Aquaculture Value Chain

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i. Objectives / Strategies Diversify the production of fish from artisanal to aquaculture and

explore commercial opportunities.

Create an enabling environment for increased and sustainable production of over 1 million MT of aquaculture.

adequate production of fingerlings and juvenile fish to bridge the supply gap in the national fish demand;

promotion of Foreign Direct Investment in local fish feed mills, bridging the merchandise between producers and retailers, and increasing the fish content of consumers protein intake;

production of 1.25 billion of fish ‘seed’ per year, 400,000 MT of fish feed, and the development of broostock bank;

provision of aquaculture inputs and accessories;

capacity development in Aquaculture Transformation Agenda;

development of fish farm estate.

Establishment of 10 Clusters of fish farmers, hatchery operators, fish processors, fish marketers’ cooperatives in each of the 36 states and the FCT within the Aquaculture Value Chain

ii. Achievements Identification of high volume local fish feed producers in thirty six

states and the FCT and the collaboration of the Nigeria Institute for Oceanography and Marine Research (NIOMR) with fish farmer groups in 5 States to produce low-grade tilapia for processing into fish meal to supply the local feed mills.

We are substituting imported fish feeds with an estimate of 25% annually of the 45,000mt valuing N11.7 Billion. This will save the country a total of N300 Million/ annum.

We have identified 4 major investors in fish feeds production and are ready to increase capacity to meet local demand. They are : Grand cereals in Jos; Durante in Oyo state; wonder feeds in Kaduna and multifeeds, an isreali company.

We have completed training of 120 potential investors in the new all male Tilapia production technology to improve total yield

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Livestock Value ChainsObjectives and StrategiesThe livestock transformation program plans to achieve self sufficiency in meat and livestock production by 2015 through investment in the livestock value chain on the following programs: (i) promoting large scale livestock farming in 5 geo ecological zones of comparative, (ii) upgrade of local breeds through selective breeding and Artificial Insemination (iii) Expanding hatchery capacity to achieve hatching of 25 million day old chicks,(broilers & layers per week by 2015; (iv) Expansion of smallholder and peri urban fattening schemes, (v) Control the introduction of transboundary animal diseases and increase vaccination coverage from current 35% to 95% by 2015 (vi) promoting the development of abattoirs and Livebird market in each state plus FCT, (vii) dairy production and processing (viii) Increasing the capacity of Nigeria animal feed mill Industry by 50% and enhancing feed efficiency and quality through legislation of Standards, and feed quality monitoring.

Rapidly growing demand provides the opportunity to increase growth of output, incomes and jobs. Investment in the entire livestock value chain therefore has the potential of creating an estimated 350,000 jobs within the next four years.

To achieve these, five Commodity Value Chains are being promoted in the sub-sector. These include Beef, Dairy, Poultry, Leather and Sheep and Goats. The highlights of our strategic plans are as follows:Beef:

Upgrading of local breeds – (i) Develop a livestock breeding policy, (ii) Establishment of Artificial Insemination Centres; (iii) Support the establishment of elite private commercial beef cattle breeding enterprises, (iv) Training of AI inseminators

Smallholder fattening Scheme Abattoir and Cold Chain Facilities and Extension and Capacity Building

Dairy Breed improvement for milk production (AI) Inventory of peri-urban dairy producers Establishment of milk collection centres Inventory of dairy cooperatives Development of milk collection cooperatives Establishment of dairy processing plants Dairy Marketing - Linkage to dairy industries e.g WAMCO

collaboration

Leather Meeting with Tanners Council

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Discuss administration of Export Expansion Grant (EEG) Capacity building of flayers

Poultry Breeding stocks and commercial day old chicks – (i) Breeding

farms revitalization and expansion, (ii) Hatchery capacity enhancement, (iii) Shika Brown foundation stock commercialization

Feeds and Feeding – (i) Feed mill capacity enhancement; (ii) Alternative Feed Resources

Poultry Product Processing Poultry Markets and Marketing

Sheep and Goats Improvement of local breeding Upgrading of small ruminant production Control of ectoparasite

Achievements

During the period under review, import permits were issued for the importation of the following: 401 dogs,45 cats,82 goats, 17 horses and52 rabbits while export permits were issued for the exportation of 164 dogs, 61 cats and 30 horses.

The Ministry has completed the renovation of 4 strategic veterinary quarantine stations/control posts, 5 Veterinary Teaching Hospitals laboratories and procured BSL3 laboratory to the National Veterinary Research Institute Vom. The process of the installations of the BSL3 is ongoing.

The Ministry also completed 16 Live Bird Markets. The Markets are located as follows: Lagos 1, Kaduna-2, Knao-2, Jos-1, Kwara-1, Ogun-1, Oshun-1, Enugu-1, Yobe-1, Enugu-1 Akwa/Ibom-1, Rivers-1, Sokoto-1, Zamfra-1 and Jigawa-1.

Pest Control Services

870 flight hours and over 246,600 litres of pesticides were expended to control pests. The control operations took place in the frontline States of Kebbi, Sokoto, Zamfara, Jigawa, Bauchi, Gombe, Yobe, Adamawa, Taraba and Borno States according to the intensity of attack.

National Livestock Projects (NLDP)

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A total of 5000 monuments along 2500 km stock route in the North East Axis, North West axis and along the North Central axis were constructed.

2 Livestock Service Center were constructed. One each in Damau

Grazing Reserve, Kaduna State and Wasimi Grazing Reserve in Oyo State.

2 Resting points were constructed at Babbar Ruga, Niger State and Nvuma in Borno State for easy access to Livestock inputs, drugs and delivery extension services to pastoralists.

5 hectares seed multiplication plots each were developed in 6 locations at Runka(Katsina), Bobi (Niger), Adada Ranch (Enugu), Awe (Nassarawa) and Kachia (Kaduna) and the seeds harvested. Range rehabilitation of about 100ha sizes was also carried out in the following grazing reserves at Jore-Bojude (Gombe), Bade Gana (Yobe), Runka (katsina), Kachia (Kaduna), Jirr (Bauchi) and Lata (Kwara State.)

2.4 Collaboration with FrieslandCampina WAMCO (PLC)

To date, the following have been achieved: Seven (7) producers groups were formed and registered in Fashola,

Oyo State with 100 members.

A Milk Collection Center was built and fully equipped in Fashola

Milk supply started with 406.5 liters in Fashola on the 1st of December, 2011 and rose to an average of 800/liters/day. As at end of February 2012, total of 19,721.0 liters was procured.

Four Milk collection centers have been built with solar powered boreholes by the Federal Ministry of Agriculture and Rural Development through the NLDP in Ayegun, Budomusa, Samoah and Gasarki Ijio communities of Wasimi Grazing Reserve, Oyo State.

12km access roads were constructed to the 4 MCCS within Wasimi Grazing Reserve.

13 producers groups were formed and registered in Budomusa and Gasarki Ijio with membership of 90, 10 groups were formed and registered at Ayegun and Samoah with a membership of 85.

Policy development and review - This relates to review of EEG and import tariff on imported finished leather goods, and the review and implementation of effluent management laws.

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Oil Palm Value Chain

i. Objectives / StrategiesThe objectives of the Oil palm transformation agenda is to drive economic Growth for South-South, South-East and South-West region states, replace importation of 300,000 MT of vegetable oil ($US 500 Million) annually and take advantage of rising global demand for oil palm products.

The strategies include: Increase vegetable oil production and achieve import

substitution; Increase the yield and productivity of both organized and

unorganized plantings; Arouse greater interest and concern for engagement in

competitive market activities within the oil palm value chain; Create employment opportunities for the youth and reduce

poverty in affected States. expand the areas under field planting; rehabilitate existing old palms; produce improved seedlings; introduce oil palm seed regulation; identification and registration of genuine farmers to participate in

the scheme; conduct training activities for farmers; prepare fertility management packages; promote efficient harvesting and milling/ refining facilities; prepare specific appraisal reports in the oil palm supply chains

and improving oil palm marketing and trading system.ii. Achievements

The Nigerian Institute for Oil Palm Research (NIFOR) is being supported through the provision of terylene pollination bags, double aluminum ladders, germinator and seed garden to upgrade its seed production capacity under the Oil Palm Transformation Agenda.

efforts to increase yield of smallholders from 7-8 mt/ha to 12mt/ha; and the attempt to raise the yield of semi-wild grove around homesteads by giving out two improved seedlings for every one old and unproductive palm that is to be replaced. We have secured the supply of 4 Million improved seedlings for field planting.

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preparation of a Blue Print on private sector led oil palm marketing and trading corporation to transform the current inefficient oil palm marketing system

Agricultural Extension Services

Objectives / Strategies Reach out to farmers, processors and markets to disseminate

information on the effective application of research results, technologies, and techniques on agricultural activities.

Act as instrument of the formulation of right policies and the provision of meaningful incentives to support agricultural value chain processes.

Use of modern and functional extension service approaches in form of On Farm Adaptive Research [OFAR] and Management Training Plots [MTP] and other appropriate modules.

Resuscitation of the Agricultural Development Programmes [ADPs] that have the primary responsibility for rural development with focus on vulnerable groups.

Sensitization of all stakeholders on best agricultural practices.

Assessment of extension infrastructure and facilities of the ADPs with a view to strengthening their capacity for service delivery.

Establishment of a national Coordinating department within the Federal Ministry of Agriculture and rural Development.

ii.Achievement

We have developed a new comprehensive agricultural extension programme covering public and private sector extension delivery.

We have created a Federal Department of Extension Services within the Federal Ministry of Agriculture and rural Development to coordinate the revitalized extension services nationally.

We have embarked on youth mobilization for agricultural extension services nationwide.

We have embarked on mobilization and sensitization of stakeholders at state level through interactive forum to agree on the principles and strategies of the Agricultural Extension Transformation.

Growth Enhancement Support [GES] Scheme

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i. Objectives / Strategies Government will no longer procure and distribute fertilizers but

instead shift the provision of subsidized fertilizer away from a general subsidy to genuine small holder farmers through the involvement of the private sector for the commercialization of agricultural inputs to farmers nationwide. Government will facilitate delivery of inputs and regulate their quality.

Government would liberalize foundation seed policy to allow private sector to commercialize seeds,

The Federal and State Governments are to share the cost of GES on equal basis i.e., Federal 25% and State 25% making 50%.

State/FCT Governments are to provide stores/warehouses to suppliers/agro-dealers on lease to store agricultural inputs within their respective States.

States/FCT are to validate agro-dealers within their respective States and introduce registered cooperatives that can serve as agro-dealers to suppliers to fill the gap in the number of agro-dealers needed in each State/FCT to ensure even wide spread within the States.

Federal/State Governments would monitor the Growth Enhancement Scheme as regards fertilizer quality, supply and utilization.

Provision of Sovereign Guarantee on financing of seed and fertilizer supply through the Federal Ministry of Finance.

ii. Achievements A tripartite Memorandum of Understanding (MOU) for financing

the supply of seeds and fertilizers to farmers in the 2012 farming season was signed in November, 2011 between the Federal Ministry of Finance, Federal Ministry of Agriculture and Rural Development and 25 participating money deposit banks (financiers). In the MOU,

o the Federal Government would provide the Guarantee covering 70% of the loan principal payment under the programme as well as 8% interest drawback.

o the financiers (banks) will give loan facility to participating seed companies and agric input dealers at 7% interest rate.

o We secured 30 Billion financing for seed and fertilizers companies at single digit interest rate without spending from

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government budget. 2.7 Billion have been accessed by the input supply companies.

We have secured 500,000mt of fertilizers through private sector fertilizer companies nationwide.

We have trained and certified agrodealers that will supply the inputs to the farmers across the country.

3.0 million farmers data had been captured, 22 States and FCT have confirmed their participation in the programme, while 18 banks have signed Memorandum of Understanding (MOU) under the Agricultural Input financing scheme.

A pilot exercise on the e-wallet platform was carried out between 8 th – 11th

February, 2012 in four States of Kogi, Nasarawa, Taraba and Zamfara, with 100 farmers being targeted in each State. 70% of the farmers redeemed their e-wallet (GES) and collected fertilizer after adding the corresponding difference in market price. Another round (2nd) of trials took place from 7th – 10th March, 2012 in 8 States and FCT. The States were Anambra, Ebonyi, Akwa Ibom, Delta, Bauchi, Niger, Ekiti and Ogun. Similar to the first trial, 100 farmers were selected in each State and FCT. Out of the 900 farmers targeted, 554 representing 61.56% redeemed their e-wallet during the 2nd trial as against 11 – 15% of farmers that get subsidy fertilizers hitherto.

We have finalized plan for the distribution of seed and fertilizers for the Southern zones and will be rolled out on April 30. 2012. We are concluding plans for the Northern zones to be rolled out in May, 2012 early enough to be ready for the planting season.

We have planned to provide a paper voucher and farmers helpline desk in all the local Government Areas as backup plan for areas with low connectivity facilities.

Infrastructure Value Chaini. Objectives / Strategies

expand the domestic processing capacity for agro processing,

improve the quality of locally processed food commodities to international standard,

stimulate production for self sufficiency in agric produce, ensure affordable agric products pricing,

enhance national food security status.

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address the enormous challenges of postharvest losses of our fresh agricultural produce estimated at about 70% annually

promote the production of high quality, edible flour, animal and fish feeds;

encourage private sector investors to contribute towards achieving food security in the country;

convert stored products in the silos to value added products thereby stimulating increased farm production; and

create downstream employment for distributors and retailers of finished products.

Set up Staple Crop Processing Zones, Export Crop Handling, Preservation And Conditioning Centres, and Integrated Large Scale Rice Mills, Agro Processing Centres.

Provide water through large, medium and small irrigation schemes with preference for gravity assisted canals in the case of small holder farmers

Provide labour saving machinery, processing equipment, efficient mills, and irrigation facilities through collaboration between State Government and Federal Government and other stakeholders.

ii. Achievements Establishment of 17 [seventeen] Integrated Large Scale Rice Mills

under the N10 billion special rice processing intervention fund. These projects are located in the following States: (i) Ebonyi, (ii) Anambra, (iii) Niger (2 nos), (iv) Kebbi (2 nos), (v) Taraba, (vi) Adamawa, (vii) Benue, (viii) Kwara, (ix) Enugu (2 nos), (x) Kano (2 nos), (xi) Bayelsa (2 nos) and (xii) Ogun States. The project cost profile comprise On-Shore60% of project cost to be borne by the investor and Off-Shore 40% of project cost as Federal Government contribution under soft loan facility.

Establishment of ten (10) Export Crop Handling, Preservation And Conditioning Centres to be implemented through Public Private Partnership (PPP) concept of Design, Build, Operate and Own (DBOO) model with 40% grant from the Federal Government, 40% Bank Credit Facilities and 20% direct investment by the Private Sector Operator. Six (6nos) sites located in Kebbi, Kaduna, Cross

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River, Nassarawa, Gombe and Enugu States are already committed to the first phase.

Establishment of 8 Nos.Agro-Processing Centres alongside the existing Strategic Grain Reserve Silo Complexes. Federal Government is to provide 100% funding for the construction of the project under Build, Lease and Transfer (BLT) model of Public Private Partnership arrangement.

We have successfully developed a framework with ICRC for the concessioning of the silos and agro-processing projects to further improve access to the assets under the Agricultural Transformation Agenda.

FOOD RESERVE AND STORAGE

Under the Food Security component, ten additional silo complexes have been completed and are due for commissioning this second quarter. Four of them, 100,00mt each are located in Abuja (FCT), Maiduguri (Borno State), Gusau (Zamfara State) and Birnin- Kebbi (Kebbi State). The other six of 25,000mt are located at Jalingo (Taraba), Ilesha (Osun State), Uyo (Akwa –Ibom), Bauchi (Bauchi State), Dutsin – Ma (katsina State) and Sokoto (Sokoto State).

It is also important to note that Mr. President has graciously approved sales of 30,000mt of sorghum to the World Food Programme (WFP) from the Strategic Food Reserve for use as food relief in Sub- Saharan Africa. In addition, contract for the supply of 60,000mt of assorted food commodities were awarded to replenish the strategic stock in the silo complexex, in 2011 budget. Supply is in progress.

Also, 48nos. Commodity Warehouses were constructed under the Millennium Development Goal (MDG) programme in various locations within the country to serve their communities to store the Agro inputs and harvest products of the expected boost in the Agricultural Transformation Agenda (ATA).

Nigerian Agricultural Quarantine Service (NAQS)

The NAQS has continued to exercise its regulatory responsibility of preventing the introduction and spread of destructive foreign pests and diseases that may endanger the nation’s agricultural economy. Specific achievements include:

Inspection of over 725,000 carriers and 160,000 baggages at border posts and interception of 140,817 assorted plant materials, 26,786 sheep and goats and 63,360 cattle.

Issuance of over 5,000 phytosanitary certificates to cover 4.55Millionmt of plant products, 646,987 live fish ornamentals and

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250mt of crushed cow horns and 62.5mt of hides and skin were certified free from pests and approved for export.

Inspected and certified 1.9million sprouted/ germinated oil palm seeds imported from Indonesia, cote d’i vore and Malaysia as well as 40mt of improved Nerica seeds (Faro 60 and Faro 61) from Togo.

COMMERCIALIZATION OF MEDICINAL PLANT PRODUCTS

The Ministry through the Nigerian Medicinal Plants Development Company, a company established by the Federal Government under the supervision of the Ministry promotes the cultivation and commercialization of Artemisia annua, Moringa oleifera and other plants for medicinal purposes.The Company utilizes research findings in the cultivation and processing of herbal plants for value addition for the improvement of health indices. It also integrates herbal medicines into the national health care delivery services thereby enhancing living standards of our people through jobs and wealth creation, while ensuring conservation and sustainable environment.

To date, the Company has made giant strides in processing and packaging of four medicinal products namely:

Artemisa Tea- For relief of malaria symtoms; Artemisa Tea Plus (ATP) – Combination of Artemisa and Moringa

Oleifera. Anti-malaria, for immune compromised individuals; Morigvite Tea – A Moringa Oleifera immune –support beverage; Morigvite Powder – A Moringa Oleifera Immune boosting food

supplement with high nutritional value.

These products were launched on 29th March, 2012.

AGRICULTURAL RESEARCH COUNCIL OF NIGERIA

The Agricultural Research Council of Nigeria (ARCN) will promote technology adoption through the following channels.

Adopted Villages and Schools. ARCN will support the NARIs to disseminate these technologies through their adopted villages and schools.

Synergy with on-going Projects (Fadama III Project and SPFS) on establishment of demonstration plots and training of farmers

Innovation Platforms. Work with Research Into Use (RIU) Programme using their already existing platforms to get to the farmers. Establish new platform for priority commodities with the

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aim of getting improved technologies to different categories of end-users.

Facilitating Access to Improved Genetic Materials

Achievementsa. The ministry has initiated the restructuring and reform of ARCN to

be more responsive. The TOR have been developed and work will start in June through support from the World Bank under the West Africa Agricultural Productivity Programme.

b. Identification of commercializable technologies for popularization and uptake by industries. Currently we aare working on multiplication of Shikabrown under a PPP arrangement

GENERAL ACHIEVEMENTS 6. In general, the Ministry has achieved the following activities:-

a. Using the outcome of the task team assessment of the status of the existing facilities and on-going projects on dams and irrigation schemes in the country to aid the functioning of existing facilities and the completion of ongoing projects for effective utilization of the water resources facilities to boost agricultural productivity in the country.

b. We have upgraded two GIS/Rs laboratory in Wuse Zone 5 Office in Abuja to reposition cartographic services to provide National Soil Information system and data depository in the Ministry.

c. Setting up of Skills Enhancement Centres and agribusiness entrepreneurship ventures to engage youths in a market driven agricultural enterprise.

d. Decentralization of the operational structure of the Federal Ministry of Agriculture and Rural Development to the State level to strengthen collaboration between Federal and State Governments and aid a bottom–up approach in the conceptualization and execution of projects, articulation and harmonization of budgetary obligations, conduct of monitoring and evaluation exercises, and the signing of compact agreements on agricultural development initiatives with the States.

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e. Co-financing the operation of the Growth Enhancement Support [GES] Scheme through a participatory and contributory arrangement, the development of the Staple Crop Processing Zone facilities, the development of irrigation schemes and the provision of agricultural land for farming activities in all the States of the Federation and the Federal Capital Territory.

f. Establishment of Agricultural Transformation Implementation Council at the Federal level with Mr. President as Chairman, the Vice President as Vice Chairman, the Minister of Agriculture and Rural Development as Coordinator, and the Minister of Trade and Investment, the Governor of the Central Bank of Nigeria, the Representatives of the Value Chain Groups, among others as members.

g. We have made progress with the establishment of Agricultural Transformation Implementation Committees at the States’ level

h. Entrenchment of fiscal policies as follows:

In order to address the policy challenges in our efforts at transforming the sector, we have put together a high powered policy group made up of experts of repute to look at the policy requirements of the agenda. The policy focus is comprehensive to include import substitution, developing agricultural exports, growing value-added agricultural products, and creating backward linkages into higher value-added manufacturing. As you may be aware, Mr. President has introduced fiscal policy measures to support the development of the agricultural sector. In this respect, the duty on machinery and certain specified equipment for the sector will, effective January 31st 2012, attract zero duty. Bakeries will have 18 months in which to make the transition, and will enjoy a corporate tax incentive of 12% rebate if they attain 40% blending. With effect from March 31st 2012, we are prohibiting the importation of cassava flour to further support this programme. All equipment for processing of high quality cassava flour and composite flour blending will

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enjoy a duty free regime as incentive to bakers for composite flour utilization. We are introducing fiscal policy measures that will encourage the purchase and utilization of locally produced commodities.

From July 1st 2012, wheat flour will attract a levy of 65% to bring the effective duty to 100%, while wheat grain will attract a 15% levy which will bring the effective duty to 20%. Similarly, there will be a levy of 25% on brown rice to bring it to 30%. In addition, to encourage domestic rice production, a levy of 40% will be placed on imported polished rice leading to an effective duty rate of 50%. Effective December 31st 2012, all rice millers would move towards domestic production and milling of rice, as the levy of 50% will be further raised to 100%. The federal government has said that there will be no waivers or concessions for rice and wheat importation.

h Participation in the Nigeria Agri-Business Investment Forum, held in Washington DC, USA, from 10th - 18th April, 2012 as part the present Administration’s efforts at promoting private sector investments in Nigerian Agriculture. At the end of the forum many international investors have indicated their interest to invest in Nigerian agriculture as follows:

a. Cargill is willing to invest in Cocoa – production, processing, school feeding programs; cassava products – HQCF and Starch. May be suitable for investment in mills; Aquaculture Feed Mills; and Animal Nutrition

b. Schaffer Global Group, Baton Rouge LouisianaEngaged in rice farming to the tune of about 25,000 hectares in Sokoto and milling.They are also interested in sugar plantations & sugar refinery and fish farming

c. NCI International Services – Star Building Systems, Oklahoma City, OKWorld leader in manufacturing of steel buildings for agricultural industry. Prefab buildings assembled on site and can be used for Export Conditioning Centres; Cold Storage Panels – SCPZ; Livestock Containment; and Grain Storage

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d. Zanbato, Mountain View, CaliforniaHas developed a software platform to help developing countries increase FDI and mobilize capital for infrastructure projects. The platform integrates national “storefronts” which showcase benefits and programs for investors and is customized to Nigeria’s legislation, policies and local requirements.

e. GrainPro, Concord, MAThe company develops hermetic airtight, unsupported rectangular structures for grain storage. Founder may be in Nigeria soon.

f. Sacramento CA The company is interested in revamping Akpoje oil palm plantation in Ogun State; Distribution network for agro products; Cassava byproducts export thru AGOA; Opportunities in SE/SS/SW for oil palm; Partnership readiness with Malaysia investors

g Presently we have about 20,000 tractors in Nigeria. We will require about 300,000 to go full blown mechanized farming. AGCO is willing to come to Nigeria to invest in two plants in rivers and Kaduna State for production of Merssy Fergusson tractors. The manufacturers of John deere tractors have also expressed interest in coming to Nigeria.

INTERNATIONAL COLLABORATION AND PARTNERSHIP World Bank would support Nigeria’s ATA (with a sum of $900

million), Bank support would be structured along these three dimensions through: (i) an Agricultural Transformation budget support operation that would underpin the required enabling policy framework; (ii) assistance through South-South collaboration, notably with Brazil, to collaborate and strengthen the established institutional framework for ATA implementation; and (iii) investment lending to support selected elements of the ATA agenda.

United States Agency for International Development (USAID) will support Nigeria’s ATA with respect to Commitment for stronger expanded development partnership with Nigeria, diversification of the economy; provide support towards Nigeria’s joining the global Feed the Future initiative of President Obama.

World Cocoa Foundation would support Nigeria’s cocoa transformation Agenda including training of cocoa farmers and the establishment of Cocoa Market and Trading Corporation.

International Food Policy Research Institute (IFPRI) would provide technical support to Nigeria on policy and institutional reforms.

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IFAD is providing about $75million credit and $500,000 to fund the Cassava and Rice value chains in 6 states of Niger, Ogun, Anambra, Ebonyi, Taraba and Benue.

African Development Bank is providing a credit of $112million to support four value chains of cassava, rice, Sorghum and Cocoa.

Other international agencies that are providing funding and technical assistance support to the ATA include, Ford Foundation, UNDP, IITA, AGRA, WARDA, JICA, Tony Elumelu Foundation, Bill and Melinda Gates Foundation, DFID, IFDC, FAO and Islamic Development Bank.

ACHIEVEMENT OF ON-GOING EXTERNALLY ASSISTED PROJECTS

a. Achievements of FADAMA III project as follows: Construction of 131 Km feeder roads, rehabilitation of 777

Km of feeder roads, construction of 257 culverts, 41 small bridges and 512 market stores.

Establishment of Geographic Information System [GIS] laboratory with various database and maps with capabilities of capturing value chain crops.

b. Commercial Agriculture CADP built a total of 180.69 km of roads across the participating states (under the first phase of the CADP-road improvement program); and work has commenced on the design of an additional 74.5 km of new rural roads for the second phase of the roads improvement program. According to the findings of the MTR mission, the first phase of the roads program has had some positive development outcomes. For instance, in Lagos State, the implementation of rural access roads assisted in reducing travel time to the nearest major market from an average of 22 minutes before intervention to about an average of 19 minutes (11.6% reduction). The reduction came about through rehabilitation of roads 10 communities In Enugu and Kaduna States, reduction in travel times to the nearest markets were of 11.6% and 15% respectively.

c. Rural Financing and Institution Project

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The project has linked 3.516 village saving and credit associations to microfinance banks and formal banks for the purpose of sourcing credits. A total of 10,236 farmers have benefitted.

Federal Ministry of Agriculture and Rural Development Garki Area 11, Abuja. 26th April, 2012

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