Federal Ministry of Agriculture and Federal Ministry of Agriculture and Water Resources, Federal Republic of Water Resources, Federal Republic of Nigeria Nigeria Dr. Sayyadi Abba Ruma Dr. Sayyadi Abba Ruma Hon. Minister of Agriculture and Water Resources Hon. Minister of Agriculture and Water Resources Federal Republic of Nigeria Federal Republic of Nigeria INVESTMENT OPPORTUNITIES INVESTMENT OPPORTUNITIES IN IN NIGERIAN AGRICULTURE NIGERIAN AGRICULTURE
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Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria
Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria. INVESTMENT OPPORTUNITIES IN NIGERIAN AGRICULTURE. Dr. Sayyadi Abba Ruma Hon. Minister of Agriculture and Water Resources Federal Republic of Nigeria. INVESTMENT OPPORTUNITIES IN NIGERIAN AGRICULTURE. - PowerPoint PPT Presentation
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Federal Ministry of Agriculture and Water Federal Ministry of Agriculture and Water Resources, Federal Republic of NigeriaResources, Federal Republic of Nigeria
Dr. Sayyadi Abba RumaDr. Sayyadi Abba RumaHon. Minister of Agriculture and Water ResourcesHon. Minister of Agriculture and Water Resources
Federal Republic of NigeriaFederal Republic of Nigeria
CommodityCommodity Current Production LevelsCurrent Production Levels Projected Production Levels Projected Production Levels (2011 Benchmarks)(2011 Benchmarks)
P% Yield % Yield IncreaseIncrease
CurrentCurrentImportsImports
‘‘000 Ha000 Ha Yield Yield (t/ha)(t/ha)
Output (‘000t)Output (‘000t) ‘‘000 Ha000 Ha Yield Yield (t/ha)(t/ha)
10Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria
FUNDING FLOWS TO SUPPORT THE PROGRAMME
N244.2 Billion Grant for value chain infrastructure (@ 40% FGN, 60% States) as a Special Intervention Fund (SIF)
N200 Billion Bond floated by the Debt Management Office (DMO) and subsidised by the CBN for single digit lending to agriculture.
Agricultural Enterprises Development @ 30% FGN Grant, 30% Service Providers’ own investment and 40% subsidised credit to the service providers through the Commercial Agriculture Credit Scheme (CACS) at 9% interest rate (maximum).
The first of the above two funding flows, the SIF, totalling N244.2 billion over three years, shall be used as the value chain infrastructure support grant, with the resulting infrastructure strongly attracting new investments and creating income opportunities for millions of small-holder out-grower farmers throughout the country. The Programme will be funded by the Federal and State Governments on 40:60 cost sharing arrangement. The second funding flow, valued at N200 billion, being proceeds of a Bond floated by the Debt Management Office (DMO) shall provide low interest credit (9% with maximum tenor of 7 years, including 2 years moratorium). Investors shall sign in with 30% and the Federal Government shall match that with a grant of 30% for all the PPP investments, while the remaining 40% shall be provided from the low interest credit, giving an overall funding ratio of 30:30:40.
In addition, the World Bank has provided an IDA Credit Facility of US$150 million under the Commercial Agriculture Development Project and another US$250 million under Fadama III Project, to finance specific activities (mainly rural infrastructure development) in the States.
FINANCING ARRANGEMENTSFINANCING ARRANGEMENTS
11Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria
Approach: Large scale commercial farming – best farming model for enhanced efficiency and cost-effectiveness through value chain approach
Aim: Use of Special Intervention Fund to achieve agriculturaldevelopment along the entire value chain over 3 years. Large scale commercial farming to be mainly throughout-sourcing production to out-grower farmers
Objectives: Enhanced market competitiveness in wheat, rice, sugar, milk, fish
Sustained national food security and employment generation
Promotion of modern agricultural practices in production,
storage/preservation, processing and marketing
Enhanced natural resource conservation and increased utilization
of irrigated agriculture to mitigate the effects of climate change
Enhanced income for the small-holder farmer
COMMERCIAL ARICULTURE DEVELOPMENT COMMERCIAL ARICULTURE DEVELOPMENT PROGRAMMEPROGRAMME
12Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria
FIVE POINT AGRICULTURE AGENDA - 1FIVE POINT AGRICULTURE AGENDA - 1
Proactive policy agriculture development in Nigeria via a Value Chain approach, with the goals of:
1. Achieving sustained national food security
2. Enhancing market competitiveness of Nigerian commodities
3. Promoting global best practices in agricultural production/agribusiness
4. Mitigation of climate change
Monitoring and Evaluation of Programmes
Regulatory framework to support backward integration and market competitiveness by leveraging on appropriate tariff regimes, fiscal incentives and a legal framework for institutional support (NAFRA, Quarantine etc.)
Research and Development
a. Improved Seed, Brood Stock and Fingerlings
b. Enterprise Development in Agric
(i) Agric Sample Census – Comprehensive National Agricultural Database
(ii) Cooperative Reform Programme - Agric. Enterprise Development to generate 1 million jobs within 3 years
DEVELOPING AGRICULTURAL POLICY & REGULATORY SYSTEMS
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Rice Processing (25 large scale rice processing mills – at least 1million tonnes milled rice/year)
National Abattoir Management and Dev. Programme (6-12 abattoirs in States and FCT)
Cassava Processing (3 large scale mills, 200 mini mills to do 500,000 tonnes cassava per annum)
Guaranteed Minimum Price (GMP – 310,500 tonnes of assorted commodities)
Market Infrastructural Development (1,200 model markets on highways and 6 minimarts in each of selected towns of 12 States) (Crops (12 markets), Livestock (9 markets) & Fisheries (15 markets) )
MAXIMISING AGRICULTURAL REVENUE IN KEY ENTERPRISES
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FIVE POINT AGRICULTURE AGENDA - 5FIVE POINT AGRICULTURE AGENDA - 5
Guaranteed Minimum Price (GMP) – N10 billion set aside for stabilising food prices for over 90 million population of potential food insecure people
Agro-processing for production of edible flours and animal feed
Gurara Agro Park Development Project
Agro seed centres (40 no) on PPP basis
Modern abattoir development in: Kano, FCT, Katsina, Gombe, Port Harcourt, Oyo, Enugu and Benin
Orthographic photo mapping of the Gurara area and 50 no. Grazing Reserves nationwide
National Soil Survey Programme – Digitised soil map of Nigeria
Green Nigeria Project - Enterprise development in agriculture
SUMMARY OF ACHIEVEMENTS IN THE LAST 2 YEARS
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CONCLUSIONCONCLUSION(5(5))
VAMED ENGINEERINGVAMED VE REFERENCES
___________________________________________________________________________Grain silos – Agro-processing Centres for Edible Flours and Animal Feed
Agro-export handling centres – 6 no.
Markets – for continued construction of Farmers’ markets and food centres
Guaranteed Minimum Price (GMP) – N10b in 2009 and N30bn by 2010
Agricultural inputs centres (one-stop shops in each LG Area for agric inputs supply)
Integrated Fisheries Estates
Rice processing centres
Gurara Agro Park Development Project (US$5m)
Agro seed centres (40 no) on PPP basis
Abattoir Enhancement Programme
Cold chain storage infrastructure development for livestock, fresh vegetables, fruits and fisheries products and allied agro-aviation infrastructure for their evacuation
Tractor hiring and ownership scheme
Other Private sector-driven projects: jatropha carcus (bio-diesel), bio-ethanol, fruits and vegetable production for export etc.
SUMMARY OF ONGOING PPP PROJECTS IN AGRICULTURE
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