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  • Federal Ministry of Agriculture and Rural Development |

    Agricultural Transformation Agenda: Repositioning agriculture to drive Nigerias economy

    Dr. Akinwumi Adesina, PhD (Purdue, USA) CON Honourable Minister of Agriculture and Rural Development November 2012

    0

  • Federal Ministry of Agriculture and Rural Development | 1

    Nigeria Imports over 1.3 Trillion Naira in wheat, rice, sugar and fish every year

    Sugar

    Fish

    Wheat Worlds largest importer

    of US hard red and white winter Wheat

    Nigerias top 4 food imports * Measure: Annual food imports in mllions of naira

    Nigerias imports Nigerias food imports are growing at an

    unsustainable rate of 11% per annum. Relying on the import of expensive food on

    global markets fuels domestic inflation. Excessive imports putting high pressure on

    the Naira and hurting the economy Nigeria is importing what it can produce in

    abundance. Import dependency is hurting Nigerian

    farmers, displacing local production and creating rising unemployment. Import dependency is not acceptable, nor

    sustainable fiscally, economically or politically.

    Key takeaways

    *CBN

    Rice Worlds #2 Importer

    $4bn @ $11m per day

    $2bn @ $6m d

  • Federal Ministry of Agriculture and Rural Development |

    Our Vision: Grow Nigerias agricultural sector

    2

    To make Nigeria an agriculturally industrialized economy What we have stopped doing

    Treating agriculture as a development project

    Isolated projects that do not clearly grow the sector in a

    clear and measurable way.

    Big government crowding out the private sector

  • Federal Ministry of Agriculture and Rural Development |

    Our Vision: Grow Nigerias agricultural sector

    3

    To make Nigeria an agriculturally industrialized economy What we have started doing! Treating agriculture as a business Integrating food production, storage, food processing and

    industrial manufacturing by value chains (farm to fork) Focusing on value chains where Nigeria has comparative

    advantage Using agriculture to create jobs, wealth and ensure food security Investment-driven strategic partnerships with the private sector Investment drives to unlock potential of our States in agriculture

    (joint drives with State Governors)

  • Federal Ministry of Agriculture and Rural Development | 4

    New policies, institutions and financing structures to drive sector growth:

    1. Deregulation of seed and fertilizer sectors 2. Marketing reforms to structure markets 3. Innovative financing for agriculture 4. New agricultural investment framework

    Doreo

  • Federal Ministry of Agriculture and Rural Development |

    Government has fully deregulated the fertilizer and seed sector, and sanitized the fertilizer subsidy program

    5

    Government Distributed

    Private Sector Fertilizer Supplier

    Federal Government

    State Government

    All Farmers

    Private Sector Fertilizer Supplier

    Targeted Farmers

    Federal &

    State Govt.

    Manufacturer/Supplier gets order from FG

    FG has manufacturer deliver to states per indent from state at 25% subsidy.

    State distributes fertilizer to farmers occasionally adding their own subsidy.

    Only 11% of fertilizer reaches the intended farmers

    States and FG coordinate to distribute fertilizer vouchers to targeted farmers.

    94% of actual farmers receive the subsidized fertilizer under the voucher program.

    Private sector sells fertilizer to farmers at market price minus the fertilizer voucher discount provided by government.

    Government distributed fertilizer support program

    Private Sector Distributed

    Private sector distributed fertilizer support system, utilizing Input Vouchers

    Key takeaways

    Government distribution system is inefficient and wastes resources

    Government distribution channels subsidize corruption

    Implemented Growth Enhancement Support Program to directly target famers

    Global Best Practice

  • Federal Ministry of Agriculture and Rural Development |

    Growth Enhancement Support Reached: 880,000 Poor Farmers Reached Across 97% of Country

    6

    97% of States Implemented GES 97% of LGAs Implemented GES

  • Federal Ministry of Agriculture and Rural Development |

    Success Stories

    7

    Farmer Redeeming His Fertilizer via Growth Enhancement Support

    For the first time I get my seeds and fertilizers fast without any political interference

    - Nnenna, a female farmer in Abia State

    This is the first time we have this type of distribution (GES) to the farmers, it will eliminate poverty. We thank Mr. President

    Mr. Omale, a beneficiary in Kogi

    GES is a clear process, no corruption in it, nobody between me and my fertilizer and seeds

    Abdullahi Ndastu the 1st beneficiary of GES, FCT.

    It is a happy day for us farmers and we feel honoured that the Minister and his entourage have come to deliver fertilizer to us which before now was beyond our reach

    Mr. Bassey, a beneficiary in Akwa Ibom State

  • Federal Ministry of Agriculture and Rural Development |

    Before Rehabilitation Before Rehabilitation

    Successful Foreign Investment in the Nigerian Fertilizer Industry Notore Rebirth of the domestic fertilizer industry

  • Federal Ministry of Agriculture and Rural Development |

    9

    After Rehabilitation

    Successful Foreign Investment in the Nigerian Fertilizer Industry Notore Rebirth of the domestic fertilizer industry

  • Federal Ministry of Agriculture and Rural Development |

    Notore Successful Foreign Investment in the Nigerian Fertilizer Industry

    In Joint Venture with Mitsubishi, Notore is expanding its capacity to over 2.75 Million MT/year

    Growth in Production (Thousands of Metric Tons of Urea)

  • Federal Ministry of Agriculture and Rural Development | 11

    Mr. President Launches UTC and Butterfield Commercialized Cassava Bread - 28th of April 2012

  • Federal Ministry of Agriculture and Rural Development |

    Transferring Knowledge Along the Chain MD of UTC (1st Commercial Producer of Cassava Bread) holds training session with Master Bakers.

  • Federal Ministry of Agriculture and Rural Development |

    High Quality Nigerian Rice: EBONY Rice, Ebonyi

    13

    Case Study: High Quality Nigerian Rice Rolled Out Modern rice mill (30,000 MT) begins operations in Ebonyi State

    Status Ministry working with entrepreneur to develop out-grower program and access

    additional finance to expand operations.

  • Federal Ministry of Agriculture and Rural Development |

    Government new rice policies are paying off a very good sign 210,000 Metric Tons of New Rice Capacity (10% of current imports) executed in the past 1 year of Mr. Presidents Administration

    14

    Company State Capacity MT/Yr Status

    Atahi Rice Jigawa 60,000 In Process

    Ashi Feeds Benue 10,000 Started Post June 2012

    Mikap Benue 10,000 Started Post June 2012

    Dominion Taraba 10,000 In Process

    Gauri Bauchi 10,000 In Process

    Clysters Nasarawa 10,000 In Process Umza Kano 60,000 New Line Started Post June 2012

    Omor Anambra 10,000 In Process

    Kare Hi-Tech Zamfara 9,000 In Process

    Oni-MP farms Cross River 8,000 In Process

    Al-Uma Taraba 8,000 In Process

    Ebony Agro Ebonyi 30,000 Started Post June 2012

    Lagos Lagos 5,000 Started Post June 2012

  • Federal Ministry of Agriculture and Rural Development | 15

    Case Study: Successfully Leveraged Private Sector to Establish Largest Rice Farm in Nigeria Largest rice producer and processor in Kenya Dominion Farms invests in 30,000 Ha Community Rice Project in Taraba State

    Status Attracted additional local Nigerian investor First set of 50 young commercial farmers from Taraba trained for 5 months in

    Kenya. Initial rice mill of 10,000MT/yr ordered Land clearing in process, initial planting to begin in Dec 2012.

  • Federal Ministry of Agriculture and Rural Development | 16

    Massive demand by farmers for new Cocoa Hybrids

  • Federal Ministry of Agriculture and Rural Development | 17

    New High Yielding Cocoa Hybrids Developed by Nigerian Scientists Launches a Cocoa Revolution

  • Federal Ministry of Agriculture and Rural Development | 18

    Doreo

    Horticulture Transformation

  • Federal Ministry of Agriculture and Rural Development |

    Food processing and manufacturing from local staple crops Rapid urbanization, rising middle class

    incomes, supermarkets and demand for "ease to prepare foods.

    Target commodities are maize, soybeans,

    rice, yams, cassava, sweet potatoes, sorghum

    Nigerian Agriculture Sector Investment Opportunities

  • Federal Ministry of Agriculture and Rural Development |

    SCPZs are Highly Attractive to Investors Local and international firms are beginning to engage with the Federal Government as Anchor investors

  • Federal Ministry of Agriculture and Rural Development | 21

    14 Staple Crop Processing Zone sites around the Country Key Takeaways

    Sites are intended for the production and processing of priority Agricultural products under the ATA; Rice, Sorghum, Cassava, Livestock, Fisheries Cocoa, C

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