Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria

1. 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

2. INVESTMENT OPPORTUNITIES IN NIGERIAN AGRICULTURE ___________________________________________________________________________ • Contents of Presentation • Pages • 1. Introduction: Overview of Nigerian Agro-Economy: 2-4 • Agriculture in Nigeria: Constraints and Challenges: 5 • Opportunities for Investors: 6-11 • 4. Commercial Agriculture Development Programme: 12-18 • 5. Conclusion: 19-21 VAMED VAMED ENGINEERING VE REFERENCES Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria 1

3. NIGERIA – THE COUNTRY ___________________________________________________________________________ VAMED VAMED ENGINEERING VE REFERENCES LAND – 923,77OKm2 36 STATES + FED CAPITAL TERRITORY 773 LOCAL GOVERNMENT COUNCILS Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria 2

4. (1) OVERVIEW OF NIGERIAN AGRO-ECONOMYAGRO-ECOLOGICAL RESOURCES ___________________________________________________________________________ TOTAL LAND AREA - 92.4 MILLION HA. TOTAL AGRIC. LAND - 79 MILLION HA. TOTAL CULTIVATED LAND - 32 MILLION HA. NO. OF FARM FAMILIES - 14 MILLION /(20 MILLION) AVG. LAND AREA/FARMER - 1.8 HA SURFACE WATER - 267 BILLION CUBIC METERS UNDERGROUND WATER - 57.9 BILLION CUBIC METERS ANNUAL RAINFALL RANGE - 300MM – 4000MM POTENTIAL IRRIGABLE AREA - 3.14 MILLION HA IMMENSE ARRAY OF NATURAL RESOURCES VAMED VAMED ENGINEERING VE REFERENCES Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria 3

5. OVERVIEW OF NIGERIAN AGRO-ECONOMY SECTORAL STATISTICS ___________________________________________________________________________ NATIONAL POPULATION - 140 MILLION FOOD INSECURE POPULATION - 90 MILLION (65%) OVERALL GDP GROWTH - 6.3% AGRIC CONTRIBUTION TO GDP - 42% (2007), 50% (2008) EMPLOYMENT - 66% OF WORKFORCE AVERAGE FERT CONSUMPTION - 100gm / Ha AVERAGE FERT DEMAND/YEAR - 3 MILLION TONNES TRACTOR DENSITY - 1/1,000 Ha AVG. CEREAL CROP YIELD - 1.2 TONNES/Ha EXTENSION SERVICES RATIO - 1/12,000 FARM FAMILIES CERTIFIED SEED USAGE - 2% OF REQUIREMENT POST HARVEST LOSS AVG. - 70% LENDING TO AGRIC SECTOR - 17.5% - 2002 , 4% - 2007 VAMED VAMED ENGINEERING VE REFERENCES 4 Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria

6. (2) AGRICULTURE IN NIGERIA: CONSTRAINTS AND CHALLENGES ___________________________________________________________________________ • Sector dominated by small-holder farmers with average holdings less than 1.5 ha • Productivity generally low (2t/ha) - Low technology usage • - Poor agronomic practices • - Inadequate access to modern inputs • - Insufficient access to credit • - High dependence on rain fed farming • - Subsistence farming culture • - Inadequate roads and other critical infrastr- • ucture vital to the sector • Low level of value addition due to poor power infrastructure • Sector shackled by financial, technical and managerial constraints • Strong history and culture of agri-food marketing but poor market infrastructure • Huge growth potential in local/regional markets for agricultural produce/raw materials • Large pool of skilled and semi-skilled human resources VAMED VAMED ENGINEERING VE REFERENCES Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria 5

7. (3) OPPORTUNITIES FOR INVESTORS ___________________________________________________________________________ PRIORITY AREAS FOR COMMERCIAL AGRICULTURE DEVELOPMENT PROGRAMME CASH CROPS - Cotton, Oil Palm, Fruit Trees, Rubber, Sugar Cane and Jatropha carcus; FOOD CROPS - Rice, Wheat, Cassava, Maize/Soya beans/Millet Tomatoes and Vegetables (including medicinal plants); POULTRY – Broilers, Eggs and Poultry Feed Production; LIVESTOCK – Dairy (Milk) Development and Abattoir (Meat) Enhancement Programme, Cold Chain Development, Meat Processing, Animal Feeds Production; and AQUACULTURE - Hatchery, Feed Mills Development/Fisheries Production cold chain fish processing and fish feed production. VAMED VAMED ENGINEERING VE REFERENCES Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria 6

8. (3A) AGRICULTURE SECTOR OUTPUT BENCHMARKS ___________________________________________________________________________ VAMED VAMED ENGINEERING VE REFERENCES Source: NATIONAL FOOD RESERVE AGENCY, AGRIC PRODUCTION SURVEY, 2008 7 Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria

9. (3A) COMMERCIAL ARICULTURE DEVELOPMENT PROGRAMME: SECTOR OUTPUT BENCHMARKS - 2 ___________________________________________________________________________ VAMED VAMED ENGINEERING VE REFERENCES Source:*FAOSTATS, 2004, **FMAWR, 2008 Key: Livestock refers to meat and protein products only Source:FMA&WR, KAYS ‘07: Crop Yield Analysis Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria 8

10. (3A) COMMERCIAL ARICULTURE DEVELOPMENT PROGRAMME: IMPLEMENTATION MANAGEMENT ARRANGEMENTS: PARTNERSHIPS ___________________________________________________________________________ • Private sector partnership arrangements at advanced stage of conclusion with the following: • Dangote Group - 2,000ha pineapple in C/River • - 20,000ha sugarcane in Bauchi • - 10,000 heads dairy cows • (Taraba (Mambilla) and Cross • River States) • ii. Zimbabwe Farmers in Kwara and Nasarawa (crops and dairy development) • Equinox Group - Vegetables/fresh products • (Gombe and Kebbi States) • Olam, VT Rice - Out-grower activities (Kwara, • Niger and Anambra States) • TGI Group - Dairy, meat and fisheries • (Oyo (Ibadan), Rivers and Lagos) • - Market development (Farmer markets • and food centres nationwide) • Vietnamese Group - Rice and fisheries in Bayelsa • Josepdam Group - 220,000 ha sugarcane (Kwara – • Bachita) VAMED VAMED ENGINEERING VE REFERENCES Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria 9

11. (3A) FINANCING ARRANGEMENTS ___________________________________________________________________________ • 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). VAMED VAMED ENGINEERING VE REFERENCES Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria 10

12. (3A) FINANCING ARRANGEMENTS ___________________________________________________________________________ • 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. VAMED VAMED ENGINEERING VE REFERENCES Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria 11

13. (4) COMMERCIAL ARICULTURE DEVELOPMENT PROGRAMME ___________________________________________________________________________ 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 agricultural development along the entire value chain over 3 years. Large scale commercial farming to be mainly through out-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 VAMED VAMED ENGINEERING VE REFERENCES Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria 12

14. COMMERCIAL ARICULTURE DEVELOPMENT PROGRAMME ___________________________________________________________________________ FIVE POINT AGRICULTURE AGENDA KEY PROGRAMMES OF THE 5 POINT AGRICULTURE AGENDA 1. Developing Agricultural Policy and Regulatory Systems (DAPRS) 2. Food Systems Network (FOODSNet) 3. Rural Sector Enhancement Programme (RUSEP) 4. Developing Agriculture Inputs Markets in Nigeria (DAIMINA) 5. Maximising Agricultural Revenue in Key Enterprises (MARKETS) VAMED VAMED ENGINEERING VE REFERENCES Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria 13

15. FIVE POINT AGRICULTURE AGENDA - 1 DEVELOPING AGRICULTURAL POLICY & REGULATORY SYSTEMS ___________________________________________________________________________ • 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 VAMED VAMED ENGINEERING VE REFERENCES Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria 14

16. FIVE POINT AGRICULTURE AGENDA - 2 FOOD SYSTEMS NETWORK ___________________________________________________________________________ • Agric. Cadastre (Digitized online soil map of Nigeria) • National Pest Control Programme (Complete circle) • Dams & Irrigation Schemes (2 billion cu. metres of water to be impounded and 150,000 ha additional irrigation land) • Construction/Completion of Silos (20 silos – 1 million tonnes) along with Agro- Processing Facilities (PPP) • Upgrading and Equipping of Agricultural Research System: Collaborative • research on yield enhancement • Food and Animal Feed Production (PPP) through utilisation of leased silos • Grazing Reserves Development (3 model Grazing Reserves) • (Breed development and milk delivery) • Aquaculture Development (Fisheries) Development of 16 Integrated Fisheries Estates) – 2m tonnes fish production target in 3 years VAMED VAMED ENGINEERING VE REFERENCES Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria 15

17. FIVE POINT AGRICULTURE AGENDA - 3 RURAL SECTOR ENHANCEMENT PROGRAMME ___________________________________________________________________________ • Rural Feeder Roads (World Bank Intervention) • Fadama III (IFAD Programme – Roads and Markets) • Agri-Nigeria Project ( 1m Job creation Initiative ) • Agric Information Management System for Farmers VAMED VAMED ENGINEERING VE REFERENCES Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria 16

18. FIVE POINT AGRICULTURE AGENDA - 4 ___________________________________________________________________________ DEVELOPING AGRICULTURE INPUTS MARKETS IN NIGERIA • “One-Stop Shop” Agro-input Service Centres - 300 no. (PPP) • Agro-seeds Service Centres (40 centres on PPP)-Seed Production and Multiplication using out-grower scheme • Fertilizer Procurement (400,000 tonnes) • Mechanization (Tractor Service Scheme – 3,525 sets) VAMED VAMED ENGINEERING VE REFERENCES Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria 17

19. FIVE POINT AGRICULTURE AGENDA - 5 ___________________________________________________________________________ MAXIMISING AGRICULTURAL REVENUE IN KEY ENTERPRISES • 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) ) VAMED VAMED ENGINEERING VE REFERENCES Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria 18

20. (5) CONCLUSION SUMMARY OF ACHIEVEMENTS IN THE LAST 2 YEARS ___________________________________________________________________________ • Input services provision – Fertilizers procured and distributed efficiently & cost-effectively • Agro-export handling centres – 6 no. • Markets – Farmers’ markets and food centres • 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 VAMED VAMED ENGINEERING VE REFERENCES Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria 19

21. CONCLUSION - 2 SUMMARY OF ONGOING PPP PROJECTS IN AGRICULTURE ___________________________________________________________________________ • 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. VAMED VAMED ENGINEERING VE REFERENCES Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria 20

22. CONCLUSION - 3 COMMUNICATION STRATEGY: Immediate Follow-up Actions ___________________________________________________________________________ • Conference on Tariffs and Fiscal Incentives • Conference on Anti-smuggling to kick off a regional campaign • Public Presentation of the Green Nigeria Project: • a 1 million jobs creation initiative over the next 3 years VAMED VAMED ENGINEERING VE REFERENCES Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria 21

23. ______________________________________________________________________________________________________________________________________________________ 0 THANK YOU VAMED VAMED ENGINEERING VE REFERENCES Federal Ministry of Agriculture and Water Resources, Federal Republic of Nigeria 22