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AGRIC BUSINESS IN
EKITI STATE, NIGERIA




     www.ekitistate.gov.ng
AGRIC BUSINESS IN
EKITI STATE, NIGERIA




         3
© April 2012
                                           All Rights Reserved
                             Ministry of Agriculture & Natural Resources
While all efforts have been made to ensure the accuracy of the contents of this publication at the time of
 going to press, the publishers are not liable for any circumstantial changes that may occur thereafter.

 No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form,
             electronic or otherwise, without the express permission of the copyright owner.

                                   Designed and produced by
                      Corporate Communications Unit, Office of the Governor.
CONTENTS

TITLE PAGE                                         3

DISCLAIMER                                         4

TABLE OF CONTENTS                                  5

EKITI STATE PROFILE                                6

FOREWORD                                           10

AGRIC INVESTMENT PROFILE IN EKITI STATE, NIGERIA   14

WHY INVEST IN AGRIC SECTOR IN EKITI STATE, NIGERIA 20

GUIDANCE NOTES TO AGRIC-BASED INVESTMENT
IN EKITI STATE, NIGERIA                            38

ONGOING PROJECTS                                   45

KEY CONTACTS                                       51




                          5
EKITI STATE, NIGERIA
                            THE LAND OF HONOUR

Ekiti State is one of the 36 states in the        Okemesi-Ekiti. An important feature of
Federal Republic of Nigeria. The state's          the state is the large number of
symbol speaks to the uniqueness of her            mountains and hills it possesses. Ekiti
heritage, the physical attributes of her          has a rhythmically undulating surface. In
fruitful land, as well as the character and       fact, the word 'Ekiti' is derived from the
aspirations of the Ekiti people. Ekiti is         local term for 'land of hills' which is 'Ile
referred to as Ile Iyi, Ile Eye (Land of          olokiti'.
Honour)                                           HISTORY
                                                  Ekiti was an independent state prior to
GEOGRAPHY                                         the British colonial conquest. It was one
The State is situated entirely within the         of the many Yoruba states in what is
tropics and is located between longitudes         today known as Nigeria. Ekiti as a nation,
                                                  like other sub-ethnic divisions of the
40 51 and 50 451 East of the Greenwich
                           0   1      0  1        Yoruba race, traces its progeny to
meridian, and latitudes 7 15 and 8 5
                                                  Oduduwa, and to Ile-Ife (the cradle of
north of the Equator. It lies south of            Yorubaland) as its origin. According to
Kwara and Kogi States, east of Osun
State and is bounded by Ondo State in
the east and in the south. Ekiti is an
upland zone and stands 250 metres
above sea level. The landscape consists of
ancient plains broken by steep-sided
outcropping dome rocks. These rocks
occur singularly or in groups or ridges
with the most notable of these found in                               Ikogosi springs
Efon-Alaaye Ekiti, Ikere-Ekiti and


                                              6
legend, the Olofin, one of the sons of the        trade winds blow in the rainy and dry
Oduduwa, had sixteen (16) children and            (Harmattan) seasons respectively.
in the course of searching for new land to
develop, they all journeyed out of Ile-Ife.       DEMOGRAPHICS
In the course of that historic journey,           Ekitis are culturally homogeneous and
many of them settled along the way, with          they speak a dialect of Yoruba language
the ancestors of present day Ekiti                known as 'Ekiti'. This homogeneous
indigenes continuing their journey to             nature confers on the state some
settle in Ekiti land.                             uniqueness among within the Nigerian
Modern day Ekiti as a State and a                 federation. All the towns in Ekiti State
federating unit in the Federal Republic           take on a common suffix, “Ekiti,” after
of Nigeria was formed out of Old Ondo             their names. The main staple food of the
State on October 1, 1996.                         people of Ekiti is pounded yam with
                                                  vegetable soup.
WEATHER AND CLIMATE
Ekiti has a refreshing weather, typically         NATURAL RESOURCES
enjoying tropical climate with two                Ekiti is endowed with numerous natural
distinct seasons. These are the rainy             resources. The state possesses rich
season (April–October) and the dry                deposits of minerals, including granite,
season (November–March).                          kaolin, columbite, charnockite, iron ore,
Temperature ranges in the State between           baryte, aquamine, gemstone, phosphate,
21° and 28°C, with the atmosphere                 limestone, among others. The land is
evincing a high degree of humidity. The           also buoyant in agricultural terms, with
south westerly wind and the northeast             cocoa being its leading cash crop. It is
                                                  widely known that Ekiti accounted for
                                                  well over 40% of the cocoa products of
                                                  the then old Western Region. The land is
                                                  also known for its forest resources,
                                                  notably the supply of timber. Because of
                                                  the favorable climatic conditions, the
                                                  land enjoys luxuriant vegetation, thus it
                                                  has abundant resources of different
                                                  species of timber. Food crops like yam,
              Scenic view of Ado-Ekiti            cassava, and also grains like rice and


                                              7
maize are grown in large qualities in       POPULATION
Ekiti. Other notable crops like kola        The 2006 census by the National
nut and varieties of fruits are also        Population Commission put the number of
cultivated in commercial quantities in      inhabitants of Ekiti State at 2,384,212
the State.                                  people.
Ekiti State is also blessed with several
                                            POLITICAL STRUCTURE
                                            Ekiti State has three arms of government
                                            namely, the Executive, the Legislature and
                                            the Judiciary. The current executive
                                            government is headed by Governor Kayode
                                            FAYEMI, while the legislature and judiciary
                                            are headed by Rt. Hon. (Dr.) Adewale
                                            Albert OMIRIN (Speaker, House of
            Native Dancers in Ekiti         Assembly) and Hon. Justice Ayodeji
                                            DARAMOLA (Acting Chief Judge)
water bodies, and worthy of note is the     respectively.
Ikogosi springs – the only place in the
world where warm and cold water             As a State in the Federal Republic of
springs occur naturally side-by-side.       Nigeria, Ekiti State has 3 (three) senators
More so, a variety of tourist attractions   and 6 (six) members of the House of
abound in the state, namely: Ikogosi        Representatives in the Nigerian National
Warm Spring; Ipole - Iloro Water            Assembly. The state has 16 autonomously
Falls; Olosunta hills, Ikere; Fajuyi        governed Local Government Councils.
Memorial Park, Ado- Ekiti, and so on.
The Ikogosi tourist centre is the most      To learn more about Ekiti State, Nigeria,
popular and the most developed. The         please visit www.ekitistate.gov.ng
warm spring is a unique natural
feature, and supporting hospitality
facilities are being developed at this
unique location. The spring water is at
present being processed and packaged
into bottles for commercial purpose
by a private company - UAC Nigeria.


                                            8
Top & Bottom: Local Farmers displaying their produce




                         9
THE AGRICULTURAL RENAISSANCE IN EKITI
As we know, with the vast agricultural resource potential in Africa, it remains a
concern that most countries within the continent are still grappling with issues
of food security, with major part of its population trapped within the poverty
cycle. Agenda 3 of Ekiti State Road Map to Recovery marks a significant step in
our pursuit of re-positioning the state in the League of states in Nigeria, driving
prosperity through agri-business operations that could eradicate economic
poverty and essentially drive achievement of the Millennium Development
Goals.



 “
                                           Agriculture over the years has driven
        In Ekiti State, we have taken the bold step
                 of recognizing agricultureeconomic growth in Ekiti State. It
                                           accounts for over 70% of
       as a business. We are focused on developing
   platforms that will transform the current situation
                                           employment and constitute a
       of subsistence low productivity farming and
                                           significant portion of the trade
      processing into modernized, commercial and
              technological driven operations
                                           within. Emerging opportunities,
 that will guarantee massive job and wealth creation to
                                           with deliberate transformation in
        our people. I am proud to announce that
  key development partners such as the World Bank,
                                           this space holds a significant impart
       UNDP, DFID, UNIDO and other bilateral



                                                 “
                                           that will not only transform the state's
           are facilitating these processes for us.

                                           economy, but add the necessary
flavor to the massively required inclusive growth regime.

In Ekiti State, we have taken the bold step of recognizing agriculture as a
business. We are focused on developing platforms that will transform the
current situation of subsistence low productivity farming and processing into
modernized, commercial and technological driven operations that will
guarantee massive job and wealth creation to our people. I am proud to
announce that key development partners such as the World Bank, UNDP,
DFID, UNIDO and other bilateral are facilitating these processes for us. I
must commend our current partners and investors on their agenda to drive
agribusiness and agro-industrial revolution in Ekiti. My believe is that such a
revolution will bring sustained investment in the entire agribusiness value

                                                      10
chain, which, in turn, will raise productivity and yields, improve
competitiveness and increase profits in the rural economies like ours.

In particular, our focus in Ekiti State had been on improving the regulatory,
institutional, and financing framework to promote modern and commercial
agriculture along the entire value chain for most crops where we have
comparative advantages. Also, my administration is responding to key
infrastructural challenges that will facilitate development of agricultural
production, processing and other related opportunities. Of mention is our
aggressive, but focused, rural development policies and interventions to
develop rural infrastructure such as roads, agricultural processing hubs and
drive market linkages for our produce and processed outputs.

In continuation of institutional commitment towards ensuring agricultural
transformation and development of commodity value chains and agri-
business, we will continue to explore and remain dedicated to possible ways of
collaborating and complementing resources of relevant institutions and states
across the country to solve challenges of agro-processing, most especially
through private sector participation. This initiative will definitely promote the
creation of additional jobs and improve income for these groups. Hence,
facilitate quality economic growth and equitable development in terms of
inclusiveness.

Let me say at this juncture that government alone will not be able to provide
the required investment to transform agriculture and agri-business; Donors
and the Private Sector will have to partner with Ekiti State Government to
meet the necessary investment level to foster and catalyze this needed change.
Support should include technical, capacity building initiative from donors
and massive private sector inclusive investment in agri-processing. We in
government will continue to create the right regulatory environment and
support to encourage private sector investment within the state.
I am impressed with the conscious effort and focused approach being


                                       11
employed by relevant MDAs in developing and transforming agriculture
within the state, particularly effort in launching the YCAD Programme. This
remains one of the best ways to jumpstart active participation of youths in
commercial agriculture to deliver sustainable agriculture in Nigeria.

Thank you.

Dr. Kayode FAYEMI
Governor, Ekiti State, Nigeria




                                    12
Dr. Kayode FAYEMI
Governor, Ekiti State, Nigeria




             13
AGRICULTURE
   INVESTMENT PROFILE
   IN    EKITI STATE, NIGERIA




Tractors acquired by the Government of Ekiti State, Nigeria
           to stimulate mechanized agriculture.




                            14
EKITI STATE AGRICULTURAL INVESTMENT PROFILE
Background
Ekiti State is laced with some of the richest agricultural lands in Africa and
huge potential to develop a sustainable commercial farming sector with
significant economic gains for the state and Nigerian economy. It enjoys
favourable climates that support rainfed and irrigated agriculture, livestock
production and resource for inland fisheries. With a population above 2
million people and a total land area of 5,306.72km, only 7% is currently
farmed by smallholder farmers using traditional methods, primarily for
subsistence, out of total agricultural land Area of 530,674.42ha. Less than
4,000ha is farmed commercially. The food crop cultivated in the state include
cassava, maize, yam and vegetables, while the cash crop include cocoa, palm
oil, cotton, banana/plantain and fruits such as cashew.

Ekiti State Agricultural Sector
Geography with Comparative Advantage: Ekiti State lies within two climatic
and geographic types, a blend of equatorial and tropical in the southern area
and savanna in the northern fringe giving rise to rainforest and savannah
vegetations respectively. The state is also transverse by various river bodies and
winding hill of significant agricultural benefits. These enormous resources are
yet to be fully exploited.

Advantaged Natural Resources: There are ample land with suitable soils that
grows most major high valued crops, benign climatic conditions and reliable,
all-year-round water resources.

High Value Crop and Livestock Production: With comparative advantage in
major commodity value chains in Nigeria, Ekiti State has the highest yield per
hectare for cassava and the best grade cocoa, sort after for mixing to achieve
good blend grade. Also, excellent production with processing conditions for
upland/lowland rice, oilpalm, fruit and livestocks.
Adequate but Growing Supportive Backbone Infrastructure: There is


                                       15
adequate access to agricultural-supporting infrastructure, in the form of power
grids network, planned irrigation facility, constructed transport links from
agricultural hubs to major markets in Nigeria (Abuja, Lagos, Ibadan e.t.c.) with
huge plans for expansion programme. Also, there exist plans for provision of
agro-processing hubs with functional industrial estates and parks to be
allocated to investors/entrepreneurs at reduced land premium. These coupled
with nearby rail and airport operations in neighboring states assure investors
of seamless agri-business activities.

Vantage Market Position: As an established agricultural trade and transit hub
linking the northern and southern markets of over 160million population, the
state remains the future hub for commercial agriculture. Agricultural produce
could easily find markets among itinerant traders from the north and the
south of the country.

Skilled and Low Cost Labour: There is an abundance of skilled labour at an
economic cost, resulting in production costs, which are among the lowest in
Nigeria. Also available in the state is the existence of a pool of unskilled labour
ready for use at a comparatively lower cost.

Political Stability and Security: As the needed platform for economic and
business growth, Ekiti State offers stable political environment and adequate
security. Based on its peaceful and quite state, Ekiti State had been adjudged a
favorable climate for business and industrial ventures.

Attractive Incentives and Supportive Platform to Facilitate Doing Business in
Ekiti State: With a commitment in making Ekiti State a preferred destination
for investment, a comprehensive package of incentives has been put in place to
attract investment within and outside Nigeria. This includes:

One Stop Shop for Investors
Under the newly established “One Stop Shop for Investors”, a streamlined
bureaucracy and regulatory environment now exist for potential and existing


                                        16
investors within the state. This platform removes envisaged investment
bottlenecks by facilitating, promoting, and coordinating investments
processes such as business entry permits, licenses, authorizations and
incentives within a One-Stop-Shop environment for investors. The services are
provided in a fast-tracked, co-ordinated, streamlined, efficient and transparent
manner to meet the needs of investors.

Facilitation of Agricultural and Agro-Processing Land Acquisition
Upon fulfillment and submission of necessary documentations, the State
Government supports and facilitates land acquisition for agricultural and
agro-processing for the private investors. Support includes accelerated
processing of title and other related document e.g. Certificate of Occupancy,
Letter of Consent, and Provisional Offer etc. This can be concluded within
two weeks for 'serious' investors committed to immediate investment in Ekiti
State.

Tax Breaks with Facilitative Fiscal Policy Measure
There exists a window to exempt new industries from rates and levies in the
first three years of operations to support investments in Ekiti State. Also
existing is a national approval of facilitative fiscal policy measures such as 0%
duty on agricultural machinery/equipment importation and equipment for
processing cassava flour for composite flour blending, with effect from 31st
January, 2012. Importation of cassava flour shall be prohibited, to encourage
local production, with effect from 31st March, 2012.

Community Mobilization
The state offers support in facilitating linkages and partnerships with local
agricultural communities and mobilizing local resources to support business
operations for investors. This had proved valuable in striking community
support for outgrowers scheme and inclusive business operations. This is also
extended to assist investors to source available human resources, local
technical partners and raw material for planned operations.


                                       17
Financial, Equipment Acquisition and Information Support
Un d e r e x i s t i n g p a r t n e r s h i p w i t h f i n a n c i a l i n s t i t u t i o n s ,
machinery/equipments suppliers, associations' e.t.c. the State Government
facilitate access credit facilities and negotiation platform for enabling business
resources being sort by investors under different existing programmes at the
federal, state and local government levels. Also, it provides ready investment
information and database to assist investors on investment decisions.

Dedicated Committee to Fast Track Investment Proposal
There exists a state Commercial Agriculture Committee platform set up with
the mandate to mobilise private sector investments and partnerships to help
achieve the goals of Ekiti State agricultural strategy. The committee support in
fast tracking investment proposals from the private sector institutions.
Membership of the partnership platform includes government
representatives, private sector development experts, PPP experts, and private
sector business representatives

Ekiti State’s Immediate Investment Potentials and Offerings
Under the current existing supportive business environment that can be
compared to non across Nigeria, there exist huge potential to invest in:
a. Production and Processing of High Value Crop
  Develop over 464,100ha of available agricultural land for mechanised
  farming operations. Hence, the state's current call for the private sector to
  mobilise new investment in promoting a modern and profitable agriculture
  production and agro-processing of key high value crop that the state has
  comparative advantages i.e. cassava, rice, cocoa, oilpalm, cashew e.t.c.
  Planned target for processing includes production of high quality cassava
  flour, cassava chips, ethanol, high quality rice and cocoa products.




                                               18
b. High Potential Forestry Value Chain Investment Operations
  With a scheduled forest reserve size of almost 30,000ha, Ekiti State is rich in
  high-value timber for which there is continued high demand within Nigeria
  and outside. There is an active space in tree planting in Ekiti for private
  investors. The forestry value chain is one of the state's valuable sectors with
  growth potential for international private plantation and forestry
  investment. This will include forestry product processing and marketing.

c. Abandoned Government Facilities for Private Sector Take Over
 There exist a moribund dairy farm seeking private sector take over for
 resuscitation. This was initially planned and established as an integrated
 dairy operation with installed capacity believed to be the biggest of
 pasteurized milk per day and for yoghurts production in Nigeria.

Dotted around the state are other various agricultural facilities with certain
economic value, initially ran by the state, being considered for private sector
take over under various Public-Private-Partnership (PPP) options. This
includes 3 medium scale cassava starch processing mills, a rice processing mill,
farm settlement centres, a fish farm, uncompleted silo projects, largest seed
processing plant in South Western Nigeria, an hatchery, a feedmill and several
other livestock facilities (poultry, piggery e.t.c).

Ekiti State, Nigeria is the emerging destination of choice for agric-based
investment in sub-saharan Africa.




                                      19
WHY INVEST IN AGRICULTURE
         IN EKITI STATE




The Government of Ekiti State, Nigeria is creating the right regulatory
 environment and support to encourage private sector in the State.




                                  20
WHY INVEST IN AGRICULTURE IN EKITI?
Feeding Nigeria

In 2010, the World Bank estimated that Nigeria's population exceeded 158
million making it the most populous country in Africa by far. Feeding this large
number is a challenge, especially when account is taken of the large urban
population that is entirely dependent on others to supply them with food. In
2010, some 78.8 million people, nearly 50% of the total population, lived in
urban centres and Nigeria will become a predominantly urban country in the
near future.

What is more, Nigerians now have the purchasing power to afford to eat well.
The economy has been growing rapidly. Between 2005 and 2010, annual GDP
growth averaged 6.7% p.a. According to the IMF, Nigeria is now a middle
income country with a per capita GDP, in 2010, of $ 1,324. And the IMF
projects that GDP will continue to grow strongly at around 7% p.a. for the
immediate future, helping to lift purchasing power further.

As a result, growth in the demand for food has outstripped the capacity of the
country to increase supply. The result is a huge inflow of imports:

    Wheat: In 2010, the country spent $ 4.2 billion importing 3.6 million
    tonnes of wheat, mainly from the US. Nigeria is the 9th largest importer of
    wheat in the world.

    Rice: In 2010, the country spent $ 2.4 billion importing 2.1 million tonnes
    rice from Thailand and China making it the world's 2nd largest importer
    of rice.

    Sugar: In 2010, the country spent $ 1.45 billion importing sugar. It
    imported 1.4 million tonnes in 2010 and imports are set to rise to 1.5
    million tonnes this year.


                                      21
On top of the import of these commodities is a substantial volume of imports
of cowpea, onions, tomatoes and livestock from neighbouring countries. The
country is heavily reliant on its Northern neighbours (Niger, Burkina Faso,
Chad) for its beef, goat meat and mutton. Perturbed by this surge in imports,
the Federal Government of Nigeria (FGN) is intent on developing national
supply. It intends to ban rice imports by 2016. The import of poultry and all
types of meat have been banned for some time.

At the same time, FGN, led by its dynamic new Minister of Agriculture, is
investing heavily in agriculture to increase domestic supply of food. It has
launched two major initiatives:

   Agricultural input supply: Government is moving away from supplying
   inputs itself to developing a private sector led supply system. FGN will
   subsidise the supply of inputs sold by recognised dealers to the tune of
   20%.

   Nigerian Incentive-Based Risk-Sharing System for Agricultural Lending
   (NIRSAL). The Central Bank of Nigeria is about to launch a major new
   initiative that will provide guarantees and incentives to help increase the
   willingness of micro finance institutions, the commercial banks and
   insurance companies to provide finance for agriculture and agribusiness.
   The aim is to cover the entire value chain from farmer to processors and
   retailers. Borrowers that meet interest payments will have half the interest
   paid rebated by NIRSAL.

   Transformation of key crops: The Federal Ministry of Agriculture and
   Rural Development is working with the states to transform productivity of
   Nigeria's key crops providing inputs and equipment.

The Government of Ekiti state is partnering FGN to make sure that these
initiatives will benefit farmers and all forms of agribusiness in the state.



                                     22
Attractive world & domestic prices
Internationally, prices of food and beverages have reached all-time highs. In
2008, world prices were considered to have reached such high peaks that there
was talk of a crisis. Having dipped as a result of the world financial crisis, they
are now back to 2008 levels (figure 1).
Figure 1: World food and beverage prices




Of relevance to Ekiti in particular is the international price of cocoa, of which
the state is a renowned producer. Having dropped during the financial crisis,
they rose again strongly and, although somewhat lower recently, remain at
unprecedentedly high levels (figure 2).
Figure 2: The international price of cocoa




                                        23
Prices in Nigeria are, in general, higher than international levels. For example:

Table 1: International vs domestic prices of commodities produced in Ekiti
(US$/MT)

                            Domestic Price     International Price
                Rice        1,000              547
                Palm oil    1,350              1,045
                Maize       600                280
                Poultry     4,650              2,042


The high price of what Ekiti exports and what the state produces for sale in the
domestic market makes it particularly attractive to produce agricultural
commodities in the state at present.

Location

Situated in the South West of
the country, the state is ideally
placed to supply the large urban
markets:

    Ibadan, with a population
    of 3.6 million, is a distance
    of 173km away by road and
    takes to 2 and half hours to
    reach.

    Lagos is 311 km away and
    takes 4 and half hours by road. It is Africa's largest metropolis. The official
    figure for Lagos's population is 10 million but many observers place it at 15
    million.



                                       24
Abuja, the capital of Nigeria, is 296 km away. However, the road is poor
    taking 6 hours to cover the distance. The population of the Federal Capital
    Territory is estimated by the UN at 2.5 million, growing at 9% p.a.
    Outstanding agricultural potential

The state is blessed with very favourable conditions for agriculture. Of the total
land area of 5,307 square kilometres (km2), some 4,596 is considered suitable
for agriculture. Estimates suggest that upwards of a quarter of the land is not
cultivated and some experts put the figure close to half.

According to the Food and Agricultural Organization (FAO) classification,
soils in the state are of two types: Orthic and Plinthic Luvisols. The former is of
high agricultural value for producing tree crops such as cocoa. The latter,
found in the north, is suitable for arable crops.




The climate is typically lowland rain forest type with mean temperatures of
28C in the south and 30C in the North. Mean relative humidity is 65%. The
north consists of forest savannah and mean annual rainfall in this region is
1600mm. The South is mainly tropical rain forest with mean annual rainfall
of 1800mm. Tree crops abound throughout the state with cocoa, kola, coffee,
citrus and plantains in the South and Mango and cashew in the North. The
terrain is mainly gently undulating plains.


                                       25
There is a long wet season stretching from March to mid-November that allows
two short maturation crops, such as rice, to be grown without irrigation. The
state is the source of 3 major rivers: the Ogbese, Osun and Owena. Other rivers
of note are the Ero, the Osi and Oni.

The plentiful supply of water is captured in six major dams that supply both
water for domestic use and can be used for irrigation: Ero, Egbe, Itapaji, Ureje,
Ayede, Efon. A seventh, at Ogbese, is being constructed now and will be major
source of water for domestic and irrigation purposes. There are also irrigation
schemes, linked to the dams and independent, that can supply water year
round at 3 other sites: Aisegba, Ayo-Illudun, Erio. New sites are planned that
could help to increase the area under irrigation to significant levels. In
addition, the rivers are used for small scale irrigation along the low lying flood
plains (Fadama land) during the dry season and groundwater is readily
accessible through boreholes.

Plentiful supply of good land, a long wet season and ample water for irrigation
means that condition for agriculture are very favourable. The different
vegetation and soil types mean that the state can grow almost any tropical tree
or arable crop and a large variety of fruit and vegetables, as confirmed in the
following section.




                                       26
An attractive business environment

Investors coming to Nigeria are often put off by its poor reputation as a place to
do business. Certainly, the country's rank of 133 out of 183 in the Doing
Business Indicators of the World Bank and its rank of 143 out of 183 in
Transparency International's Corruption Perception Index are not favourable.
Moreover, the country is noted for its poor infrastructure with power outages a
regular occurrence.

There is evidence that things are improving. FGN, assisted by its development
partners, is attempting to introduce reforms that will reduce the cost of doing
business. The Federal Minister of Trade & Investment has set the target of
improving the country's position in the Doing Business Index by 103 positions
making it the top ranked country in Africa. The establishment of an Economic
and Financial Crimes Commission has helped to spotlight corruption. The
coming on stream of new power generation capacity, provided by independent
power producers, is helping to fill the gap between demand and supply
reducing power outages. Moreover, the Nigerian Government gives a 5-year tax
holiday to all agribusiness investments.

At the state level, the current administration of Ekiti state started with the
position that the state was ranked 34 out of 37 states in Nigeria in the sub-
national Doing Business in Nigeria and a large infrastructure deficit. We have
set about improving the business environment working with the Federal and
state agencies responsible. We are establishing a one stop shop for investors.
Investment in new roads is a priority of the state government.

Governor Fayemi has set out an 8 point agenda to set Ekiti on the road to
economic recovery. The 8 points are: 1) Governance; 2) Infrastructural
Development; 3) Modernizing Agriculture; 4) Education & Development of
Human Capital; 5) Health Care Services; 6) Industrial Development; 7)
Tourism & Environmental Sustainability; 8) Gender Equality & Women
Empowerment.


                                       27
The leading place given to good governance reflects the state's motto Land of
Honour, Land of Peace. Whilst the rest of the country has been affected by
civil unrest and violence, Ekiti remains a haven of peace free from the crime
and violence that beset the rest of Nigeria. The priority given to infrastructure
has resulted in better state roads with more being upgraded at present. The
promise to modernize agriculture is being kept with large investments in land
clearing and irrigation and this drive to attract investors to the state.

Ekiti state is open for business. We invite you to join with us to realize the
potential of our agriculture and take advantage of the huge opportunities for
profitable investment in agribusiness. The state will promote and facilitate
investment ensuring that investors can invest with security and confidence that
bureaucratic red tape will not be an obstacle to doing business.




                                       28
WHAT DO WE PRODUCE?
How have we exploited our potential?

Currently, the most important crops produced in the State are maize, cassava,
yam and rice (arable); cocoa, oil palm, and cashew (tree); and fruits and
vegetables (pepper, tomato). Yields for most crops are above the national
average reflecting the state's comparative advantage in agriculture.

Table 3: Agricultural production in Ekiti State, 2011

                Area Cultivated      Production      Yields in Ekiti    National yields
 Arable crops
 Maize            167,200 ha       368,500 MT        2.2 MT/ha           2.8 MT/ha
 Cassava          80,100 ha        1,674,450 MT      20.9 MT/ha          11.1 MT/ha
 Yam (2010)       82,400 ha        1,552,000 MT      18.8 MT/ha          10.2 MT/ha
 Rice             127,810 ha       290,450 MT        2.2 MT/ha           2.0 MT/ha
 Tree crops
 Cocoa            34,288 ha        15,504 MT         0.45 MT/ha          0.2 MT/ha
 Oil Palm         70,800 ha        53,680 MT         0.75 MT/ha          2.7 MT/ha
 Cashew           102,309 trees    66,200 nuts       0.64 kg per tree         -
 Fruits & Vegetables
 Citrus (2010)    600,000 trees    20,500 MT         34.1 kg per tree         -
 Tomato           7,750 ha         20,150 MT         2.6 MT/ha           7.0 MT/ha
 Pepper (2010)    46,900 ha        54,040 MT         1.15 MT/ha               -

Source: All data from ADP except oil palm data which comes from 2009/10 National Survey of
exportable agricultural commodities in Nigeria.

However, yields achieved are still well below their full potential. For example,
white maize yields can be as high as 4 tonnes per hectare in Zimbabwe and, in
the US, yields of yellow maize can easily average above 10MT/ha. Rice yields
can be easily doubled as can cocoa yields. The very low yield for oil palm is due
to the fact that a large proportion of production is simply harvested from the
wild. Fruit and vegetable yields can be increased several times.


                                           29
The state has developed a wide variety of exportable crops. The major exports
at present are cocoa, kola nut, green pepper and cashew. Green pepper is a
relatively new export showing what can be done. There is potential also to
export coffee, rubber, cotton and ginger. Interest has been shown in exporting
cassava to China.

And the state has become a significant centre of poultry and fishery
production. There are 399 fish farms ranging from large, integrated producers
with their own hatcheries to small farmers using earthen ponds. They produce
2,401 tonnes of fish.

What can be done to improve performance?

It is possible, with modest levels
of investment and good
husbandry to improve the
output and yields of all the
major crops and produce and to
add value to crops grown in the
state, as follows.

Cassava: Cassava is grown
throughout the State, though
production is concentrated in
the north. Over the past
decade, cassava production has
increased dramatically although there was a slight decline in production
between 2010 and 2011. Currently, production is around 1,674,450 MT and
yields are significantly higher than the average national yields. Yields can be
increase further with better quality of disease resistant planting material. The
state is working with the FMARD to improve the supply of planting material.
The major constraint to growth of output is the lack of processing facilities.
Prices of tubers are therefore very low, below international levels for


                                      30
considerable periods. There is a major opportunity to process cassava in Ekiti.
The cost of tubers can be 2 or 3 times higher in neighbouring states.

Rice: The State
benefits from a very
long rainy season (from
March to November)
that allows farmers to
produce two rice crops
per year. Over the past
5 years, rice production
increased substantially
reaching 290,450 MT
in 2010. Rice is mainly
produced in Central
Ekiti, where there is
both lowland and upland production. Yields are slightly higher than the
national average. They can be increased substantially by better seeds and
fertiliser use. Irrigation could increase the amount of land that is capable of
producing 3 crops. It is feasible to produce 3 tonnes/ha in upland areas and 7-8
tonnes in lowland, more under irrigation. Moreover, the lack of large, modern
rice mills in Ekiti means that most processing is done inefficiently and the
quality of rice is poor. There is a very good opportunity to invest in processing
rice.

Cocoa: This is the crop that made Ekiti prosperous. Over the past two decades,
cocoa production recorded a sharp decline due to old age of the trees, pest and
diseases and the abandonment of plantations as costs rose. However, in recent
years, there has been a strong recovery. In 2009, Ekiti produced just 5,200 MT.
The revival of prices since then has resulted in a sharp increase in output. In
2011, production increased to 15,504 MT. What it is more this recovery in
production levels was accompanied by the planting of new cocoa trees so the
outlook for the future is bright. Cultivation of cocoa is predominantly in


                                       31
South and Central Ekiti, which enjoy an
ecological zone that is most suitable for cocoa
production. Although yields achieved are higher
than those in the rest of Nigeria, they are still low
by international standards due to the age of trees,
low use of insecticides and fungicides, and the
need to improve husbandry practices. Although
the quality of cocoa is better than the rest of
Nigeria, better fermentation and drying could
improve it further.

Oil palm: Given that most oil palm in Ekiti is
cultivated wild and that trees are old, yields of oil
palm are significantly lower than the national average. Production reached
53,680 MT in 2011. However, the planting of new trees is progressing strongly
and this should result in increased production and yields in the future. The
state is working with the FMARD to distribute seedlings for replanting. Ekiti's
agro climatic conditions, particularly in South West Ekiti, are ideal for the
growth of oil palm. There is plenty of scope for establishing small plantations
in the area. Also, processing remains a very inefficient activity as traditional
methods employed lead to low extraction of oil and poor product quality.
There is no sizeable processing mill in Ekiti. The establishment of a large
processing mill that would process oil palm efficiently is a major commercial
opportunity.

                                      Fruit and vegetables: In the last five years,
                                      there has been a constant increase in the
                                      production of fruits such as oranges, and
                                      vegetables such as tomatoes, pepper and
                                      okra. For example, production of pepper
                                      increased by nearly 6,000 MT between
                                      2009 and 2010, although yields are still
                                      poor. Production is localised in areas next


                                         32
to rivers and streams where smallholder farmers can access perennial sources
of water for irrigation. There is substantial scope to increase irrigated
production of vegetables and to increase fruit production. They offer very
attractive returns to farmers. The establishment of a cold store would enable an
entrepreneur to supply large institutional buyers such as the growing number
of supermarkets and fast food outlets.

Poultry: Although the State is currently not a key player in terms of production
and consumption, there is high demand for white meat in the State and there
is the potential to feed large cities such as Abuja, Ibadan and Lagos. In 2009,
Ekiti produced 4.5 million broilers and 3.5 million layers, an increase of over
2.5 million birds with respect to the previous year. However, all birds are sold at
the local markets due to the lack of any cold store facilities in Ekiti and it is only
some eggs that currently reach markets outside the State. There is a major
opportunity to establish a hatchery in the state to supply day old chicks as none
exists at present. In addition, a modern abattoir capable of slaughtering,
jointing and blast freezing chickens is likely to profit from the substantial
production of chicken in the state. There are no such facilities at present.

Fisheries: Ekiti's production
of fish has been increasing
steadily in the past few years
as new fish farms have been
put into use and more
modern techniques of fish
farming are being
introduced. Moreover, Ekiti
is blessed with numerous
rivers, streams and reservoirs
and a perfect climate for fish
f a r m i n g . I n 2 011,
production reached 2,401
MT from over 2,750 ponds.


                                         33
Most smallholder farmers are concentrated around Ado, Ikere and Idoo-Osi,
in Central Ekiti, and sell all their production at local markets, were demand
still remains unmet. Moreover, the State also generates demand for fingerlings
and feed, which are currently being brought from neighbouring States. A
modern hatchery that can produce and sell good quality fingerlings would find
a ready market as would a produce of pelletized fish feed. There is need also of a
modern filleting, drying and smoking facility to process and add value to the
fish produced.




                                       34
THE INVESTMENT MAP: OPPORTUNITIES FOR INVESTMENT IN EKITI

A Public Private Partnership
Ekiti is open for business. And to make sure that the private sector encounters
the right conditions for investing in Ekiti, the State Government has adopted a
strategy that consists of the following:
       Promote access to land, inputs & equipment needed to increase
       productivity.
       Overcome bottlenecks in value chains that result in low returns to
       farmers.
       Increase proportion of land under commercial cultivation.
       Increase the proportion of high value produce.
       Increase value added within state.

To implement this strategy, we envisage three types of investment:

1. Public investment: The State Government will invest its resources to ensure
that two necessary assets, land and roads, are available for the private sector to
use. More specifically, the public investment will aim to:
      Clear land so that smallholder farmers can increase the size of their
      plots and increase productivity through mechanisation in crops such
      as rice. And for commercial investors, so that they are able to access
      sizeable amounts of land that will allow them to develop nucleus
      estates for the farming of cassava, oil palm, rice and fruit vegetables.
      Rehabilitate and develop rural roads in major producing areas so that
      transport costs are lower and it is easier to access markets.

2. Public Private Partnerships, which will allow the State Government to
partner with the private sector to achieve the following:
    Construction and rehabilitation of irrigation facilities for both
    smallholder and commercial investors. Besides the four dams in the
    State with irrigation facilities (Ayede, Ero, Egbe and Itapaji), a new
    multipurpose dam will be operational in mid-2012 in Ogbese, and three


                                       35
more irrigation schemes (Erio, Aisegba and Osin) are currently being
      developed.
     Implementation of the FMARD input supply scheme of the Federal
     Government, which provides the right input packages to smallholder
     farmers on time and gives them access to private extension services from
     private sector firms such as Notore (fertilizer), Syngenta (agro-chemicals),
     and Premier Seeds.
     Improve access to finance for smallholders and commercial investors
     through NIRSAL, a new scheme developed by the Central Bank of
     Nigeria through the development of outreach mechanisms in the state for
     the banks, insurance and leasing companies and use the guarantees and
     interest rate subsidies provided by the Central Bank of Nigeria.
     Transforming crop value chains Working with FMARD, we will establish
     partnerships with farmers, traders, processors and retailers to transform
     the productivity and efficiency of the value chains of our key crops
     (cassava, rice, oil palm, cocoa).

3. Private investment The State Government will be present at all times to
facilitate and support commercial investors. Most importantly, we will make
the State's 60,000 ha of land available to private investors. We will also support
investors in getting access to all utilities, including water and power; we will
provide additional incentives for investment in the form of exemptions from
State and local tax/duties/levies; and we will provide support in other areas
where the State Government can play a facilitator role.

Besides land, Ekiti State will also make the following assets available for
investors:
      One poultry processing plant in Afao, which includes a
      processing/slaughter house and a feed mill.
      One poultry hatchery in Emirin with an incubator with capacity for
      28,000 eggs and two hatchers with capacity for 18,000 eggs each.
      One fish hatchery in Ado which includes six outdoor concrete tanks, 15
      earthen ponds and one large reservoir.


                                       36
Four cassava processing plants in Orin, Ijero, Eporo and Afao with
     capacity to process cassava into flour, starch, chips and gari.
     One dairy farm in Ikun with capacity for 300 cows and a dairy capable of
     processing 3,000 litres a day of fresh milk.

We are confident that these three types of investment will allow commercial
investors to take advantage of some of the exiting opportunities in the main
crops in the State. To recap, these are:

      In cassava, the development of a large cassava processing plant.
      In rice, the opportunity to grow high yielding varieties on irrigate and to
      establish a large, modern rice mills to improve the quality of rice.
      In cocoa, to establish plantation and source high quality cocoa through
      the improvement of fermentation and drying techniques of smallholder
      farmers.
      In palm oil, the establishment of small plantations and a large processing
      mill.
      In fruits & vegetables, establishing year round production on irrigated
      land and setting up a cold store to supply large institutional buyers such
      as the growing number of supermarkets and fast food outlets.
      In poultry, the development of a hatchery to supply day old chicks and a
      modern abattoir capable of slaughtering, jointing and blast freezing
      chickens.
      In fisheries, a modern hatchery that can produce good quality fingerlings
      and pelletized fish feed. Also, a modern filleting, drying and smoking
      facility to process and add value to the fish produced.

We invite you to come to Ekiti. Please contact the
Permanent Secretary of the Ministry of Agriculture and Natural Resources,
Ekiti State, Mrs. Funmilayo Ajayi at fajayi@ekitistate.gov.ng (tel. +234 803 519
4011) or the General Manager, Farm Settlement & PFD, Engr. S. O. Ilesanmi
at soilsanmi@ekitistate.gov.ng (tel. +234 803 502 4381).



                                       37
GUIDANCE NOTES
TO AGRIC-BASED INVESTMENT
  IN EKITI STATE, NIGERIA




GPS Guidance. Tractor View CL230BP. Matrix® Pro Guidance




                          38
GUIDANCE NOTES TO AGRIC-BASED INVESTMENT IN
EKITI STATE, NIGERIA
Background

Agriculture and agribusiness is the largest contributor to the state GDP and
largest employer (about 70 percent) with majority being small scale subsistence
farmers, especially of the rural population). However, private sector
underinvestment in agriculture; low productivity of agriculture; inconsistent,
uncoordinated and lack of appropriate mechanization technologies are some
of the glaring specific reasons identified for a decline in the sector.

Broad Policy Focus of Current Administration

Despite the agricultural sector's declining experience over the past few years
(due to government neglect and lack of strategic planning), current
administration's focus on agriculture to drive development of the sector had
been clear and strategic. These include:
Deliberate Massive and Aggressive Public Private Sector Partnership and
Synergy - The Ekiti State Government is currently implementing deliberate
measures to facilitate the expansion of private sector participation in the state's
agricultural sector. Both large and medium scale international and local
operators/investors are being supported to invest and operate in the State.
The current administration is aggressively pursuing partnerships with the
private sector to modernise agricultural operations in the state on a medium to
long term plan. Processes and fora/committees are being set up for dialogue,
consultations and to reach mutual agreement of partnership with interested
investors and farmers proposing to invest in Ekiti State.

Creating an Enabling Environment for the Private Sector - To advance a rapid
and sustainable agricultural growth in Ekiti, the current administrator as
recognized that most suitable role for government, is essentially that which



                                       39
creates an enabling environment for efficient operation by private
enterprise/investors. Focus of the administration is focused on creating
necessary infrastructure that will facilitate achievement of investment
objectives in Ekiti State. This includes road construction, support for land
acquisition, support in development of outgrower contract between investors
and relevant organizations, financial linkages e.t.c.

What kind of proposals/projects will be accepted for review?
The proposal implementation must have the potential to accelerate socio-
economic development through inclusive job creation, facilitate private sector
investment and support positive environmental impact. Proposal/project
must be adjudged commercially viable with evidence to contribute to future
IGR of the state, be innovative in terms of agricultural product, service or
business model, must be contextualized to the state relevant market dynamics.
There must be evidence that feasibility studies or market research had come
back positive and which will be implemented upon approval of Commercial
Agriculture Committee through the proposed presented investment plan.

Potential investor (or the lead company in a consortium of potential investors)
must submit proposal indicating areas of business focus, business model and
feasibility with dynamics of implementation and timelines. It must also show
specific areas of support requested from government. The investor must
clearly indicate immediate and long term benefit to the host community and
State; in terms of utilization and development of available human and
material resources i.e. creating sustainable employment, potential partnership
with existing farms to develop operations and local content development.

Proposal submission must also include:

     Evidence of funding availability or support for the proposal
     Evidence of business incorporation indicating particulars of directors
     Past audited accounts and evidence of filing returns
     Evidence of collaboration/partnership (for consortium)


                                      40
Evidence of Intellectual property, if applicable
     Relevant licenses, if applicable

Kindly, note that the state may request additional information when reviewing
proposal submissions. Also, the potential investor (or the lead company in a
consortium of potential investors) must meet the following eligibility criteria:

     Legally incorporated entity
     It is established and is a registered business based in Nigeria with a
     minimum trading history of two (2) years for local investors or registered
     abroad with a minimum business history of three (3) for foreign investors
     At least one (1) year of audited financial statements. However, new
     entities or joint ventures may present the audited statements of their
     main sponsor or shareholders
     Have the capacity to implement the proposed project
     If the applicant offers or plans to offer services of a type which requires it
     to be licensed or regulated in Nigeria, then the entity must provide proof
     of having obtained the license.
     Where an applicant proposes to use in its project intellectual property
     that is protected by law in Nigeria, it must demonstrate proof that it has
     obtained permission to use such intellectual property
     An applicant may partner with other entities to form a consortium who
     jointly applies to invest in Ekiti State. However, the state with only
     recognize the lead party who shall be responsible for the implementation
     of the entire project or agricultural proposal
     There will be no restriction on where the proposed investor is from,
     wether within or outside Nigeria, only that part or the whole of
     agricultural proposal or project must take place in Ekiti State.
     If the proposal is on behalf of a consortium, one organization should be
     the lead proposer and would serve as the primary contact.




                                       41
The EKSG will not support or process proposals that:

     A p p e a r s n ot t o b e f i n a n c i a l l y v i a b l e , b a n k a b l e a n d
     innovatively/positively contribute to development of the agricultural
     sector
     Does not have the potential to generate inclusive jobs and increase IGR
     in the future
     Does not have strong positive environmental consequences

At all levels of review and evaluation, proposals will be evaluated based on
specific criteria which includes proposed investment assessment, commercial
viability of project proposal, applicant's capabilities, strategic relevance to
EKSG 8point agenda

Timelines for Investor Proposal Review and Commencement of Investment
Operations.

The following indicates timeline and actions expected from relevant
institutions during potential proposal review process:

Ministry of Agriculture and Natural Resources (MANR)
    Submission of business proposal, with detailed action plans and
    timelines to fulfil investment obligations and investor responsibility
    Physical meeting with potential investor team for initial review and
    evaluation of proposal (within two weeks of submission of proposal)
    Perfection of document by investor, based on comments from MANR
    (within one week after initial meeting with MANR)
    Final meeting and evaluation with the potential investor by MANR –
    one week after effecting amendment of proposal.

Committee on Commercial Agriculture (CoCA)
   Submission of proposal by MANR to CoCA secretariat and invitation of
   potential investor to make presentation to CoCA
   Presentation to CoCA (within one week after acceptance by MANR)


                                          42
Decision by CoCA on proposal and documentations (two weeks after
     presentation)
     Preparation and signing of MoU (within two weeks after decision by
     CoCA)
     Investors must commence physical activities based on agreed timelines
     (within two (2) months of signing MOU)

Conditions for Land Allocation
There exist two track approaches to land acquisition for agricultural
operations:
i. Direct acquisition by potential investors. This require minimal
    intervention by EKSG
ii. Direct acquisition of land by EKSG and lease to potential investors for
    agricultural operations. This will be based upon satisfactory presentation
    of proposal and agreement reached on timelines and intervention
    approach. The process includes:
     Acquisition of land based on availability, however with preference for
     investor's choice of location
     Land allocated could be capitalized by EKSG under a PPP arrangement
     Quick conduct of required processes to calculate compensation due to
     current land users/occupiers by relevant MDAs. Depending on agreed
     terms, EKSG or investors will be required to pay compensation to
     current land users/occupiers
     Survey of required land by relevant MDAs. The investor will pay
     necessary cost incurred on survey of acquired land
     Issuance of letter of provisional allocation by EKSG based on agreed
     terms
     Issuance of C of O, upon being current with agreed timelines, between
     one and a half years and two years of agricultural operations.
     C of O will only be issued to farmers/investors that have
     practically/physically occupy the land (i.e. operate/cultivate not less
     than 80% of land to qualify for required C of O). We need to see the


                                     43
commissioning, smooth take-off and resultant economic progress of the
    MoU signed with potential investor in terms of field agricultural
    operations, employment opportunities and human empowerment.
    Investors seeking for additional parcel of land (currently operating
    under provisional offer phase) should as a matter fact operate on a
    sizeable portion of initially acquired land (i.e. not less than 80% of land
    to qualify for additional land and required C of O)
    Any land allocated and not/never utilized for agreed agricultural
    operations within six (6) months period will have the approval
    withdrawn
    Revocation of provisional offer is effected upon three consecutive slip in
    delivery timeline and investment project is termed off track within one
    and a half years of issuance of provisional offer letter

LEGAL REQUIREMENTS.
The following documents are requested from proposed investors to ensure
adequate legal documentation with Ekiti State Ministry of Justice:
     Certificate of Incorporation
     Memorandum/Article of Association
     Evidence of filling of Annual Returns.
     Responsibility of both parties
     Sharing ratio of accruals.
     Letter of intent from the Company's Banker




                                     44
ONGOING PROJECTS




Youth in Commercial Agriculture Development (YCAD)




                       45
1. Current World Bank-Assisted Project
FADAMA III Project Report
Background: Fadama Project, a partnership project between the Federal,
State, Local Governmens and the World Bank, took off in Ekiti State in
September 2008 across the 16 LGAs with current financial contributory
performance of 68% (State) and 37% (LGAs) registered i.e. N115.4M and
N35.5M respectively. To date total IDA contribution is N342.8M (fully
disbursed). Also, total project disbursement is N222.5M (i.e. N158.8M
project and N69.2M beneficiary contribution respectively).

With the recruitment of 64 facilitators for intervention and using a local
development approach, the objective of the project is to sustainably boost
micro/small rural agri-business/operations, multiply community and
individual assets and improved on rural infrastructure. It aims to reducing
poverty incidence and ensuring food security. The project is focused on
delivering direct services to benefiting rural communities through a
participatory management and allocation of resources for livelihood activities.

Project Interventions: Since inception, the project had facilitated the
formation of 113 Fadama Community Associations (FCAs), and 1,209
Fadama Users Groups (FUGs). It has supported 310 FUGs in procuring over
5,300nos of productive assets at the cost of over N78.4M. These assets include
cassava processing units (20), oilpalm processing units (6), palm kernel
processing units (6), rice processing unit (1), knapsack sprayers, pumping
machines e.t.c. It has also supported in building fish ponds and poultry pens.
The successes of delivery had yielded collaborative efforts with other
institutions such as British American Tobacco Foundation i.e a joint support
worth N4M from the institution to establish Cassava processing facility to one
of the key FUGs (Soludero FUG).
In terms of infrastructural development, Fadama project had funded to the


                                      46
tune of over N43.2M the construction of small scale community owned
infrastructure such as lock-up shops (19nos with 108 rooms), open market
stalls (13nos with 32 rooms), 2 feeder 9km roads with culverts and one cold
room (of 15ton capacity).

Advisory and input support services are critical element of the project. It has
offered 60 FUGs advisory services, and 203 FUGs input support services at a
total cost of over N39M. These include livestock, fisheries, bee-keeper FUGs.
Also, the project built the capacity of all FUGs and FCAs registered and
enlightened them through sensitization meetings.

Project Impact: The overall impact of Fadama intervention is an increase in
yield of participants by 20% and an average income increase by 46% (based on
differential from baseline – N105,436 and PDO –N154,141 figures) out of
which almost 7% (N2.5M) is saved from net earnings. This is indicative of
increased standard of living of rural beneficiaries. Also, over 160 sustainable
jobs had been created mostly for unemployed youths and women, while some
FUGs have consolidated operations e.g. Agbelehin, Oyinlere and Victory
FUGs now have proper packing and branding of their yam flour, honey and
Palm Kernel Oil respectively.

2. Past World Bank-Assisted Project
Agricultural Development Project (ADP)
Ekiti State Agricultural Development Programmes (EKADEP) is the state
institutions with the mandate to raise agricultural production and improve the
living standard of the rural population through effective Extension Services
delivery to Small and Medium Holder Farmers as a means of promoting the
adoption of improved farming techniques. This is an enduring and successful
World Bank agricultural development support footprint.
Since exit of WB support, the ADP has been able to achieve critical
development milestone from continuous funding support from the State


                                      47
Government, other Development Partners, and Federal government. Project
successfully implemented by ADP includes National Programme for Food
Security (NPFS), Root and Tuber Expansion Programme (RTEP) and
Multinational NERICA Rice Dissemination Project.
National Programme for Food Security (NPFS): 4,420 farmers are currently
benefiting from support, twelve (12) tractors were released to the farmers for
land preparation and haulage of farm produce from farm gate to the urban
centres for marketing, over 2,000 hectares of land had been put to the
cultivation of arable crops like; maize, yam, cassava, rice etc and Sixty (60)
motor-cycles were acquired and release to the Extension Agents, Enumerators,
Chairmen of farmers' groups and Site Managers for effective and efficient
extension delivery.

Root and Tuber Expansion Project (RTEP): Over 1,250 farmers directly
benefited from the project with twelve (12) cassava processing centres
established and transferred to farmers groups and twenty (20) motor-cycles
acquired for effective delivery of agricultural services to farmers in Ekiti State.

The Multinational Nerica Rice Dissemination Project: Over 1,500 farmers
directly benefited from NERICA rice project. Tractor with its accessories,
hand planters (10), threshers (4), reapers (2), mini-rice processing mills (2) were
acquired and used to support farmers operations. The programme has also
rehabilitated and upgraded 51km rural access roads, introduced and
popularised cultivation of new crops and improved seedlings/techniques e.g.
introduction of water melon has resulted in over 500 farm families' livelihood
now dependent on water melon farming in Ekiti. Also, introduction of yam
mini-set technique has increased yam production from 15 to 25 tons per
hectare.

Through ADP's intervention, an institutionalised media programme had


                                       48
been sustained and remained the most interactive and daily educative farming
programmes aired through the radio (Agbeloba) and television (La'here) to
farmers.

3. Planned New Project of the State Government
Youth in Agriculture Development (YCAD) Programme
The Government of Ekiti State will be launching Youth Commercial
Agriculture Development Programme to systematically incentivize youths into
sustainable commercial agriculture. The project will directly generate
employment opportunities to potential young entrepreneurs by promoting
high value crops (HVC) production, processing and their marketing,
transporting from the point of production to storage and processing centers.
This project will be implemented across the 16 Local Government Areas of the
state. However, initial implementation will be concentrated in key areas of
HVC production.
The project beneficiaries will be potential young entrepreneurs with growing
interest in agri-business i.e. commercial agricultural farming, agro-processing
and marketing. Focus will be on unemployed youths, most specifically
graduates and diploma/school certificate holders located (or willing to
relocate) in the identified high potential areas with interest in growing,
processing and marketing HVC such cassava, rice, vegetables and or tree crops
(cocoa, oil palm, banana, fruits)
Major outputs of the Youth Commercial Agriculture Programme will be
increased youth participation and engagement under Commercial
Agriculture in Ekiti State. Potential young entrepreneurs will be empowered
through focused support (such as land acquisition, serviced block support,
factory set-up, marketing support, management/technical capacity
building/training support) to become employed in commercial agricultural
value/market-chain activities.



                                      49
Under the serviced block farm approach, YCAD Prog, provides emergent
farmers with land preparation, tractor services, inputs services and marketing
services at subsidized prices and all on credit and with interest (based on
CACS negotiated rate and terms). EKSG under its land preparation and
investment scheme will acquire, prepare land i.e. land is ploughed and shared
amongst young farmers in blocks under the YCAD Prog. In the long run, big
commercial farmers are to be made from the serviced blocks. Community
youth farmers clustered in an area or institutional/private sector youths
scheme may be considered under the programme (having undergone
thorough due diligence). Specifically YCAD component includes:
     Allocation of ploughed serviced blocks to participating youth farmers for
     commercial agricultural production
     Structure allocation of land with expansion opportunities
     Supply of inputs such as seeds, agro-chemicals (SYNGENTA), fertilizers
     (NOTORE), sacks, and services to facilitate marketing of produce by
     FAMA
     Supply of agricultural cultivation services such as tractor service,
     harvesting services e.t.c. on serviced blocks
     Supply of commercial farm management skills and capacity building
     services by UNDP-AMSCO Team
     Technical support from Agric. Extension staff of ADP, FADAMA,
     MANR, Partner Service Providers
     Training of farmers free of charge on input usage by service providers,
     where the need arises
     Training in other agric. enterprises such as poultry, fisheries,
     aquaculture, and bee keeping for supplementary income.
     Structured disbursement of loan using voucher and direct payment
     systems
     Structured repayment system for loan acquired using estates and
     proceeds from farm

                                     50
KEY CONTACTS




Ekiti State, Nigeria is the emerging destination of choice
    for agric-based investment in sub-saharan Africa.
             We are waiting to hear from you.




                           51
Babajide AROWOSAFE
                                                                          Honourable Commissioner
                                                                 Ministry of Agriculture & Natural Resources




                                                             State Secretariat Complex, Ado-Ekiti, Ekiti State, Nigeria.
                                                        Tel: +234 803 407 1558 | Email: barowosafe@ekitistate.gov.ng




               Reim BODUNRIN
            Honourable Commissioner
Ministry of Commerce, Industries & Cooperatives




   State Secretariat Complex, Ado-Ekiti, Ekiti State, Nigeria.
Tel: +234 805 699 5699 | Email: rbodunrin@ekitistate.gov.ng




                                                         52
Debo AJAYI
                                                                              Honourable Commissioner
                                                                             Ministry of Budget & Planning




                                                             Ministry of Finance, Oke Bareke, GRA, Ado-Ekiti, Ekiti State, Nigeria.
                                                                  Tel: +234 813 639 1967 | Email: dajayi@ekitistate.gov.ng




             Femi TOLANI, Msc (UK), MPA (Harvard), FCA
            Special Adviser to the Governor & Director General




      EKITI STATE PUBLIC PRIVATE PARTNERSHIP OFFICE




     Deputy Governor’s Office, Oke Bareke, GRA, Ado-Ekiti, Ekiti State, Nigeria.
T: +234 708 425 6601 | E: ceo@ekitistateppp.org.ng | W: www.ekitistateppp.org.ng
      “Catalyzing win-win partnerships for the transformation of Ekiti State”




                                                               53
Country side of Ekiti
© April 2012
Ministry of Agriculture and Natural Resources
            www.ekitistate.gov.ng

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AGRICULTURE BUSINESS OPPORTUNITIES IN EKITI STATE, NIGERIA

  • 1. AGRIC BUSINESS IN EKITI STATE, NIGERIA www.ekitistate.gov.ng
  • 2.
  • 3. AGRIC BUSINESS IN EKITI STATE, NIGERIA 3
  • 4. © April 2012 All Rights Reserved Ministry of Agriculture & Natural Resources While all efforts have been made to ensure the accuracy of the contents of this publication at the time of going to press, the publishers are not liable for any circumstantial changes that may occur thereafter. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form, electronic or otherwise, without the express permission of the copyright owner. Designed and produced by Corporate Communications Unit, Office of the Governor.
  • 5. CONTENTS TITLE PAGE 3 DISCLAIMER 4 TABLE OF CONTENTS 5 EKITI STATE PROFILE 6 FOREWORD 10 AGRIC INVESTMENT PROFILE IN EKITI STATE, NIGERIA 14 WHY INVEST IN AGRIC SECTOR IN EKITI STATE, NIGERIA 20 GUIDANCE NOTES TO AGRIC-BASED INVESTMENT IN EKITI STATE, NIGERIA 38 ONGOING PROJECTS 45 KEY CONTACTS 51 5
  • 6. EKITI STATE, NIGERIA THE LAND OF HONOUR Ekiti State is one of the 36 states in the Okemesi-Ekiti. An important feature of Federal Republic of Nigeria. The state's the state is the large number of symbol speaks to the uniqueness of her mountains and hills it possesses. Ekiti heritage, the physical attributes of her has a rhythmically undulating surface. In fruitful land, as well as the character and fact, the word 'Ekiti' is derived from the aspirations of the Ekiti people. Ekiti is local term for 'land of hills' which is 'Ile referred to as Ile Iyi, Ile Eye (Land of olokiti'. Honour) HISTORY Ekiti was an independent state prior to GEOGRAPHY the British colonial conquest. It was one The State is situated entirely within the of the many Yoruba states in what is tropics and is located between longitudes today known as Nigeria. Ekiti as a nation, like other sub-ethnic divisions of the 40 51 and 50 451 East of the Greenwich 0 1 0 1 Yoruba race, traces its progeny to meridian, and latitudes 7 15 and 8 5 Oduduwa, and to Ile-Ife (the cradle of north of the Equator. It lies south of Yorubaland) as its origin. According to Kwara and Kogi States, east of Osun State and is bounded by Ondo State in the east and in the south. Ekiti is an upland zone and stands 250 metres above sea level. The landscape consists of ancient plains broken by steep-sided outcropping dome rocks. These rocks occur singularly or in groups or ridges with the most notable of these found in Ikogosi springs Efon-Alaaye Ekiti, Ikere-Ekiti and 6
  • 7. legend, the Olofin, one of the sons of the trade winds blow in the rainy and dry Oduduwa, had sixteen (16) children and (Harmattan) seasons respectively. in the course of searching for new land to develop, they all journeyed out of Ile-Ife. DEMOGRAPHICS In the course of that historic journey, Ekitis are culturally homogeneous and many of them settled along the way, with they speak a dialect of Yoruba language the ancestors of present day Ekiti known as 'Ekiti'. This homogeneous indigenes continuing their journey to nature confers on the state some settle in Ekiti land. uniqueness among within the Nigerian Modern day Ekiti as a State and a federation. All the towns in Ekiti State federating unit in the Federal Republic take on a common suffix, “Ekiti,” after of Nigeria was formed out of Old Ondo their names. The main staple food of the State on October 1, 1996. people of Ekiti is pounded yam with vegetable soup. WEATHER AND CLIMATE Ekiti has a refreshing weather, typically NATURAL RESOURCES enjoying tropical climate with two Ekiti is endowed with numerous natural distinct seasons. These are the rainy resources. The state possesses rich season (April–October) and the dry deposits of minerals, including granite, season (November–March). kaolin, columbite, charnockite, iron ore, Temperature ranges in the State between baryte, aquamine, gemstone, phosphate, 21° and 28°C, with the atmosphere limestone, among others. The land is evincing a high degree of humidity. The also buoyant in agricultural terms, with south westerly wind and the northeast cocoa being its leading cash crop. It is widely known that Ekiti accounted for well over 40% of the cocoa products of the then old Western Region. The land is also known for its forest resources, notably the supply of timber. Because of the favorable climatic conditions, the land enjoys luxuriant vegetation, thus it has abundant resources of different species of timber. Food crops like yam, Scenic view of Ado-Ekiti cassava, and also grains like rice and 7
  • 8. maize are grown in large qualities in POPULATION Ekiti. Other notable crops like kola The 2006 census by the National nut and varieties of fruits are also Population Commission put the number of cultivated in commercial quantities in inhabitants of Ekiti State at 2,384,212 the State. people. Ekiti State is also blessed with several POLITICAL STRUCTURE Ekiti State has three arms of government namely, the Executive, the Legislature and the Judiciary. The current executive government is headed by Governor Kayode FAYEMI, while the legislature and judiciary are headed by Rt. Hon. (Dr.) Adewale Albert OMIRIN (Speaker, House of Native Dancers in Ekiti Assembly) and Hon. Justice Ayodeji DARAMOLA (Acting Chief Judge) water bodies, and worthy of note is the respectively. Ikogosi springs – the only place in the world where warm and cold water As a State in the Federal Republic of springs occur naturally side-by-side. Nigeria, Ekiti State has 3 (three) senators More so, a variety of tourist attractions and 6 (six) members of the House of abound in the state, namely: Ikogosi Representatives in the Nigerian National Warm Spring; Ipole - Iloro Water Assembly. The state has 16 autonomously Falls; Olosunta hills, Ikere; Fajuyi governed Local Government Councils. Memorial Park, Ado- Ekiti, and so on. The Ikogosi tourist centre is the most To learn more about Ekiti State, Nigeria, popular and the most developed. The please visit www.ekitistate.gov.ng warm spring is a unique natural feature, and supporting hospitality facilities are being developed at this unique location. The spring water is at present being processed and packaged into bottles for commercial purpose by a private company - UAC Nigeria. 8
  • 9. Top & Bottom: Local Farmers displaying their produce 9
  • 10. THE AGRICULTURAL RENAISSANCE IN EKITI As we know, with the vast agricultural resource potential in Africa, it remains a concern that most countries within the continent are still grappling with issues of food security, with major part of its population trapped within the poverty cycle. Agenda 3 of Ekiti State Road Map to Recovery marks a significant step in our pursuit of re-positioning the state in the League of states in Nigeria, driving prosperity through agri-business operations that could eradicate economic poverty and essentially drive achievement of the Millennium Development Goals. “ Agriculture over the years has driven In Ekiti State, we have taken the bold step of recognizing agricultureeconomic growth in Ekiti State. It accounts for over 70% of as a business. We are focused on developing platforms that will transform the current situation employment and constitute a of subsistence low productivity farming and significant portion of the trade processing into modernized, commercial and technological driven operations within. Emerging opportunities, that will guarantee massive job and wealth creation to with deliberate transformation in our people. I am proud to announce that key development partners such as the World Bank, this space holds a significant impart UNDP, DFID, UNIDO and other bilateral “ that will not only transform the state's are facilitating these processes for us. economy, but add the necessary flavor to the massively required inclusive growth regime. In Ekiti State, we have taken the bold step of recognizing agriculture as a business. We are focused on developing platforms that will transform the current situation of subsistence low productivity farming and processing into modernized, commercial and technological driven operations that will guarantee massive job and wealth creation to our people. I am proud to announce that key development partners such as the World Bank, UNDP, DFID, UNIDO and other bilateral are facilitating these processes for us. I must commend our current partners and investors on their agenda to drive agribusiness and agro-industrial revolution in Ekiti. My believe is that such a revolution will bring sustained investment in the entire agribusiness value 10
  • 11. chain, which, in turn, will raise productivity and yields, improve competitiveness and increase profits in the rural economies like ours. In particular, our focus in Ekiti State had been on improving the regulatory, institutional, and financing framework to promote modern and commercial agriculture along the entire value chain for most crops where we have comparative advantages. Also, my administration is responding to key infrastructural challenges that will facilitate development of agricultural production, processing and other related opportunities. Of mention is our aggressive, but focused, rural development policies and interventions to develop rural infrastructure such as roads, agricultural processing hubs and drive market linkages for our produce and processed outputs. In continuation of institutional commitment towards ensuring agricultural transformation and development of commodity value chains and agri- business, we will continue to explore and remain dedicated to possible ways of collaborating and complementing resources of relevant institutions and states across the country to solve challenges of agro-processing, most especially through private sector participation. This initiative will definitely promote the creation of additional jobs and improve income for these groups. Hence, facilitate quality economic growth and equitable development in terms of inclusiveness. Let me say at this juncture that government alone will not be able to provide the required investment to transform agriculture and agri-business; Donors and the Private Sector will have to partner with Ekiti State Government to meet the necessary investment level to foster and catalyze this needed change. Support should include technical, capacity building initiative from donors and massive private sector inclusive investment in agri-processing. We in government will continue to create the right regulatory environment and support to encourage private sector investment within the state. I am impressed with the conscious effort and focused approach being 11
  • 12. employed by relevant MDAs in developing and transforming agriculture within the state, particularly effort in launching the YCAD Programme. This remains one of the best ways to jumpstart active participation of youths in commercial agriculture to deliver sustainable agriculture in Nigeria. Thank you. Dr. Kayode FAYEMI Governor, Ekiti State, Nigeria 12
  • 13. Dr. Kayode FAYEMI Governor, Ekiti State, Nigeria 13
  • 14. AGRICULTURE INVESTMENT PROFILE IN EKITI STATE, NIGERIA Tractors acquired by the Government of Ekiti State, Nigeria to stimulate mechanized agriculture. 14
  • 15. EKITI STATE AGRICULTURAL INVESTMENT PROFILE Background Ekiti State is laced with some of the richest agricultural lands in Africa and huge potential to develop a sustainable commercial farming sector with significant economic gains for the state and Nigerian economy. It enjoys favourable climates that support rainfed and irrigated agriculture, livestock production and resource for inland fisheries. With a population above 2 million people and a total land area of 5,306.72km, only 7% is currently farmed by smallholder farmers using traditional methods, primarily for subsistence, out of total agricultural land Area of 530,674.42ha. Less than 4,000ha is farmed commercially. The food crop cultivated in the state include cassava, maize, yam and vegetables, while the cash crop include cocoa, palm oil, cotton, banana/plantain and fruits such as cashew. Ekiti State Agricultural Sector Geography with Comparative Advantage: Ekiti State lies within two climatic and geographic types, a blend of equatorial and tropical in the southern area and savanna in the northern fringe giving rise to rainforest and savannah vegetations respectively. The state is also transverse by various river bodies and winding hill of significant agricultural benefits. These enormous resources are yet to be fully exploited. Advantaged Natural Resources: There are ample land with suitable soils that grows most major high valued crops, benign climatic conditions and reliable, all-year-round water resources. High Value Crop and Livestock Production: With comparative advantage in major commodity value chains in Nigeria, Ekiti State has the highest yield per hectare for cassava and the best grade cocoa, sort after for mixing to achieve good blend grade. Also, excellent production with processing conditions for upland/lowland rice, oilpalm, fruit and livestocks. Adequate but Growing Supportive Backbone Infrastructure: There is 15
  • 16. adequate access to agricultural-supporting infrastructure, in the form of power grids network, planned irrigation facility, constructed transport links from agricultural hubs to major markets in Nigeria (Abuja, Lagos, Ibadan e.t.c.) with huge plans for expansion programme. Also, there exist plans for provision of agro-processing hubs with functional industrial estates and parks to be allocated to investors/entrepreneurs at reduced land premium. These coupled with nearby rail and airport operations in neighboring states assure investors of seamless agri-business activities. Vantage Market Position: As an established agricultural trade and transit hub linking the northern and southern markets of over 160million population, the state remains the future hub for commercial agriculture. Agricultural produce could easily find markets among itinerant traders from the north and the south of the country. Skilled and Low Cost Labour: There is an abundance of skilled labour at an economic cost, resulting in production costs, which are among the lowest in Nigeria. Also available in the state is the existence of a pool of unskilled labour ready for use at a comparatively lower cost. Political Stability and Security: As the needed platform for economic and business growth, Ekiti State offers stable political environment and adequate security. Based on its peaceful and quite state, Ekiti State had been adjudged a favorable climate for business and industrial ventures. Attractive Incentives and Supportive Platform to Facilitate Doing Business in Ekiti State: With a commitment in making Ekiti State a preferred destination for investment, a comprehensive package of incentives has been put in place to attract investment within and outside Nigeria. This includes: One Stop Shop for Investors Under the newly established “One Stop Shop for Investors”, a streamlined bureaucracy and regulatory environment now exist for potential and existing 16
  • 17. investors within the state. This platform removes envisaged investment bottlenecks by facilitating, promoting, and coordinating investments processes such as business entry permits, licenses, authorizations and incentives within a One-Stop-Shop environment for investors. The services are provided in a fast-tracked, co-ordinated, streamlined, efficient and transparent manner to meet the needs of investors. Facilitation of Agricultural and Agro-Processing Land Acquisition Upon fulfillment and submission of necessary documentations, the State Government supports and facilitates land acquisition for agricultural and agro-processing for the private investors. Support includes accelerated processing of title and other related document e.g. Certificate of Occupancy, Letter of Consent, and Provisional Offer etc. This can be concluded within two weeks for 'serious' investors committed to immediate investment in Ekiti State. Tax Breaks with Facilitative Fiscal Policy Measure There exists a window to exempt new industries from rates and levies in the first three years of operations to support investments in Ekiti State. Also existing is a national approval of facilitative fiscal policy measures such as 0% duty on agricultural machinery/equipment importation and equipment for processing cassava flour for composite flour blending, with effect from 31st January, 2012. Importation of cassava flour shall be prohibited, to encourage local production, with effect from 31st March, 2012. Community Mobilization The state offers support in facilitating linkages and partnerships with local agricultural communities and mobilizing local resources to support business operations for investors. This had proved valuable in striking community support for outgrowers scheme and inclusive business operations. This is also extended to assist investors to source available human resources, local technical partners and raw material for planned operations. 17
  • 18. Financial, Equipment Acquisition and Information Support Un d e r e x i s t i n g p a r t n e r s h i p w i t h f i n a n c i a l i n s t i t u t i o n s , machinery/equipments suppliers, associations' e.t.c. the State Government facilitate access credit facilities and negotiation platform for enabling business resources being sort by investors under different existing programmes at the federal, state and local government levels. Also, it provides ready investment information and database to assist investors on investment decisions. Dedicated Committee to Fast Track Investment Proposal There exists a state Commercial Agriculture Committee platform set up with the mandate to mobilise private sector investments and partnerships to help achieve the goals of Ekiti State agricultural strategy. The committee support in fast tracking investment proposals from the private sector institutions. Membership of the partnership platform includes government representatives, private sector development experts, PPP experts, and private sector business representatives Ekiti State’s Immediate Investment Potentials and Offerings Under the current existing supportive business environment that can be compared to non across Nigeria, there exist huge potential to invest in: a. Production and Processing of High Value Crop Develop over 464,100ha of available agricultural land for mechanised farming operations. Hence, the state's current call for the private sector to mobilise new investment in promoting a modern and profitable agriculture production and agro-processing of key high value crop that the state has comparative advantages i.e. cassava, rice, cocoa, oilpalm, cashew e.t.c. Planned target for processing includes production of high quality cassava flour, cassava chips, ethanol, high quality rice and cocoa products. 18
  • 19. b. High Potential Forestry Value Chain Investment Operations With a scheduled forest reserve size of almost 30,000ha, Ekiti State is rich in high-value timber for which there is continued high demand within Nigeria and outside. There is an active space in tree planting in Ekiti for private investors. The forestry value chain is one of the state's valuable sectors with growth potential for international private plantation and forestry investment. This will include forestry product processing and marketing. c. Abandoned Government Facilities for Private Sector Take Over There exist a moribund dairy farm seeking private sector take over for resuscitation. This was initially planned and established as an integrated dairy operation with installed capacity believed to be the biggest of pasteurized milk per day and for yoghurts production in Nigeria. Dotted around the state are other various agricultural facilities with certain economic value, initially ran by the state, being considered for private sector take over under various Public-Private-Partnership (PPP) options. This includes 3 medium scale cassava starch processing mills, a rice processing mill, farm settlement centres, a fish farm, uncompleted silo projects, largest seed processing plant in South Western Nigeria, an hatchery, a feedmill and several other livestock facilities (poultry, piggery e.t.c). Ekiti State, Nigeria is the emerging destination of choice for agric-based investment in sub-saharan Africa. 19
  • 20. WHY INVEST IN AGRICULTURE IN EKITI STATE The Government of Ekiti State, Nigeria is creating the right regulatory environment and support to encourage private sector in the State. 20
  • 21. WHY INVEST IN AGRICULTURE IN EKITI? Feeding Nigeria In 2010, the World Bank estimated that Nigeria's population exceeded 158 million making it the most populous country in Africa by far. Feeding this large number is a challenge, especially when account is taken of the large urban population that is entirely dependent on others to supply them with food. In 2010, some 78.8 million people, nearly 50% of the total population, lived in urban centres and Nigeria will become a predominantly urban country in the near future. What is more, Nigerians now have the purchasing power to afford to eat well. The economy has been growing rapidly. Between 2005 and 2010, annual GDP growth averaged 6.7% p.a. According to the IMF, Nigeria is now a middle income country with a per capita GDP, in 2010, of $ 1,324. And the IMF projects that GDP will continue to grow strongly at around 7% p.a. for the immediate future, helping to lift purchasing power further. As a result, growth in the demand for food has outstripped the capacity of the country to increase supply. The result is a huge inflow of imports: Wheat: In 2010, the country spent $ 4.2 billion importing 3.6 million tonnes of wheat, mainly from the US. Nigeria is the 9th largest importer of wheat in the world. Rice: In 2010, the country spent $ 2.4 billion importing 2.1 million tonnes rice from Thailand and China making it the world's 2nd largest importer of rice. Sugar: In 2010, the country spent $ 1.45 billion importing sugar. It imported 1.4 million tonnes in 2010 and imports are set to rise to 1.5 million tonnes this year. 21
  • 22. On top of the import of these commodities is a substantial volume of imports of cowpea, onions, tomatoes and livestock from neighbouring countries. The country is heavily reliant on its Northern neighbours (Niger, Burkina Faso, Chad) for its beef, goat meat and mutton. Perturbed by this surge in imports, the Federal Government of Nigeria (FGN) is intent on developing national supply. It intends to ban rice imports by 2016. The import of poultry and all types of meat have been banned for some time. At the same time, FGN, led by its dynamic new Minister of Agriculture, is investing heavily in agriculture to increase domestic supply of food. It has launched two major initiatives: Agricultural input supply: Government is moving away from supplying inputs itself to developing a private sector led supply system. FGN will subsidise the supply of inputs sold by recognised dealers to the tune of 20%. Nigerian Incentive-Based Risk-Sharing System for Agricultural Lending (NIRSAL). The Central Bank of Nigeria is about to launch a major new initiative that will provide guarantees and incentives to help increase the willingness of micro finance institutions, the commercial banks and insurance companies to provide finance for agriculture and agribusiness. The aim is to cover the entire value chain from farmer to processors and retailers. Borrowers that meet interest payments will have half the interest paid rebated by NIRSAL. Transformation of key crops: The Federal Ministry of Agriculture and Rural Development is working with the states to transform productivity of Nigeria's key crops providing inputs and equipment. The Government of Ekiti state is partnering FGN to make sure that these initiatives will benefit farmers and all forms of agribusiness in the state. 22
  • 23. Attractive world & domestic prices Internationally, prices of food and beverages have reached all-time highs. In 2008, world prices were considered to have reached such high peaks that there was talk of a crisis. Having dipped as a result of the world financial crisis, they are now back to 2008 levels (figure 1). Figure 1: World food and beverage prices Of relevance to Ekiti in particular is the international price of cocoa, of which the state is a renowned producer. Having dropped during the financial crisis, they rose again strongly and, although somewhat lower recently, remain at unprecedentedly high levels (figure 2). Figure 2: The international price of cocoa 23
  • 24. Prices in Nigeria are, in general, higher than international levels. For example: Table 1: International vs domestic prices of commodities produced in Ekiti (US$/MT) Domestic Price International Price Rice 1,000 547 Palm oil 1,350 1,045 Maize 600 280 Poultry 4,650 2,042 The high price of what Ekiti exports and what the state produces for sale in the domestic market makes it particularly attractive to produce agricultural commodities in the state at present. Location Situated in the South West of the country, the state is ideally placed to supply the large urban markets: Ibadan, with a population of 3.6 million, is a distance of 173km away by road and takes to 2 and half hours to reach. Lagos is 311 km away and takes 4 and half hours by road. It is Africa's largest metropolis. The official figure for Lagos's population is 10 million but many observers place it at 15 million. 24
  • 25. Abuja, the capital of Nigeria, is 296 km away. However, the road is poor taking 6 hours to cover the distance. The population of the Federal Capital Territory is estimated by the UN at 2.5 million, growing at 9% p.a. Outstanding agricultural potential The state is blessed with very favourable conditions for agriculture. Of the total land area of 5,307 square kilometres (km2), some 4,596 is considered suitable for agriculture. Estimates suggest that upwards of a quarter of the land is not cultivated and some experts put the figure close to half. According to the Food and Agricultural Organization (FAO) classification, soils in the state are of two types: Orthic and Plinthic Luvisols. The former is of high agricultural value for producing tree crops such as cocoa. The latter, found in the north, is suitable for arable crops. The climate is typically lowland rain forest type with mean temperatures of 28C in the south and 30C in the North. Mean relative humidity is 65%. The north consists of forest savannah and mean annual rainfall in this region is 1600mm. The South is mainly tropical rain forest with mean annual rainfall of 1800mm. Tree crops abound throughout the state with cocoa, kola, coffee, citrus and plantains in the South and Mango and cashew in the North. The terrain is mainly gently undulating plains. 25
  • 26. There is a long wet season stretching from March to mid-November that allows two short maturation crops, such as rice, to be grown without irrigation. The state is the source of 3 major rivers: the Ogbese, Osun and Owena. Other rivers of note are the Ero, the Osi and Oni. The plentiful supply of water is captured in six major dams that supply both water for domestic use and can be used for irrigation: Ero, Egbe, Itapaji, Ureje, Ayede, Efon. A seventh, at Ogbese, is being constructed now and will be major source of water for domestic and irrigation purposes. There are also irrigation schemes, linked to the dams and independent, that can supply water year round at 3 other sites: Aisegba, Ayo-Illudun, Erio. New sites are planned that could help to increase the area under irrigation to significant levels. In addition, the rivers are used for small scale irrigation along the low lying flood plains (Fadama land) during the dry season and groundwater is readily accessible through boreholes. Plentiful supply of good land, a long wet season and ample water for irrigation means that condition for agriculture are very favourable. The different vegetation and soil types mean that the state can grow almost any tropical tree or arable crop and a large variety of fruit and vegetables, as confirmed in the following section. 26
  • 27. An attractive business environment Investors coming to Nigeria are often put off by its poor reputation as a place to do business. Certainly, the country's rank of 133 out of 183 in the Doing Business Indicators of the World Bank and its rank of 143 out of 183 in Transparency International's Corruption Perception Index are not favourable. Moreover, the country is noted for its poor infrastructure with power outages a regular occurrence. There is evidence that things are improving. FGN, assisted by its development partners, is attempting to introduce reforms that will reduce the cost of doing business. The Federal Minister of Trade & Investment has set the target of improving the country's position in the Doing Business Index by 103 positions making it the top ranked country in Africa. The establishment of an Economic and Financial Crimes Commission has helped to spotlight corruption. The coming on stream of new power generation capacity, provided by independent power producers, is helping to fill the gap between demand and supply reducing power outages. Moreover, the Nigerian Government gives a 5-year tax holiday to all agribusiness investments. At the state level, the current administration of Ekiti state started with the position that the state was ranked 34 out of 37 states in Nigeria in the sub- national Doing Business in Nigeria and a large infrastructure deficit. We have set about improving the business environment working with the Federal and state agencies responsible. We are establishing a one stop shop for investors. Investment in new roads is a priority of the state government. Governor Fayemi has set out an 8 point agenda to set Ekiti on the road to economic recovery. The 8 points are: 1) Governance; 2) Infrastructural Development; 3) Modernizing Agriculture; 4) Education & Development of Human Capital; 5) Health Care Services; 6) Industrial Development; 7) Tourism & Environmental Sustainability; 8) Gender Equality & Women Empowerment. 27
  • 28. The leading place given to good governance reflects the state's motto Land of Honour, Land of Peace. Whilst the rest of the country has been affected by civil unrest and violence, Ekiti remains a haven of peace free from the crime and violence that beset the rest of Nigeria. The priority given to infrastructure has resulted in better state roads with more being upgraded at present. The promise to modernize agriculture is being kept with large investments in land clearing and irrigation and this drive to attract investors to the state. Ekiti state is open for business. We invite you to join with us to realize the potential of our agriculture and take advantage of the huge opportunities for profitable investment in agribusiness. The state will promote and facilitate investment ensuring that investors can invest with security and confidence that bureaucratic red tape will not be an obstacle to doing business. 28
  • 29. WHAT DO WE PRODUCE? How have we exploited our potential? Currently, the most important crops produced in the State are maize, cassava, yam and rice (arable); cocoa, oil palm, and cashew (tree); and fruits and vegetables (pepper, tomato). Yields for most crops are above the national average reflecting the state's comparative advantage in agriculture. Table 3: Agricultural production in Ekiti State, 2011 Area Cultivated Production Yields in Ekiti National yields Arable crops Maize 167,200 ha 368,500 MT 2.2 MT/ha 2.8 MT/ha Cassava 80,100 ha 1,674,450 MT 20.9 MT/ha 11.1 MT/ha Yam (2010) 82,400 ha 1,552,000 MT 18.8 MT/ha 10.2 MT/ha Rice 127,810 ha 290,450 MT 2.2 MT/ha 2.0 MT/ha Tree crops Cocoa 34,288 ha 15,504 MT 0.45 MT/ha 0.2 MT/ha Oil Palm 70,800 ha 53,680 MT 0.75 MT/ha 2.7 MT/ha Cashew 102,309 trees 66,200 nuts 0.64 kg per tree - Fruits & Vegetables Citrus (2010) 600,000 trees 20,500 MT 34.1 kg per tree - Tomato 7,750 ha 20,150 MT 2.6 MT/ha 7.0 MT/ha Pepper (2010) 46,900 ha 54,040 MT 1.15 MT/ha - Source: All data from ADP except oil palm data which comes from 2009/10 National Survey of exportable agricultural commodities in Nigeria. However, yields achieved are still well below their full potential. For example, white maize yields can be as high as 4 tonnes per hectare in Zimbabwe and, in the US, yields of yellow maize can easily average above 10MT/ha. Rice yields can be easily doubled as can cocoa yields. The very low yield for oil palm is due to the fact that a large proportion of production is simply harvested from the wild. Fruit and vegetable yields can be increased several times. 29
  • 30. The state has developed a wide variety of exportable crops. The major exports at present are cocoa, kola nut, green pepper and cashew. Green pepper is a relatively new export showing what can be done. There is potential also to export coffee, rubber, cotton and ginger. Interest has been shown in exporting cassava to China. And the state has become a significant centre of poultry and fishery production. There are 399 fish farms ranging from large, integrated producers with their own hatcheries to small farmers using earthen ponds. They produce 2,401 tonnes of fish. What can be done to improve performance? It is possible, with modest levels of investment and good husbandry to improve the output and yields of all the major crops and produce and to add value to crops grown in the state, as follows. Cassava: Cassava is grown throughout the State, though production is concentrated in the north. Over the past decade, cassava production has increased dramatically although there was a slight decline in production between 2010 and 2011. Currently, production is around 1,674,450 MT and yields are significantly higher than the average national yields. Yields can be increase further with better quality of disease resistant planting material. The state is working with the FMARD to improve the supply of planting material. The major constraint to growth of output is the lack of processing facilities. Prices of tubers are therefore very low, below international levels for 30
  • 31. considerable periods. There is a major opportunity to process cassava in Ekiti. The cost of tubers can be 2 or 3 times higher in neighbouring states. Rice: The State benefits from a very long rainy season (from March to November) that allows farmers to produce two rice crops per year. Over the past 5 years, rice production increased substantially reaching 290,450 MT in 2010. Rice is mainly produced in Central Ekiti, where there is both lowland and upland production. Yields are slightly higher than the national average. They can be increased substantially by better seeds and fertiliser use. Irrigation could increase the amount of land that is capable of producing 3 crops. It is feasible to produce 3 tonnes/ha in upland areas and 7-8 tonnes in lowland, more under irrigation. Moreover, the lack of large, modern rice mills in Ekiti means that most processing is done inefficiently and the quality of rice is poor. There is a very good opportunity to invest in processing rice. Cocoa: This is the crop that made Ekiti prosperous. Over the past two decades, cocoa production recorded a sharp decline due to old age of the trees, pest and diseases and the abandonment of plantations as costs rose. However, in recent years, there has been a strong recovery. In 2009, Ekiti produced just 5,200 MT. The revival of prices since then has resulted in a sharp increase in output. In 2011, production increased to 15,504 MT. What it is more this recovery in production levels was accompanied by the planting of new cocoa trees so the outlook for the future is bright. Cultivation of cocoa is predominantly in 31
  • 32. South and Central Ekiti, which enjoy an ecological zone that is most suitable for cocoa production. Although yields achieved are higher than those in the rest of Nigeria, they are still low by international standards due to the age of trees, low use of insecticides and fungicides, and the need to improve husbandry practices. Although the quality of cocoa is better than the rest of Nigeria, better fermentation and drying could improve it further. Oil palm: Given that most oil palm in Ekiti is cultivated wild and that trees are old, yields of oil palm are significantly lower than the national average. Production reached 53,680 MT in 2011. However, the planting of new trees is progressing strongly and this should result in increased production and yields in the future. The state is working with the FMARD to distribute seedlings for replanting. Ekiti's agro climatic conditions, particularly in South West Ekiti, are ideal for the growth of oil palm. There is plenty of scope for establishing small plantations in the area. Also, processing remains a very inefficient activity as traditional methods employed lead to low extraction of oil and poor product quality. There is no sizeable processing mill in Ekiti. The establishment of a large processing mill that would process oil palm efficiently is a major commercial opportunity. Fruit and vegetables: In the last five years, there has been a constant increase in the production of fruits such as oranges, and vegetables such as tomatoes, pepper and okra. For example, production of pepper increased by nearly 6,000 MT between 2009 and 2010, although yields are still poor. Production is localised in areas next 32
  • 33. to rivers and streams where smallholder farmers can access perennial sources of water for irrigation. There is substantial scope to increase irrigated production of vegetables and to increase fruit production. They offer very attractive returns to farmers. The establishment of a cold store would enable an entrepreneur to supply large institutional buyers such as the growing number of supermarkets and fast food outlets. Poultry: Although the State is currently not a key player in terms of production and consumption, there is high demand for white meat in the State and there is the potential to feed large cities such as Abuja, Ibadan and Lagos. In 2009, Ekiti produced 4.5 million broilers and 3.5 million layers, an increase of over 2.5 million birds with respect to the previous year. However, all birds are sold at the local markets due to the lack of any cold store facilities in Ekiti and it is only some eggs that currently reach markets outside the State. There is a major opportunity to establish a hatchery in the state to supply day old chicks as none exists at present. In addition, a modern abattoir capable of slaughtering, jointing and blast freezing chickens is likely to profit from the substantial production of chicken in the state. There are no such facilities at present. Fisheries: Ekiti's production of fish has been increasing steadily in the past few years as new fish farms have been put into use and more modern techniques of fish farming are being introduced. Moreover, Ekiti is blessed with numerous rivers, streams and reservoirs and a perfect climate for fish f a r m i n g . I n 2 011, production reached 2,401 MT from over 2,750 ponds. 33
  • 34. Most smallholder farmers are concentrated around Ado, Ikere and Idoo-Osi, in Central Ekiti, and sell all their production at local markets, were demand still remains unmet. Moreover, the State also generates demand for fingerlings and feed, which are currently being brought from neighbouring States. A modern hatchery that can produce and sell good quality fingerlings would find a ready market as would a produce of pelletized fish feed. There is need also of a modern filleting, drying and smoking facility to process and add value to the fish produced. 34
  • 35. THE INVESTMENT MAP: OPPORTUNITIES FOR INVESTMENT IN EKITI A Public Private Partnership Ekiti is open for business. And to make sure that the private sector encounters the right conditions for investing in Ekiti, the State Government has adopted a strategy that consists of the following: Promote access to land, inputs & equipment needed to increase productivity. Overcome bottlenecks in value chains that result in low returns to farmers. Increase proportion of land under commercial cultivation. Increase the proportion of high value produce. Increase value added within state. To implement this strategy, we envisage three types of investment: 1. Public investment: The State Government will invest its resources to ensure that two necessary assets, land and roads, are available for the private sector to use. More specifically, the public investment will aim to: Clear land so that smallholder farmers can increase the size of their plots and increase productivity through mechanisation in crops such as rice. And for commercial investors, so that they are able to access sizeable amounts of land that will allow them to develop nucleus estates for the farming of cassava, oil palm, rice and fruit vegetables. Rehabilitate and develop rural roads in major producing areas so that transport costs are lower and it is easier to access markets. 2. Public Private Partnerships, which will allow the State Government to partner with the private sector to achieve the following: Construction and rehabilitation of irrigation facilities for both smallholder and commercial investors. Besides the four dams in the State with irrigation facilities (Ayede, Ero, Egbe and Itapaji), a new multipurpose dam will be operational in mid-2012 in Ogbese, and three 35
  • 36. more irrigation schemes (Erio, Aisegba and Osin) are currently being developed. Implementation of the FMARD input supply scheme of the Federal Government, which provides the right input packages to smallholder farmers on time and gives them access to private extension services from private sector firms such as Notore (fertilizer), Syngenta (agro-chemicals), and Premier Seeds. Improve access to finance for smallholders and commercial investors through NIRSAL, a new scheme developed by the Central Bank of Nigeria through the development of outreach mechanisms in the state for the banks, insurance and leasing companies and use the guarantees and interest rate subsidies provided by the Central Bank of Nigeria. Transforming crop value chains Working with FMARD, we will establish partnerships with farmers, traders, processors and retailers to transform the productivity and efficiency of the value chains of our key crops (cassava, rice, oil palm, cocoa). 3. Private investment The State Government will be present at all times to facilitate and support commercial investors. Most importantly, we will make the State's 60,000 ha of land available to private investors. We will also support investors in getting access to all utilities, including water and power; we will provide additional incentives for investment in the form of exemptions from State and local tax/duties/levies; and we will provide support in other areas where the State Government can play a facilitator role. Besides land, Ekiti State will also make the following assets available for investors: One poultry processing plant in Afao, which includes a processing/slaughter house and a feed mill. One poultry hatchery in Emirin with an incubator with capacity for 28,000 eggs and two hatchers with capacity for 18,000 eggs each. One fish hatchery in Ado which includes six outdoor concrete tanks, 15 earthen ponds and one large reservoir. 36
  • 37. Four cassava processing plants in Orin, Ijero, Eporo and Afao with capacity to process cassava into flour, starch, chips and gari. One dairy farm in Ikun with capacity for 300 cows and a dairy capable of processing 3,000 litres a day of fresh milk. We are confident that these three types of investment will allow commercial investors to take advantage of some of the exiting opportunities in the main crops in the State. To recap, these are: In cassava, the development of a large cassava processing plant. In rice, the opportunity to grow high yielding varieties on irrigate and to establish a large, modern rice mills to improve the quality of rice. In cocoa, to establish plantation and source high quality cocoa through the improvement of fermentation and drying techniques of smallholder farmers. In palm oil, the establishment of small plantations and a large processing mill. In fruits & vegetables, establishing year round production on irrigated land and setting up a cold store to supply large institutional buyers such as the growing number of supermarkets and fast food outlets. In poultry, the development of a hatchery to supply day old chicks and a modern abattoir capable of slaughtering, jointing and blast freezing chickens. In fisheries, a modern hatchery that can produce good quality fingerlings and pelletized fish feed. Also, a modern filleting, drying and smoking facility to process and add value to the fish produced. We invite you to come to Ekiti. Please contact the Permanent Secretary of the Ministry of Agriculture and Natural Resources, Ekiti State, Mrs. Funmilayo Ajayi at fajayi@ekitistate.gov.ng (tel. +234 803 519 4011) or the General Manager, Farm Settlement & PFD, Engr. S. O. Ilesanmi at soilsanmi@ekitistate.gov.ng (tel. +234 803 502 4381). 37
  • 38. GUIDANCE NOTES TO AGRIC-BASED INVESTMENT IN EKITI STATE, NIGERIA GPS Guidance. Tractor View CL230BP. Matrix® Pro Guidance 38
  • 39. GUIDANCE NOTES TO AGRIC-BASED INVESTMENT IN EKITI STATE, NIGERIA Background Agriculture and agribusiness is the largest contributor to the state GDP and largest employer (about 70 percent) with majority being small scale subsistence farmers, especially of the rural population). However, private sector underinvestment in agriculture; low productivity of agriculture; inconsistent, uncoordinated and lack of appropriate mechanization technologies are some of the glaring specific reasons identified for a decline in the sector. Broad Policy Focus of Current Administration Despite the agricultural sector's declining experience over the past few years (due to government neglect and lack of strategic planning), current administration's focus on agriculture to drive development of the sector had been clear and strategic. These include: Deliberate Massive and Aggressive Public Private Sector Partnership and Synergy - The Ekiti State Government is currently implementing deliberate measures to facilitate the expansion of private sector participation in the state's agricultural sector. Both large and medium scale international and local operators/investors are being supported to invest and operate in the State. The current administration is aggressively pursuing partnerships with the private sector to modernise agricultural operations in the state on a medium to long term plan. Processes and fora/committees are being set up for dialogue, consultations and to reach mutual agreement of partnership with interested investors and farmers proposing to invest in Ekiti State. Creating an Enabling Environment for the Private Sector - To advance a rapid and sustainable agricultural growth in Ekiti, the current administrator as recognized that most suitable role for government, is essentially that which 39
  • 40. creates an enabling environment for efficient operation by private enterprise/investors. Focus of the administration is focused on creating necessary infrastructure that will facilitate achievement of investment objectives in Ekiti State. This includes road construction, support for land acquisition, support in development of outgrower contract between investors and relevant organizations, financial linkages e.t.c. What kind of proposals/projects will be accepted for review? The proposal implementation must have the potential to accelerate socio- economic development through inclusive job creation, facilitate private sector investment and support positive environmental impact. Proposal/project must be adjudged commercially viable with evidence to contribute to future IGR of the state, be innovative in terms of agricultural product, service or business model, must be contextualized to the state relevant market dynamics. There must be evidence that feasibility studies or market research had come back positive and which will be implemented upon approval of Commercial Agriculture Committee through the proposed presented investment plan. Potential investor (or the lead company in a consortium of potential investors) must submit proposal indicating areas of business focus, business model and feasibility with dynamics of implementation and timelines. It must also show specific areas of support requested from government. The investor must clearly indicate immediate and long term benefit to the host community and State; in terms of utilization and development of available human and material resources i.e. creating sustainable employment, potential partnership with existing farms to develop operations and local content development. Proposal submission must also include: Evidence of funding availability or support for the proposal Evidence of business incorporation indicating particulars of directors Past audited accounts and evidence of filing returns Evidence of collaboration/partnership (for consortium) 40
  • 41. Evidence of Intellectual property, if applicable Relevant licenses, if applicable Kindly, note that the state may request additional information when reviewing proposal submissions. Also, the potential investor (or the lead company in a consortium of potential investors) must meet the following eligibility criteria: Legally incorporated entity It is established and is a registered business based in Nigeria with a minimum trading history of two (2) years for local investors or registered abroad with a minimum business history of three (3) for foreign investors At least one (1) year of audited financial statements. However, new entities or joint ventures may present the audited statements of their main sponsor or shareholders Have the capacity to implement the proposed project If the applicant offers or plans to offer services of a type which requires it to be licensed or regulated in Nigeria, then the entity must provide proof of having obtained the license. Where an applicant proposes to use in its project intellectual property that is protected by law in Nigeria, it must demonstrate proof that it has obtained permission to use such intellectual property An applicant may partner with other entities to form a consortium who jointly applies to invest in Ekiti State. However, the state with only recognize the lead party who shall be responsible for the implementation of the entire project or agricultural proposal There will be no restriction on where the proposed investor is from, wether within or outside Nigeria, only that part or the whole of agricultural proposal or project must take place in Ekiti State. If the proposal is on behalf of a consortium, one organization should be the lead proposer and would serve as the primary contact. 41
  • 42. The EKSG will not support or process proposals that: A p p e a r s n ot t o b e f i n a n c i a l l y v i a b l e , b a n k a b l e a n d innovatively/positively contribute to development of the agricultural sector Does not have the potential to generate inclusive jobs and increase IGR in the future Does not have strong positive environmental consequences At all levels of review and evaluation, proposals will be evaluated based on specific criteria which includes proposed investment assessment, commercial viability of project proposal, applicant's capabilities, strategic relevance to EKSG 8point agenda Timelines for Investor Proposal Review and Commencement of Investment Operations. The following indicates timeline and actions expected from relevant institutions during potential proposal review process: Ministry of Agriculture and Natural Resources (MANR) Submission of business proposal, with detailed action plans and timelines to fulfil investment obligations and investor responsibility Physical meeting with potential investor team for initial review and evaluation of proposal (within two weeks of submission of proposal) Perfection of document by investor, based on comments from MANR (within one week after initial meeting with MANR) Final meeting and evaluation with the potential investor by MANR – one week after effecting amendment of proposal. Committee on Commercial Agriculture (CoCA) Submission of proposal by MANR to CoCA secretariat and invitation of potential investor to make presentation to CoCA Presentation to CoCA (within one week after acceptance by MANR) 42
  • 43. Decision by CoCA on proposal and documentations (two weeks after presentation) Preparation and signing of MoU (within two weeks after decision by CoCA) Investors must commence physical activities based on agreed timelines (within two (2) months of signing MOU) Conditions for Land Allocation There exist two track approaches to land acquisition for agricultural operations: i. Direct acquisition by potential investors. This require minimal intervention by EKSG ii. Direct acquisition of land by EKSG and lease to potential investors for agricultural operations. This will be based upon satisfactory presentation of proposal and agreement reached on timelines and intervention approach. The process includes: Acquisition of land based on availability, however with preference for investor's choice of location Land allocated could be capitalized by EKSG under a PPP arrangement Quick conduct of required processes to calculate compensation due to current land users/occupiers by relevant MDAs. Depending on agreed terms, EKSG or investors will be required to pay compensation to current land users/occupiers Survey of required land by relevant MDAs. The investor will pay necessary cost incurred on survey of acquired land Issuance of letter of provisional allocation by EKSG based on agreed terms Issuance of C of O, upon being current with agreed timelines, between one and a half years and two years of agricultural operations. C of O will only be issued to farmers/investors that have practically/physically occupy the land (i.e. operate/cultivate not less than 80% of land to qualify for required C of O). We need to see the 43
  • 44. commissioning, smooth take-off and resultant economic progress of the MoU signed with potential investor in terms of field agricultural operations, employment opportunities and human empowerment. Investors seeking for additional parcel of land (currently operating under provisional offer phase) should as a matter fact operate on a sizeable portion of initially acquired land (i.e. not less than 80% of land to qualify for additional land and required C of O) Any land allocated and not/never utilized for agreed agricultural operations within six (6) months period will have the approval withdrawn Revocation of provisional offer is effected upon three consecutive slip in delivery timeline and investment project is termed off track within one and a half years of issuance of provisional offer letter LEGAL REQUIREMENTS. The following documents are requested from proposed investors to ensure adequate legal documentation with Ekiti State Ministry of Justice: Certificate of Incorporation Memorandum/Article of Association Evidence of filling of Annual Returns. Responsibility of both parties Sharing ratio of accruals. Letter of intent from the Company's Banker 44
  • 45. ONGOING PROJECTS Youth in Commercial Agriculture Development (YCAD) 45
  • 46. 1. Current World Bank-Assisted Project FADAMA III Project Report Background: Fadama Project, a partnership project between the Federal, State, Local Governmens and the World Bank, took off in Ekiti State in September 2008 across the 16 LGAs with current financial contributory performance of 68% (State) and 37% (LGAs) registered i.e. N115.4M and N35.5M respectively. To date total IDA contribution is N342.8M (fully disbursed). Also, total project disbursement is N222.5M (i.e. N158.8M project and N69.2M beneficiary contribution respectively). With the recruitment of 64 facilitators for intervention and using a local development approach, the objective of the project is to sustainably boost micro/small rural agri-business/operations, multiply community and individual assets and improved on rural infrastructure. It aims to reducing poverty incidence and ensuring food security. The project is focused on delivering direct services to benefiting rural communities through a participatory management and allocation of resources for livelihood activities. Project Interventions: Since inception, the project had facilitated the formation of 113 Fadama Community Associations (FCAs), and 1,209 Fadama Users Groups (FUGs). It has supported 310 FUGs in procuring over 5,300nos of productive assets at the cost of over N78.4M. These assets include cassava processing units (20), oilpalm processing units (6), palm kernel processing units (6), rice processing unit (1), knapsack sprayers, pumping machines e.t.c. It has also supported in building fish ponds and poultry pens. The successes of delivery had yielded collaborative efforts with other institutions such as British American Tobacco Foundation i.e a joint support worth N4M from the institution to establish Cassava processing facility to one of the key FUGs (Soludero FUG). In terms of infrastructural development, Fadama project had funded to the 46
  • 47. tune of over N43.2M the construction of small scale community owned infrastructure such as lock-up shops (19nos with 108 rooms), open market stalls (13nos with 32 rooms), 2 feeder 9km roads with culverts and one cold room (of 15ton capacity). Advisory and input support services are critical element of the project. It has offered 60 FUGs advisory services, and 203 FUGs input support services at a total cost of over N39M. These include livestock, fisheries, bee-keeper FUGs. Also, the project built the capacity of all FUGs and FCAs registered and enlightened them through sensitization meetings. Project Impact: The overall impact of Fadama intervention is an increase in yield of participants by 20% and an average income increase by 46% (based on differential from baseline – N105,436 and PDO –N154,141 figures) out of which almost 7% (N2.5M) is saved from net earnings. This is indicative of increased standard of living of rural beneficiaries. Also, over 160 sustainable jobs had been created mostly for unemployed youths and women, while some FUGs have consolidated operations e.g. Agbelehin, Oyinlere and Victory FUGs now have proper packing and branding of their yam flour, honey and Palm Kernel Oil respectively. 2. Past World Bank-Assisted Project Agricultural Development Project (ADP) Ekiti State Agricultural Development Programmes (EKADEP) is the state institutions with the mandate to raise agricultural production and improve the living standard of the rural population through effective Extension Services delivery to Small and Medium Holder Farmers as a means of promoting the adoption of improved farming techniques. This is an enduring and successful World Bank agricultural development support footprint. Since exit of WB support, the ADP has been able to achieve critical development milestone from continuous funding support from the State 47
  • 48. Government, other Development Partners, and Federal government. Project successfully implemented by ADP includes National Programme for Food Security (NPFS), Root and Tuber Expansion Programme (RTEP) and Multinational NERICA Rice Dissemination Project. National Programme for Food Security (NPFS): 4,420 farmers are currently benefiting from support, twelve (12) tractors were released to the farmers for land preparation and haulage of farm produce from farm gate to the urban centres for marketing, over 2,000 hectares of land had been put to the cultivation of arable crops like; maize, yam, cassava, rice etc and Sixty (60) motor-cycles were acquired and release to the Extension Agents, Enumerators, Chairmen of farmers' groups and Site Managers for effective and efficient extension delivery. Root and Tuber Expansion Project (RTEP): Over 1,250 farmers directly benefited from the project with twelve (12) cassava processing centres established and transferred to farmers groups and twenty (20) motor-cycles acquired for effective delivery of agricultural services to farmers in Ekiti State. The Multinational Nerica Rice Dissemination Project: Over 1,500 farmers directly benefited from NERICA rice project. Tractor with its accessories, hand planters (10), threshers (4), reapers (2), mini-rice processing mills (2) were acquired and used to support farmers operations. The programme has also rehabilitated and upgraded 51km rural access roads, introduced and popularised cultivation of new crops and improved seedlings/techniques e.g. introduction of water melon has resulted in over 500 farm families' livelihood now dependent on water melon farming in Ekiti. Also, introduction of yam mini-set technique has increased yam production from 15 to 25 tons per hectare. Through ADP's intervention, an institutionalised media programme had 48
  • 49. been sustained and remained the most interactive and daily educative farming programmes aired through the radio (Agbeloba) and television (La'here) to farmers. 3. Planned New Project of the State Government Youth in Agriculture Development (YCAD) Programme The Government of Ekiti State will be launching Youth Commercial Agriculture Development Programme to systematically incentivize youths into sustainable commercial agriculture. The project will directly generate employment opportunities to potential young entrepreneurs by promoting high value crops (HVC) production, processing and their marketing, transporting from the point of production to storage and processing centers. This project will be implemented across the 16 Local Government Areas of the state. However, initial implementation will be concentrated in key areas of HVC production. The project beneficiaries will be potential young entrepreneurs with growing interest in agri-business i.e. commercial agricultural farming, agro-processing and marketing. Focus will be on unemployed youths, most specifically graduates and diploma/school certificate holders located (or willing to relocate) in the identified high potential areas with interest in growing, processing and marketing HVC such cassava, rice, vegetables and or tree crops (cocoa, oil palm, banana, fruits) Major outputs of the Youth Commercial Agriculture Programme will be increased youth participation and engagement under Commercial Agriculture in Ekiti State. Potential young entrepreneurs will be empowered through focused support (such as land acquisition, serviced block support, factory set-up, marketing support, management/technical capacity building/training support) to become employed in commercial agricultural value/market-chain activities. 49
  • 50. Under the serviced block farm approach, YCAD Prog, provides emergent farmers with land preparation, tractor services, inputs services and marketing services at subsidized prices and all on credit and with interest (based on CACS negotiated rate and terms). EKSG under its land preparation and investment scheme will acquire, prepare land i.e. land is ploughed and shared amongst young farmers in blocks under the YCAD Prog. In the long run, big commercial farmers are to be made from the serviced blocks. Community youth farmers clustered in an area or institutional/private sector youths scheme may be considered under the programme (having undergone thorough due diligence). Specifically YCAD component includes: Allocation of ploughed serviced blocks to participating youth farmers for commercial agricultural production Structure allocation of land with expansion opportunities Supply of inputs such as seeds, agro-chemicals (SYNGENTA), fertilizers (NOTORE), sacks, and services to facilitate marketing of produce by FAMA Supply of agricultural cultivation services such as tractor service, harvesting services e.t.c. on serviced blocks Supply of commercial farm management skills and capacity building services by UNDP-AMSCO Team Technical support from Agric. Extension staff of ADP, FADAMA, MANR, Partner Service Providers Training of farmers free of charge on input usage by service providers, where the need arises Training in other agric. enterprises such as poultry, fisheries, aquaculture, and bee keeping for supplementary income. Structured disbursement of loan using voucher and direct payment systems Structured repayment system for loan acquired using estates and proceeds from farm 50
  • 51. KEY CONTACTS Ekiti State, Nigeria is the emerging destination of choice for agric-based investment in sub-saharan Africa. We are waiting to hear from you. 51
  • 52. Babajide AROWOSAFE Honourable Commissioner Ministry of Agriculture & Natural Resources State Secretariat Complex, Ado-Ekiti, Ekiti State, Nigeria. Tel: +234 803 407 1558 | Email: barowosafe@ekitistate.gov.ng Reim BODUNRIN Honourable Commissioner Ministry of Commerce, Industries & Cooperatives State Secretariat Complex, Ado-Ekiti, Ekiti State, Nigeria. Tel: +234 805 699 5699 | Email: rbodunrin@ekitistate.gov.ng 52
  • 53. Debo AJAYI Honourable Commissioner Ministry of Budget & Planning Ministry of Finance, Oke Bareke, GRA, Ado-Ekiti, Ekiti State, Nigeria. Tel: +234 813 639 1967 | Email: dajayi@ekitistate.gov.ng Femi TOLANI, Msc (UK), MPA (Harvard), FCA Special Adviser to the Governor & Director General EKITI STATE PUBLIC PRIVATE PARTNERSHIP OFFICE Deputy Governor’s Office, Oke Bareke, GRA, Ado-Ekiti, Ekiti State, Nigeria. T: +234 708 425 6601 | E: ceo@ekitistateppp.org.ng | W: www.ekitistateppp.org.ng “Catalyzing win-win partnerships for the transformation of Ekiti State” 53
  • 54.
  • 56. © April 2012 Ministry of Agriculture and Natural Resources www.ekitistate.gov.ng