Agric Business In Ekiti State


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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

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Agric Business In Ekiti State

  3. 3. © April 2012 All Rights Reserved Ministry of Agriculture & Natural ResourcesWhile 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. 5. EKITI STATE, NIGERIA THE LAND OF HONOUREkiti State is one of the 36 states in the Okemesi-Ekiti. An important feature ofFederal Republic of Nigeria. The states the state is the large number ofsymbol speaks to the uniqueness of her mountains and hills it possesses. Ekitiheritage, the physical attributes of her has a rhythmically undulating surface. Infruitful land, as well as the character and fact, the word Ekiti is derived from theaspirations of the Ekiti people. Ekiti is local term for land of hills which is Ilereferred to as Ile Iyi, Ile Eye (Land of olokiti.Honour) HISTORY Ekiti was an independent state prior toGEOGRAPHY the British colonial conquest. It was oneThe State is situated entirely within the of the many Yoruba states in what istropics and is located between longitudes today known as Nigeria. Ekiti as a nation, like other sub-ethnic divisions of the40 51 and 50 451 East of the Greenwich 0 1 0 1 Yoruba race, traces its progeny tomeridian, and latitudes 7 15 and 8 5 Oduduwa, and to Ile-Ife (the cradle ofnorth of the Equator. It lies south of Yorubaland) as its origin. According toKwara and Kogi States, east of OsunState and is bounded by Ondo State inthe east and in the south. Ekiti is anupland zone and stands 250 metresabove sea level. The landscape consists ofancient plains broken by steep-sidedoutcropping dome rocks. These rocksoccur singularly or in groups or ridgeswith the most notable of these found in Ikogosi springsEfon-Alaaye Ekiti, Ikere-Ekiti and 6
  6. 6. legend, the Olofin, one of the sons of the trade winds blow in the rainy and dryOduduwa, had sixteen (16) children and (Harmattan) seasons the course of searching for new land todevelop, they all journeyed out of Ile-Ife. DEMOGRAPHICSIn the course of that historic journey, Ekitis are culturally homogeneous andmany of them settled along the way, with they speak a dialect of Yoruba languagethe ancestors of present day Ekiti known as Ekiti. This homogeneousindigenes continuing their journey to nature confers on the state somesettle in Ekiti land. uniqueness among within the NigerianModern day Ekiti as a State and a federation. All the towns in Ekiti Statefederating unit in the Federal Republic take on a common suffix, “Ekiti,” afterof Nigeria was formed out of Old Ondo their names. The main staple food of theState on October 1, 1996. people of Ekiti is pounded yam with vegetable soup.WEATHER AND CLIMATEEkiti has a refreshing weather, typically NATURAL RESOURCESenjoying tropical climate with two Ekiti is endowed with numerous naturaldistinct seasons. These are the rainy resources. The state possesses richseason (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 isevincing a high degree of humidity. The also buoyant in agricultural terms, withsouth 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
  7. 7. maize are grown in large qualities in POPULATIONEkiti. Other notable crops like kola The 2006 census by the Nationalnut and varieties of fruits are also Population Commission put the number ofcultivated in commercial quantities in inhabitants of Ekiti State at 2,384,212the 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 theworld where warm and cold water As a State in the Federal Republic ofsprings occur naturally side-by-side. Nigeria, Ekiti State has 3 (three) senatorsMore so, a variety of tourist attractions and 6 (six) members of the House ofabound in the state, namely: Ikogosi Representatives in the Nigerian NationalWarm Spring; Ipole - Iloro Water Assembly. The state has 16 autonomouslyFalls; 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 spring is a unique naturalfeature, and supporting hospitalityfacilities are being developed at thisunique location. The spring water is atpresent being processed and packagedinto bottles for commercial purposeby a private company - UAC Nigeria. 8
  8. 8. Top & Bottom: Local Farmers displaying their produce 9
  9. 9. THE AGRICULTURAL RENAISSANCE IN EKITIAs we know, with the vast agricultural resource potential in Africa, it remains aconcern that most countries within the continent are still grappling with issuesof food security, with major part of its population trapped within the povertycycle. Agenda 3 of Ekiti State Road Map to Recovery marks a significant step inour pursuit of re-positioning the state in the League of states in Nigeria, drivingprosperity through agri-business operations that could eradicate economicpoverty and essentially drive achievement of the Millennium DevelopmentGoals. “ 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 states are facilitating these processes for us. economy, but add the necessaryflavor to the massively required inclusive growth regime.In Ekiti State, we have taken the bold step of recognizing agriculture as abusiness. We are focused on developing platforms that will transform thecurrent situation of subsistence low productivity farming and processing intomodernized, commercial and technological driven operations that willguarantee massive job and wealth creation to our people. I am proud toannounce that key development partners such as the World Bank, UNDP,DFID, UNIDO and other bilateral are facilitating these processes for us. Imust commend our current partners and investors on their agenda to driveagribusiness and agro-industrial revolution in Ekiti. My believe is that such arevolution will bring sustained investment in the entire agribusiness value 10
  10. 10. chain, which, in turn, will raise productivity and yields, improvecompetitiveness 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 commercialagriculture along the entire value chain for most crops where we havecomparative advantages. Also, my administration is responding to keyinfrastructural challenges that will facilitate development of agriculturalproduction, processing and other related opportunities. Of mention is ouraggressive, but focused, rural development policies and interventions todevelop rural infrastructure such as roads, agricultural processing hubs anddrive market linkages for our produce and processed outputs.In continuation of institutional commitment towards ensuring agriculturaltransformation and development of commodity value chains and agri-business, we will continue to explore and remain dedicated to possible ways ofcollaborating and complementing resources of relevant institutions and statesacross the country to solve challenges of agro-processing, most especiallythrough private sector participation. This initiative will definitely promote thecreation of additional jobs and improve income for these groups. Hence,facilitate quality economic growth and equitable development in terms ofinclusiveness.Let me say at this juncture that government alone will not be able to providethe required investment to transform agriculture and agri-business; Donorsand the Private Sector will have to partner with Ekiti State Government tomeet the necessary investment level to foster and catalyze this needed change.Support should include technical, capacity building initiative from donorsand massive private sector inclusive investment in agri-processing. We ingovernment will continue to create the right regulatory environment andsupport to encourage private sector investment within the state.I am impressed with the conscious effort and focused approach being 11
  11. 11. employed by relevant MDAs in developing and transforming agriculturewithin the state, particularly effort in launching the YCAD Programme. Thisremains one of the best ways to jumpstart active participation of youths incommercial agriculture to deliver sustainable agriculture in Nigeria.Thank you.Dr. Kayode FAYEMIGovernor, Ekiti State, Nigeria 12
  12. 12. Dr. Kayode FAYEMIGovernor, Ekiti State, Nigeria 13
  13. 13. AGRICULTURE INVESTMENT PROFILE IN EKITI STATE, NIGERIATractors acquired by the Government of Ekiti State, Nigeria to stimulate mechanized agriculture. 14
  14. 14. EKITI STATE AGRICULTURAL INVESTMENT PROFILEBackgroundEkiti State is laced with some of the richest agricultural lands in Africa andhuge potential to develop a sustainable commercial farming sector withsignificant economic gains for the state and Nigerian economy. It enjoysfavourable climates that support rainfed and irrigated agriculture, livestockproduction and resource for inland fisheries. With a population above 2million people and a total land area of 5,306.72km, only 7% is currentlyfarmed by smallholder farmers using traditional methods, primarily forsubsistence, out of total agricultural land Area of 530,674.42ha. Less than4,000ha is farmed commercially. The food crop cultivated in the state includecassava, maize, yam and vegetables, while the cash crop include cocoa, palmoil, cotton, banana/plantain and fruits such as cashew.Ekiti State Agricultural SectorGeography with Comparative Advantage: Ekiti State lies within two climaticand geographic types, a blend of equatorial and tropical in the southern areaand savanna in the northern fringe giving rise to rainforest and savannahvegetations respectively. The state is also transverse by various river bodies andwinding hill of significant agricultural benefits. These enormous resources areyet to be fully exploited.Advantaged Natural Resources: There are ample land with suitable soils thatgrows most major high valued crops, benign climatic conditions and reliable,all-year-round water resources.High Value Crop and Livestock Production: With comparative advantage inmajor commodity value chains in Nigeria, Ekiti State has the highest yield perhectare for cassava and the best grade cocoa, sort after for mixing to achievegood blend grade. Also, excellent production with processing conditions forupland/lowland rice, oilpalm, fruit and livestocks.Adequate but Growing Supportive Backbone Infrastructure: There is 15
  15. 15. adequate access to agricultural-supporting infrastructure, in the form of powergrids network, planned irrigation facility, constructed transport links fromagricultural hubs to major markets in Nigeria (Abuja, Lagos, Ibadan e.t.c.) withhuge plans for expansion programme. Also, there exist plans for provision ofagro-processing hubs with functional industrial estates and parks to beallocated to investors/entrepreneurs at reduced land premium. These coupledwith nearby rail and airport operations in neighboring states assure investorsof seamless agri-business activities.Vantage Market Position: As an established agricultural trade and transit hublinking the northern and southern markets of over 160million population, thestate remains the future hub for commercial agriculture. Agricultural producecould easily find markets among itinerant traders from the north and thesouth of the country.Skilled and Low Cost Labour: There is an abundance of skilled labour at aneconomic cost, resulting in production costs, which are among the lowest inNigeria. Also available in the state is the existence of a pool of unskilled labourready for use at a comparatively lower cost.Political Stability and Security: As the needed platform for economic andbusiness growth, Ekiti State offers stable political environment and adequatesecurity. Based on its peaceful and quite state, Ekiti State had been adjudged afavorable climate for business and industrial ventures.Attractive Incentives and Supportive Platform to Facilitate Doing Business inEkiti State: With a commitment in making Ekiti State a preferred destinationfor investment, a comprehensive package of incentives has been put in place toattract investment within and outside Nigeria. This includes:One Stop Shop for InvestorsUnder the newly established “One Stop Shop for Investors”, a streamlinedbureaucracy and regulatory environment now exist for potential and existing 16
  16. 16. investors within the state. This platform removes envisaged investmentbottlenecks by facilitating, promoting, and coordinating investmentsprocesses such as business entry permits, licenses, authorizations andincentives within a One-Stop-Shop environment for investors. The services areprovided in a fast-tracked, co-ordinated, streamlined, efficient and transparentmanner to meet the needs of investors.Facilitation of Agricultural and Agro-Processing Land AcquisitionUpon fulfillment and submission of necessary documentations, the StateGovernment supports and facilitates land acquisition for agricultural andagro-processing for the private investors. Support includes acceleratedprocessing of title and other related document e.g. Certificate of Occupancy,Letter of Consent, and Provisional Offer etc. This can be concluded withintwo weeks for serious investors committed to immediate investment in EkitiState.Tax Breaks with Facilitative Fiscal Policy MeasureThere exists a window to exempt new industries from rates and levies in thefirst three years of operations to support investments in Ekiti State. Alsoexisting is a national approval of facilitative fiscal policy measures such as 0%duty on agricultural machinery/equipment importation and equipment forprocessing cassava flour for composite flour blending, with effect from 31stJanuary, 2012. Importation of cassava flour shall be prohibited, to encouragelocal production, with effect from 31st March, 2012.Community MobilizationThe state offers support in facilitating linkages and partnerships with localagricultural communities and mobilizing local resources to support businessoperations for investors. This had proved valuable in striking communitysupport for outgrowers scheme and inclusive business operations. This is alsoextended to assist investors to source available human resources, localtechnical partners and raw material for planned operations. 17
  17. 17. Financial, Equipment Acquisition and Information SupportUn 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 Governmentfacilitate access credit facilities and negotiation platform for enabling businessresources being sort by investors under different existing programmes at thefederal, state and local government levels. Also, it provides ready investmentinformation and database to assist investors on investment decisions.Dedicated Committee to Fast Track Investment ProposalThere exists a state Commercial Agriculture Committee platform set up withthe mandate to mobilise private sector investments and partnerships to helpachieve the goals of Ekiti State agricultural strategy. The committee support infast tracking investment proposals from the private sector institutions.Membership of the partnership platform includes governmentrepresentatives, private sector development experts, PPP experts, and privatesector business representativesEkiti State’s Immediate Investment Potentials and OfferingsUnder the current existing supportive business environment that can becompared 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 states 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
  18. 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 states 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 certaineconomic value, initially ran by the state, being considered for private sectortake over under various Public-Private-Partnership (PPP) options. Thisincludes 3 medium scale cassava starch processing mills, a rice processing mill,farm settlement centres, a fish farm, uncompleted silo projects, largest seedprocessing plant in South Western Nigeria, an hatchery, a feedmill and severalother livestock facilities (poultry, piggery e.t.c).Ekiti State, Nigeria is the emerging destination of choice for agric-basedinvestment in sub-saharan Africa. 19
  19. 19. WHY INVEST IN AGRICULTURE IN EKITI STATEThe Government of Ekiti State, Nigeria is creating the right regulatory environment and support to encourage private sector in the State. 20
  20. 20. WHY INVEST IN AGRICULTURE IN EKITI?Feeding NigeriaIn 2010, the World Bank estimated that Nigerias population exceeded 158million making it the most populous country in Africa by far. Feeding this largenumber is a challenge, especially when account is taken of the large urbanpopulation that is entirely dependent on others to supply them with food. In2010, some 78.8 million people, nearly 50% of the total population, lived inurban centres and Nigeria will become a predominantly urban country in thenear 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 GDPgrowth averaged 6.7% p.a. According to the IMF, Nigeria is now a middleincome country with a per capita GDP, in 2010, of $ 1,324. And the IMFprojects that GDP will continue to grow strongly at around 7% p.a. for theimmediate future, helping to lift purchasing power further.As a result, growth in the demand for food has outstripped the capacity of thecountry 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 worlds 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
  21. 21. On top of the import of these commodities is a substantial volume of importsof cowpea, onions, tomatoes and livestock from neighbouring countries. Thecountry 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 nationalsupply. It intends to ban rice imports by 2016. The import of poultry and alltypes of meat have been banned for some time.At the same time, FGN, led by its dynamic new Minister of Agriculture, isinvesting heavily in agriculture to increase domestic supply of food. It haslaunched 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 Nigerias key crops providing inputs and equipment.The Government of Ekiti state is partnering FGN to make sure that theseinitiatives will benefit farmers and all forms of agribusiness in the state. 22
  22. 22. Attractive world & domestic pricesInternationally, prices of food and beverages have reached all-time highs. In2008, world prices were considered to have reached such high peaks that therewas talk of a crisis. Having dipped as a result of the world financial crisis, theyare now back to 2008 levels (figure 1).Figure 1: World food and beverage pricesOf relevance to Ekiti in particular is the international price of cocoa, of whichthe state is a renowned producer. Having dropped during the financial crisis,they rose again strongly and, although somewhat lower recently, remain atunprecedentedly high levels (figure 2).Figure 2: The international price of cocoa 23
  23. 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 2,042The high price of what Ekiti exports and what the state produces for sale in thedomestic market makes it particularly attractive to produce agriculturalcommodities in the state at present.LocationSituated in the South West ofthe country, the state is ideallyplaced to supply the large urbanmarkets: 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 Africas largest metropolis. The official figure for Lagoss population is 10 million but many observers place it at 15 million. 24
  24. 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 potentialThe state is blessed with very favourable conditions for agriculture. Of the totalland area of 5,307 square kilometres (km2), some 4,596 is considered suitablefor agriculture. Estimates suggest that upwards of a quarter of the land is notcultivated 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 ofhigh 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 of28C in the south and 30C in the North. Mean relative humidity is 65%. Thenorth consists of forest savannah and mean annual rainfall in this region is1600mm. The South is mainly tropical rain forest with mean annual rainfallof 1800mm. Tree crops abound throughout the state with cocoa, kola, coffee,citrus and plantains in the South and Mango and cashew in the North. Theterrain is mainly gently undulating plains. 25
  25. 25. There is a long wet season stretching from March to mid-November that allowstwo short maturation crops, such as rice, to be grown without irrigation. Thestate is the source of 3 major rivers: the Ogbese, Osun and Owena. Other riversof note are the Ero, the Osi and Oni.The plentiful supply of water is captured in six major dams that supply bothwater 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 majorsource of water for domestic and irrigation purposes. There are also irrigationschemes, linked to the dams and independent, that can supply water yearround at 3 other sites: Aisegba, Ayo-Illudun, Erio. New sites are planned thatcould help to increase the area under irrigation to significant levels. Inaddition, the rivers are used for small scale irrigation along the low lying floodplains (Fadama land) during the dry season and groundwater is readilyaccessible through boreholes.Plentiful supply of good land, a long wet season and ample water for irrigationmeans that condition for agriculture are very favourable. The differentvegetation and soil types mean that the state can grow almost any tropical treeor arable crop and a large variety of fruit and vegetables, as confirmed in thefollowing section. 26
  26. 26. An attractive business environmentInvestors coming to Nigeria are often put off by its poor reputation as a place todo business. Certainly, the countrys rank of 133 out of 183 in the DoingBusiness Indicators of the World Bank and its rank of 143 out of 183 inTransparency Internationals Corruption Perception Index are not favourable.Moreover, the country is noted for its poor infrastructure with power outages aregular occurrence.There is evidence that things are improving. FGN, assisted by its developmentpartners, is attempting to introduce reforms that will reduce the cost of doingbusiness. The Federal Minister of Trade & Investment has set the target ofimproving the countrys position in the Doing Business Index by 103 positionsmaking it the top ranked country in Africa. The establishment of an Economicand Financial Crimes Commission has helped to spotlight corruption. Thecoming on stream of new power generation capacity, provided by independentpower producers, is helping to fill the gap between demand and supplyreducing power outages. Moreover, the Nigerian Government gives a 5-year taxholiday to all agribusiness investments.At the state level, the current administration of Ekiti state started with theposition 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 haveset about improving the business environment working with the Federal andstate 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 toeconomic recovery. The 8 points are: 1) Governance; 2) InfrastructuralDevelopment; 3) Modernizing Agriculture; 4) Education & Development ofHuman Capital; 5) Health Care Services; 6) Industrial Development; 7)Tourism & Environmental Sustainability; 8) Gender Equality & WomenEmpowerment. 27
  27. 27. The leading place given to good governance reflects the states motto Land ofHonour, Land of Peace. Whilst the rest of the country has been affected bycivil unrest and violence, Ekiti remains a haven of peace free from the crimeand violence that beset the rest of Nigeria. The priority given to infrastructurehas resulted in better state roads with more being upgraded at present. Thepromise to modernize agriculture is being kept with large investments in landclearing 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 thepotential of our agriculture and take advantage of the huge opportunities forprofitable investment in agribusiness. The state will promote and facilitateinvestment ensuring that investors can invest with security and confidence thatbureaucratic red tape will not be an obstacle to doing business. 28
  28. 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 andvegetables (pepper, tomato). Yields for most crops are above the nationalaverage reflecting the states 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 ofexportable 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, inthe US, yields of yellow maize can easily average above 10MT/ha. Rice yieldscan be easily doubled as can cocoa yields. The very low yield for oil palm is dueto the fact that a large proportion of production is simply harvested from thewild. Fruit and vegetable yields can be increased several times. 29
  29. 29. The state has developed a wide variety of exportable crops. The major exportsat present are cocoa, kola nut, green pepper and cashew. Green pepper is arelatively new export showing what can be done. There is potential also toexport coffee, rubber, cotton and ginger. Interest has been shown in exportingcassava to China.And the state has become a significant centre of poultry and fisheryproduction. There are 399 fish farms ranging from large, integrated producerswith their own hatcheries to small farmers using earthen ponds. They produce2,401 tonnes of fish.What can be done to improve performance?It is possible, with modest levelsof investment and goodhusbandry to improve theoutput and yields of all themajor crops and produce and toadd value to crops grown in thestate, as follows.Cassava: Cassava is grownthroughout the State, thoughproduction is concentrated inthe north. Over the pastdecade, cassava production hasincreased dramatically although there was a slight decline in productionbetween 2010 and 2011. Currently, production is around 1,674,450 MT andyields are significantly higher than the average national yields. Yields can beincrease further with better quality of disease resistant planting material. Thestate 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
  30. 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 Statebenefits from a verylong rainy season (fromMarch to November)that allows farmers toproduce two rice cropsper year. Over the past5 years, rice productionincreased substantiallyreaching 290,450 MTin 2010. Rice is mainlyproduced in CentralEkiti, where there isboth lowland and upland production. Yields are slightly higher than thenational average. They can be increased substantially by better seeds andfertiliser use. Irrigation could increase the amount of land that is capable ofproducing 3 crops. It is feasible to produce 3 tonnes/ha in upland areas and 7-8tonnes in lowland, more under irrigation. Moreover, the lack of large, modernrice mills in Ekiti means that most processing is done inefficiently and thequality of rice is poor. There is a very good opportunity to invest in processingrice.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 anddiseases and the abandonment of plantations as costs rose. However, in recentyears, 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. In2011, production increased to 15,504 MT. What it is more this recovery inproduction levels was accompanied by the planting of new cocoa trees so theoutlook for the future is bright. Cultivation of cocoa is predominantly in 31
  31. 31. South and Central Ekiti, which enjoy anecological zone that is most suitable for cocoaproduction. Although yields achieved are higherthan those in the rest of Nigeria, they are still lowby international standards due to the age of trees,low use of insecticides and fungicides, and theneed to improve husbandry practices. Althoughthe quality of cocoa is better than the rest ofNigeria, better fermentation and drying couldimprove it further.Oil palm: Given that most oil palm in Ekiti iscultivated wild and that trees are old, yields of oilpalm are significantly lower than the national average. Production reached53,680 MT in 2011. However, the planting of new trees is progressing stronglyand this should result in increased production and yields in the future. Thestate is working with the FMARD to distribute seedlings for replanting. Ekitisagro climatic conditions, particularly in South West Ekiti, are ideal for thegrowth of oil palm. There is plenty of scope for establishing small plantationsin the area. Also, processing remains a very inefficient activity as traditionalmethods employed lead to low extraction of oil and poor product quality.There is no sizeable processing mill in Ekiti. The establishment of a largeprocessing mill that would process oil palm efficiently is a major commercialopportunity. 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
  32. 32. to rivers and streams where smallholder farmers can access perennial sourcesof water for irrigation. There is substantial scope to increase irrigatedproduction of vegetables and to increase fruit production. They offer veryattractive returns to farmers. The establishment of a cold store would enable anentrepreneur to supply large institutional buyers such as the growing numberof supermarkets and fast food outlets.Poultry: Although the State is currently not a key player in terms of productionand consumption, there is high demand for white meat in the State and thereis 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 over2.5 million birds with respect to the previous year. However, all birds are sold atthe local markets due to the lack of any cold store facilities in Ekiti and it is onlysome eggs that currently reach markets outside the State. There is a majoropportunity to establish a hatchery in the state to supply day old chicks as noneexists at present. In addition, a modern abattoir capable of slaughtering,jointing and blast freezing chickens is likely to profit from the substantialproduction of chicken in the state. There are no such facilities at present.Fisheries: Ekitis productionof fish has been increasingsteadily in the past few yearsas new fish farms have beenput into use and moremodern techniques of fishfarming are beingintroduced. Moreover, Ekitiis blessed with numerousrivers, streams and reservoirsand a perfect climate for fishf a r m i n g . I n 2 011,production reached 2,401MT from over 2,750 ponds. 33
  33. 33. Most smallholder farmers are concentrated around Ado, Ikere and Idoo-Osi,in Central Ekiti, and sell all their production at local markets, were demandstill remains unmet. Moreover, the State also generates demand for fingerlingsand feed, which are currently being brought from neighbouring States. Amodern hatchery that can produce and sell good quality fingerlings would finda ready market as would a produce of pelletized fish feed. There is need also of amodern filleting, drying and smoking facility to process and add value to thefish produced. 34
  34. 34. THE INVESTMENT MAP: OPPORTUNITIES FOR INVESTMENT IN EKITIA Public Private PartnershipEkiti is open for business. And to make sure that the private sector encountersthe right conditions for investing in Ekiti, the State Government has adopted astrategy 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 ensurethat two necessary assets, land and roads, are available for the private sector touse. 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 topartner 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
  35. 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 tofacilitate and support commercial investors. Most importantly, we will makethe States 60,000 ha of land available to private investors. We will also supportinvestors in getting access to all utilities, including water and power; we willprovide additional incentives for investment in the form of exemptions fromState and local tax/duties/levies; and we will provide support in other areaswhere the State Government can play a facilitator role.Besides land, Ekiti State will also make the following assets available forinvestors: 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
  36. 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 commercialinvestors to take advantage of some of the exiting opportunities in the maincrops 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 thePermanent Secretary of the Ministry of Agriculture and Natural Resources,Ekiti State, Mrs. Funmilayo Ajayi at (tel. +234 803 5194011) or the General Manager, Farm Settlement & PFD, Engr. S. O. Ilesanmiat (tel. +234 803 502 4381). 37
  38. 38. GUIDANCE NOTES TO AGRIC-BASED INVESTMENT INEKITI STATE, NIGERIABackgroundAgriculture and agribusiness is the largest contributor to the state GDP andlargest employer (about 70 percent) with majority being small scale subsistencefarmers, especially of the rural population). However, private sectorunderinvestment in agriculture; low productivity of agriculture; inconsistent,uncoordinated and lack of appropriate mechanization technologies are someof the glaring specific reasons identified for a decline in the sector.Broad Policy Focus of Current AdministrationDespite the agricultural sectors declining experience over the past few years(due to government neglect and lack of strategic planning), currentadministrations focus on agriculture to drive development of the sector hadbeen clear and strategic. These include:Deliberate Massive and Aggressive Public Private Sector Partnership andSynergy - The Ekiti State Government is currently implementing deliberatemeasures to facilitate the expansion of private sector participation in the statesagricultural sector. Both large and medium scale international and localoperators/investors are being supported to invest and operate in the State.The current administration is aggressively pursuing partnerships with theprivate sector to modernise agricultural operations in the state on a medium tolong term plan. Processes and fora/committees are being set up for dialogue,consultations and to reach mutual agreement of partnership with interestedinvestors and farmers proposing to invest in Ekiti State.Creating an Enabling Environment for the Private Sector - To advance a rapidand sustainable agricultural growth in Ekiti, the current administrator asrecognized that most suitable role for government, is essentially that which 39
  39. 39. creates an enabling environment for efficient operation by privateenterprise/investors. Focus of the administration is focused on creatingnecessary infrastructure that will facilitate achievement of investmentobjectives in Ekiti State. This includes road construction, support for landacquisition, support in development of outgrower contract between investorsand 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 sectorinvestment and support positive environmental impact. Proposal/projectmust be adjudged commercially viable with evidence to contribute to futureIGR of the state, be innovative in terms of agricultural product, service orbusiness model, must be contextualized to the state relevant market dynamics.There must be evidence that feasibility studies or market research had comeback positive and which will be implemented upon approval of CommercialAgriculture 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 andfeasibility with dynamics of implementation and timelines. It must also showspecific areas of support requested from government. The investor mustclearly indicate immediate and long term benefit to the host community andState; in terms of utilization and development of available human andmaterial resources i.e. creating sustainable employment, potential partnershipwith 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
  40. 40. Evidence of Intellectual property, if applicable Relevant licenses, if applicableKindly, note that the state may request additional information when reviewingproposal submissions. Also, the potential investor (or the lead company in aconsortium 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
  41. 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 consequencesAt all levels of review and evaluation, proposals will be evaluated based onspecific criteria which includes proposed investment assessment, commercialviability of project proposal, applicants capabilities, strategic relevance toEKSG 8point agendaTimelines for Investor Proposal Review and Commencement of InvestmentOperations.The following indicates timeline and actions expected from relevantinstitutions 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
  42. 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 AllocationThere exist two track approaches to land acquisition for agriculturaloperations:i. Direct acquisition by potential investors. This require minimal intervention by EKSGii. 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 investors 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
  43. 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 letterLEGAL REQUIREMENTS.The following documents are requested from proposed investors to ensureadequate 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 Companys Banker 44
  44. 44. ONGOING PROJECTSYouth in Commercial Agriculture Development (YCAD) 45
  45. 45. 1. Current World Bank-Assisted ProjectFADAMA III Project ReportBackground: Fadama Project, a partnership project between the Federal,State, Local Governmens and the World Bank, took off in Ekiti State inSeptember 2008 across the 16 LGAs with current financial contributoryperformance of 68% (State) and 37% (LGAs) registered i.e. N115.4M andN35.5M respectively. To date total IDA contribution is N342.8M (fullydisbursed). Also, total project disbursement is N222.5M (i.e. N158.8Mproject and N69.2M beneficiary contribution respectively).With the recruitment of 64 facilitators for intervention and using a localdevelopment approach, the objective of the project is to sustainably boostmicro/small rural agri-business/operations, multiply community andindividual assets and improved on rural infrastructure. It aims to reducingpoverty incidence and ensuring food security. The project is focused ondelivering direct services to benefiting rural communities through aparticipatory management and allocation of resources for livelihood activities.Project Interventions: Since inception, the project had facilitated theformation of 113 Fadama Community Associations (FCAs), and 1,209Fadama Users Groups (FUGs). It has supported 310 FUGs in procuring over5,300nos of productive assets at the cost of over N78.4M. These assets includecassava processing units (20), oilpalm processing units (6), palm kernelprocessing units (6), rice processing unit (1), knapsack sprayers, pumpingmachines e.t.c. It has also supported in building fish ponds and poultry pens.The successes of delivery had yielded collaborative efforts with otherinstitutions such as British American Tobacco Foundation i.e a joint supportworth N4M from the institution to establish Cassava processing facility to oneof the key FUGs (Soludero FUG).In terms of infrastructural development, Fadama project had funded to the 46
  46. 46. tune of over N43.2M the construction of small scale community ownedinfrastructure such as lock-up shops (19nos with 108 rooms), open marketstalls (13nos with 32 rooms), 2 feeder 9km roads with culverts and one coldroom (of 15ton capacity).Advisory and input support services are critical element of the project. It hasoffered 60 FUGs advisory services, and 203 FUGs input support services at atotal cost of over N39M. These include livestock, fisheries, bee-keeper FUGs.Also, the project built the capacity of all FUGs and FCAs registered andenlightened them through sensitization meetings.Project Impact: The overall impact of Fadama intervention is an increase inyield of participants by 20% and an average income increase by 46% (based ondifferential from baseline – N105,436 and PDO –N154,141 figures) out ofwhich almost 7% (N2.5M) is saved from net earnings. This is indicative ofincreased standard of living of rural beneficiaries. Also, over 160 sustainablejobs had been created mostly for unemployed youths and women, while someFUGs have consolidated operations e.g. Agbelehin, Oyinlere and VictoryFUGs now have proper packing and branding of their yam flour, honey andPalm Kernel Oil respectively.2. Past World Bank-Assisted ProjectAgricultural Development Project (ADP)Ekiti State Agricultural Development Programmes (EKADEP) is the stateinstitutions with the mandate to raise agricultural production and improve theliving standard of the rural population through effective Extension Servicesdelivery to Small and Medium Holder Farmers as a means of promoting theadoption of improved farming techniques. This is an enduring and successfulWorld Bank agricultural development support footprint.Since exit of WB support, the ADP has been able to achieve criticaldevelopment milestone from continuous funding support from the State 47
  47. 47. Government, other Development Partners, and Federal government. Projectsuccessfully implemented by ADP includes National Programme for FoodSecurity (NPFS), Root and Tuber Expansion Programme (RTEP) andMultinational NERICA Rice Dissemination Project.National Programme for Food Security (NPFS): 4,420 farmers are currentlybenefiting from support, twelve (12) tractors were released to the farmers forland preparation and haulage of farm produce from farm gate to the urbancentres for marketing, over 2,000 hectares of land had been put to thecultivation 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 efficientextension delivery.Root and Tuber Expansion Project (RTEP): Over 1,250 farmers directlybenefited from the project with twelve (12) cassava processing centresestablished and transferred to farmers groups and twenty (20) motor-cyclesacquired for effective delivery of agricultural services to farmers in Ekiti State.The Multinational Nerica Rice Dissemination Project: Over 1,500 farmersdirectly benefited from NERICA rice project. Tractor with its accessories,hand planters (10), threshers (4), reapers (2), mini-rice processing mills (2) wereacquired and used to support farmers operations. The programme has alsorehabilitated and upgraded 51km rural access roads, introduced andpopularised cultivation of new crops and improved seedlings/techniques e.g.introduction of water melon has resulted in over 500 farm families livelihoodnow dependent on water melon farming in Ekiti. Also, introduction of yammini-set technique has increased yam production from 15 to 25 tons perhectare.Through ADPs intervention, an institutionalised media programme had 48
  48. 48. been sustained and remained the most interactive and daily educative farmingprogrammes aired through the radio (Agbeloba) and television (Lahere) tofarmers.3. Planned New Project of the State GovernmentYouth in Agriculture Development (YCAD) ProgrammeThe Government of Ekiti State will be launching Youth CommercialAgriculture Development Programme to systematically incentivize youths intosustainable commercial agriculture. The project will directly generateemployment opportunities to potential young entrepreneurs by promotinghigh 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 thestate. However, initial implementation will be concentrated in key areas ofHVC production.The project beneficiaries will be potential young entrepreneurs with growinginterest in agri-business i.e. commercial agricultural farming, agro-processingand marketing. Focus will be on unemployed youths, most specificallygraduates and diploma/school certificate holders located (or willing torelocate) 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 beincreased youth participation and engagement under CommercialAgriculture in Ekiti State. Potential young entrepreneurs will be empoweredthrough focused support (such as land acquisition, serviced block support,factory set-up, marketing support, management/technical capacitybuilding/training support) to become employed in commercial agriculturalvalue/market-chain activities. 49
  49. 49. Under the serviced block farm approach, YCAD Prog, provides emergentfarmers with land preparation, tractor services, inputs services and marketingservices at subsidized prices and all on credit and with interest (based onCACS negotiated rate and terms). EKSG under its land preparation andinvestment scheme will acquire, prepare land i.e. land is ploughed and sharedamongst young farmers in blocks under the YCAD Prog. In the long run, bigcommercial farmers are to be made from the serviced blocks. Communityyouth farmers clustered in an area or institutional/private sector youthsscheme may be considered under the programme (having undergonethorough 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
  50. 50. KEY CONTACTSEkiti State, Nigeria is the emerging destination of choice for agric-based investment in sub-saharan Africa. We are waiting to hear from you. 51
  51. 51. Babajide AROWOSAFE Honourable Commissioner Ministry of Agriculture & Natural Resources State Secretariat Complex, Ado-Ekiti, Ekiti State, Nigeria. Tel: +234 803 407 1558 | Email: Reim BODUNRIN Honourable CommissionerMinistry of Commerce, Industries & Cooperatives State Secretariat Complex, Ado-Ekiti, Ekiti State, Nigeria.Tel: +234 805 699 5699 | Email: 52
  52. 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: 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: | W: “Catalyzing win-win partnerships for the transformation of Ekiti State” 53
  53. 53. Country side of Ekiti
  54. 54. © April 2012Ministry of Agriculture and Natural Resources