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FG-IFAD Value Chain Programme’s $37.2m Contribution To GDP

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The Value Chain Development Programme (VCDP), initiated by International Fund for Agricultural Development (IFAD) has contributed 37.2 million dollars (about N13.4 billion) to Nigeria’s Gross Domestic Product (GDP).
IFAD’s Communication Officer, Mrs Vera Onyeaka-Onyilo disclosed this in a document presented to a news agency in Abuja, recently.
The document, titled “VCDP Summary Progress”, noted that data on the 2016 wet season farming and 2016/2017 dry season farming indicated that VCDP also contributed 58,376 tonnes of rice and 184,378 tonnes of cassava to the national food basket.
The Federal Government is implementing VCDP, which became disbursement-effective in January 2015, in Niger, Ogun, Taraba, Benue, Ebonyi and Anambra States.
The completion date of the programme, whose goal is to reduce poverty and accelerate sustainable economic growth, is December 31, 2019.
Onyeaka-Onyilo explained that from the revenue of N38.5 billion and the implementation cost of N14.7 billion, the income-investment analysis, inclusive of overhead costs, indicated a benefit of N 2.5 for each N1 invested from the sale of produce alone.
She said that going by the review, the overall achievements indicated that the VCDP had made appreciable progress in the last two years of effective implementation.
“The programme is planned to increase agricultural income by at least 25 per cent for 45,000 smallholder farmers.
“It is also expected to indirectly benefit up to 320,800 people from the production of rice and cassava along the two value chains,” she said.
Onyeaka-Onyilo said that the specific programme development objective was the enhancement of the incomes and food security of rural poor households that were engaged in production, processing and marketing of rice and cassava on a sustainable basis.
She noted that the programme had continued to invest in group and cluster development schemes as a viable value chain business model.
“It has strength working with the private sector to facilitate service delivery to smallholder farmers, identifying viable business opportunities within the commodity chains for the youth.
“It has also ensured arable land development to boost women and youth access to land, while sharing innovative agronomic practices with farmers to enhance their productivity and youth engagement in agriculture,” she said.
Besides, Onyeaka-Onyilo said that some of the participating state governments had adopted some aspects of the value chain to enhance their service delivery to smallholder farmers.
She said that the VCDP had also influenced strong state government ownership, which was reflected by the governments’ payment of counterpart funds and policy support in land development to enhance the access of youths and women to land for dry season farming.
“The programme has also facilitated an innovative Commodity Alliance Forum (CAF), which empowers smallholder farmers to engage and transact businesses with major private sector players in each state.
“The forum involves farmers and key private sector operators who meet quarterly to review the stakeholders’ engagement in the selected commodity,” she added.
Investigations by the news agency revealed that the CAF, which had been empowering smallholder farmers and restoring confidence between off-takers and farming communities, was considered a key pillar in the sustainability of VCDP.
Mrs Laadi Ngbegha, one of the beneficiaries and a rice farmer in Iye Community, Guma Local Government Area in Benue State, said the off-taker arrangement had strengthened the use of value chain action plans (VCAPs) by participating field officials (FOs).
She said that the FOs were those officials facilitating cashless credit services on farm inputs for farmers in Benue and Niger States.
Ngbegha said the programme had facilitated the establishment of group seed production enterprises by youths via a partnership with Africa Rice Centre, National Root Crops Research Institute (NRCRI) and International Institute of Tropical Agriculture (IITA).
“It has introduced the use of private sector extension schemes to promote good agronomic practices and enhance farmers’ productivity.
“The VCDP has demonstrated that value chain is a sound economic investment model for Nigeria,” she said.
Some of the beneficiaries in Benue noted that smallholder rice and cassava farmers were now having new market opportunities.
They said that the development marked the farmers’ first steps out of poverty through a contract farming scheme in which farmers were guaranteed markets for their crops.
They emphasised that the VCDP had been able to link over 3,603 rice farmers in Benue to Olam International, an agribusiness company, to buy paddy from rice growers.
“Last year, Olam International bought around 997 tonnes of paddy from rice farmers in Benue; the rice was later processed and sold in the Nigerian market.
“Olam also provided the farmers with necessary inputs, certified seeds, fertilisers, and agrochemicals with a guaranteed `buy-back’ of the produce at prevailing market prices at the end of the season.
“Olam International extended financial credit to farmers to meet their equity contribution to the VCDP matching grant through a commercial bank,” they said.
A young rice farmer in Omor, Ayamelum Local Government Area of Anambra State, Michael Afune, said that empowering young people through agribusiness was a success story.
He said that in line with the Federal Government’s commitment to reducing youth unemployment and poverty, the VCDP had been creating a new generation of young farmers in Anambra State, with sound training in techniques that could generate new economic opportunities and boost income.
“I have been cultivating rice for years with poor yields, but learning modern methods of rice farming through the VCDP has led to better yields and better incomes,” Afune said.
Eze Michael Ogbonnaya- Ukwa, the traditional ruler of Igbeagu, Izzi Local Government Area of Ebonyi State, noted that the VCDP had constructed 134.5km roads in the six benefiting states.
He said the newly constructed road and bridge in Igbeagu community, for instance, had positively impacted on the social and agribusiness activities of the residents of the community.
“The primary purpose of the road, constructed under the VCDP, is to create access for farmers to transport produce from their farms.
“The road is also facilitating the efforts of large-scale produce buyers to reach farm gates to buy produce directly from the farmers.
“Prior to the construction of this road, our farming experience had been horrendous and we couldn’t do much. We are happy that the road has eased our burden,” Ogbonnaya- Ukwa said.
A rice processor, Hadiya Hajara Mohammed of the ZokoYegborolo Multipurpose Cooperative Society in Bida, Niger, said that the VCDP had significantly increased the quantity and quality of the rice produced in the neighbourhood.
She said the “false bottom” parboiling technology was introduced by the VCDP to enhance the quality of locally grown rice and make it to compete favourably with imported rice.
“`More than 1,623 participants across the project six states were trained on the use of `false bottom’ parboiling technique and it has changed how we process rice.
“We’ve been in rice business for more than 20 years, with nothing to show for it, but within one and half years, IFAD-VCDP has made us rich.
“We are now expanding our business and employing people to work and get paid,” she added.
In a nutshell, IFAD-VCDP has been supporting smallholder farmers in the six benefiting states of Benue, Anambra, Ebonyi, Taraba, Niger and Ogun States in rice production.
It has also signed 1,106 agreements with major off-takers in rice and cassava value chains, while supporting farmers to increase their production, in efforts to improve Nigeria’s food security.
Ogun State Coordinator of VCDP, Mr Samuel Adeogun, said, “There has been increase in the number of people having access to land, especially women and youths.
“Land development has also provided room for farm mechanisation. We believe that the use of farm mechanisation increases efficiency; reduces cost of production and improves farm yield.”
A cassava farmer in Aiyetoro community in Yewa North Local Government Area of Ogun State, Mrs Folashade Arijogbade, said that through the VCDP intervention on land development, her group now owned a 30-hectare farmland, up from the previous 0.5 hectares.
She said that the land development scheme of the VCDP required land owners or communities to sign a land-leasing agreement for a minimum of 10 years.
“The lands are sourced from either the communities or the government.
“By this, they will be able to recoup their investment on the lands because land development is a capital intensive venture which is beyond the capacity of smallholder farmers,” she said.
It was learnt that the land development project of the VCDP has facilitated improved mechanisation among the farmers, while creating services for farmers and jobs for farm mechanisation service providers.
It has also developed 1,292 hectares in the six participating states and provided mechanisation at a 50 per cent subsidy to boost farmers’ participation.
In the programme that has a budget of 104.4 million dollars, IFAD is providing 74.4 million dollars, while the Federal Government is contributing 9.9 million dollars.
The state governments are contributing 10.4 million dollars; the local government councils are providing 4.3 million dollars; the complementary financing is 2.8 million dollars, while the beneficiaries are contributing 2.1 million dollars.
Lawal is of the News Agency of Nigeria (NAN)

 

Hawa Lawal

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Association Woos Govt, Coys On  Boat Operators  Employments

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The leadership of Bonny Maritime Boat Association has called on Rivers state Government and oil companies operating in the state to provide sustainable employment to unemployed boat Operators.
The Association also want the government, companies and other relevant employers of labour to provide trainings for boat Operators to enhance their skills
Safety Officer of the Association, Comrade Kingdom Kingsley made this known in  a  telephone interview with  The Tide.
He noted that most of the boat Operators and owners plying Bonny route lacks jobs due to the fleets of boats introduced by Bonny Road Transport that had taken over the passengers to the Island
He noted that passengers are no longer patronizing boats owned by the Association, thereby rendering the operators redundant
“Most of our operators can not afford to feed their families due to no jobs, we don’t want to indulge in crime, government should fix our members with  sustainable jobs to take care of their immediate needs”
He called on oil companies operating in the state to engage their skilled boat Operators in their companies to reduce the sufferings faced by the Association.
The Safety Officer called on the state government  to made funds available to unemployed youths in the state to start up business than roam the streets.
He noted that provision of funds to youths would reduce crime rates and reposition their mindsets for a better life
“The  youths of Rivers state are suffering, have no job to feed their families, thereby indulging in criminality daily”
“The youths need empowerment,  jobs,  recreational facilities and better things of life as citizens of this Nation”, Kingsley said.
CHINEDU WOSU
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FG Approves $1 Bn AFCFTA Credit Facility For Nigerian Exporters

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The Federal Government has approved a whooping $1bn credit facility to support Nigerian exporters and small scale businesses to take advantage of the African Continental Free Trade Area (AfCFTA) in order to boost production, competitiveness and intra-African trade.
The $1bn AfCFTA Adjustment Fund Credit Facility is also expected to address some of the financing gap being faced by Nigerian exporters and enhance the competitiveness of African businesses within the continental market.
The Minister of Industry, Trade and Investment, Jumoke Oduwole, disclosed this  during the second quarter 2026 meeting of the AfCFTA Central Coordination Committee held in Abuja.
According to a statement issued by the ministry’s Head of Press and Public Relations, Obilor-Duru Okechi, Oduwole said the financing facility represented a major opportunity for Nigerian businesses seeking to expand operations, modernise production processes and increase exports to African markets.
The statement partly read, “?The Federal Government has reaffirmed its commitment to accelerating Nigeria’s export-led growth agenda under the African Continental Free Trade Area, unveiling opportunities for businesses to access a US$1 billion AfCFTA Adjustment Fund Credit Facility aimed at boosting production, competitiveness, and intra-African trade.”
She noted that despite the progress Nigeria had made in implementing the continental trade agreement, many local businesses continued to face obstacles that limited their ability to take advantage of the single African market.
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“Many businesses still face challenges relating to export documentation, certification, standards compliance and market access,” the minister said.
She explained that the Federal Government was addressing these bottlenecks through enhanced trade facilitation measures, simplified AfCFTA guidance tools, stakeholder engagement programmes and stronger collaboration with institutions such as the Nigeria Customs Service and the Nigerian Export Promotion Council.
Oduwole stressed the need to strengthen Nigeria’s legal and regulatory framework by domesticating key AfCFTA protocols, particularly the Digital Trade Protocol, to position the country as a major player in Africa’s growing digital economy.
The minister also highlighted some of the gains recorded in Nigeria’s AfCFTA implementation efforts.
According to her, the expansion of Nigeria’s Air Cargo Corridor Initiative to Rwanda, increased collaboration with development partners and private sector players, as well as sustained engagement with state governments, were helping to deepen awareness and participation in the continental market.
In her welcome address and first-quarter update, the National Coordinator and Chief Executive Officer of the Nigeria AfCFTA Coordination Office, Mrs Patience Okala, provided details of the financing initiative.
Okala said the $1bn AfCFTA Adjustment Fund Credit Facility was targeted at large African businesses with a minimum financing capacity of $10m.
She revealed that the National AfCFTA Coordination Office was working closely with fund managers to facilitate access for eligible Nigerian companies and had begun assembling a pilot group of businesses to ensure that Nigeria maximised the opportunities provided by the facility.
Nkpemenyie Mcdominic, Lagos
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NIWA Harps On  Avoidance Of Leaking Boats

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The National Inland Waterways Authority (NIWA) has advised Nigerians against boarding boats that require constant bailing of water in the interest of their safety.
 NIWA Area Manager for Cross River and Ebonyi, Mr Stanley Onuoha gave this warning in an interview with Newsmen in Calabar.
Onuoha who spoke on waterway
safety, said that passengers should take responsibility for their safety by inspecting boats before embarking on any journey.
According to him, repeated scooping of water from a boat is a clear indication that the vessel may be leaking.
“If you are entering a boat and see people using a bailer to remove water, it is the first signal that the boat is leaking,” he said.
He urged passengers to check the integrity of boats, including seating arrangements and other visible safety features.
The Manager restated the importance of using safety jackets, saying that damaged jackets may fail during emergencies.
He further said that passengers should ensure that safety jackets were appropriate for their body sizes in order to guarantee effective flotation.
 Onuoha reiterated the need for passengers to fill manifests before departure to aid accountability during emergencies.
The NIWA official further advised travellers to monitor weather conditions and avoid boarding boats when the weather is unfavourable.
According to him, poor weather conditions can trigger strong tidal waves capable of affecting small boats commonly used on inland waterways.
He said that waterway journeys should be embarked upon between 6.00a.m and 6.00p.m for clearer visibility.
Onuoha said  the Authority had continued to sensitise riverine communities to the need for safety precautions during waterway journeys.
He stated that sustained awareness campaigns and enforcement measures had contributed to safety waterway safety in Cross River.
CHINEDU WOSU
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