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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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FG Begins South-West Tour To Promote New Cooperative Bank

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The Federal Government has launched the South-West zonal engagement and ministerial advocacy tour on the Cooperative Bank of Nigeria share capital mobilisation, sensitisation and cooperative sector digitalisation.
 Reports say the initiative was launched through the Federal Ministry of Agriculture and Food Security.
According to reports, the advocacy tour, organised by the ministry’s Federal Department of Cooperatives, began on Monday in Lagos.
Speaking at the event, the Minister of State for Agriculture and Food Security and Supervising Minister of Cooperative Affairs, Dr Aliyu Abdullahi, said the initiative was part of President Bola Ahmed Tinubu’s Renewed Hope Agenda.
Abdullahi described the exercise as a strategic effort to reposition the cooperative sector as a key driver of inclusive economic growth, financial inclusion, enterprise development, food security and national prosperity.
“Today represents a defining moment in our collective determination to reposition the cooperative sector as a major driver of inclusive economic growth, financial inclusion, enterprise development, food security and national prosperity,” he said.
The minister noted  the modern cooperative movement in Nigeria originated in the South-West following the 1934 Strickland Report, which led to the enactment of the Cooperative Societies Ordinance of 1935.
According to him, the decision to commence the sensitisation and share capital mobilisation tour in the region is symbolic, as it marks a return to the roots of cooperative development in the country.
Abdullahi said the advocacy tour was a direct outcome of resolutions reached at the 8th Regular Meeting of the National Council on Cooperative Affairs held in Abuja in March 2026.
He said the council approved the Renewed Hope Cooperative Reform and Revamp Programme, a comprehensive framework designed to strengthen the cooperative sector and align it with the administration’s goal of building a one-trillion-dollar economy.
“The reform programme focuses on seven strategic pillars, including governance reforms, cooperative financing and the establishment of the Cooperative Bank of Nigeria, digitalisation, capacity building, value chain development, inclusion of youths, women and persons with disabilities, and strategic partnerships,” he said.
He said the establishment of the Cooperative Bank of Nigeria and the digitalisation of the cooperative sector were the two major transformational initiatives under the programme.
“The Cooperative Bank of Nigeria is aimed at rebuilding a strong cooperative financial system capable of supporting cooperators, farmers, artisans, traders, SMEs, youths, women and persons with disabilities with accessible and affordable financial services,” he said.
Abdullahi emphasised that the proposed bank would be government-enabled but not government-funded.
“Government is not establishing the bank as an owner, nor will it rely on Treasury Single Account funds.
“The role of government through the FMAFS is to provide policy support, stakeholder coordination, regulatory facilitation and an enabling environment under the Renewed Hope Cooperative Reform and Revamp Programme,” he said.
Also speaking, the Lagos State Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs Folashade Ambrose-Medebem, reaffirmed the state government’s commitment to cooperative sector transformation.
She described cooperatives as critical tools for promoting inclusive growth, grassroots productivity, food security, financial inclusion and community wealth creation.
Ambrose-Medebem said Lagos State would continue to support reforms and collaborate with stakeholders to ensure the successful implementation of the Renewed Hope Cooperative Reform and Revamp Programme (2025–2030).
“Together, let us build a cooperative ecosystem that is modern, transparent, digitally enabled, financially inclusive and globally competitive.
“Let us build cooperatives that not only mobilise savings, but also mobilise prosperity,” she said.
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Customs Impound N2.35bn Cocaine, 15 Trailers of Rice

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The Nigeria Customs Service (NCS), Federal Operations Unit (FOU) Zone ‘A’, Ikeja, has impound Cocaine Substance valued at ?2.35 billion alongside 15 trailer-loads of foreign rice and a wide range of contraband across the South-West.
This was disclosed to Newsmen during a press briefing in Lagos by Controller of the Unit, Comptroller Gambo Aliyu,
Aliyu revealed that the seizures were made over an eight-week period, underscoring intensified enforcement efforts.
According to him, operatives foiled 473 smuggling attempts within the period, leading to the confiscation of 8,794 bags of 50kg foreign rice, 22 used vehicles, 328 bales of used clothing, and 31,705 litres of Premium Motor Spirit (PMS).
He said other seized items include a Mercedes-Benz vehicle and various food products such as poultry, vegetable oil, spaghetti, and sugar.
Aliyu clarified that the rice displayed at the briefing represented cumulative interceptions made at different locations and times across the zone.
“All the rice you see here are accumulative of seizures carried out at different places, at different times, and through different interdictions,”
Beyond the economic implications, the Comptroller emphasized the social cost of drug trafficking, warning that narcotics continue to destroy families and fuel criminal activities.
“It may surprise you to know that many homes are broken due to drugs.
” Our mandate is to cut off the supply chain, and that is exactly what we are doing,”.
Similarly Customs operatives at the Gbaji outpost intercepted a 71 year-old suspect along the Lagos-Abidjan corridor with 6.35kg of cocaine concealed in a Toyota Highlander.
The drugs, comprising both powdered and crystalline forms, were valued at ?2.35 billion.
Under a special enforcement drive, codenamed “Operation Hawk,” the unit also seized 3,340 parcels of synthetic cannabis, popularly known as “Ghanaian loud,” weighing 1,540kg.
 The substances, along with three suspects, have been handed over to the National Drug Law Enforcement Agency (NDLEA) for further investigation and prosecution.
In a related operation, officers intercepted four cylinders of mercury hidden in a vehicle along the same corridor. Aliyu described the substance as hazardous and subject to international regulation.
Overall, the Duty Paid Value (DPV) of the seizures stands at approximately ?5.5 billion, reflecting the scale of enforcement activities.
 Additionally, the unit recovered ?97.7 million through Demand Notices issued on under-declared consignments.
Aliyu reaffirmed the Service’s commitment to deploying modern technology—including geospatial intelligence, drone surveillance, and real-time tracking—to strengthen border security and clamp down on smuggling networks.
CHINEDU WOSU
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Dangote,  Nicolai Tangen To Partner In strategic sectors

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Chief Executive Officer of Norges Bank Investment Management, Nicolai Tangen ( manager of the world’s largest sovereign wealth fund) has expressed interest in partnering with Dangote Group to expand investments across Africa, particularly in strategic sectors such as power, energy, renewable energy, agriculture, fertiliser and cement.
This was made known during a meeting of Chief Executive of Dangote Group, Aliko Dangote  with Nicolai Tangen, the manager of Norwegian investment institution (with assets estimated at about $1.9 trillion) .
Also present at the meeting were Svein Tore Holsether, Chief Executive Officer of Yara International, and Terje Pilskog, Chief Executive Officer of Scatec, a global renewable energy company.
The engagement reflects growing international investor confidence in Africa’s industrial and infrastructure potential, as well as the increasing role of indigenous conglomerates such as Dangote Group in driving large-scale economic transformation across the continent.
Industry observers say the proposed collaboration could create significant opportunities for investments in critical sectors linked to energy transition, food security, industrialisation and infrastructure development.
The Norwegian sovereign wealth fund, regarded as one of the world’s leading institutional investors, has in recent years increased its focus on emerging markets, with Africa seen as a major frontier for long-term investment and value creation.
Analysts believe a partnership between Norges Bank Investment Management and Dangote Group could unlock substantial capital flows into infrastructure and industrial projects across Africa, helping to accelerate economic growth and regional integration.
Nkpemenyie Mcdominic, Lagos
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