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Monograph Series Vol. 11

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Disclaimer

TheMADEmonographandlearningseriesisplannedtohelpprovideinformationandknowledgefordissemination.

We believe the information will contribute to sector dialogues and conversations arounddevelopmentinNigeria.

The content in the series was prepared as an account of work sponsored by the MarketDevelopment in theNiger Delta (MADE). The documents in this series is the final submissionmadebytheengagedserviceprovider/consultant.

TheseriesdoesnotrepresenttheviewsofMADE,theUKaid,TheDepartmentforInternationalDevelopment(DFiD)DevelopmentAlternativesIncorporated(DAI),noranyoftheiremployees.MADE,DFID,UKaidandDAIdonotassumeanylegalliabilityorresponsibilityfortheaccuracy,completeness,oranythirdparty'suseofanyinformation,orprocessdisclosed,orrepresentationthatinfringesonprivatelyownedrights.

Reference herein to any specific commercial product, process, or service by trade name,trademark,manufacturer,orotherwise,doesnotnecessarilyconstituteorimplyitsendorsement,recommendation,orfavouringbyMADE,DFID,UKaidand/orDAI.

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TABLEOFCONTENT

Abbreviationsandacronyms ............................................................................................................ v

ExecutiveSummary ........................................................................................................................... 1

1. ............................................................................................................................ Introduction ............................................................................................................................................................... 4

1.ThepoliticaleconomycontextoftheNigerDelta ................................................................... 5

1.1 Theeffectofoilandgasproductionandrevenues .................................................... 5

1.2 Patronagepolitics ............................................................................................................ 7

1.3 Economiccontextofagriculturalpoliciesandinvestmentclimate ................................ 8

1.4 ImplicationsofthepoliticaleconomycontextforMADE’sapproach ..................... 9

1.5 Conclusions ...................................................................................................................... 11

PART2.Politicaleconomyofvaluechains ................................................................................. 12

2.1 Cassava ............................................................................................................................. 12

2.2 Palmoil ............................................................................................................................. 15

2.3 Fisheries ........................................................................................................................... 18

2.4 Microandsmallscalepoultry ...................................................................................... 20

2.5 Finishedleathergoods .................................................................................................. 22

......................................................................................................................................................... 24

2.6 Cross-cuttingworkstreams ......................................................................................... 24

2.7 CommonTrendsAffectingtheValueChains ............................................................. 26

2.8 PotentialPartnerships .................................................................................................. 27

Part3.Reviewofvaluechaintheoriesofchange,conflictandriskmitigationstrategies 29

3.1 Valuechaintheoriesofchange .................................................................................... 29

3.2 EffortstoconflictproofinvestmentsandriskmitigationbytheProgramme .... 29

3.3 Findingsandeffectonanalysisandreportingofresults ........................................ 30

3.4 OverallimplicationsforMADE .................................................................................... 31

Annexes ............................................................................................................................................. 32

Annex1. VariationinPoliticalTrendsoftheNigerDeltaStates ................................... 32

Annex2. CommonTrendsAffectingtheValueChains ..................................................... 37

Annex3.ListofStakeholdersConsulted ................................................................................ 40

Annex4: HumanTraffickingandModernDaySlaveryinEdoState ............................. 45

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Abbreviationsandacronyms

ADPs AgriculturalDevelopmentProgrammes

APC AllProgressCongress

APP AgriculturalPromotionPolicy

ATA AgricultureTransformationProgramme

BOA BankofAgriculture

CACS CommercialAgricultureCreditScheme

CBN CentralBankofNigeria

GES GrowthEnhancementSupportScheme

IFS IntegratedFarmers’Scheme

IITA InternationalInstituteforTropicalAgriculture

LEEPMAS LeatherProductsManufacturersAssociationofAbiaState

M4P MakingMarketsWorkforthePoor

MADE MarketDevelopmentintheNigerDelta

MFBs Micro-financebanks

MSMEDF Micro,SmallandMediumEnterprisesDevelopmentFund

NBFI Non-BankFinancialInstitution

NDDC NigerDeltaDevelopmentCommission

NDA NigerDeltaAvengers

NGO-MFIs Non-GovernmentalMicro-financeInstitutions

NIFOR NigerianInstituteforOilPalmResearch

NISRAL NigeriaIncentive-BasedRiskSharingSystemforAgriculturalLending

NRCRI NationalRootsCropsResearchInstitute

PAN PoultryAssociationofNigeria

PDP PeoplesDemocraticParty

PEA PoliticalEconomyAnalysis

PPSP Production,ProcessingandSupportProgramme

SADI StrategicAgricultureandRuralDevelopmentInitiative

STEP StudentEntrepreneurshipProgramme

WADEP WomenAgricultureEntrepreneurshipDevelopmentProgramme

YAGEP Youth Agricultural Empowerment Programme

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ExecutiveSummaryMADE has an ambitious long-term target of increasing the income of 150,000 beneficiaries

(with women being 50%) and lifting them out of poverty over the lifetime of the project.

Workinginadifficultenvironment,MADEismakingsteadyprogresstowardsachievingitslong-

term target. MADE is working under an increasingly suffocating operating environment

characterizedbyseveralelements.

Apervasivepoliticalideologyofpatronagepoliticshascontinuedintheregiondespitedeclining

oil revenues. The public expenditure pattern of the states still neglects concerns of the poor

such as agriculture, public education, health care facilities, potable water, rural roads, and

communications. Rather, elite projects such as dualisation of urban roads, construction of

airport, etc. and huge recurrent expenditure that fund the salaries and allowances of public

officesaregivenprominence.

Thereisadeterioratingconflictandinsecuritysituationinallthestates.Dimensionsofconflict

include piracy which affects fisheries in particular, communal conflicts between farming

communities especially in Abia, violent militancy mostly in riverine oil producing states

undermining investor interest in thearea,andmostpervasiveofall, themenaceofherdsmen

thathasnegativeimpactoncassavavaluechaininparticular.Altogetheraclimateofinsecurity

definestheoperatingenvironmentacrossthestatesvisitedbytheconsultants

Fragile intergovernmental relations characterize government efforts to provide support for

operators in the various value chains. Collaboration between various tiers of government in

supportingservicedelivery isweak inall states. TheNationalRootCropsResearch Institute,

Umuahia, Abia State is doing good work albeit with little linkages with state government

agencies. The Consultants were in the field when the Federal Government released the

Agriculture policy. None of the state Ministries of Agriculture visited had knowledge of the

contentofthedocument,whichneverthelesshasarticulatedclearpolicystatementsregarding

thevaluechainsMADEissupporting.

Whilstsomestateshavemadeeffortstoconstructinterstatehighways,thereisageneralneglect

of infrastructure tosupport transportationandprocessingof farmproduce.Asaresult,many

farmersinterviewedcomplainedaboutsellingfarmproduceatgiveawayprices.Relatedtopoor

infrastructure are anemic extension services. All the states have Agriculture Development

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Programmes(ADPs)withaclearmandate toprovideextensionservices to farmers.Butmost

ADPsvisitedbytheconsultantsareinvariousshadesofinstitutionalincapacitation.

Acrossthestatesvisited,farmersinthevariousvaluechainsfacearangeofmultipletaxesand

illegalleviesonagriculturalproduce.Acombinationofformalandinformalrulesareappliedto

extort funds from farmers, thus increasing the cost of production across the value chains

affected.Multipletaxationandthecollectionofillegalleviesbygovernmentofficialsandtoutsis

a major disincentive for persons engaged in agricultural production. The situation is

exacerbatedby thedeepening economic recession.Many stakeholders interviewed expressed

the view that rising costs of inputs associated with prevailing foreign exchange regimes

translate to high cost of production, which in many cases is affecting demand for products.

Albeit,thedevaluationoftheNairaisalsoshiftingdemandinfavorofcorecropslikecassava.In

all states there is a huge backlog of salaries and pensions, altogether depreciating general

purchasingpower.Logically,afallindemandwouldresultindecliningprofitsforfarmersand

otherinvestors,withpossiblescalingbackinfurtherinvestmentsif itpersistsfora longtime.

This has implications for MADE, as a fall in the productivity of its beneficiaries would

undermineitsobjectiveofpovertyreduction.

Thereisagrowingsenseof“entitlement”andbenefitcaptureatalllevels.Thisisthedownside

ofpatronagepolitics.Theexpectationsofhandouts,notedbytheinitialPEAasacriticalpolitical

economy risk to MADE is still very relevant. The note by the initial PEA that farmers and

producer associations were set up to capture benefits arising from agricultural support

programmesremainsacrucialissuethatneedstobetackledbyMADE.

TheinitialPEAhadcounseledMADEthatstategovernmentsthatdonotshareitsprivatesector

ledapproachmightobstructitsprogrammes.Followingthisandleaningheavilyonitsprivate

sector principle,MADE has adopted a fatal ‘leprous’ or touch not government approach. The

programme has thus operated without any input from government and this has made its

intervention alien to nearly all the state governments. This robs the programme of benefits

arising from partnerships in agricultural extension services and input supply to farmers1.

MADE’s approach needs to be reviewed, at least to the extent that government should be

adequatelyinformedofitspresenceandactivitiesinthestates.

1ThisdocumentwaspreparedandsubmittedtoMADEby:JamesZasha,IbabaSamuelIbabaandTimothyEffiong

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ImplicationsforMADE’sapproach

The tendencies in the operating environment pose a threat to MADE’s journey towards

achievingitslong-termobjectives.MADEisoncourseintakingmeasurestodeliverresultsina

hostile environment, including diligent implementation of previous recommendations.MADE

hasmaintained a geographic focus,working in the coreNigerDelta states ofRivers, Bayelsa,

AkwaIbom,EdoandDelta,whilstalsoprogressingwith interventions inAbia, Imo,Ondoand

CrossRiver.MADEisalsotakingstepstoconflictproofitsinvestmentsanddevelopValueChain

TheoriesofChangealignedtotheoverarchingTheoryofChange.Tosustainitseffectivenessand

deliverintheenvironmentMADEneedsto:

• Develop a politically smart engagement/communication strategy with state

governmentstoensurethatgovernmentsknowaboutMADE’soperationsandactivities

with a view to developing partnerships for agricultural extension services and input

supplytofarmers.

• FinalizerevisionoftheValueChainTheoriesofChangeandresultsframeworkstohelp

maintainastrategiclineofsight.

• Regularlyreviewandupdate itsriskmitigationstrategy inviewofthevolatilityof the

operatingenvironment.

• Increase efforts tomake access to finance available tomore beneficiaries and engage

lending institutionstore-negotiatecredit termstocreateamatchbetweenrepayment

and harvesting of crops. The programme may also seek to access finance from

initiativesliketheMicro,SmallandMediumEnterprisesDevelopmentFund(MSMEDF)

and Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL).

Laying emphasis on creating access to credit from credit institutions takes off some

burdenfromMADE

• Evolvecreativestrategiestosupportthebeneficiariestoaddressthechallengeofaccess

tomarkets.

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1. IntroductionMarket Development in the Niger Delta (MADE) is a 4.5-year UK DFID-funded programme

applying the Making Markets Work for the Poor (M4P) approach to generate pro-poor and

inclusiveeconomicgrowthinselectednon-oilvaluechainsintheNigerDelta.Theprogramme’s

statedobjectiveistoraisetheincomesofatleast150,000poorpeople,ofwhom50percentwill

be women, by at least 40-50 per cent. The programme is currently in its second year of

implementationacrosstheninestatesoftheNigerDelta,workinginfivevaluechains,namely:

Cassava,Palmoil,Fisheries,Microandsmallscalepoultry,Finishedleathergoodsaswellasand

crosscuttingAgriculturalinputs,AccesstofinanceandGendercomponents.

InNovember 2013MADE commissioned a political economy analysis of theNigerDelta. The

objectivewastoundertakeapoliticaleconomyandconflictanalysisoftheNigerDelta,andthe

resultsofthatanalysiswastobeintegratedintothedesignofMADE.ThePEAwasundertaken

and its findings fed into thepreparationof theBusinessCase. In2016 thepresentPEAstudy

wascommissionedtoupdatetheinitialPEA.

TermsofReference

An update of the original political economy analysis, incorporating elements of a conflict

analysis, is required to ensure that the changes in the external context,MADE’s geographical

focus and subject matter scope has been factored into how the programme implements in

general,andhowitmanagesriskinparticular.Specificobjectivesareasfollows:

• Updatetheoverarchingregionallevelpoliticaleconomyanalysis

• Provide the interplay between formal informal rules and norms, power structures,

vested interests and incentives (positive and perverse) within selected market

systems;

• Working from themarket systems analyses, undertake a review of key stakeholders,

identifyingthemostinfluentialactors,whattheirinterestsandincentivesare,andhow

theseshapetheoveralldynamicsoftheselectedmarketsystems.

• Reviewtheprogramme’seffortstoconflictproof its investmentsandidentifymethods

bywhichMADEcanmaximize the linksbetween theprogrammeand thereductionof

conflict.

• Assess the political economy to identify how best amarket based intervention could

impactonhumantraffickingandforcedlabour

• ReviewtheValueChainTheoriesofChangeinthelightoftheanalysisandrecommend

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changesthatwillmakethesemorerobust.

• Reviewandrecommendchangestotheproject’sriskmitigationmatrix.

• Workwith theM&Emanager to reviewhow the findings canbe incorporated intoan

analysisoftheresultsbeingobtainedbytheprojectandhowthiscanbetakenforward

sothatfuturereportingresultsandisbettercontextualised.

Methodology

The Consultants undertook a desk review of previous political economy study, Literature on

NigerDelta,aswellasrelevantMADEprogrammedocuments.TheConsultantsalsoundertook

2-Day field visits to 6 Niger Delta States: Delta, Edo, Akwa Ibom, Cross River, Bayelsa, and

Rivers.TheConsultantsheldsemi-structuredinterviewsandfocusgroupdiscussionswithkey

stakeholdersineachofthestatesvisited.

Also,consultationswereheldwithDFIDAdvisersinAbuja,andMADEProgrammeLeadsinPort

Harcourt. Two consultants undertook a two-day visit to Benin and held in-depth interviews

withkey informantsonhuman traffickingand forced labour inEdo.Findingsare reportedas

Annex4,

1.ThepoliticaleconomycontextoftheNigerDelta

Thepoliticaleconomycontextof theNigerDeltahasnotchangedsignificantly fromwhatwas

reported in the initial PEA. The impacts of oil and gas production on the environment and

economy,thelinkagebetweenoilrevenues,patron-clientpoliticsandwarlikeelectoralcontests,

andgovernancedeficits;etc.,appearentrenched.Thishascontinuedtoimpactnegativelyonthe

politicalandbusinessenvironment.

1.1 Theeffectofoilandgasproductionandrevenues

The effects of oil spills (caused by operational failures and sabotage) and gas flaring on the

Niger Delta environment has not changed from the point noted by the initial PEA and

corroborated by several literature. The combined effects of oil spills and gas flares have

continued to decimate the environment and hinder fisheries and agricultural production in

affectedareasoftheregion.Asignificantoutcomeisthatthecriticalvaluechainsthatsupport

livelihoodsarestillatrisk.

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Jobs have not been created by the oil industry and community development projects, and

vocational training skills provided by the oil companies have notmade significant impact on

livelihoods and quality of life. Government interventions have overlooked the environment-

povertynexusintheregion;forexample,agriculturalpoliciesonlyfocusonsupplyofinputs–

pesticides,improvedvarietyofseedlings,fertilizerandaccesstocredit.Thecriticalfactsofoil

impactedlandsbeingputoutofuseforbetween10-15yearsorthelossofsoilnutrientstooil

spillshavenotbeencaptured.Therearenoimprovedvarietyofcropsthatareresistanttooil

spills or gas flares, neither are there species of fishes that are immune to marine pollution.

Consequently,theexplorationandproductionactivitiesoftheoilcompanieshavecontinuedto

createanenvironmentthatisnotfriendlytoinvestmentinagriculture.

Hugeoilrevenueshavealienatedthepoliticalleadershipfromcitizensanddestroyedthesocial

contract,whichhasbecomesevereduetodecliningoilrevenues.Thepoliticalleadershiplargely

usesthestateasarent-distribution“canteen”or“slaughterslab”andhasfocusedonstruggles

forresourcecapturing,ratherthanservicedeliverytocitizens.Consequently,thedevelopment

ofsocio-economicinfrastructureispoor,contributingtohighunemploymentandpovertyrates.

Worse,states intheregionarenowunabletopaysalariesduetodecliningoilrevenues,poor

internal revenuegenerationandbloatedbureaucracy thatgulpsover70percentof revenues.

These,addedtopoorsocialinfrastructureandincreaseintaxratesduetoaggressivedrivefor

internal revenue has reduced personal incomes and reduced purchasing power. One

consequence of this is declining profits and productivity that tend to impact negatively on

investments.

TheinitialPEAreportedthatcollectionanduseofoilandgasrevenueshavecreatedacultureof

governancethatfailstopromoteeconomicdevelopment,efficientservicedelivery,transparency

andaccountabilityingovernance.Thisviewwaspredicatedontheeffectsof‘DutchDisease’and

the ‘Resource Curse’ thatwere noted to have shifted the attention of the political leadership

fromotherviablesectorsoftheeconomytofocusonlyonoil,andthebreedingofacultureof

corruption.

However,the‘DutchDisease’andResourceCurse’challengeassociatedwithuseofoilrevenues

asnotedbytheinitialPEAhaschangedmarginally.Thefallinoilpriceandeconomicrecession,

whichfollowed,hasshiftedthefocusofgovernment(atall levels) fromoil toagriculture.The

reducingvalueoftheNairaisnowmakingagriculturalproductionintheNigerDeltamuchmore

competitive against imports. The devaluation of the naira, and the subsequent high cost of

importedfooditemshasinfluencedthepatronageof localproducts.Forexample,thedemand

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forlocalricehasincreased.TheFederalandstategovernmentsintheregion(particularlyDelta

State) have made policy statements and also taken practical steps to invest in agriculture.

NearlyallthevaluechainssupportedbyMADEhavebeencapturedinthenewvisionofNiger

Delta state governments’ investments in agriculture. This has reinforced the incentive for

MADE’s investments. Governments have also shown strong interests in generating internal

revenuesthroughothernon-oilsectorssuchastaxation.Reformsarebeingmadetobringmore

personsintothetaxnetandtoalsomakethecollectionprocessmoreefficient.Apointtonote

herehowever is the likelyconsequenceofmultiple taxationorhigher taxationrates thatmay

addtocostofproductionandreducedpurchasingpower.Governments’showofinterestinthe

non-oil sector and increased reliance on tax revenues may in the long run elicit citizen’s

interests in transparency and accountability. This may further diminish the influence of the

‘DutchDisease’andResourceCurse’.

1.2 Patronagepolitics

The initial PEAdrew attention to the issue of patronage politics and its damaging impact on

politicsandtheeconomy.Hugeoilrevenueinflow,citizen’s lackofdemandforaccountability,

winner-takes-all nature of political competition, commoditization of votes in the electoral

process,thelackofcapacityofinfluenceandregulationbychecksandbalanceinstitutionssuch

as the legislature, judiciary and civil society organizations, and weak political parties were

blamedforthepatronagepolitics.

Patronage politics has continued in the region despite declining oil revenues. The public

expenditurepatternofthestatesstillneglectsconcernsofthepoorsuchasagriculture,public

education,health care facilities,potablewater, rural roads, andcommunications.Rather, elite

projects such as dualisation of urban roads, construction of airport, etc., and huge recurrent

expenditure that funds the salaries and allowances of public offices are given prominence.

Publicexpendituresstillneglectpro-poorconcerns,asbasicneedssuchascleanwater,health

services,andeducationarenotgivenhighpriority.Becausefundsarestolenthroughtheaward

ofcontracts,Governorsintheregiontakemoreinterestinallocatingfundsfortheexecutionof

projects,notmindingtheeconomicorsocio-economicbenefits.

Governorsintheregionusepoliticalappointmentsasavenuesforpatronage,justasthebenefits

ofprogrammesandpolicies,whichshouldbenefitthepoor,arecapturedbythepoliticalelites.

Public fundsareused toplacateandsecure/sustain clientgroups suchaspolitical associates,

ethnic/youthgroupsandpatrons(godfathers)of theGovernors. Fundamentally, the interests

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ofthepoliticalleadersdonotresonatewiththeinterestsofthepeoplehencenoconsiderationis

giventopromoteandtheexpectationsandaspirationsofthepeople.Thiscontextexplainsthe

recurringviolenceintheregion.

Despite thegeneral trend in thepolitical economy, thereare significantvariationsamong the

states,relatingtotheinfluenceofgodfathers,developmenteffortsandsomepositivepolicieson

povertyandagriculturaldevelopment,andsensitivitytoviolence(detailsofthesevariationsare

providedandsummarisedintheAnnex1).

1.3 Economiccontextofagriculturalpoliciesandinvestmentclimate

The economies of the Niger Delta States are characterised by high level of urban and rural

poverty,shortfarmingseasonduetolongrainyseason(NovembertoMarch),lowfarmyields,

difficultterrainwithlargeareasmadeofcreeksinStateslikeBayelsa,DeltaandRivers(withthe

attendant high cost of logistics and transportation through thewaterways), increasing crime

rate; etc. In all the States, public servants arebeing owed salaries andother remunerations.

Depending on the State, amounts owed consist of either one or a combination of monthly

salaries and allowances, gratuity, pensions and salaries and allowances of local government

staff. This situationhassignificantly reducedpurchasingpower in theStatesandhas further

increasedthelevelofpoverty.

RecentlytheNigerianeconomyhasexperiencedadownturn,whichhasledtoarecession.The

recession in the larger national economy has adversely affected economic activity and

agriculturalproductionintheNigerDeltaStates.Therecessionhascausedconstraintssuchas

lowpurchasingpowerandcashcrunch;highcostofproduction–increasingcostofmostinputs

arising from the general increase in prices and the importation of raw materials for some

inputs,labour(inNigeriacostoflabourriseswithotherpricesirrespectiveoftheexistenceofa

higher levelofunemployment)andtransportation;etc. All theseresult in lowprofitability to

farmersandproducers.

However,thecurrenteconomicrecessionalsohassomepositiveeffectsfortheinterventionof

theMADE programme. Peoplewho hithertowould notwant to build their capacity on new

methods of undertaking economic activity are now ready to acquire capacity and engage in

agriculturalandotherformsofproduction,asameansofsurvival.Examplesoftheseareretired

civilservantsandpersonsmovingfromotherfailedbusinessesintoagriculture.

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TheinitialPEAreportedthatgovernmentsintheregionhaveverylowinterest inagricultural

developmentaspolicieswerewrittenbutnot implemented,orsimplyusedas instrumentsof

benefitcapturing.

This situation remains largely the same, but with significant variations among the states. In

Abia,AkwaIbom,Bayelsa,RiversandDeltastates,thegovernmentshaveinresponsetothefall

in oil revenue and their grim reality that dictates the embrace of agriculture, made policy

pronouncements to indicate a desired change in agricultural development. Policies on input

supplytofarmers(improvedvarietyseedlings,fertilizer,herbicidesandpesticides,fingerlings,

poultry feeds, fishing gears), extension services and creation of access to loans have been

supportedalthoughwithverylittlemonitoringandevaluation.Thishasresultedingapsthatare

subject to corruption. In Delta State however, practical steps have been taken by the

governmentthroughkeyprogramssuchastheProduction,ProcessingandSupportProgramme

(PPSP),andtheYouthAgriculturalEntrepreneurshipProgramme(YAGEP).

The culture of entitlement among farmers and the associated sharing of the national cake

syndrome remains intact.Thenoteby the initialPEA that farmers andproducer associations

weresetuptocapturebenefitsarisingfromagriculturalsupportprogrammesremainsacrucial

issuethatneedstobetackledbyMADE.Significantly,however,thepresenteconomicdownturn

has createdunderstandingon theneed for government to invest in agriculture, just as it has

whipped up a “go-to-farm” consciousness among individuals. This has created a conducive

atmosphereforameaningfulconversationonthedevelopmentofagriculturalvaluechains.

Failed expectations of previous government policies have also continued to have damaging

effect on interest in agricultural policies and programmes. The most recent is the Growth

Enhancement Scheme (GES) of the Agricultural Transformation Agenda (ATA) which is

indebtedtofarmerstoanestimatedsumof39billionnaira.Mostfarmersnotedtheusefulness

ofGESbutregretthatthefailureofthegovernmenttopaycreditorshasstalledthegrowthof

many producers. The present government has introduced the Agricultural Promotion Policy

(APP),whichseekstocorrectthegapsassociatedwithATA;includingtheissuesrelatingtoGES.

Significantlyhowever,severalstakeholdersareyettofullyunderstandthepolicythrustofAPP

whichonpaperhashugepotentialsforthedevelopmentofagricultureandtheMADEproject.

1.4 ImplicationsofthepoliticaleconomycontextforMADE’sapproach

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The risk that MADE’s work will be obstructed by state governments, who do not share its

private sector led approach and instead seek to maintain policies based on government

intervention, public ownership and dispensing patronage has made MADE to adopt a fatal

‘leprous’ortouchnotgovernmentapproach.Theprogrammehasthusoperatedwithlittleinput

fromgovernmentandthishasmade its interventionalientonearlyall thestategovernments

visitedbytheconsultantsinthecourseofthisPEAupdate.TheoperationsofMADEappearsto

have jettisoned the counselof the initialPEAwhichnoted that: “MADEwillbemosteffective

where it can attain more active support from state governments. Active support could be

evidentatseverallevels.Atabasiclevelthiswouldrequirealevelofcoordinationtoensurethat

MADEandgovernmentactivitiesarenotworkingatcrosspurposes.Atahigherlevel,thiswould

entail state governments supporting MADE’s work by revising regulatory frameworks,

providingcomplementaryinfrastructure,engaginginstrategicpublic-privatepartnershipsand

curtailing hand-outs.” The strategies which were recommended to help achieve this

collaborationarestillrelevantandarere-statedhere:

1. MADEwillneedtobeveryclearinitscommunicationwithstateandlocalgovernment

toexplainitsapproachandtomanageexpectations.

2. MADE may be able to advocate the merits of private sector led and market based

developmentstrategiesandencouragereformstoagriculturalpoliciesandprogrammes

that are consistent with this approach. Advocacy work will need to be undertaken

sensitively avoiding an adversarial and lecturing approach, and working to a large

extentthroughlocalorganisationswhoshareMADE’sperspective.

3. MADEmaybeabletoactasachangeagentbydemonstratingtheresultsofitsapproach.

This will work best where MADE is not in direct competition with government

programmesandcanfindspacetooperatewithoutinterference.

MADEsinterventionappearstohavereshapedtheorientationofsomebeneficiarieswhonow

think for instance thatengaging inagriculture ismoreuseful thanbeingapolitician. InDelta,

EdoandAbiaStates,somestakeholdersindicatedclearpreferenceforagriculture,overlooking

pecuniarygainsfrompoliticsorhavingashareinthenationalcake.Thisshiftinorientationis

linkedtothetrainingprogrammesofMADE,andthevisibleachievementsorprogressmadeby

somebeneficiaries.Forexample,manufacturersofleatherproductsinAbiaStatenotedthatthe

training in entrepreneurship and loan administration and management has enhanced the

understanding of members in financial management; making them to see a loan as an

investmentfundsandnotasshareofthenationalcake.

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1.5 Conclusions

TheeffectofoilandgasproductionontheNigerDeltaeconomyandsocietyhasremainedasore

point.Oilspillsphenomenon(causedbyoperationalfailuresandsabotage)andgasflaringhas

remained a blight on theNigerDelta environment affecting livelihoodsof rural communities.

Theoilindustryhascontinuedtohinderthegrowthofruralcommunities,asalternativesources

oflivelihoodhavenotbeenprovided.Generally,therearenorobustjobcreationinitiatives,and

jobs are not being created to absorb agitated and restive youths. The ‘Dutch Disease’ and

ResourceCurse’challengeassociatedwithuseofoilrevenuesischangingmarginally.Thefallin

oil price and economic recession,which followed, has shifted the focus of government (at all

levels)fromoiltoagriculture.

Politicalpatronageisfastbecominganideologyacrosstheregionirrespectiveofwhichpolitical

partyisinoffice.Limitedexternalaccountabilitypressurefromcitizens,makingroomforpublic

officialstouseoilrevenuestodeliver“patronagegoods”tosupportersaswellasbuyvotesIs

thedownsideofpatronagepoliticsandanemergingcultureofentitlementamongfarmersand

producer associations. Political Patronage psychology undermines any serious attention to

makingandimplementingeffectiveagriculturepoliciesandinitiativesacrosstheregion.Failed

expectationsandaspirationsofcitizens,especiallyyouths,andassociated frustrations tend to

fuelangerthatfindsexpressioninviolentmilitancy.

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PART2.PoliticaleconomyofvaluechainsAgriculture value chains in theNiger Delta as elsewhere in Nigeria, operates under a policy

environment dominated by patronage politics. Whilst formal rules represented by well-

articulatedpoliciesandprogrammessuggestprogramme/people-drivenpolitics,informalrules,

norms and practices that define patronage politics tend to affect the implementation of

otherwisewell designed initiatives. Patronagepolitics directly or indirectly negatively affects

theagriculturevaluechainsinthedifferentstatesoftheNigerDelta.Thepointisthatunderthe

patronagesystem,whichhasbecomeadefiningfeatureofNigeria’ssocialstructure,federaland

state initiatives such as agriculture loan schemes,women and youth empowerment schemes,

and input provision initiatives that can be otherwise legitimately demanded under a social

contractscenarioareoftendeliveredas“patronagegoods.” Atthelocal levelthefateofvalue

chaininitiativestendstobeaffectedbyopenorhiddeninterests,incentivesandpowerrelations

amonglocalactors.ThecurrentdevaluationoftheNairahasapositiveimpactacrossthevalue

chains. Thedevaluationof theNaira isaltering theconsumptionpatterns in thecountryasa

whole, as there is an increasingwillingness to shift demand to local products. Therefore, the

devaluationisengenderingasortofimportsubstitution.

This backgroundprovides a perspective for understanding the national, state, and local level

initiatives and actors highlighted under each value chain below. Each section provides an

analysisofstakeholderincentivesandinfluenceandamappingofpowerandinterests.

2.1 Cassava

National,StateandLocalissuesandinitiatives

Cassava remains a high profile commodity for production and export in government’s

agricultural policy. Following the Presidential Initiative on cassava during the Obasanjo

administration, and the Agriculture Transformation Agenda (ATA) of the Jonathan

administration,whichmadecassavaoneoftheleadingvaluechains,theAgriculturePromotion

Policy (APP)of theBuhari administration,has alsoprioritized cassavaproduction.Cassava is

one of the five crops (the others are Oil Palm, Cocoa, Sesame, and GumArabic) targeted for

exportproduction.TheObasanjoadministrationsetoutaninitiativetopromotetheproduction

of20percentcompositecassavaflourthatwasintendedtoboost localoutputofhighquality

cassavaflour(HQCF)andalsosaveforeignexchange.Unfortunately, thepolicywasfrustrated

by a combinationof factors including, resistancebybig players,mainlywheat importers and

millers,highcostofprocessingcompositecassavaflourandproductqualitychallenges.

13

It appears that State governments in the Niger Delta are not providing adequate support to

farmersfortheproductionofcassava.ThesupplyofinputssuchasvitaminAcassavastemsand

extension services falls below the expectations of farmers. However, Delta State government

supports cassava farmerswith land and inputsunder itsProduction, Processing andSupport

Programme (PPSP). All the other states provide improved cassava stems and the usual

extensionservicessupport,butisnoteffectiveatthemomentduetopoorfunding.

The difficulties experienced by women in relation to access to land has not changed as the

culturalpracticewhichreserveslandownershipformenisstillinplace.Otherconstraintsinthe

cassavavaluechainincludepoorroadinfrastructurewhichaffectsthemovementandprofitable

saleoffarmproduce,poorsupplyanddistributionnetworkofagriculturalinputs,packagingof

agricultural input in bags that are too big for smallholders' needs, and are not affordable to

smallholderfarmers,pooraccesstoimprovedvarieties,andweaklinkagesbetweensmallholder

farmersandotheroff-takers.

Actors

The value chain consists of production (land preparation, planting, management and

harvesting), processing (conversion of cassava tubers to products such as HQCF, edible and

industrialstarch,garri,ethanol,‘kpokpo’garri),andmarketing.Theactorsincludelandowners,

farmers,processors,marketersandassociations(Producersassociation,marketersassociation,

processorsassociation).Thecorporateandinstitutionalplayersinthethisvaluechaininclude

agriculturalinputcompanieslikeHarvestPlus,stateADPsandMinistriesofAgriculture,Bankof

Agriculture(BoA),flourmills,bakers,industrialstarchcompanies,andresearchinstitutessuch

astheNationalRootCropsResearchInstitute(NRCRI)andInternationalInstituteforTropical

Agriculture(IITA).

The implementation of the HQCF initiative by government was frustrated largely by the

monopolyofpowerexertedbyflourmillswhowerenotwillingtouseHQCFandensuredthat

thepriceofHQCFwas fixedatN79,000per tonuntil recently. Thissituationhadanegative

impactontheprofitabilityofHQCFproductiontherebylimitingindustrialdemandforcassava,

leadingtoaglutatapoint.Also, thefocusofgovernmentwasonproductionofcassavawhile

neglecting policy issues which addressed the funding of processors and bakers as well as

ensuringdemandanduptakefrommillers.

The initial PEA noted that “local cassava market associations ….. exert cartel-like behaviour

affecting the price paid to farmers. Tubers and Garri are generally not marketed directly to

14

consumers,andproducersandprocessorsarecompelledtotradewithmembersofassociations

(generallywomen)”.ThePEAupdatestudynotesthatwhilethis istrue, ithascontext,as it is

notapplicableinall localities.Inseveralcommunities,cassavafarmers/producersalsoengage

inprocessingandmarketing.Inotherlocalities,theproducerssellthefarmtoprocessorswho

processthetubersandsell tomiddlemenordirectlytoconsumers,dependingonthescaleor

volumeof production.Unlike capture fishermenand fish farmers, the farmers andproducers

arenotsubjectedtothewhimsofthemarketersassociation.Cassavafarmers,particularlyinthe

rural areas aremainlywomen, just as theprocessorswhobuy the cassava tubers, and those

whoselltheendproducts(garri,etc.)arewomen.Becausecassavacanremaininthesoilforas

longas the farmerwants(in theuplandareasexcept forsomeareas in Ikwere land inRivers

Statewherethetubersrotafteraboutninemonths),theyareabletosellataconvenientprice.

However,farmersintheswamplandareforcedtoharvestandsellduringthefloodandrainy

seasonandthisforcesthemtosellbelowtheprevailingmarketprice.

The cassava products sellers association, prominent among whom are the garri seller’s

association (made ofwholesalers and retailers) exercise great influence at the point of sales

(particularlywholesalemarkets).The garri producersbring theirproducts to themarketbut

onlymembersofthegarrisellersassociation(wholesalers)areallowedorpermittedtobuyat

pre-fixed(bywholesalebuyersassociation)prices.Garriproducerscannotselltoanybodywho

isnotamemberof thesellersassociation,andmembersof theassociationwhobuyatprices

higherthanthefixedratespayafineequivalenttothevalueofabag(orbags)ofgarri.However,

becausegarriisnotperishablelikefish,garriproducersinsomelocalitiesregulatethevolume

ofgarrisuppliedtothemarketinordertobargainforhigherprices.Sometimes,theykeeptheir

productsathomeandinvitebuyerswhoarewillingtobuy(whethertheyaremembersofthe

buyersassociationornot).Thus the relationshipof influencebetween theproducersand the

sellers is near co-equal and fluid. Garri producers exercise greater influence during the

planting/dryseasonwhengarriisnotproducedinabundance,whilethebuyersexercisemore

influenceintherainyseasonwhengarri is inabundanceduetoprematureharvestofcassava

usuallycausedbyseasonalflooding;inadditiontotheabundanceofotherstaplefoodssuchas

yamandcocoyamthatcanbeusedassubstitutesforgarri.

Thediagrambelowshows thevariousstakeholders, their interestsandpower,andhighlights

keystakeholdersthatMADEshouldengagewith,andthosethatshouldbekeptinformed.

PowerandInterest

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2.2 Palmoil

National,StateandLocalissuesandinitiatives

The initial PEA reported the neglect of the palm oil sector by the national government.

Unfortunately, this has continued despite the great potential the sector holds for national

economicrecovery.However,theAPPbythecurrentadministrationhasprioritizedoilpalmfor

export,andtheorganizationalthemesoftheAPP(accesstoland,soilfertility,accesstoinputs,

processing,marketingandtrade,accesstofinance,agro-businessdevelopment,amongothers)

will most likely create a conducive environment for oil palm production if implemented

effectively. However, there are no sufficient incentives for these important provisions to be

implemented. Similar provisions were made under the GES scheme, but implementation

sufferedforlackofdiligentreleaseoffundsforbothdryandwetseasonfarming.Thereareno

guarantees that thingswill work differentlywhether for palm oil value chain or other value

chains.Thusalthoughthecurrentfocusofgovernmentisonagriculturalproduction,theremay

bechallengesinthediligentimplementationofthispolicyintent.

The policy of prioritising palm oil exports seems irrational considering the fact that there is

massive illegaland informal importofover700,000metric tonsofpalmoilannually into the

country; but there is local potential for producing enough palm oil to meet local and

MINISTRY OF AGRIC FEDDEPTOFAGRIC

KEEPINFORMED

AGRICULTURAL INPUTCOMPANIES. LANDOWNERS.MARKETERS,STATEADPSBANK OFAGRICULTURE (BOA),FARMERSFLOUR MILLS,MARKETERSASSOCIATION,KEYPLAYERS

MINIMALEFFORT INDUSTRIAL STARCHCOMPANIES,RESEARCH INSTITUTES(NRCRI), PROCESSORS,BAKERS

KEEPSATISFIED

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internationaldemand.Whatisimportantisincreasedlocalproductionasthereisconsiderable

internaldemandforpalmoilthatisnotyetmet,beforeexports.

MostoilpalmcompaniesestablishedbyStategovernmentsintheregionhavebeenprivatised

andnewoilpalmplantationsarebeingdevelopedwith foreign investments in thesub-sector.

Examplesof thesearePZ-Wilmar inCrossRiver,PRESCO inEdoandDelta, etc. AbiaState is

resuscitating its Abia Palm by planting new palm trees while Bayelsa Palm which was

establishedbytheBayelsaStategovernmentisdormant,asithasbeenabandoned.Inaddition,

theStategovernmentsupportssmalloperatorswithinputssuchasseedlings.

Oil palm is largely produced by private individuals who use crude or local technology. The

processingmethodsarepoorlydoneandhasresultedinpoorqualityoilthatisnotpatronised

beyondthelocalmarket.Productionislimitedbylandthatisinadequateanddifficulttoaccess

orsecure,duetothelandtenuresystemsthatencouragelandfragmentationandinsecurityof

tenure. The support byMADE has helped some beneficiaries to improve their knowledge on

production and acquisition of equipments such as the mechanically adjustable harvester,

Malaysian knife and the small scale processing equipment. However, producers still find it

difficulttopurchasetheequipmentduetolackoffunds.Providingaccesstocreditwillthusbe

veryuseful to the farmers. Increased localproductionwouldbeencouragedbythesignificant

increaseinthepriceofpalmoilintherecentpast.

Somerespondentsmadethepoint thatpoorqualityofoil isamajor limiting factortogaining

access to the national and international market. Consequently, they make poor sales and

dependonmiddlemenwhoshortchangethem.Assistingfarmerstoaddresstheissuesofpoor

quality of oil and dependence on middlemen which exploit them, are thus critical as MADE

movesforwardwithitsinterventioninoilpalmproduction.Theissueofaccesstolandmaybe

resolvedwiththeDeltaandCrossRiverStates’governmentapproachofsourcingandsecuring

land for farmers. The value chain also faces other constraints like lack of access to, and

adoption of improved harvesting and processing equipment by smallholder farmers and

processors;pooraccessto,andhighcostofinputs–fertilizers,herbicides, labour;andlimited

linkages between small scale plantation owners and large scale integrated mills. These

constraints arenot significant enough towarrantMADEchanging its investment in the value

chain.

Actors

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Thevaluechain ismadeofproduction,processing, secondaryprocessors,andmarketing.The

actors include land owners, individual farmers, harvesters of wild palm fruit, processors,

wholesalers,andretailers.Themarketersdealineitherthepalmfruitortheoil,andtheinterest

groups include, Community Palm Dealers Association, peddlers, merchants, and speculators.

Institutionalplayersincludeagriculturalinputcompanies,NIFOR,stateADPsandMinistriesof

Agriculture, Oil PalmDealers Association, National Palm Produce Association of Nigeria, and

companies suchasOkumoOil andPrescoNigeriaLimitedwhichare involved inprimaryand

secondaryprocessingofpalmoil.

Thepowerrelationsandexerciseofinfluenceofthisvaluechaincentremainlyonthesupplyof

palmfruits.Thosewhopurchasewildpalmfruit locallycontrol thechain, subjectingboth the

harvestersandprocessorsandmillerstotheirterms.Theharvestersdonothaveaccesstothe

processors’ and thus sell their fruits to palm fruit dealers who buy them off and sell to the

processors.Conversely,theprocessorsarepreventedfrombuyingdirectlyfromtheharvesters

by thedealerswhomostoften formcommunitybasedassociations toregulate themarket. In

some localities, harvesters also engage in processing or speculation.Where they process, the

palmdealersarenotrelevantbuttheynowgetinvolvedinarelationshipwithpalmoildealers

who regulate and control the market the same way the palm fruit dealers do. Sometimes a

prominent harvester buys palm fruits from fellow harvesters and plays a middleman role

betweenharvestersandpalmfruitbuyers.Localprocessorsofpalmfruitwhoproducepalmoil

reasonably,controlpriceduetotheavailabilityoflocalstoragemethods.Palmfruitsareusually

scarceduringtherainyseason,andconsequentlythesupplyofpalmoilislimited,leadingtoa

hikeinprice.Theytherefore,produceandstorepalmoilduringthedryseason,andmakethem

availableforsaleintherainyseason,therebymakingmoreincome.Wholesalebuyersofpalm

oil also do the same. The interests here are defined by profit maximization and each group

works to out-do the other. The power relationship is however narrowed when it involves

plantationownerswhoplant,harvest,processandsell.

PowerandInterest

MINISTRYOFAGRICFEDDEPTOFAGRIC

KEEPINFORMED

PALM DEALERSASSOCIATION,FARMERS,AGRICULTURAL INPUTCOMPANIESSTATE ADPS. LANDOWNERS,RETAILERSWHOLESALERS. OIL PALMDEALERS ASSOCIATION,PROCESSINGCOMPANIESKEYPLAYERS

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2.3 Fisheries

National,StateandLocalissuesandinitiatives

TheAPPof thecurrentadministrationhas listed fishasoneof thehighpriority commodities

targeted fordevelopment and export. Thepolicy seeks to ‘enhance sustainable fisheries and

fish production’ with a combination of measures including to review the enforcement of

regulationstocontrolpollutionandover fishing,supportingproductionthroughresearchand

development of new breeds, and creating access to land, finance, improved processing and

storage, access to markets, fisheries equipment as well as information and knowledge. It is,

however, anticipated that the effective implementation of this policy intent would be a

challenge.

Stategovernmentshavesupportedfisheriesandfishproductionthroughanumberofpolicies

and initiatives. InDelta State, theYAGEPhas fish farming as one of its key components. It is

plannedthat200beneficiarieswillbetrainedperyearandthereafterprovidedwiththreefish

ponds, 600 juveniles, feeds and stipends for sixmonths. In other states like Akwa-Ibom and

Bayelsa, the government provides fishing gear (boats and nets) to fishermen/women while

thoseengagedinfishfarmingaresupportedwithnewandgoodqualitybreeds(fingerlingsor

juveniles)andfeeds.Extensionofficershavealsobeengiventhemandatetoequipfishfarmers

with new information and knowledge in all States. MADE has also contributed to providing

capacitybuildingthathasmadefishfarmersmoreproductive.

Fishfarmingislargelydonebyindividualswhousetheirownlabourandcapital.TheinitialPEA

hadnotedaccesstolandasacruciallimitingfactor.Whilethisisstillthecase,theproblemhas

beeneasedbytheintroductionanduseoftarpaulinandGPtankponds.Thesepondsuseasmall

HARVESTERS OF WILDPALMFRUIT,

MINIMALEFFORT

NATIONALPALMPRODUCEASSOCIATIONOFNIGERIA

KEEPSATISFIED

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spaceandmore importantly, theyaremoveable,making relocationeasyandatminimal cost.

But the problems associatedwith processing, storage and access tomarketing are yet to be

resolved. Fish farmers still depends on buyers who determine the time of harvesting and

consequently theprice.Thebuyersassociationusually fix thepriceanddirect theirmembers

nottobuyathigherprices.Sometimes,theyplaceembargoonbuyingtoforcefishfarmersto

sellatpricesdictatedbythem(thebuyers).ThisisacommonpracticeinBayelsaState.InDelta

State,apracticeofdevelopingfishclusterswhoharvestonrotationalbasisandperiodssetby

theproducer association appear to dealingwith this challenge. The strategy is to control the

volumeoffishharvestedwithaviewtocontrolthepricetotheadvantageofthefishfarmers.

The buyers and sellers association ismainlymade ofwomen, andmembership is restrictive.

Criteriaincludingethnicityorethnicgroupsaresometimesusedtoadmitmembers.Thispoint

wasmadeby the initial PEA and it still persists. Significantly, thesemarket associations play

veryinfluentialrolesinthevaluechain.Theyrestrictvolumeoffishinthemarket,fixtheprice,

determinewhenafishfarmerwillharvesthis/herpondandpreventnon-membersfromselling.

Theiractivitiesposeaseriousthreattofishfarmingasitactsasadisincentive.Againwhilstthis

isimportant,itdoesnotprovidesufficientgroundsforMADEchangingthewayitworksinthe

valuechain.

Actors

The fishery value chain includes – production (fish farming and capture fishing), processing,

storage, and marketing. The actors in fish farming include landowners, feed producers and

suppliers,fisheriesserviceproviders,hatcheries,producersandfarmers,processorsandowner

ofstoragefacilities,andmarketers(marketwomen).Forcapturefishingtheactorsincludethe

fishermen,processorsandownersofstoragefacilities,andmarketers.Thegovernmentandits

relevantagencies(forexampletheADPandorfisheriesdepartmentinMinistryofAgriculture)

regulate and provide support for the development of the value chain. Other actors include

producerandnon-producerassociationssuchastheNigeriaUnionofFishermenandSeaFood

Dealers,FishSellersAssociation,CatFishFarmersAssociation.

Power relations in the value chain are along the broaddivide of producer andnon-producer

associations. Inpractice, thedifferentactorshaveorganizedthemselves intoassociations that

regulateentryintothebusinessandhowtooperate.Themotivesandincentivesaredefinedby

thedesireforprofitmaximizationwhiletheinfluenceandcontroltheywieldisdeterminedby

theirpositioninthevaluechainandtheweakdevelopmentofotherchains. Forexample,the

marketers association exercises the greatest control in the entire value chain because of the

weakdevelopmentofthestorageandprocessingcomponentsofthevaluechain.Significantly,

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whereas the producers are mainly men with very few women, the marketing association is

virtuallymadeupofwomen.Thisimpliesthatwomenwieldthegreatestinfluenceorcontrolin

thevaluechain.

Inmostcases,themarketingassociationdecideswhattobuy,whentobuyandthepricetobuy.

Theyhaverulesgoverningwhotobuyfrom,whatdayandquantitytobuyinadesigntoensure

thatthevolumeof fishsupplied ismorethanthenumberofbuyers.Thisusually forcesdown

thepriceinfavourofthemarketers.Membersofthemarketingassociationwhofloutthisrule

areeithersuspendedorpaya fineequivalent totheamountof fishbought,or thequantityof

fishboughtisconfiscatedbytheassociationandsoldtoothermemberswhiletheproceedsgo

intothepurseof theassociation.Tocounter this, fish farmers(inDeltaState)haveorganized

themselvesintoclusters;withaclusterhavingaquotatosellatparticularperiodsorharvesting

limited to rotation tied to particular periods. However, the producers association is not as

efficientasthemarketersassociationduetopoororganizationanddifficultyinbringingevery

producerunderacommonumbrelladuetotheirwidelydispersedlocations.Theactionofthe

marketersdistortthemarket,reducesincomeandprofitability,andthusposesaseriousriskto

thebusiness,assomeproducersthinkthattheoccupationisnotprofitable.Forexample,even

though the cost of production has gone very high due to the exorbitant cost of feeds caused

largelyby theeconomic recession, thewomenmarketersassociation insistsonbuying fishat

theoldprice,resistinganypricechangebyproducerstoreflectcurrentproductionrealities.

PowerandInterest

MINISTRYOFAGRIC.FEDDEPTOFAGRIC

KEEPINFORMED

LANDOWNERS,FARMERS,STATEADPSFEEDPRODUCERSANDSUPPLIERS,FISHERIESSERVICEPROVIDERS,HATCHERIES.STORAGEFACILITYOWNERES.PRODUCERSCATFISHFAMERSASSOCIATIONKEYPLAYERS

MINIMALEFFORT

MARKETERSNIGERIAUNIONOFFISHERMENANDSEAFOODDEALERS,FISHSELLERSASSOCIATION,PROCESSORSKEEPSATISFIED

2.4 Microandsmallscalepoultry

National,StateandLocalissuesandinitiatives

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The initial PEA had noted that ‘National level policies are generally supportive of large scale

poultryproduction, forexample the impositionofan importprohibitiononpoultrymeatand

eggs.’ This has not changed as government’s interests in poultry have continued to rise,

especiallyunderthecurrenteconomicrecession.

AkwaIbomandDeltaStateshavedevelopedandimplementedelaboratepoliciesonpoultry.In

Akwa Ibom, the government has built a hatchery to support the growth of poultrywhile the

DeltaStategovernmenthasthroughYAGEP,encouragedyouthstogointopoultry.TheYAGEP

programme trains beneficiaries, builds thepoultry farmor house, stocks itwith layingbirds,

providesfeedandpaysyoungfarmersastipendforsixmonths.Theexpectationisthatthenew

farmerswill begin to earn an income at the endof sixmonths, and thereafter invest in their

businesstoensuregrowthandexpansion.

Individualsengaged inpoultry facechallengesranging fromhighcostof feeds,access to land,

poorsalesandlimitedmarket.Otherconstraintsareinadequateknowledgeaboutbestpractices

of good poultry keeping among household poultry keepers, poor supply and distribution

networkofvaccinesandotherpoultryproductsinruralareasoftheNigerDelta,lackofaccess

toanduseofvaccinationandotherpoultryservicesandproductsbyhouseholdpoultrykeepers,

etc.

Capacity building on good agricultural practices and access to veterinary services and

vaccinations has assisted poultry farmers to improve their outputs. MADE’s intervention

focuses onhouseholdpoultryproduction and small-scale farmers, not on large farmers. The

intervention has helped beneficiaries to acquire new knowledge and understanding of the

business.Thishasbroughtaboutsignificantreductioninmortalityandaboostinyields.Butthe

programme’s intervention is yet to impact on productivity significantly as the myriad of

problems faced by farmers are yet to be tackled. There is scope for increased production of

poultryintheregion.Thebanonimportedpoultrybygovernment,ledtoincreaseddemandfor

localpoultryandthepriceincreased,althoughitisgoingdowncurrently.

Actors

Actors in the value chain include feed producers and sellers, hatcheries, distributors, farm

ownersandpoultryproducers,eggssellers,livebirdsellers,andprocessors.Otherplayersare

thePoultryAssociationofNigeria(PAN),stateADPsandministriesofAgriculture,EggSellers

Association as well as Chicken and Birds Sellers Association. The sector is supported by

22

veterinaryserviceprovidersinvolvingvaccinationofbirdsandextensionservicesprovidedby

stateADPs,MinistriesofAgricultureandMADE.

ThelargefarmownerssuchasZartec,ObasanjoFarms,etc.exercisestronginfluenceoverthe

sale of birds while the egg sellers do same for eggs. The egg sellers take advantage of the

perishablenatureofeggsandthelackofstoragefacilities.

PowerandInterest

MINISTRY OF AGRIC.FEDDEPTOFAGRICKEEPINFORMED

FEED PRODUCERS ANDSELLERS,HATCHERIES. FARMOWNERS. CHICKENSELLERS ASSOCIATION.EGG SELLERSASSOCIATIONPOULTRY PRODUCERS,STATEADPS

KEYPLAYERS

VETERINARYSERVICEPROVIDERS

MINMALEFFORT

PROCESSORS.DISTRIBUTORS,POULTRYASSOCIATIONOFNIGERIA(PAN),KEEPSATISFIED

2.5 Finishedleathergoods

National,Stateandlevelsissuesandinitiatives

There appears to be no national policy on leather production. The only point noted is the

governmentpolicywhichprohibitstheexportofanimalhidesandskin.

LeatherproductioninthezoneisanactivitythatmainlytakesplaceinAbiaandImoStates,but

the state governments have not yet implemented a policy to support its growth and

development. The leather producers and marketing association, Leather Products

Manufacturers Association of Abia State (LEPMAAS), have organised members to take

advantage of MADE’s intervention, particularly in the area of entrepreneurship training and

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access to credit. MADE’s intervention has helped in promoting access to credit to the

association. Twenty-seven co-operatives with membership strength of 390 persons have

benefited from loans provided by Bank of Agriculture (BOA), facilitated by MADE. The

interventionhasalsogivenspecialfocustowomenbysupportingthemtogainaccesstocredit.

One major gain from MADE’s intervention is the training of producers to have clear

understandingoffinancialmanagement,paymentofbankloansandoperatingprofitably.

The main constraints of the value chain are difficulty in accessing credit, poor supply of

electricity, limited access to international market outlets, lack of industrial space and

interferenceintheaffairsoftheassociationthroughthemarketofficerthatisusuallyappointed

bygovernment.MADE’sinterventioniscurrentlyaddressingthechallengeofaccesstocreditto

theproducersofleatherproducts.Theprogrammemayfurtherneedtoassisttheproducersin

improvingtheiraccesstolocalandinternationalmarketoutlets.

Capacitybuildingonimprovedbusinessoperationstoleathergoodsproducersaswellasrecord

keepinghasassistedtoimprovetheproductivityofbeneficiaries.Inaddition,themaintenance

ofgoodoperatingrecordsbybeneficiarieshashelpedthemtoplanandoperateprofitably.By

organisingbeneficiaries inco-operativegroupsMADE’s interventionprovidesseveralbenefits

to individualmembers. These includenetworking to shareknowledgeongoodpracticesand

access to market, working together to meet requirements of financial institutions to access

credit,workingingroupstoavailthemselvesofrequiredinputandservices.

Actors

Thevaluechainismadeofrawmaterialsuppliers,producers,andnumerousserviceproviders

(weavers, stickers, smoothers,woodworks, etc.).Thevaluechainsare independentand their

activitiesarecoordinatedbyvaluechainspecificcooperativesocietiesand theumbrellabody

LEPMASS. LEPMASS regulates entry, quality control, and facilitates access to finance and

markets.ThegovernmenthoweverhasanoverarchingcontrolthroughtheMarketMaster.The

BOAisanactiveplayerinthisvaluechainthroughthegrantingofloanstotheartisans.

The value chain actors share a co-ordinate relationship as they supply different inputs or

provideservicesthatarenotindependentofeachother.However,respondentsnotedthatthe

‘producer’or ‘manufacturer’whoassemblesthedifferentcomponents intoa finishedproduct,

forexampleshoe,exercisescontroloverotheractors.The‘producers’arefewerthantheother

actors. Also, the producers have access to the market and are the ones who get purchasing

orders or requisition from traderswho sell shoes and other products such as bags and belt.

Because theproductsof theotheractorscannotstandalone, theydependon theproducer to

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earnincome,andbecausetheyaremany,theproducerchooseswhomtodealwithontermsand

pricesthataresuitabletohimorher.Thissuggeststhattheproduceroffinishedgoodslargely

determinesthepriceandtermsoftradeforothercomponentsandservicesprovidedbyother

stakeholders.

Theleatherproductbusinessisdominatedbymen,andthefewwomeninthebusinesslargely

deal on ancillary products or services. This indicates that in this value chain, men exercise

controlandinfluence.Unlikefisherieswherewomendominatemarketing,leatherproductsare

soldbybothmenandwomeninlargenumbers,butwiththemenhavingthegreaternumber.

TheAbiaStateGovernmentexercisescontroloverthevaluechainthroughtheappointmentof

theMarketAdministratorwhodeterminesthedirectionofdevelopmentinthemarket,interms

ofinitiativesintheprovisionofappropriateinfrastructuretosupportproduction.

PowerandInterest

STATE MINISTRY OFCOMMERCEKEEPINFORMED

RAW MATERIALSUPPLIERS,PRODUCERS,SERVICEPROVIDERSCOOPERATIVESOCIETIESLEPMASS.BOAKEYPLAYERS

SERVICE/INPUTPROVIDERS

MINIMALEFFORT

PRODUCERS OF FINISHEDPRODUCTS

KEEPSATISFIED

2.6 Cross-cuttingworkstreams

Agriculturalinputs

MADEpartnerswithprivatesectororganisationstoprovideagriculturalinputsandservicesto

target beneficiary farmers. These organisations include Saro Agro Sciences, PZ Wilmar,

Springfield Agro, Agri Project Concept, Miriam Nurtures Hatchery, Momoh Fish Multiplier,

Aquaton Ltd, Kingdom Obuza, Sygenta and Harvest Plus. The agriculture inputs companies

providefarmerswithgoodagriculturepractice(GAP)trainingforthedifferentcropsaswellas

proper use of fertilizers and other inputs. This enables the farmers to achieve increased

productivityandyieldsaswellasincreasedincomefromagriculturalproduction.

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Majorconstraintsfacedbythevaluechainarelackofinformationaboutthebenefitsandproper

usage of agricultural inputs by farmers; poor supply anddistributionnetwork of agricultural

inputs;andagriculturalinputpackagedinbagsthataretoobigforsmallholders'needs,andare

not affordable to smallholders. MADE ismaking efforts to deal with this issue, which at the

momentisahindrancetotheproductivityoffarmers.

AccesstoFinance

Theaccesstofinanceworkstreamfacilitateslinkagesbetweenmicro-financeinstitutions(MFI)

and development finance institutions (DFIs) with MADE’s beneficiaries, and works on

improving pro-poor financial product offerings and reach within the Niger Delta. It also

provides capacitybuilding forbeneficiaries toenable themmeet the funding requirementsof

financial institutions as well as delivers business development support services to potential

clients of financial institutions. Thereafter, the value chain undertakes loanmonitoring after

disbursements.

Commercialbanksalsoknownasdepositmoneybankshavethelargestflowoffundstofinance

economic activity in the country. However, they are almost entirely absent in financing

beneficiaries of the various value chains supported by MADE in the Niger Delta. In fact,

accordingtotheCentralBankofNigeria(CBN),lendingtoagricultureandrelatedvaluechains

constitute only about 2% of the total lending of commercial banks in Nigeria. Some of the

reasons why banks do not lend to agriculture include poor pricing of risks involved in

agriculture, limited understanding of the sector, inadequate staff capacity on agricultural

lending, rigid credit assessment processes, etc. However, beneficiaries of interventions by

MADEinthevariousvaluechainscouldaccessfinancefromthefollowinginitiativessupervised

byCBN:

• Micro,SmallandMediumEnterprisesDevelopmentFund(MSMEDF):Thefundprovides

N220 billion of long term, and low-interest (9% per annum) financing that can be

accessed throughmicrofinance banks (MFBs), Non-Governmental organisationmicro-

finance institutions (NGO-MFIs), cooperative finance organisations and finance

companies.Amongotheractivities,thefundcanbeappliedforagriculturalvaluechain

(production,processing,storage,marketing,inputsupply,etc.),andcottageindustries.

• Nigerian Incentive-BasedRiskSharingSystemforAgriculturalLending(NIRSAL):This

providesUSD500millionto“de-risk”agriculturallendingandencouragesbankstolend

toagriculturevaluechains. The fundsare tobeadministeredbyanon-bank financial

26

institutions(NBFI)withaBoardchairedbyCBN;anditwouldmanageasetoffacilities

includinginsuranceandrisk-sharingtoenablebankslendtocustomers.

MADE’s intervention in linkingbeneficiaries to financial institutionswhichprovide themwith

creditaswellastheprovisionofgrantstosomebeneficiarieshasenabledthemtoimplement

and improve theirbusinesses.However, thereareseveralbeneficiariesyet tobeavailedwith

credit.Thiscallsforincreasedeffortstomakefinanceavailabletomorebeneficiaries,especially

thosethatneedtoacquireprocessingequipment.Insomecases,thetermsoffinanceobtained,

suchasmoratoriumforrepaymentofcredit,doesnotsuittheplantingandharvestingcycleof

farmers. Therefore, there may be need to engage lending institutions to re-negotiate credit

terms to create a match between repayment and harvesting of crops, or access funds from

initiativeslikeMSDEDFandNIRSAL.

Gender

ThegenderinterventionisoneofthecrosscuttingvaluechainsofMADE.Itseekstoinfluence

negativesocio-culturalpracticeswhichlimittheeconomicempowermentofwomenaswellas

identifyandmobilisewomencooperativesforvaluechaininterventionactivities.Itisthrough

thisvaluechainthatMADEseekstoachievetheprogramme’simpactoftaking75,000women

outofpovertyandincreasetheirincome.

Constraints faced by the gender stream include socio-cultural factors that determine the

production roles and the scale of enterprises women and men engage in, unequal gender

representationdynamicsinthevaluechains,lackofaccesstoproductionresourcesandfinance,

andunequalawarenessamongwomenaboutexistingopportunities,access,useandadoptionof

improvedprocessingmachines.

ThefocusoftheMADEprogrammeonmainstreaminggenderin its interventionhasprovided

anopportunity forwomen toeffectivelyparticipate in thevariousvaluechains. Generally, in

rural communities most women are farmers. The intervention has enabled significant

participation ofwomen in the cassava, poultry, fishery and leather goods value change. The

programmeshouldsustaintheeffortstofurtherchallengetraditionalnormsandpracticesthat

tend to inhibit the ability of women to engage in economic activities like their male

counterparts.

2.7 CommonTrendsAffectingtheValueChains

27

There are some common trends and challenges that affect the value chains. These are

summarised in Annex 2. These include economic recession, herdsmen-farmers conflict,

militancy and sea piracy conflict, other conflict dimensions such as kidnapping and armed

robbery, communal clashes and rape of women in rural farming communities, multiple and

illegaltaxation,andmarginalisationofwomen.

2.8 PotentialPartnerships

In the course of consultations with stakeholders in the various Niger Delta States, the

consultants identified corporate and individual stakeholders whose interests, incentives and

powerrelationsarenotlargelydrivenbytheentitlementandbenefitcapturesyndrome.MADE

stands to gain by collaborating with these stakeholders in providing support to farmers in

relevantvaluechains.

Corporatestakeholders:

• Delta State Job Creation Office: provides a model for implementation of poverty

reduction initiatives. The Chief Job CreationOfficer for the state, Professor Eric Eboh

specifically requestedMADE to evaluate the state job creation initiatives and provide

feedbackforimprovement.

• NationalRootCropsResearchInstitute(NRCRI),Umudike,Umuahia:providesresearch

andextensionservicesto farmers,especially inagriculturalvaluechainssupportedby

MADE.

• AgriculturalDevelopmentProgrammes(ADPs)intheStates:setuptoprovideextension

servicestofarmersespeciallyinagriculturalvaluechainsbeingsupportedbyMADE.

• NigerianInstituteforOilPalmResearch(NIFOR),BeninCity:providesresearchintothe

genetic improvement,productionandprocessingofoilpalm,coconut, raffiaandother

palmscrops.

Individuals:

• Dr. Edna Akpan, Department of Agriculture Akwa Ibom State University: has been

involvedwithMADEovertheyearsasaResourcepersonincapacitybuildingservices

ongoodagriculturalpracticesforcassavaaswellastheuseofcassavaproductsforthe

preparationofconfectionariesandotherproducts.

• Mr.Ekanem Inyang,ApplicantsWelfareandDevelopmentCentre,Uyo:AnNGOwhich

providespro-poorsupportservicestoreducepovertyamongtheverypoor.

28

• RaymosGuana,RaymosFarms,DeltaState:Alarge-scalericefarmer,knowledgeablein

agriculturalproducemarketingnetworks.

• Mr.PaulOkpue,PanicenduwellLimited,DeltaState:Avegetablefarmerforshort-term

income generation and provider of capacity building services on good agricultural

practices.

29

Part 3. Review of value chain theories of change, conflict and risk

mitigationstrategies3.1 Valuechaintheoriesofchange

Inlinewiththerecommendationsofthe2015AnnualReport,MADEhaspreparedValueChain

TheoriesofChange forall thevaluechainsandcrosscutting issues.TheConsultantsreviewed

theValueChainTheoriesofChangeinseparatemeetingswithrelevantInterventionManagers

and provided feedback for improvement. Theories of Change reviewed include those for

Fisheries, Cassava, Finished Leather Goods, Poultry, Palm Oil, Media, Access to Finance, and

Media.Theobjectiveof thereviewwastotakeaccountofemergingfindings, inparticularthe

increasingly difficult operating environment, and to ensure that the Value Chain TOCs were

alignedwiththeoverarchingMADETheoryofChange.

Itwasobservedthat theValueChainTheoriesofChangewerealignedwiththestructureand

logic of the overarching MADE Theory of Change. Each Value Chain Theory of Change

demonstrated credible linkages between activities and Outputs, between Outputs and

Outcomes,andOutcomesto Impact.Whilstactivities,Outputsandoutcomesdifferedbetween

ValueChains,allValueChainTheoriesofChangehad impact level statementsconsistentwith

the overarchingMADE Theory of Change. Most Theories of Change downplayed the issue of

conflict and insecurity both in terms of risk and in the area of assumptions. Whilst specific

feedbackwasgiventoindividualInterventionManagerstoimprovetheirValueChainTOCs,the

followingwerethemainrecommendations:

• ConsistentwiththeoverarchingMADETheoryofChange,eachValueChainTOCshould

articulate robust assumptions for each level of vertical link, rather than bundling

assumptionsinoneplace.

• Thedominanteffectofmilitancy,piracyandherdsmenonrelevantvaluechainsshould

beacknowledgedasamajorriskandreflectedundertheriskheading

• TheTheoryofChangeTemplateshouldnoteconstraintsandriskstoensurethateachis

reflectedinitsproperplace.

3.2 EffortstoconflictproofinvestmentsandriskmitigationbytheProgramme

Theprogramme is conflict proofing investmentswith theuseof indigenesof communities to

facilitate activities. While this is working at the moment, it appears not to be a sustainable

approach. For example, it cannot be an appropriate remedy for herders-farmers conflict that

destroyscropsandotherinvestments.Theotherpointistheinsistenceoninsurancecoverby

30

lending institutionssuchas theBOA;butagain, theconflictenvironmentdiscourages lenders.

ThiscertainlyisathreattoMADE’sinvestmentsandisonereasonwhyMADEshoulddevelopa

strong partnership with government which has the capacity and responsibility to deal with

insecurity. Furthermore, MADE can collaborate with other programmes such as the Nigeria

StabilityandReconciliationProgramme(NSRP)anditspartnersworkingoncommunitypeace-

buildingtosecureinvestments.

ReviewofMADEProgrammeRiskMatrix:MADEhasa robustprogrammeriskmatrix.The

matrixcanbestrengthenedbytakingaccountoftherisksposedbyactivitiesofherdsmenand

pirates that have increased in intensity over the last two years. The suggested addition is

presentedbelow.

RiskorIssue Probability/Impact Mitigation

Insecurity

Disruptive activities of herdsmenandpiratesaffectoperatorsinthevalue chains, especially cassavaandfisheries

Medium/high BeyondimmediatecontrolofMADE.However MADE needs to be abreast ofgovernment efforts to contain thephenomenon

3.3 Findingsandeffectonanalysisandreportingofresults

BasedonareviewofthefindingsofthePEAwithMADE’sMonitoringandResultsMeasurementteam, the following are recommendations that can be taken forward in future reporting ofresults:

• MADE’s quarterly and annual reports should include some analysis of the context of

operation.Theanalysismayincluderecentgovernmentpolicies,statusofinfrastructure,

changeintheeconomicenvironment,suchasincreasesinprices,exchangeratechanges,

etc.Forexample,inthecassavavaluechain,thestateofinfrastructurecouldaffectthe

ability of farmers to move their produce to markets within the 24-hour window for

cassavaprocessingintohighqualitycassavaflourbyoff-takerSMEprocessors.Also,in

thefisheriesandpoultryvaluechain,thegeneral increaseinpricesandhighexchange

ratehassignificantlyraisedthecostoffeedsandthishasimplicationsforloweringgross

margins.

• TheProgrammemayconsiderreducingtheconversionratefromonelevelofresultto

the next level in order to increase outreach targets for each year. From a PEA

perspective,theprogrammeshouldconsiderleveragingongovernmentprogrammesas

ameansofincreasingoutreach,especiallyastheProgrammeworksinanenvironment

ofgrowinginstability.

31

3.4 OverallimplicationsforMADE

MADE has maintained a geographic focus, working in the core Niger Delta states of Rivers,

Bayelsa, Akwa Ibom, Edo and Delta, whilst also progressingwith interventions in Abia, Imo,

OndoandCrossRiver.MADEisalsotakingstepstoconflictproofitsinvestmentsanddevelop

Value Chain Theories of Change aligned to the overarching Theory of Change. To sustain its

effectivenessanddeliverintheenvironmentMADEneedsto:

• Develop a politically smart engagement/communication strategy with state

governments to ensure that governments knowabout theoperations andactivities of

MADEwith a view to developing partnerships for agricultural extension services and

inputsupplytofarmers.

• FinaliserevisionoftheValueChainTheoriesofChangeandresultsframeworkstohelp

maintainastrategiclineofsight.

• Regularlyreviewandupdate itsriskmitigationstrategy inviewofthevolatilityof the

operatingenvironment.

• Increase efforts to make access to finance available to more beneficiaries, and re-

negotiatecredit termswith lending institutions tocreateamatchbetweenrepayment

and harvesting of crops. Laying emphasis on creating access to credit from credit

institutionstakesoffsomeburdenfromMADE.

• Evolvecreativestrategiestosupportthebeneficiariestoaddressthechallengeofaccess

tomarkets.

32

AnnexesAnnex1. VariationinPoliticalTrendsoftheNigerDeltaStates

Abia

TheincumbentGovernorwasputinplacebyagodfatherandheisinhisfirstterm.Heappears

tobedrivingadevelopmentagendathatmightbedifferent fromhispredecessors in the long

run.Althoughpatron-clientpolitics is evident, there is a general expectation that thepresent

administrationwillimpactontheconcernsofthepoormorethananyothergovernmenthas,if

theGovernorremainsfocused.TheStategovernmenthasdevelopedsomeinitiativesinsupport

of agricultural value chain.The initiativesmaybe ameansof distributingpatronage, andare

likelytobesubjecttobenefitcapture.Theseinclude:

Strategic Agricultural and Rural Development Initiative (SADI): Under the initiative,

farmersaresupportedtocarryoutpoultryproductionandplantainmultiplication.Farmersare

provided with subsidized day old chicks and inputs in term of feeds and medication, and

supported to find buyers for the output. Also, high breed plantain suckers from the

InternationalInstituteforTropicalAgriculture(IITA)arealsodistributedatsubsidizedcosts.

Provisionofsubsidizedinputtofarmers:Thisinvolvesthedistributionofimprovedcassava

stemsandfertilizertofarmerstoraisethelevelofagriculturalproduction.

AkwaIbom

The incumbent is a first term Governor. There is citizen discontent over the incumbent

Governor’sperceiveddependenceonhispredecessors.Heisseenbysomeasa‘baby’governor

whose ‘umbilical cord’ is yet to be severed from the former Governor. As in other cases,

godfathersimofthiskinddivertsattentionfromservicedeliveryissues,asfocusisonsatisfying

highcostpecuniary interestsof thegodfather.Althoughhehasmadesomeefforts toprovide

infrastructure,thegeneralviewisthathehasthusfarconcentrateddevelopmentprojectsinhis

ethnic homeland. There is very little expectation that the governor will drive the common

aspirations of the people. Agricultural value chain initiatives implemented by the State

governmentincludethefollowing:

Women Agriculture Entrepreneurship Development Programme (WADEP): Under the

programmewomenaresensitized,trainedandempoweredwithseedcapital.

Integrated Farmers Scheme (IFS): This scheme sensitizes, trains and provides youth with

seedcapitaltoengageinagriculturalproduction.

CommercialAgricultureCreditScheme:Thisprovidescredit tomediumand large farmers,

includingagro-alliedcompaniesandco-operatives.

33

Agriculture Loans Board: The Board provides loans of up to half amillion Naira to small

farmers and companies. Schemes of this nature have the potential to make MADE’s more

commerciallydrivenapproachlessattractivethanaccesstoloansthatareseenmoreintermsof

benefitcapture.Ontheotherhandiftheschemeworks,itwillcomplementMADE’sobjectiveof

reducingpoverty.

Bayelsa

The incumbent Governor is in his second term and was brought to power by the former

Presidentandhiswife,whoarethushisgodparents.However,thelossofpoweroftheformer

President has freed him from their grip. Consequently, the general view is that hewillmost

likelynotcontinuetopatronizethemattheexpenseoftheState.However,hisambitiontobe

theleadingpoliticalfigureinthestateisleadinghimtobuildapoliticalempirewhichdoesnot

resonatewith the interestsof thepeople.Hisemperor-like leadershiphasalienatedhimfrom

somemembersof thepolitical classandordinary citizens.Thegovernmenthasembarkedon

severalgiganticprojectsthatarewidelyknownbuttheyhavenotaddedvaluetothequalityof

life. Citizens’ expectations for the remaining years of his second tenure are thus very low.

Although the Governor won second term elections, the loss of the elections by the former

President resulted in thegrowthof anoppositionparty in the state.This resulted ina fierce,

desperateandbitterelectoralcontestbetweentheincumbentGovernorandaformerGovernor,

whoistheleaderoftheoppositionparty.Thisreactivateddormantmilitantsandcultistswho

wereusedtoprosecutetheelections.Theconsequencewasthewidelyreportedviolenceduring

theDecember2015and January2016(supplementary)Governorshipelections,andresultant

increaseinseapiracy,cultism,androbbery,nowmadeworsebythereturnofmilitantactivities.

Cross-River

TheincumbentGovernorisinhisfirsttermanddoesnotappeartobeloyaltoanyGod-father.It

is perceived that he emerged as the highest bidder in the political patronage system which

producedhimasthegubernatorialcandidateofhispartyinthelastelection.Thereafter,hehas

freedhimselffromtheburdenofpatronizingpartychieftains.However,thecurrentgovernment

in the State has no blueprint. The general perception of citizens is that the development

initiativespursuedare idealisticandelitist. Thereappear tobenodeliberate focusonapro-

poordevelopmentstrategy.ThemaininitiativesimplementedbytheStateGovernmentinthe

agriculturalvaluechainare:

34

Commercial Agriculture and Rural Empowerment Scheme: This entails an oil palm out-

growersschemeandapineappleout-growersscheme.

CommercialAgricultureCreditScheme(CACS):Itprovidescredittocommercialfarmersfor

cropandlivestockproductionaswellasprocessing.

Provisionofsubsidizedinputtofarmers:Smallholder farmersareprovidedwith improved

cassava stems and input such as fertilizer to support increased crop, poultry and fisheries

production.Neverthelesstherearenorobustmonitoringandevaluationsystemsandreportsto

determinethesuccessofthisinitiative.

Delta

The incumbent is a first termGovernor and he is a product of godfathers. Although there is

visiblepoliticalpatronage,theeconomicanddevelopmentpoliciesoftheadministrationmakes

manyrespondentsthinkthatitwillprovideservicedeliverytocitizensandimpacttheirwelfare.

Clearandpracticalstepsandguideshavebeenput inplacetopromoteeconomicgrowthand

reduce poverty. The state has shown great interest in poverty reduction with the following

programmes:

Youth Agricultural Empowerment Programme (YAGEP): The programme targets youths

from age 18-35, and focuses on agricultural and entrepreneurship training. It has three

components.

Poultry:Thisisdesignedtobenefit250youthsperyearforfouryears.Thecomponentincludes

thefollowing:Thegovernmentbuildsapoultry,stocksitwith600layingbirds,providesfeeds

forthemfor3-4monthstostabilizethemforegglaying,providesveterinaryhealthcareservice,

and also pays a monthly stipend of N10, 000.00 to beneficiaries. The stipend is paid as a

survival/copingallowancefortheincubationperiodofthepoultry.

Piggery:Thecomponentincludesthefollowing:Governmentbuildsapen,provideseightpigs

thatareatdifferentstagesofpregnancy,providestwomalepigs,providesmoneyforcompound

feeds,andalsopaysN10,000survivalandcopingallowances.

Fisheries:Governmentbuildsearthenpondsforthoseintheriverineareasandconcreteponds

forthoselocatedintheuplandandurbanareas,provides2000juveniles,feeds,andwaterbore

holeandpayssurvivalandcopingallowance.

Crop Production: This is focused on the production of cassava, plantain, potatoes, and

vegetables.Itencouragesinter-croppingintheappropriatecombinationsasdefinedbylocation

andsuitabilityofmixing. Inaddition toproduction, it alsoentails training inagroprocessing.

Beneficiariesaregiventwohectaresoflandandallrequiredinputs.

35

Student Entrepreneurship Programme (STEP): This is a vocational skills acquisition

programmefocusedonseveraltrades–fashiondesigning,upholsterymaking,etc.Ittargets500

persons per year for four years and trains on a mentorship basis. Trainees who a certified

competent,aregivenstarterpacks.Shopsandworkshopsarerentedforthemandtheyarealso

paidallowancesforsixmonths.

Production,ProcessingandSupportProgramme(PPSP):Thisprogramme targetsexisting

farmers,andseekstoenhanceproductionandprocessing.Inputsandothersupportsaregiven

tobeneficiaries

Edo

TheincumbentGovernorwhosetenurewillsoonend,hadnoburdenofagodfathergiventhe

way he came into power. But as his administration winds down, he now appears to be the

godfather of Edo politics. From the look of things, Edo statemay be gripped in the claws of

godfatherpoliticsifeithercandidatesofthetwomajorpoliticalparties(PDPandAPC)winsthe

election.However,citizensratetheincumbentGovernor’sperformancehighly.Belowaresome

initiativesimplementedintheagriculturevaluechainbytheStategovernment.

EdoYouthFarmingScheme:Theschemeprovidescreditfacilitiesandotherfarmservicesto

targetedyouthsthroughtheEdoStateAgriculturalTrustFund.

Provisionof input to farmers: Under the initiative, improved, high yielding, earlymaturing

anddiseaseresistantseedsandotherplantingmaterialsaremadeavailabletofarmers.

Rivers

TheincumbentisafirsttermGovernorandhesharessimilarfatewiththeGovernorofBayelsa

State.TheformerPresidentandhiswifewhoarehisgodparentsarenolongerinapositionto

breathe down his neck. He appears to be free from the godfather influence. Significantly, he

appears to be building a political empire to be headed by him, and this will most likely

strengthenpatronagepolitics.ThebitterrivalrybetweenhimandtheimmediatepastGovernor

oftheStatemayalsocontinuetounderminethestabilityofthestate.Gangs,cultsandmilitant

groupswhichwerenotvisibleduringthetenureoftheadministrationoftheformerGovernor

havenowre-emerged,andareusedasinstrumentsofpoliticalengagementbydifferentpolitical

groupsandpoliticalparties.Worsestill,beyondusingthesegroupsasthugsforelections,some

of their leaders, particularly militant leaders are now representatives in the State House of

Assembly while others have been appointed as Chairmen of Local Government Caretaker

CommitteesandaidestotheGovernor.Thepointwasmadethatbecausesomeofthesepersons

sitintheStateSecurityCouncilmeetings,ittendstounderminethesecurityofthestate,asthey

36

wouldmost likely pass on security information to their groups/followers. This situation has

been largely influenced by the defection of the former Governor to the ruling party at the

Federal level (APC),and thesplitof thepoliticalclassof thestatealong these twoparty lines

(PDPandAPC).

37

Annex2. CommonTrendsAffectingtheValueChains

Thetrendshighlightedherearefactual,eventhoughtheymaynotbeuptoascalethatrequires

anyradicalchangesinthewayMADEworks.Theyareneverthelesstrendstowatchandtrackas

MADEprogresseswithitswork.

TrendsandChallenges

Effects

Economicrecession

Thecurrenteconomicrecessionhas impactednegatively on all the value chains. It hasincreasedcostofproduction forallproducersas the cost of inputs (poultry and fish feeds,fertilizer, vaccines, pesticides/herbicides, andtransportation) have gone up. Significantly,producers cannot raise prices to adequatelyreflect this rising cost of production as thedeclining purchasing power of people, whichhas reduced sales, and profits may becomeworse. This means that profits, andconsequently incomes have declined.However, the recession has also forcedmanyto go into agriculture, thus boostingproduction in the value chains, particularlyfishing, poultry, and vegetables farming. Also,cassava growers are makins out of therecession.MADEcantakeadvantageofthistostrengthenitsinterventions.

Herdsmen-farmersconflict

The encroachment on farms by herders is amajor conflict issue that has affectedagriculturaloutput.Cassavafarmersacrossallthe states have been victims of destructioncausedbycattle.Thecaseofafarmerwholost10hectaresof cassava farmandanotherwhorealized apaltry sumofN200, 000.00 fromaN4.5million investmentwere cited as classicexamples of losses to cattle encroachment onfarms.Also,therapeandassaultofwomenbyHerders has created fear and insecurity,forcing women to go to farm in groups, asituation that undermines their productivity.There is an urgent need to protect farminvestmentsfromthismenace.TheconcernforMADE here is to develop appropriate conflictproof methods for investments in cassava,vegetables and other product grown in theopenfield.

Militancyandseapiracyconflict Militancy occurs mainly in oil producingcommunities. Militants also operate as seapirates and criminal gangs and attackfishermen and women in Akwa Ibom andBayelsa States.They take awaymoney, boats,

38

and rape women. In Akwa Ibom, they alsoimpose levies on the fishing communities,while in Bayelsa (particularly in the Nembe-Brassarea);theyattackthefishingcampsandtakeawaytheirfood.Thishasmadefishermenand women unsafe, and have consequentlyaffected their activities in capture fishing inthe coastal communities of Akwa Ibom andBayelsaStates

Other conflict dimensions - kidnapping andarmedrobbery,communalclashesandrapeofwomeninruralfarmingcommunities.

There isanescalatingsituationofkidnappingandarmedrobbery,whichhasmadepersonalsecurityachallenge foreveryone in theNigerDelta. Communal clashes over land, whichaffects farmlands are noticeable in parts ofAbiaandCrossRiverStatesandOgoniaxisofRiversState.TherapeofwomeninfarmlandsisreportedinsomeruralcommunitiesinAbiaState.

Multipleandillegaltaxation

Multiple taxation and the collection of illegallevies by government officials and touts is amajor disincentive for persons engaged inagriculturalproduction.Thecurrenteconomicrecession has compelled the states in theregion to look inwards to raise revenue. Indoingthis,some(EdoState)havewidenedthetax net while others have in addition towideningthetaxnet(AbiaandBayelsa)eitherincreased taxation rates or introduced newtaxes or levies. This increases cost ofproductionanddepletestheprofitsoffarmersandotherproducers.

Marginalisationofwomen Inallthestatesvisited,womenfaceanumberof challenges (social, economic, cultural, andpolitical) that inhibit their full involvement ineconomic activities; including agriculturalproduction. Inheritance practices alienatewomen from land ownership, as only malechildrenareentitled to inherit land.Althoughwomencanbuyorleaseland,thisislimitedbytheir poor economic status as well as theseeking and granting of their husbands’consent and approval before they canpurchase land. Because land is the majormeansof production, particularly in the ruralcommunities, this constrains the productivityofwomen,andbyextensionunderminestheircapability to walk out of poverty. This hasbeenexacerbatedbytheoilindustrywhichhaspromoted an easy money making mentalitythatencouragesprostitution.Theconspicuousconsumption lifestyleofoil companyworkershasattractedwomentothem.Therearecaseswhere mothers encourage their femalechildren into prostitution. In Bayelsa, Delta,

39

Akwa Ibom, and Rivers State, oil workersinducedprostitutionisveryrampant,asyounggirlsflockaroundoilproductionfacilitiestobepatronizedby themale oil companyworkers.In Edo, the trafficking of young girls forprostitution is the common feature. “Italiobabes”(prostitutesinItaly)astheyarewidelyknown are successful prostitutes who areeithermodelstoyounggirlsorhave lifestylesthat incentivize prostitution. Families in Edostate raise money to provide for logistics tofacilitate the trafficking of their femalechildren to Europe for prostitution. In Abia,womenhavebeenturnedintobabymachines,astheyarecampedinwhatiswidelyknownasbaby factories. A man jokingly called“impregnator” is hired to impregnate thesewomen, whose children are sold from N250,000.00–N1,000,000.00;dependingonthesexand status of the buyer. One majorconsequence of this is the disdain ordisrespecttheyshowforhardworkordignityinlabour.

40

Annex3.ListofStakeholdersConsultedDFIDandMADEOfficials:12&15Augustand8September,2016

S/No.

Name/Position

Telephone/E-mailContact

1. OlachiChuksRonnie,RegionalCo-ordinatorSouthEast/South-South,DFID

07064062123;o.chuks-ronnie@dfid.gov.uk

2. ChykaOkarter,InterventionManager(Cassava),MADE 08033367513;chika_okarter@dai.com

3. JosephUbek,InterventionManager(FinancialSupport),MADE 08129095998;joseph_ubek@dai.com

4. FelixOtto,InterventionManager(Fishery),MADE 08037087237;ottoronfelo@yahoo.com

5. EloEvuezirie,InterventionManager(Fishery),MADE 08173837089;elo_ovuezirie@dai.com

6. AdaOnuoha,Monitoring&ResultsUnit,MADE 09022079890;coolada16@gmail.com

7. QaziYawarNaeem,PrivateSectorDevelopmentAdviser,DFIDNigeria

08103702568;Y-Naeem@dfid.gov.uk

8. PatrickMerienne,ConflictAdviser,DFIDNigeria 08163511488;P-Merienne@dfid.gov.uk

DeltaState:16–17August,2016

S/No.

Name/Position

Telephone/E-mailContact

1. RaymosGuanah,MD,RaymosGuanahFarmsLimited/Chairman,DeltaAgro-DealersAssociation

08037109559raymosguanahfarms@ymail.com

2. GerryOsai,ManagingDirector,OFEDAFarmsLtd. 08033418986ggoosai@yahoo.com

3. Mrs.StellaEre,MD/CEO,WinosaGlobal,Abavo 08036456574winosaproducts@yahoo.com

4. Mrs.FaithOkpohworho,Director(WomenAffairs),MinistryofWomenAffairs

08023455114

5. SirS.Rapu,DeputyDirector(WomenAffairs),MinistryofWomenAffairs

07062798703

6. Mrs.StellaO.Egedi,Director(Planning,Research&Statistics),MinistryofAgriculture&NaturalResources(MANR)

08034059741

7. Mrs.D.O.Osadebay,DirectorofFisheries,MANR 08037025310ujuosadebay@gmail.com

8. EugeneNwabueze,Asst.ChiefFisheriesOfficer,MANR 080374210629. C.Oritse,ProgrammeManager,DeltaStateAgriculture

DevelopmentProgramme(ADP)08163955325

10. BenAgamah,Director(ExtensionServices),ADP 08023436798bengamah@yahoo.com

11. JohnsonM.Nikoro,Director(Planning,Monitoring&Evaluation),ADP

07036151615

12. MichaelO.Omoemu,DirectorofTechnicalServices,ADP 0803542360413. C.C.Mordi,Asst.DirectorofFisheries,ADP 0803195187014. LilianNwokobia,CentreforRuralIntegration&Development 0810502949215. PaulOkpue,ManagingDirector,PanicenduweliNigeriaLimited/ 08022242525

41

VegetableandRiceFarmer16. ProfEricEboh,ChiefJobCreationOfficer,DeltaStateJobCreation

Office08036660475eceboh@yahoo.com

17. IgweChinedumKelechi-MADEFieldCoordinator/Ag.InputVC

08034741422knedum@gmail.com

18. AlunyoIsaiahGabriel-MADEFieldCoordinator/Ag.InputVC

08137711657,07016414812isaiah.alunyo@gmail.com

EdoState:18–20August,2016

S/No.

Name/Position

Telephone/E-mailContact

1. Hon.HarrisonOkpamen,Chairman,NationalPalmProduceAssociationofNigeria,EdoState

08028589891,08075894391harrygel@yahoo.com

2. Prof.SylvesterI.Ebohon,DepartmentofPoliticalScience,UniversityofBenin

09097201796

3. FelixBokushemi;Director,BokeshFarms 080656167054. PeterAikhelomodhage,ProgrammeManager,EdoState

AgricultureDevelopmentProgramme(ADP)08055357503

5. AndyEdobor,President,BeninChamberofCommerce,Industry,Mines&Agriculture

08033393233,08055266615benccima07@yahoo.com

6. ImalingmheJohnYesufu,DirectorGeneral,BeninChamberofCommerce,Industry,Mines&Agriculture

08037112191,08051146600Bigajoy07@yahoo.com

7. BarristerEgbeEvbuomwan,FormerClerk,EdoStateHouseofAssembly

08034045926,08053144623

8. Mrs.BridgetAigbomian,SmallScalePoultryFarmer 081381009069. TonyAgori,PoultryFarmer 07031397461,0805632217210. IgbinedionChukwuwendu,BusinessHead,SAROTerritory 0806741617911. AjibolaLawal,MADEFieldCoordinator 0813763214412. OlawunmiOni,MADEFieldCoordinator 08039406467

AkwaIbomState:22–23August,2016

S/No.

Name/Position

Telephone/E-mailContact

1. EkanemU.Inyang,Chairman,ApplicantsWelfare&DevelopmentCentre

08028928853applicants2@yahoo.com

2. Dr.RobertDode,DepartmentofPoliticalScience,UniversityofUyo 080233183553. Dr.ChrisEkong,DepartmentofEconomics,UniversityofUyo 081810770784. OkonEdetUkut,Chairman,NigerianUnionofFishermen&

SeafoodDealers,AkwaIbomChapter08025989270

5. ChiefMichaelUdo,NtorUdoAkanMultipurposeCooperativeSociety

08023154534

6. Dr.EdnaAkpan,DepartmentofAgriculture,AkwaIbomStateUniversity,IkotAkpaden

08023150560

7. UweBassey,DirectorofFisheries,MinistryofAgriculture&NaturalResources(MANR)

08023174486

8. MosesPeterAkpan,Director(Planning,Research&Statistics),MANR

08035466966

9. OkposenE.B.Okposen,DirectorofLivestock,MANR 0802352918610. AniefiokF.Isong,AssistantDirectorofLivestock,MANR 0803089115311. Dr.NsekpongUdoh,ExecutiveDirector,CommunityPartnersfor 08023338665

42

Development12. EmmanuelAkpan,DirectorofExtensionServices,AkwaIbom

AgricultureDevelopmentProgramme(AKADEP)08063051799

13. Dr.UduakUdoh,MADESurveySupportConsultant 08064496962Uduakudo82@gmail.com

14. FridayAgboAtta,SyngentaNigeriaLimited(Agro-businesscompany)

08057999260pastora1044@yahoo.com

15. DavidAdeniyi,SyngentaNigeriaLimited(Agro-businesscompany) 08062621945bornwindavid@yahoo.com

AbiaState:24–26August,2016

S/No.

Name/Position

Telephone/E-mailContact

1. FrancisNwakanma,CassavaFarmer 070309843542. ChiefStephenO.Albert,CassavaFarmer 080511418763. Mrs.ChiomaIhueze,AgriculturalInputUnit,Ministryof

Agriculture&NaturalResources(MANR)08054829349

4. Dr.GodwinAsumugha,Director(FarmSystemsResearch&Extension),NationalRootCropsResearchInstitute,(NRCRI),Umudike

08035086533gasumugha@gmail.com

5. Dr.HelenN.Anyaegbunam,ChiefResearchOfficer,NRCRI 080346849756. Dr.BenjaminOkoye,AgriculturalEconomist,NRCRI 08037764667. Dr.JustinEwuziem,AgriculturalEconomist,NRCRI/MADE

Consultant08064833657juziem2000@yahoo.com

8. Dr.MarcelC.Ogbonna,ChiefResearchOfficer,NRCRI 070612386409. IykeUchella,Director,AmyoVentureLimited/Chairman,Next

LevelCooperativeSociety/OilPalmandCassavaFarmer08069056326

10. Dr.AlozieAyim,DirectorofAgriculture,MANR 0803339696011. EgwuonwuNdukwe,DirectorofLivestock&Fisheries,MANR 0806044674812. Dr.EbenezerNwauzor,TechnicalAdvisertotheCommissionerfor

Agriculture&NaturalResources,MANR08035751927

13. Dr.SteveE.Agu,Director(Planning,Monitoring&Evaluation),AbiaStateAgricultureDevelopmentProgramme(ADP)

08034608430

14. Mrs.EstherObinya,DirectorofChildDevelopment,MinistryofWomenAffairsandSocialDevelopment

08060471682

15. Mrs.FeliciaOnwuha,Director(Planning,Research&Statistics),MinistryofWomenAffairsandSocialDevelopment

07068537714

16. Mrs.ChinyereNwaogwugwu,DeputyDirectorofWomenAffairs,MinistryofWomenAffairsandSocialDevelopment

08107625171

17. Mrs.NgoziKanu,Asst.ChiefSocialWelfareOfficer,WomenAffairs,MinistryofWomenAffairsandSocialDevelopment

07034565529

18. AhuazaOkechukwu,Ago-businessConsultant/CassavaFarmer 0803730546919. MaziOkechukwuWilliams,President,LeatherProducts

ManufacturersAssociationofAbiaState(LEPMAAS)/LeatherProductsManufacturer

08037441001

20. ObinnaNwaobilo,1stVicePresident,LEPMAAS/LeatherProductsManufacturer

08068810049

21. CollinsIsaacOgba,2ndVicePresident,LEPMAAS/LeatherProductsManufacturer

07035770611

22. PaulOkasanya,PublicRelationsOfficer,LEPMAAS/LeatherProductsManufacturer

08033699243

43

23. CharlesOkechukwuEmmanuel,LeatherProductsManufacturer 0806778245424. DicksonChimezie,LeatherProductsManufacturer 25. GladysNwaogwugwu,President,NobleWomenCooperative

Society/LeatherProductsManufacturer08052905392

26. ChineyeNnamdi,Secretary,NobleWomenCooperativeSociety/LeatherProductsManufacturer

08075545676

27. NjokuEnochUdochukwu,MADEInterventionAgent,Leatherworks

07038833112

28. AlexChigbu,MADETechnicalAssistant,CassavaValueChain 08134549938alex.chibu@yahoo.com

29. ChinweAgbaeze,MADETechnicalAssistant,OilPalmValueChain 07016456473

BayelsaState:30-31August,2016

S/No.

Name/Position

Telephone/E-mailContact

1. ProfAmbilyEtekpe,DepartmentofPoliticalScience,NigerDeltaUniversity(NDU),WilberforceIsland

08036666194

2. ProfSamuelEdoumeikumo,DepartmentofEconomics,NDU 080358062813. DrTariDadiowe,Director,BiosphereResourcesManagers 080374190904. PrincessElizabethEgbe,Director,OperationRescue, 07031626507/080291639915. ProfChrisOpukri,FishFarmer 080249660516. Mrs.BeatriceOlotu,CassavaFarmer 080788395477. Mrs.MagretInokoba,Director,WomeninPeaceInitiative 080337340648. Mr.AnthonyAkpomere,PoultryProductsDealer 080337963099. Mr.TonyeOngonimi,FishFarmer 0812347658810. Mrs.EbimieOrufa,HeadofAgricultureDepartment,YenagoaLocal

Government08037739888

11. MrJacksonDiegbegha,DirectorofAgriculture,BayelsaStateAgricultureDevelopmentProgramme(ADP)

08035079431

12. MsKenibgoloTombra,Director,DirectorateofWomenforAgriculture

08037702673

CrossRiverState:1–3September,2016

S/No.

Name/Position

Telephone/E-mailContact

1. AnariE.Anari,DirectorofAgricultureServices,MinistryofAgricultureandNaturalResources(MANR)

08064213610

2. SimeonOkoOgbaji,DirectorofLivestock,MANR 081514440473. ElderOdeyIkongha,Director(Planning,Monitoring&Evaluation),

CrossRiverStateAgricultureDevelopmentProgramme(ADP)0802378132809051875072

4. Mrs.MargaretNjar,Director,WomenAffairs,MinistryofWomenAffairs

08034546857

5. Mrs.JoyOkpo,ChiefSocialWelfareOfficer(WomenAffairs),MinistryofWomenAffairs

08035533603

6. JosephEba,ExecutiveDirector,UNICALConsultancyServices,UniversityofCalabar(UNICAL)

0803668041408087576151

7. Dr.MichaelO.Bonchuk,HeadDepartmentofHistory,UNICAL 080371833978. VenerableAugustineOqua,StateChairman,NigerianCassava

GrowersAssociation08023536493augustineoquajp@yahoo.com

9. IsaiahEkanem,CassavaFarmer 08033631921

44

10. Mrs.ChristianaEtuk,CassavaFarmer 0806624371711. FranklinOtagoke,CassavaFarmer/AgroInputsDealer 0803550124112. BasseyO.Bassey,MADEShortTermTechnicalAsst./Cassava

Farmer08177702548

13. FaithUllah,MADEShortTermTechnicalAssistant 0806836021514. DennisIkpaliMADEShortTermTechnicalAssistant 08056864418

RiversState:5–6September,2016

S/No.

Name/Position

Telephone/E-mailContact

1. DanielEmiri,ManagingDirector,EgoFarms(CassavaFarmerandProcessor)

08023336758

2. PeppleManna,Director,PepsomFarms(FishFarmer)/President,FishFarmersAssociationofRiversState

07030727354

3. Dr.SineeMgbara,MADEShortTermTechnicalAssistant/CassavaFarmer

08036634941

4. Mrs.FyneI.S.West,DirectorFysokaFarms(FishFarmer) 08099852899

EdoState:6–7October,2016

S/No.

Name/Position

Telephone/E-mailContact

1. JamesOkweshine,Lecturer,DepartmentofEconomics,UNIBEN 080283830932. VictorOmorugbe,Monitoring&EvaluationOfficer,Initiativefoe

Rehabilitation&Care(INRECA),BeninCity08027217540

3. UyiAgharevbe,AssistantSecretaryINRECA,BeninCity 0703716690424. RolandNwoha,ProjectCoordinator,IdiaRenaissance,BeninCity 08056128927;08080777067.

45

Annex4: HumanTraffickingandModernDaySlaveryinEdoState

1.Introduction

1.1 Aimandmethodology

This annex is a report of an additional piece of work undertaken to complement a broader

updateofPoliticalEconomyandConflictAnalysisof theNigerDelta. Thespecificobjectiveof

the additionalworkwas to assess thepolitical economy to identifyhowbest amarket-based

intervention could impact on human trafficking and forced labour in Edo state. The work

involvedadeskreviewofthe literatureonhumantrafficking inEdostateandatwo-dayfield

visit by two Consultants to Benin to hold interviews with key informants familiar with the

operationofhumantraffickinginEdo.

AdeskreviewofhumantraffickinginEdostaterevealsadiscernablepatternand“value”chain

thatderivesitssustenancefromthecommodificationofasegmentofhumanityinthearea.2Itis

clearly a picture of a well-organized market. The literature traces the historical context of

human trafficking in Edo way back to the mid-twentieth century when Edo women started

travellingtoEuropeonlegitimatebusinesstransactions,butovertheyearswerecompelledby

changing economic circumstances to gradually settle in prostitution, often coming home to

recruitsiblings,friendsandrelatives.Severalfactorshavebeenidentifiedasresponsibleforthe

existenceofthemarket.TheseincludethedemandfactorinEurope,especiallyinItaly,without

whichtherewouldnothavebeenasupply.ButinEdothesupplysideofthemarketisdrivenby

suchsocio-economicfactorsaspoverty, limitedemploymentopportunities,valueorientations,

family structures, low level of education by victims, and perception of prostitution as an

alternative means of livelihood both by victims, parents, and human traffickers. The

“procurement” process involves girls offering themselves to agents, parents urging and

sponsoringtheirdaughterstogointoprostitution,agentssourcingandluringvictimstogoto

Europe.Local agentsprocuregirls andorganize travelmostly throughdangerous land routes

andsupplyto“Madams”abroadwhotakecustodyofthegirls.OnceinEurope,thegirlsareused

mostlyasprostitutes,earningmoneyfortheowners.

2 Christiana E.E. Okojie et al Trafficking of Nigerian girls to Italy report of field survey in Edo state, Nigeria July 2003; Catherine Enoredia Odorige, The Dark Side of Migration Remittances and Development: The Case of Edo Sex Trade in Europe, Pécs Journal of International and European Law - 2016/I ; Geir Skogseth Trafficking in Women – Fact-finding trip to Nigeria (Abuja, Lagos and Benin City) 12-26 March 2006

46

Informedbytheperspectivesfromthedeskreview,theMADEConsultantsundertookatwo-day

field visit to Benin in October and held in-depth, semi-structured interviews with key

informantswithcloseknowledgeof theoperationsof themarket.Thediscussions focusedon

understandingwhythemarketexists,howthemarketworks,whoareinvolved,whatisbeing

done to discourage themarket, and the feasibility of interventions such asMADE to provide

sustainablemarketbasedalternativesthattakethegirlsoffthemarket.Findingsinthefieldare

discussedhereunderfourmainsections:Backgroundtothemarket;Operationofthemarket;

Interventionstoaddressthephenomenon;andasuggestedapproachforMADE.

2. BackgroundtotheMarket

2.1 Historicalandculturalperspective

Edo women have been exposed to Europe for a long time. Far back in history Edo women

travelled toEurope,particularly Italy, tobuygoods for sale inNigeria. Someof thesewomen

experiencedfailedbusinessesandstayedbackinItalytodomenialjobstosurvive.Mostofthem

later ventured into prostitution and over time they became ‘Madams’ and started recruiting

youngwomen,especiallysiblingsandfriendsfromEdocommunitiesabroadasprostitutes.

Polygamy is prevalent in the Edo society, particularly in Benin City and the neigbouring

communities. The situation produces many families with several children, including girls. In

mostcasesitiswomenwhotoilbyengaginginfarmingandtrade,totakecareoftheirfamilies

andchildren.Someofthosefamilieshavecompetitivepolygamouswiveswhoseektodobetter

thaneachotheringeneratingincome. Insomecases,parentsofthepolygamousfamilieslook

forward to their children taking care of the family. Under the circumstances, prostitution is

perceivedasareliablefamilyrevenue-generatingalternative.Afteraperiodofexploitationby

their importers, the women become free to make money for themselves, which they remit

home.UnlikecommunitiesintheNorthernNigeriaweregirlsaregivenouttomarriageearly,

thispracticeisminimalinEdocommunities.

2.2 Economicperspective

Theeconomicperspectiveappearstobeastrongfactorthatexplainsthecontinuedexistenceof

human trafficking in Edo state. Some of the economic reasons given by stakeholder

interviewedincludethefollowing:

47

• Lackof or low level of education and skills:Most victims of human trafficking are

girlsandwomenwithouteducationor thosewithvery lowlevelsofeducation. These

include school dropouts as well as primary and secondary school leavers. Without

education and skills, the most lucrative option for the girls is to be involved in

prostitution. However, at the moment even girls and women with Ordinary National

Diplomas(OND)andthosewithskillsinhairdressinganddressmakinggetinvolvedas

victimswith thedesire ofmaking it big. The agebracket is 16 to20years or a little

older.Itisdifficulttofindeducatedgirlsandwomenasvictimsofthebusiness.Educated

girls and women have some hope of being employed and do not participate in the

business.

• Unemployment: Lack of jobs and the high rate of unemployment is a factor which

encouragesthegirlsandwomentoparticipateinthebusinesstotakecareofthemselves

aswellastheirfamilies.

• Poverty: Associated with lack of education and skills as well as unemployment is

poverty.Girlsandwomenfromverypoorhomesshowveryhighdesiretogetinvolved

inthebusiness.

• The role of women perceived as rolemodels: Several girls andwomenwho have

participatedinthebusinessreturnwithwealthtobuildbighousesintheircommunities.

They also send money to their parents who are obviously very wealthy in the

communities. Other poor girls and families who see these display of wealth are

encouragedtoparticipateinthebusiness.

• Low value system of several families: Several families do not care to find out the

sourceofwealthoftheirwealthymembers.Thesefamiliescelebratewealthwithoutany

regardtotheirsources.Familiesthatplacelessvalueonmaterialwealtharelesslikely

toallowtheirchildrentoparticipateinthebusiness.

3. OperationoftheMarket

3.1 Marketoperationandrecruitmentmethods

Formanyyearsintheoperationofthemarket,thegirlsandtheirfamilieswereliedtobythe

recruiters and they ignorantly thought they were travelling to Europe to be employed as

housemaids, care givers and store attendants. Overtime, the girls and their families became

awareof thegoalsof therecruitersbutwillinglycontinuedparticipating inorder togenerate

foreign earnings. Currently, parents play very active roles in the trafficking of their girls and

women.Severalgirlsandwomenaretraffickedwiththeactiveconnivanceoftheirparents,due

topovertywhilesomeothersraisefundstosponsortheirgirlsandwomentoembarkontrips

48

toserveasprostitutesandremitearninghome.Therearecasesof coupleswith fiveormore

childrenwhoagreethatthewivesshouldbetraffickedandbeinvolvedinsexslaverytosource

foreignearnings.

Thesedaysamajorityofthevictimsandrecruitmentagentslookoutforopportunitiestomeet

eachother.The recruitment agents go to communities and look forways to engagepotential

victims for recruitment.Thereareseveral caseswheregirlsandwomenget involvedandare

trafficked without the knowledge of their parents and families. At the moment, community,

traditional, political leaders and even religious leaders (byholding thanksgivings services for

prospectivesexslavesandwealthyreturnees)havebenefittedfromthebusinessandtolerateit.

The returnees arewomenwho have been granted freedomby their importers,who claim to

have travelled to Europe to work or undertake businesses. Members of the communities

perceivemostofsuchwomenwhovisithomeregularlyfromtheirabodewithsuspicion.

Initially,airtravelwasthemainrouteoftraffickingprospectivesexslaves.Butawarenessand

tightercontrolby the Immigrationservicehasdrastically reduced tendencyof traffickedgirls

andwomen to travel by air. Currently, over 98% ofmovement is through land routes. The

victims are usually taken from Edo State to Kano or Sokoto with local means of transport.

AgentsthentakethemtoLibyaandlatelyMorocco.Thereafter,anothersetofagentstakethem

to Italy or other European countries. The major importers or ‘Madams’ in European cities

ultimatelypickupthesexslavevictims.

Therearetwomethodsofrecruitment.Someofthevictimsarerecruitedbyfieldagentswhogo

intocommunitiestoidentifythegirlsandwomenaswellasengagetheirparents.Inothercases,

theimporter‘Madams’visitEdocommunitiesonceinawhileandgotocommunitiestoengage

inrecruitment.

Onarrival inEurope thehuman traffickingvictimsarehandedover to theNigerian importer

who states the terms of the business to them. The girls and women work by engaging in

prostitutiontore-paytheexpensesincurredintransportingthemfromNigeriatoEurope.Some

of thegirlsandwomenhavereportedthat theyhave lived inoneresidencewithoutaccessto

thestreetsforlongperiodsofuptosevenyears.Insomecases,afteralongperiodofserviceto

their‘Madams’theyaregrantedfreedomandtheyalsobecomeimporter‘Madams’themselves.

3.2 Keyactors

49

Thereareseveralactors in thehumantraffickingandsexmarket. Theactors includegainers

and potential losers in the event of themarket diminishing with time. They are outlined as

follows:

• Mainimporters‘Madams’orprincipalswhoresideandoperatefromEurope;

• Principalswhoreside inNigeriancitiesoutsideEdoStateorotherWestAfricancities,

who provide collection points for the girls and ladies recruited in Edo communities.

Theycouldbewholesaleagentsof themainprincipalorcouldrecruit, sellandexport

thegirlsandwomenonwholesalebasistotheEuropeanbasedprincipal;

• Middlemen or agents usually called “trolleys”who identify and recruit the victims in

communities;

• TransportagentswhomovethevictimstocollectionpointsinNigeriaorbordercitiesin

Nigeria,oraWestAfricancitysuchasAccra,GhanaorBamako,Mali;

• TransportagentswhomovethevictimstoLibyaorMorocco;

• TransportagentswhotrafficthevictimsacrosstheMediterraneanSeatotheshoresof

Europe;and

• Thehumantraffickingandsexslaveryvictimsandtheirparents.

Thekeyprincipalsordriversinthemarketaretheimportersor ‘madams’inEurope.Thekey

principals are quite powerful since they fund upfront the initial cost of trafficking girls and

ladiesfromtheirhomestothedestination,providefacilitiesforthecustodyofgirlsandladies

that are trafficked and make the necessary arrangements to create opportunities for the

trafficked women to be involved in sex trade. In addition, the main importers pay for the

servicesofthemiddlemenandagents.Themainimportersmaketheirmoneybyexploitingthe

trafficked girls and ladies. Payments for the services provided to clients by the women are

made directly to the importers who accommodate the women or in circumstances when

paymentsaremadetothewomen,theyrenderreturnstotheimporters.Thisgoesonforalong

whileuntilthetraffickedwomenaregrantedfreedombytheimporter‘madams’.

Itisestimatedthatontheaverageeachgirlmakesabout200,000Eurosfortheimporterduring

theperiodofexploitation. Also,ontheaverageabout30younggirlsandladiesaretrafficked

outofEdoStateeverymonth.

4. Interventionstoaddresshumantrafficking

4.1 Currentinterventionefforts

50

In a national effort to address the menace of human trafficking in Nigeria, the Federal

Government established the National Agency for the Prohibition of Trafficking in Persons

(NAPTIP) in 2003. Also at the national level a non-governmental organisation, Women

TraffickingandChildLabourEradicationFoundation(WOTCLEF)wasestablishedin1999.The

NGOisdedicatedtotheeradicationoftraffickinginpersons,childlabourandviolentabusesof

the rights of women and society, as well as HIV/AIDS. The significant landmark activity of

WOTCLEFwas theenactmentof theNAPTIPAct and the settingupof theAgency.NAPTIP is

currentlynotperformingeffectivelyduetochallenges,includingfunding.

TheEdoStateLawAgainstHumanTraffickingandProstitutionwaspassedin2001,andtheEdo

State Committee Against Human Trafficking was set up to implement the Law by the brief

Osunbohadministration.ASeniorSpecialAssistantonHumanTraffickingtotheGovernorwas

appointed to head the Committee. However, the Committee stopped functioning after the

Osunbohadministrationwasremovedfromoffice.

AttheinternationallevelthereistheInternationalOrganisationforMigration(IOM)established

in1951andithasaNigerianoffice.Itsetupasheltertotemporarilykeeprepatriatedmigrants,

includingvictimsofhumantrafficking,andthefacilityhasbeenhandedovertoNAPTIP.

Some of the girls and ladies are repatriated when they are arrested during raids by law

enforcement agents in Europe or when they commit crimes or have any cause to come in

contactwithlawenforcementagents,whoidentifythemasillegalimmigrants. Whentheyare

arrestedinsuchcircumstancestheyaresenttodetentioncampsandtakenthroughimmigration

tribunalswhichordertheirrepatriation.Insomecases,therepatriatedimmigrantsareassisted

byIOMuptotheirarrivalinNigeria.

ThefollowingNGOsandprivatesectorcompaniesaremakingsomeeffortstointerveneinthe

humantraffickingandsexslaveryinEdoState:

• IDIARenaissance;

• InitiativeforRehabilitationandCare(INRECA);and

• LAPOMicrofinanceBank(ItalsosupportsINRECA).

NGOstrainandempoweryoungwomenthroughfieldworkerswhoidentifytargetedpotential

victimsofhumantraffickingasbeneficiaries.Incollaborationwithreligiousbodies,community

healthworkersaswellascommunityyouthandwomen leaders theyembarkonadvocacyon

51

thedangersofparentsallowingtheirdaughterstobeexportedforprostitution.Theoutcomeof

such advocacy indicates that communities where NGOs are working have experienced

reductionsinthenumberofyoungwomenwhoaretrafficked.InsomecasesNGOsembarkon

picking stranded victims in Libya and making them beneficiaries of their training and

empowermentactivities.VictimsofhumantraffickingdeportedtoNigeriaarealsopickedupby

NGOS and provided with training and empowerment. The training enables the victims to

acquireskill,afterwhichtheyareempoweredtostartsmallbusinesses.Suchwomenruntheir

businessesandresettleinsocietyandovertimesomeofthemgetconnectedtotheirfamilies.

IDIA Renaissance has a skill acquisition centre in Benin City, which was set up with the

assistance of United Nations Children Fund (UNICEF), to train repatriated victims and

vulnerable youngwomen. Edo State also has a Skills Acquisition Centre, which is a general

facility and not targeted at vulnerable young women and repatriated victims of human

trafficking.

5. SuggestedapproachofmarketbasedinterventionbyMADE

5.1. Learningfromwhatisworkingwell

Two key challenges face efforts atmaking amarket-based intervention to impact on human

traffickingandforcedlabourinEdostate.Thefirstrelatestothelosers/gainersequation.The

second relates to themindsetof thegirls andwomenat stake.First,divertingattention from

trafficking to alternative economic activities for potential victims in the short term produces

morelosersthangainers.Powerfulvestedinterests includinginsomecasestraditionalrulers,

politicians,traffickingagents,criminalnetworksandeventhegirlsandwomeninquestionwill

losetheimmediatebenefitsofthemarket.Suchbenefitscomefrompaymentsmadetovarious

partiesbyimportersoftraffickedwomenandrevenuegeneratedbytraffickedwomenwhohave

beengrantedfreedombytheimporter.Andthesepowersandinterestsarenotlikelytogiveup

withoutsome formof resistance. Investmentshavebeenmade inhiringproperties inNigeria

and abroad, establishing networks, securing transport arrangements, even borrowing from

bankstoimplementbusinessarrangements.HumantraffickinginEdoisacommercialindustry.

Thesecondmajorchallengeisthemindsetofthepotentialvictims:thewomenandgirls.Mostof

the vulnerable young women and repatriated victims wished to leave their poor farming

communities, and indeedwillingly left the rural areas in search of a better life in cities and

abroad. Many of them currently have a phobia for agriculture as it is practiced. Therefore,

generalagriculturevaluechainsarenotattractivetothem.

52

However,someNGOshaverecordedmodestsuccessesintheirinterventionsandhavebeenable

todivertpotentialvictimstoalternativesourcesofincome.Theyaredoingthisthroughcareful

awareness creation, rehabilitation of repatriated victims, and training/empowerment of

vulnerableyoungwomen.Thuscertainthingsaregoingonwellinthecurrentinterventionsby

NGOs.Theseincludethefollowing:

• IncommunitieswhereNGOsarecarryingoutawarenessandenlightenmentactivitiesas

wellastrainingandempowermentofvulnerableyoungwomen,therearereductionsin

recruitmentsofhumantraffickingandsexslavesvictims– thisservesasaprevention

effort;

• TheactivitiesofNGOsthatareinvolvedininterventioneffortshaverehabilitatedseveral

repatriatedvictimsofhumantrafficking;

• The training and opportunity to own small businesses has enabled vulnerable young

womenandrepatriatedvictimstoengageinlegitimateeconomicactivityandearntheir

living.

• There is modest emerging evidence that participation in public awareness and

enlightenment interventionsbyNGOscandissuadevulnerableyounggirlsandwomen

fromfallingvictimtohumantrafficking

5.2 Workingwithandthroughlocalactors

MADE’s approach is in general suitable formakingamarket-based intervention to impacton

humantraffickingandforcedlabourinEdostate.MADEmanagementiscurrentlydevelopinga

strategythataimsatmentoringlocalorganisationstoworkeffectivelywiththepoortoimprove

their livelihoods and get them out of poverty. The existence of local organisations making

modestinroadsintothehumantraffickingmarketprovidesopportunityforcollaboration.There

isneedtosignificantlyraisetheattractionofagriculturevaluechainsandmarketstocreateand

sustaininterestintheyoungwomenandvictims.Specifically,thereareopportunitiesforMADE

to:

• Identify and work with, local NGOs that are already making an impact on human

trafficking in Edo including mentoring them. These include IDIA Renaissance, and

Initiative for Rehabilitation and Care (INRECA). Advocacy and awareness creation

strategiesoftheseNGOscanbeusefultools.

53

• Deploy its demonstrated training capabilities to strengthen the skills of identified

willing, vulnerable women and girls to enable them settle in productive commercial

activities.

• Utilize its robust communications strategy, including sharing success stories

demonstrating examples of vulnerablewomen lifted out of poverty and flourishing in

thevaluechainsMADEissupportingincarefullyplannedadvocacyinitiatives.Thiswill

goalongwayinmakingagriculturelessunattractivetopotentialvictimsoftrafficking.

• Bringlessonslearnedfromitseffortsinliftingwomenoutofpovertytobearonmaking

animpactonhumantrafficking.

6.0 Recommendationsforfurtherstudy

This piece of work was done within a short period involving only two days in the field.

Therefore, it is but a light touch analysis. It should therefore be taken as a starting point. A

deeperstudyisrequiredtogainabetterunderstandingofthedynamicsofthemarket.

Theissuestobeaddressedintherecommendedstudyshouldinclude,butnotbelimitedto,the

following:

• Atthemacrolevel,analysethesizeoftheproblem(andofthemarket).Arewetalking

abouthundredsofwomenperyear?Thousands?Anysenseoftheoverallvalueofthe

“industry”toNigeria?Andthevaluetothe“beneficiaries”?

• Atthemicrolevel,whatistheaverage“value”ofatransactiontothefamily,becauseany

othereffectivesolutionwouldneedtofocusonthis.

• Explore questions about the actual transactions – values, means of transactions

(paymentupfront,paymentovertime),cashflow,andwhomakestheactualpayments,

thesegmentationoftheactualreasons–howmanyofeachtypeofgroupthereare(and

who they are), which is really important for understanding the most appropriate

solution. If families want to replace the earnings flow, they will need something

comparable.

• Thestudyshouldhelpdeterminehowtoworkwithexistingpartnersto:

i. analyseandunderstandtheproblembetter;

ii. designsomepilotinterventionsinconjunctionwithMADElocalpartners;and

iii. implementthepilots.

54

Human&Trafficking&Value&Chain&End&market&

Retailers&

Importers&

Exporters&

Aggregators&

Producers&These&are&the&households&that&are&supplying&the&young&girls&for&the&trade.&&We&need&to&understand&their&characterisBcs&and&why&they&are&doing&it,&what&they&get&from&it&(do&they&get&paid&for&selling&the&girls),&and&what&they&do&with&the&money&that&they&get.&&Are&they&forced&to&do&it&by&criminal&elements&or&are&the&children&kidnapped?&&

These&are&the&buyers&of&the&services&provided&by&the&girls,&either&for&labor&or&for&sex&(two&separate&end&markets).&&There&will&probably&be&different&market&segments&for&the&sex&&

These&are&the&sellers&of&the&services&of&the&young&girls&either&for&labor&or&for&sex&(two&separate&end&markets).&These&firms&can&probably&be&disaggregated&by&the&market&they&serve&and&the&&

Human&trafficking&is&a&global&value&chain.&&These&importers&deal&with&supply&from&all&over&the&world.&&This&is&probable&the&criminal&element&in&the&desBnaBon&countries&that&controls&the&relevant&industry&–&Mafia,&organized&crime,&etc.&&They&have&the&major&relaBonships&with&the&exporters&and&control&the&government&bodies&that&should&be&pursuing&them.&

These&are&the&main&business&element&in&the&country&of&origin.&&They&will&be&big&businessmen/&organised&crime&with&strong&Bes&to&government&and&other&regulatory/influenBal&parBes.&&&They&may&have&branches&in&other&countries,&may&be&Nigeria&wide,&or&may&be&just&Edo&state&based.&&They&will&have&to&organise&the&mode&of&shipping&of&the&girls&from&Nigeria.&&What&is&their&link&to&the&importers??&

These&are&the&businesses/agents&who&do&the&actual&idenBficaBon&of&the&potenBal&families&to&target&or&the&girls&in&parBcular.&&They&probably&have&some&sort&of&criminal&element&to&them&(area&boys?)&