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AFRICAN DEVELOPMENT FUND

Language : English
Original
: English
Distribution: Limited

CONFIDENTIAL

FEDERAL REPUBLIC OF NIGERIA


AGRICULTURE AND RURAL INSTITUTIONS SUPPORT PROJECT
APPRAISAL REPORT

This report is made available to staff members to whose work it relates. Any
further release must be authorised by the Vice-President for Operations.

AGRICULTURE AND RURAL DEVELOPMENT DEPARTMENT


CENTRAL AND WEST REGION

SCCD: N. G.

OCAR
APRIL 2005

TABLE OF CONTENTS
Page
Project Information Sheet; Currency and Measures; List of Abbreviations; Socio-Economic Measures;
Project Matrix; Executive Summary

ii - ix

1.

ORIGIN AND HISTORY OF THE PROJECT............................................................1

2.

AGRICULTURE SECTOR ............................................................................................2


2.1
2.2
2.3
2.4
2.5
2.6
2.7

3.

INSTITUTIONAL FRAMEWORK ..............................................................................7


3.1
3.2
3.3
3.4
3.5
3.6

4.

PROJECT CONCEPT AND RATIONALE .........................................................................14


PROJECT AREA AND BENEFICIARIES .........................................................................16
STRATEGIC CONTEXT ...............................................................................................16
PROJECT OBJECTIVE .................................................................................................16
PROJECT DESCRIPTION ..............................................................................................16
ENVIRONMENTAL IMPACT.........................................................................................20
PROJECT COST ..........................................................................................................20
SOURCES OF FINANCE AND EXPENDITURE SCHEDULE ..............................................21

PROJECT IMPLEMENTATION................................................................................22
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8

COORDINATION OF AGRICULTURE AND RURAL DEVELOPMENT.................................7


FEDERAL INSTITUTIONS ..............................................................................................7
STATE LEVEL INSTITUTIONS .......................................................................................9
TRAINING INSTITUTIONS ...........................................................................................10
CONSTRAINTS TO EFFECTIVE SERVICE DELIVERY ....................................................11
OPPORTUNITIES FOR EFFECTIVE SERVICE DELIVERY ................................................13

THE PROGRAMME.....................................................................................................14
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8

5.

SALIENT FEATURES.....................................................................................................2
POVERTY STATUS .......................................................................................................3
GENDER ISSUES ..........................................................................................................3
HIV/AIDS AND MALARIA ISSUES ..............................................................................4
ENVIRONMENTAL ISSUES ............................................................................................4
DONOR INTERVENTION AND LESSONS LEARNT ...........................................................5
AGRICULTURE AND POVERTY REDUCTION POLICIES ..................................................6

EXECUTING AGENCY ................................................................................................22


INSTITUTIONAL ARRANGEMENTS ..............................................................................22
SUPERVISION AND IMPLEMENTATION SCHEDULE ......................................................23
PROCUREMENT ARRANGEMENTS ..............................................................................23
DISBURSEMENTS ARRANGEMENTS ...........................................................................25
MONITORING AND EVALUATION ...............................................................................25
FINANCIAL REPORTING AND AUDITING ....................................................................26
AID CO-ORDINATION ................................................................................................26

PROJECT SUSTAINABILITY AND RISKS .............................................................26


6.1
6.2.
6.3

RECURRENT COSTS ...................................................................................................26


PROJECT SUSTAINABILITY ........................................................................................27
CRITICAL ASSUMPTIONS, RISKS AND MITIGATING MEASURES: ................................27

PROJECT BENEFITS ..................................................................................................28

8.

CONCLUSIONS AND RECOMMENDATIONS.......................................................29


8.1
8.2

CONCLUSIONS ...........................................................................................................29
RECOMMENDATIONS .................................................................................................29

i
LIST OF TABLES

Page
4.1
4.2
4.3
4.4
4.5
4.6
5.1
5.2

Project Cost by Component ............................................................................................. 20


Project Cost by Category of Expenditure .................................................................. 21
Project Costs by Category of Expenditure and Financier.............................................. 21
Summary Project Costs by Source of Finance .............................................................21
Summary Expenditure Schedule by Component........................................................... 22
Summary Expenditure Schedule by Source of Finance................................................ 22
Summary Implementation Schedule ................................................................................23
Summary of Procurement Arrangements ........................................................................24

LIST OF ANNEXES
No. of Pages
1.
2.
3.
4.
5.
6.
7.

Map of Project Area ............................................................................................................1


Tentative Implementation Schedule ..................................................................................1
Tentative List of Goods and Services...................................................................................1
Summary of Bank Group Operations ...................................................................................1
Project Organisation Chart ....................................................................................................1
Summary of Annexes in Volume II ............................................................................... 1
Summary TORs for Project Team ................................................................................. 2

This appraisal report was prepared by Messrs. M. Basalirwa, Financial Analyst, J. Opio-Omoding, Agricultural
Economist; (all of OCAR.2); O. Oladapo, Agricultural Economist, NGCO following an appraisal Mission to
Nigeria from 15th January to 1st February 2005. Additional inquiries relating to the report should be addressed to
the authors or to Mr. Sami Z. Moussa, Division Manager, OCAR.2 (Extension 2143).

ii
AFRICAN DEVELOPMENT BANK GROUP
Temporary Relocation Agency
BP 323, Tunis Belvedere
1001 Tunisia
Tel: 216-71102143
Fax: 216-71102570

PROJECT INFORMATION SHEET


Date: March 2005
1.

COUNTRY

Federal Republic of Nigeria

2.

TITLE OF PROJECT

Agriculture and Rural Institutions Support Project

3.

LOCATION

Abuja and Six Regional Offices

4.

BORROWER

Federal Government of Nigeria (FGN)

5.

EXECUTING AGENCY

Federal Ministry of Agriculture and Rural


Development (FMARD)
P.O. Box 325, Gwagwalada Abuja FCT
Tel: 234 9 8821051
Fax: 234 9 3147438

6.

PROJECT DESCRIPTION

The sector goal is to strengthen institutions to respond effectively and efficiently to the needs
of the farmers and other participants in rural development for the enhancement of food
security and reducing poverty. The project objective is to enhance the capacity of the
agriculture and rural institutions for effective and sustainable service delivery to the farmers.
The project will contribute to food security by enabling the Departments and Institutions of
the Federal Ministry of Agriculture and Rural Development to efficiently serve the rural
areas. The project has following three components: A) Institutional Support and
Rationalisation, B) Capacity Building and, C) Project Management. The outputs for each of
the components are summarized as follows: Component A: guidelines for departmental
coordination developed, institutional performance indicators handbook developed and human
resource strategy developed and adopted. For component B: Staff training conducted,
agriculture data collection and analysis computerised and Management Information System
established.
7.

8.

TOTAL COST

UA

3.22 million

Foreign exchange
Local cost

:
:

UA
UA

2.66 million
0.56 million

ADF GRANT

UA

3.00 million

iii
9.

OTHER SOURCES OF FINANCE


Federal Government of Nigeria:

UA

10.

DATE OF APPROVAL

April 2005

11.

PROBABLE COMMENCEMENT DATE AND PROJECT DURATION


Commencement
Duration

12.

:
:

0.22 million

June 2005
3 Years

PROCUREMENT OF GOODS, WORKS AND SERVICES

Procurement of goods and consultancy services financed by the ADF will be carried out in
conformity with Bank Group Rules of Procedure. Procurement of the equipment and
computers as well as the motorcycles and two pick ups will be through National Competitive
Bidding (NCB). The Publications will be procured through Direct Purchase.
13.

CONSULTANCY SERVICES REQUIRED

Consultancy services for support to institutional rationalisation including re-alignment and


on-job training, including market analysis and production of training materials, long-term
Technical Assistance and short term consultancies for conducting impact surveys, annual
audits of the project accounts and mid-term and final reviews will all be acquired through
short-listing of consulting firms, in accordance with the Banks Rules of Procedure for the
Use of Consultants. The services of specialised agencies such as the training of staff will be
acquired through Direct Negotiations with existing institutions.

iv
CURRENCY AND MEASURES
(January 2005)
UA 1
UA 1
US$ 1

=
=
=

Naira 203.307
USD 1.55301
Naira 135.00

FINANCIAL YEAR
1 January 31 December

ABBREVIATIONS
ADP
AMTA
ARDCG
ARDEC
A-PSF
CIDA
CBO
DFID
EIA
FAO
FEPA
FGN
FMARD
FMOF
IFAD
LGC
MIS
NACA
NARI
NEEDS
NDDC
NGCO
NGO
NISER
NPC
PMU
PMED
SEEDS
SEPA
SMA
SMLG
USAID

:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:

Agricultural Development Programme


Agricultural Management Training for Africa
Agricultural and Rural Development Consultative Group
Agricultural and Rural Development Executive Committee
Agriculture Support Facility
Canadian International Development Agency
Community Based Organisation
Department for International Development of the United Kingdom
Environmental Impact Assessment
Food and Agriculture Organization of the United Nations
Federal Environmental Protection Agency
Federal Government of Nigeria
Federal Ministry of Agriculture and Rural Development
Federal Ministry of Finance
International Fund for Agricultural Development
Local Government Council
Management Information System
Nigeria AIDS Commission
National Agriculture Research Institute
National Economic and Empowerment Development Strategy
Niger Delta Development Commission.
Nigeria Country Office
Non-governmental Organisation
Nigeria Institute of Social and Economic Research
National Planning Commission
Projects Management Unit
Planning, Monitoring and Evaluation Department
State Economic and Empowerment Development Strategy
State Environmental Protection Agency
State Ministry of Agriculture
State Ministry of Local Government
United States Agency for International Development

Nigeria
COMPARATIVE SOCIO-ECONOMIC INDICATORS

Year

2002

2001

2000

2.0
1.5
1.0
0.5
0.0
2002

2001

2000

Nigeria

Africa

Life Expectancy at Birth (Years)

71
61
51
41
31
21
11
1
2002

2001

Nigeria

2000

1999

102.3
102.0
99.5
100.8
82.0
1.2
0.8
1.6
5.9

2.5

1999

91.0
105.0
88.0
45.8
51.0
26.6
19.0
34.2
3.9

1999

89.2
83.7
40.8
38.2
49.9
37.9
29.2
46.4
3.5

3.0

1998

82.0
74.0
34.0
31.1
47.9
33.3
25.6
40.7
0.6

Population Growth Rate (%)

1998

1996
1996
1996
1996
1996
2002
2002
2002
1998

1998

Education Indicators
Gross Enrolment Ratio (%)
Primary School
- Total
Primary School
- Female
Secondary School - Total
Secondary School - Female
Primary School Female Teaching Staff (% of Total)
Adult Illiteracy Rate - Total (%)
Adult Illiteracy Rate - Male (%)
Adult Illiteracy Rate - Female (%)
Percentage of GDP Spent on Education

Africa

1997

287.0
782.0
99.0
100.0
100.0
100.0
0.3
11.0
93.0
90.0

3 285
6.3

Nigeria

1997

78.0
98.0
56.0
78.0
80.0
52.0
1.3
144.0
82.0
73.0
31.0
2 675
1.8

1997

57.6
105.8
38.0
60.3
61.7
60.5
5.7
198.0
76.4
67.7
25.9
2 444
3.3

1996

21.2
76.1
15.0
57.0
67.0
63.0
6.0
22.7
34.0
30.0
27.3
2 747
0.8

200

1996

0.6
0.5
18.0
14.3
48.3
94.7
25.4
78.0
79.3
12.0
10.3
7.5
10.2
13
1.7
74.0

400

1996

1993
1989
1998
2000
1991
2000
2001
2000
2000
1996
1999
2001
1998

Africa

Infant Mortality Rate


( Per 1000 )
100
95
90
85
80
75
70
2002

2001

Source : Compiled by the Statistics Division from ADB databases; UNAIDS; World Bank Live Database and United Nations Population Division.
Notes: TNAF
n.a. Not Applicable
; DataNeeds
Not Available.
: Training
Assessment Framework

Africa

2000

Nigeria

1999

11.6
-0.2

12.3

1998

9.9
0.4

1.9

1997

6.2
0.7
4.0
1.1

1996

31.0
0.9
3.0

1995

2002
1995
1990
1997

1994

Environmental Indicators
Land Use (Arable Land as % of Total Land Area)
Annual Rate of Deforestation (%)
Annual Rate of Reforestation (%)
Per Capita CO2 Emissions (metric tons)

1.7
2.9
32.4
5.1
61.1
103.3
26.9
62.0
66.3
24.0
8.4
60.9
79.8
440
2.8
59.0

600

1995

Health & Nutrition Indicators


Physicians (per 100,000 people)
Nurses (per 100,000 people)
Births attended by Trained Health Personnel (%)
Access to Safe Water (% of Population)
Access to Health Services (% of Population)
Access to Sanitation (% of Population)
Percent. of Adults (aged 15-49) Living with HIV/AIDS
Incidence of Tuberculosis (per 100,000)
Child Immunization Against Tuberculosis (%)
Child Immunization Against Measles (%)
Underweight Children (% of children under 5 years)
Daily Calorie Supply per Capita
Public Expenditure on Health (as % of GDP)

Crude Birth Rate (per 1,000)

2.2
3.9
43.2
3.3
86.6
98.9
24.0
50.6
51.7
37.3
15.3
81.9
135.6
641
4.9
40.0

GNI per capita US $


800

1995

2.6
4.3
45.7
3.2
91.4
101.4
22.7
51.5
51.8
39.1
13.7
78.8
119.0
1,000
8.0
6.0

Demographic Indicators
Population Growth Rate - Total (%)
Population Growth Rate - Urban (%)
Population < 15 years (%)
Population >= 65 years (%)
Dependency Ratio (%)
Sex Ratio (per 100 female)
Female Population 15-49 years (% of total population)
Life Expectancy at Birth - Total (years)
Life Expectancy at Birth - Female (years)

54 658
1,200.3
78.0
22.9
26 214
54.6
44.9
0.905
n.a.
20.0

1994

Crude Death Rate (per 1,000)


Infant Mortality Rate (per 1,000)
Child Mortality Rate (per 1,000)
Maternal Mortality Rate (per 100,000)
Total Fertility Rate (per woman)
Women Using Contraception (%)

2002
2002
2002
2002
2002
2002
2002
2002
2002
2002
2002
2002
2002
1992
2002
1995

Popul. Living Below $ 1 a Day (% of Population)

80 976
5,024.6
43.1
60.6
1 154
45.6
39.7
0.655
n.a.
23.0

1995

924 30 061
120.9 831.0
44.2
38.6
130.9
27.6
290
650
39.9
43.1
28.8
33.8
0.450 0.484
152
n.a.
70.2
46.7

1994

2002
2002
2002
2002
2002
2002
2001
2001
1997

1994

Basic Indicators
Area ( '000 Km)
Total Population (millions)
Urban Population (% of Total)
Population Density (per Km)
GNI per Capita (US $)
Labor Force Participation - Total (%)
Labor Force Participation - Female (%)
Gender -Related Development Index Value
Human Develop. Index (Rank among 174 countries)

DeveloDeveloNigeria Africa
ping
ped
Countries Countries

vi
AGRICULTURE AND RURAL INSTITUTIONS SUPPORT
PROJECT MATRIX
Description

Verifiable Indicators

Means of Verification

Risks and Assumptions

Sector Goal
To strengthen institutions to respond effectively and efficiently to
the needs of the farmers and other participants in rural
development for the enhancement of food security and reducing
poverty.
Project Objective
To improve capacity of the agriculture and rural institutions for
effective service delivery to the farmers.

Agriculture service delivery accelerated at less cost

Government statistics

Accountability and management efficiency improved by PY3;

- Public/FMARD sector review


- Government statistics

1.1 Departmental responsibilities and inter-departmental functions reassigned and


adopted by PY1;
1.2 Duplication of responsibilities between Departments eliminate by PY2;

i) Departmental Terms of Reference;


ii) Staff job description;

i) The FMARD and its senior


management remains committed to
the institutional re-alignment.

2.1 Departmental work program prepared and implemented PY1;


2.2 Farmers needs assessment and stakeholders dialogue used for planning by PY2;

iii) Supervision and follow up reports;

ii) Staff resistance to change

- Government and donor commitment


for institutional support remains high.

Project Outputs
A) Institutional Support and Rationalization
1. Guidelines for departmental coordination of activities
developed and validated;

2. Institutional performance Indicators Handbook developed;

iv) Monitoring and evaluation reports;


3. Human resource management strategy developed and
adopted;

3.1 Staff survey updated and computerized by PY1;


3.2 Performance indicators applied in staff performance evaluation report by PY2;
3.3 Staff promotion and transfer criteria established and implemented by PY2;

iii) The systems to be established will


be sustainable.

v) Annual report and budgeting;


vi)

Departments
reports.

performance

survey

B. Capacity Building
1. Staff training conducted based on actual needs assessment;

2. Agricultural data collection and analysis computerized;

1.1 Functional Training Needs Assessment Framework (TNAF) established by


PY2;
1.2 Total of 25 staff trained in IT, M&E, Planning and Financial Management and
Budgeting (15 by PY2 and 20 by PY3);
1.3 Total of 350 staff trained in specific fields, including practical experience by
attachment to similar institutions (250 by PY2 and 125 by PY3);

i) Training reports;

2.1 Robust M&E system developed, tested and functional by PY2;


2.2 Total of 86 computers and accessories equipment for data collection, collation,
storage and analysis established and function by PY2;

iii) Procurement reports;

3.1 Accurate and timely reports produced and informative decision made by PY2;
3.2 Rapid response to information requests by stakeholders by PY3;
3.3 Information Technology Widely Used by PY3;
3.4 Information and data availability to staff and users increased.

v) Audit reports;
vi) Survey of research, dissemination and
farmer extension needs.

ii) Staff interview and survey to


determine the operational level of
systems, namely M&E, performance
and transfer system and, TNA;

i) Qualification is the main criteria for


selected staff for training;
ii) Transparency in staff selection
training adopted.
iii) Increase in staff turnover

3. Management Information System (MIS) established.

iv) Closed Books of Accounts;

C. Project Management Unit (PMU)


1. Project Coordination Unit established, equipped and
function on time.

1.1 Qualified staff employed by beginning of PY1;


1.2 Procurement made in conformity with the Fund Rules of Procedures PY1.

i) PMU Quarterly Progress Reports;


ii) PMU annual audited accounts.

i) PMU staff recruited on time;

vii
Activities
A) Institutional Support and Rationalisation
1) Existing policies, guidelines review in relation to FMARD
targets and objectives;
2) Institutional goals, objectives and functions of FMARD
departments redefinition;
3) Individual meetings and discussions with stakeholders incl.
senior management and staff undertaken;
4) Key and significant coordination linkages identification to
maximize efficiency in technical and managerial activities;
5) Staff performance & productivity review and assessment;
6) Efficient operational and communication channels
identification and discussion with all stakeholders;
7) Departmental Terms of Reference developed to ensure
strategic harmonization;
8i) Development of strategies, guidelines and systems for
coordinated planning, budgeting and progress reporting;

Resources and Project Budget (UA 000)


Source:
ADF
FGN

:
:

3,000.00
220.63

Total

3,220.63

B) Capacity Building
i)

Staff qualifications and experience updated and


computerized;
ii) Training needs assessment for different type of training
course;
iii) Staff training in IT, M&E, planning and financial
management and budgeting;
iv) Staff attachments to similar institutions and special study
tours for extension staff;
v) Development of need oriented policy framework for
capacity building;
vi) Preparation of guidelines for monitoring, evaluation,
reporting and information dissemination.
vii) Provision of equipment for data collection, collation,
storage and analysis;
viii) Development of technical staff for data collection,
collection, collation, analysis and dissemination.
vii) Re-tooling and re-equipping of Departments, incl. Federal
Institutions at State level.
C) Project Management
1) Program Management (technical, financial and
coordination);
2) Establish the PMU office with appropriate technical and
support staff,
3) Procurement of equipment and logistics for PMU

Budget
A) Institutional Rationalisation
B) Capacity Building
C) Project Management
Total

:
757.64
: 2,156.64
: 306.35
: 3,220.63

viii
EXECUTIVE SUMMARY

1.

Project Background

1.1
The Federal Government of Nigeria (FGN) with assistance from the African Development
Bank, World Bank, and International Fund for Agricultural Development (IFAD) carried out a
review in 2001-2003 aimed at streamlining institutional framework to assure efficient provision of
technical and social services to the agriculture and rural sector. The recommendations of the
review are in tandem with the Governments PRSP popularly known as the National Economic and
Empowerment Strategy (NEEDS), which are aimed at defining the existing institutional
arrangements that will serve as a blue print for planning, implementing, monitoring and evaluating
agriculture and rural development initiatives by federal, state and local governments and
development partners.
1.2
The FGN in April 2004 took an initiative of its own to address some of the
recommendations of the review through the harmonization of the mandates and activities of the
Departments of Federal Ministry of Agriculture and Rural Development (FMARD). To guide the
process, the Ministry issued a White Paper The Report of the Ministerial Committee on the
Harmonization of the Mandates and Activities of the Federal Ministry of Agriculture and Rural
Development. To support the government initiative, the donors under the leadership of CIDA
created the Agricultural Support Facility (A-PSF) to help address the agricultural policy issues
especially those regarding to policy implementation. The A-PSF is focusing on strengthening the
capacity of Federal and Regional Institutions based on the National Economic Empowerment and
Development Strategy (NEEDS). A-PSF is aimed at improving the design and implementation of
evidence based, pro-poor, gender-sensitive agricultural policies to promote sustainable
development.
1.3
The proposed project has been designed within the framework of the governments PRSP
(NEEDS) and it is also in conformity with the Banks policy set out in the CSP highlighting
institutional support as a key factor to sustainable development. The Project is also in line with the
ADF IX guidelines, in particular those relating to the use of grants for capacity building.
2.

Sector Goal and Project Objective

The sector goal is to strengthen institutions to respond effectively and efficiently to the needs of the
farmers and other participants in rural development for the enhancement of food security and
reducing poverty. The project objective is to enhance the capacity of the agriculture and rural
institutions for effective and sustainable service delivery to the farmers. The project will in turn
lead to improved implementation of interventions and programs for the agriculture and rural sector
and as such significantly contribute towards poverty alleviation.
3.

Brief description of the project

The project has three components summarized as follows: 1) Institutional Support and
Rationalization; 2) Capacity Building and 3) Project Management.

ix
4.

Project Cost

The estimated total cost of the project, net of taxes and duties, is UA3.22 million, of which UA2.66
million (83%) is foreign exchange and the balance of UA0.56 million (equivalent to 17%) is in
local currency.
5.

Source of Finance

The Project will be financed by the ADF Grant: UA 3.00 million (93%) and Federal Government of
Nigeria: UA 0.22 million (7%).
6.

Project implementation

The Federal Ministry of Agriculture and Rural Development as the Executing Agency will
implement the project. A Project Management Unit will be established in Office of the Permanent
Secretary to undertake actual implementation of the project and shall be headed by a Project
Coordinator whose qualification shall be approved by the Bank.
7.

Conclusion and Recommendations

7.1
The Federal Government of Nigeria is committed to improving service delivery to the
farmers which in-turn will contribute to increase in food security the reduction of rural poverty.
Given its mandate, the Federal Ministry of Agriculture and Rural Development will play a key in
the achievement of these objectives. The rationalization and re-alignment of the departmental
activities will reduce duplication and wastage of resources whereas the training and provision of
equipment will enhance the efficiency of the staff. Provision of logistical support to the extension
workers will lead to rapid and effective dissemination of agricultural technologies and related
extension services while improvement of the monitoring and evaluation services will enable
FMARD obtain timely and relevant data on the impact of the interventions in the agriculture sector.
This will enable the institutions to respond effectively and efficiently to the needs of the farmers
and other participants in rural development for the enhancement of food security and reduction of
poverty
7.2
The proposed project is consistent with the development objectives of the Government of
Nigeria. It is in line with the governments Rural Development Strategy, the National Economic
Empowerment Development Strategy and the Banks group strategy for agricultural sector
development in the Country. The Project is expected to contribute to the sustainable management of
the agricultural resource base and substantially increase the food production and farm incomes,
which in the long run would contribute to improve household food security and poverty reduction.
It is recommended, therefore, that a grant not exceeding UA 3.00 million be granted to the
Government of Nigeria to finance the implementation of the project.

1
1.

ORIGIN AND HISTORY OF THE PROJECT

1.1
The Federal Government of Nigeria (FGN) with assistance from the African Development
Bank, the World Bank, and International Fund for Agricultural Development (IFAD) and the Food
and Agricultural Organization (FAO) financed a Review of Rural and Agriculture Sector
Institutions with the aim of streamlining and rationalizing the activities to ensure efficient provision
of technical services to the agriculture and rural sector. The review which was conducted by FAO
started in 2001 and was finalized in 2003.
1.2
The recommendations made by the review are in conformity with the Governments PRSP
also known as the National Economic and Empowerment Development Strategy (NEEDS). The
challenge, which the Review Report poses regarding implementation of the recommendations, cuts
across all identified institutions. In the case of the Federal Ministry of Agriculture and Rural
Development (FMARD), the major recommendation is the fundamental need to rationalize the
existing institutional arrangements so as to enhance efficiency in planning, implementing,
monitoring and evaluating agriculture and rural development activities and initiatives for the rural
population.
1.3
In April 2004, FMARD constituted a committee of senior management staff members to
assess the recommendations of the review indicated above. The committee agreed with the major
conclusion of the review that there was a need to harmonize the mandates and activities of the
various departments of FMARD to avoid duplication of responsibilities and wastage of resources.
To guide the process, the Ministry issued a White Paper entitled The Report of the Ministerial
Committee on the Harmonization of the Mandates and Activities of the Federal Ministry of
Agriculture and Rural Development. The White Paper, unfortunately, was not implemented due to
poor coordination and absence of an institutional development specialist to guide the process.
1.4
Given the critical need to harmonise the activities of the various departments of FMARD
for the implementation of their interventions in the sector, the donors established the Agriculture
Policy Support Facility (A-PSF) in 2004. The A-PSF, under the leadership of CIDA, is a joint
venture between the Government and donors, in particular, (DfID, CIDA and USAID). The A-PSF
will address FMARD policy issues as defined in the NEEDS and the Review Paper, with particular
focus on strengthening the policy analysis and implementation capacity of FMARD and some
selected States. The A-PSF particularly targets improving the design and implementation of
evidence based, pro-poor, gender-sensitive agricultural policies to promote sustainable
development. At present A-PSF is at appraisal stage and it is scheduled for Board approval in April
2005. Once implemented, A-PSF will result into improved capacity for national policy analysis,
strengthened capacity in carrying out practical and applied research and improved linkages and
consultation between government and key stakeholders.
1.5
Following from the NEEDS and the White Paper, government has developed a program that
is aimed at improving the efficiency of the agriculture and rural development institutions so that
they can effectively deliver services to the farmers. The program includes: improvement in the
design and implementation of agriculture policy, improvement in policy analysis, harmonisation
and rationalisation of institutional responsibilities, and the building or strengthening of the capacity
of FMARD. Four donors have already indicated willingness to finance the programme. These
include CIDA, DFID and USAID who will provide USD6 million through the A-PSF and the ADF
which will provide UA3 million under institutional support. Other donors like the World Bank have
also expressed interest in financing the program.

2
1.6
Since A-PSF focuses on policy analysis and implementation capacity of FMARD, the FGN
requested the Bank to assist with the implementation of the recommendations and activities as
contained in the Government White Paper and NEEDS. Following this request, a Bank appraisal
mission visited Nigeria from the 15th January to 1st February 2005 to appraise the proposed
project. During appraisal the team met and discussed with CIDA and DFID and agreed to
harmonize the proposed project activities with those of A-PSF. In February 2005, the project was
further discussed in the donor coordination group, the Agriculture and Rural Development
Consultative Group (ARDCG) and received enthusiastic support. The proposed project was
prepared based on the study and the White Paper. It was found to be in conformity with the Banks
policy as set out in the 2002 2004 CSP highlighting institutional support as a key factor to
sustainable development. It is also in line with the ADF IX guidelines, in particular those relating to
the use of grants for capacity building.

2.

AGRICULTURE SECTOR

2.1

Salient Features

2.1.1 Agriculture is the most important economic sector in terms of its contribution to the GDP,
after oil. The sector contributes about 41% of the countrys GDP, employs about 65% of the total
population and provides employment to about 80% of the rural population. Available statistics
show that total food production increased from 54.76 million grain equivalent in 1997 to 57.70
million grain-equivalent in 2001. Agricultural growth rates increased modestly from 4.25% in 1997
to 4.5% in 1999 and 4.7% in 2001, all of which are nevertheless higher than the population growth
rate of 2.7%. The challenge thus posed by the sector is to sustain this increase with a view to
removing the observed food deficit.
2.1.2 Of Nigerias estimated 69.9 million ha of agricultural land about 39.2 million are under
permanent pasture with another 2.8 million under permanent crops, with 27.9 million ha for arable
crops. Within the last category, it is estimated that some 25 million ha are cultivated each year by
smallholders for whom the support of FMARD in terms of delivery of services is crucial. Cropping
intensity is high with respect to arable land. Forestry constitutes about 26 million ha currently.
Crops contributed some 27% of GDP, livestock another 3.3% and forestry and fisheries 1.5%. The
agricultural export of significance is cocoa, which contributes less than 0.5% to the agricultural
GDP.
2.1.3 Rural Nigeria is divided into seven agro-ecological zones; i.e. semi-arid, found only in the
northern region; the savannah, found in the northern and middle region; a small highland area
found in the middle and southern region; a larger transition environment of savannah derived from
the forest overlapping the southern and middle regions; mangroves in the Niger Delta; freshwater
swamps in the Niger Delta and Lowland rain forest in the south. The agro-ecological setting and
technology base, in principle, determine the production systems. Two major production systems
dominate these zones: (i) the traditional production system, which is found in all parts of the
country and consists of land holdings of less than 2 ha with a variety of food crops intended for
consumption purposes mainly and (ii) the improved irrigation production system which comprises
the improved small scale irrigation using low-lying or water logged areas for crop and livestock
production as well as large-scale mechanized and/or commercial irrigation farming systems.
2.1.4 The non-agricultural sector also plays an important role in rural livelihoods. It is estimated
that it accounts for about half of rural households total incomes. Food-deficient households, in
particular, obtain a large share of their income from non-farm activities. They are involved in micro
and small-scale enterprises such as production of farm implements, agro-processing, trading,

3
transportation and handicrafts. Women are more engaged in food processing, petty trading and
services such as hairdressing. Many enterprises are linked to the agriculture sector and require little
capital or skills and rely on informal credit providers.
2.2

Poverty Status

2.2.1 Nigeria ranks number 151 in the 2004 Human Development Index. Nigerias basic
indicators place the country among the 26 poorest countries in the world. The proportion of
Nigerians living below the poverty line of one dollar a day has increased dramatically during the
last two decades. In the year 2000, more than 70% of Nigerians were estimated to be living below
the internationally defined poverty line of one dollar a day. In the same year, both per capita
income and per capita private consumption were lower than the early 1970s. Per capita income fell
from $1,600 in 1980 to $290 in 2002. This is due to, among others, neglect of the agriculture sector,
depreciation of the naira and economic mismanagement by the military governments. To-date the
average GDP per capita has oscillated between US $ 355 and 387.
2.2.2 Almost 90% of Nigerias poor are engaged in agriculture, while 58% of the urban
population is living in poverty. Past poverty reduction programs, including the Family Economic
Advancement Program, had a marginal impact on poverty, despite large budgetary allocations.
These programs failed to achieve their objectives because of poor design which is a reflection of
the inadequate capacity that existed. The current government new poverty reduction plan, the
NEEDS incorporates the lessons learnt from the past. These are discussed in section 2.6. NEEDS is
aimed at reducing the level of poverty from 70% to 35% by 2010.
2.3

Gender Issues

2.3.1 Some of the major obstacles to socio-economic empowerment of the smallholders, in


particular female farmers, can be attributed to comparatively less access to and control over
production resources. About 80% of the rural female population is engaged in the agriculture and
forestry sector as family labor. In agriculture, they are involved in small farming activities for home
consumption and for subsistence level marketing. The sector differentiates between what are called
womens crops such as groundnuts, cassava, vegetables, and other horticulture crops and men
crops mostly cash crops such as, cocoa, coffee, palm tree, and sugar cane. Although women tend
to be engaged in their own small farming, they usually contribute labor to the mens fields.
Furthermore, womens access to appropriate irrigation equipment, farming tools, and inputs is
limited. Therefore, production levels tend to be low and highly dependant on rain.
2.3.2 One of the features of the Nigerian agriculture sector is the high level of differentiation as to
the gender division of labor in production, marketing and use of resulting income. Some of the
constraints that women in Nigeria face include inadequate time to develop productive activities,
initiate new activities or profit from training. This is due to the large domestic workload. They
have, in general, less access to extension, training and research, credit, health and information even
though they produce the bulk of the food consumed in the household and contributes to
expenditures using revenue from trading activities, and processing.
2.3.3 Women in Nigeria have equal rights under the Constitution, in principle. The National
Policy on Women was approved in 2001 and its sectoral implementation, coordination and
monitoring is undertaken at the cabinet level by the Ministry of Womens Affairs and the National
Commission for Women. Nigerian women are known to be effective entrepreneurs both in the
formal and informal sector, and in some cases this activity is the main source of income at the
household level.

4
2.4

HIV/AIDS and Malaria Issues

2.4.1 HIV prevalence was estimated at 5.8% in 2001 and AIDS has killed more than 1.7 million
people and orphaned 1.5 million children. Some 2.7 million Nigerians, including 120,000 children
are now living with AIDS. Nigerias life expectancy has, as a result, fallen to 47 years by 2004
against 53 during 1980 to 1995. As the majority of those affected are within the economically
active population group, AIDS and malaria are having a devastating effect on the economy. It has
been estimated that HIV/AIDS alone is responsible for a 0.5% drop in the countrys economic
growth rate. In response to the AIDS pandemic, the President created the Presidential AIDS
Council and the multi-sector National Action Committee on AIDS (NACA) in the year 2000.
NACA is in the process of developing an Emergency Action Plan and a national 4-year HIV/AIDS
strategy. NACAs strategy is to address AIDS through prevention sensitisation and advocacy. In
FMARD, the Federal Department of Rural Development handles the AIDS/HIV issues. It works in
collaboration with NACA to address AIDS issues relating to farmers and the rural areas.
2.4.2 Malaria is also endemic and is a major risk especially for children under 5 for whom it
accounts for 30% and 41% of mortality and morbidity, respectively. Government has instituted the
roll back malaria program aimed at sensitising the population towards prevention of the disease
through the elimination of the vector mosquito.
2.5

Environmental Issues

2.5.1 Environmental issues are related to the reduction in economic, social and environmental
benefits to society resulting from a degradation of the natural resource base. The current land
degradation is due to several factors. The include natural hazards, agricultural practices, and socieconomic factors. Natural hazards are due to biophysical conditions, which act as predisposing
factors for land degradation. Direct causes to land degradation relate to various unsustainable types
of agricultural activities which can be attributed to poor agricultural activities; deforestation and
removal of natural vegetation; over-exploitation of vegetation and overgrazing. The underlying
causes of land degradation relate to socio-economic circumstances. Some of these factors that
contribute to environmental degradation include: (i) land pressure; and (ii) the small-scale nature of
the farming system characterized by their risk reduction objectives rather than profit maximization;
imperfect markets especially in credit, and input supplies.
2.5.2 In order to provide effective co-ordination of environmental matters in the country, all
environment-related functions and responsibilities hitherto performed by various sectoral Ministries
and agencies at the Federal level were transferred to the Federal Ministry of Environment, which
was created in mid 1999. Prior to the establishment of this Ministry, the overall responsibility on
environmental management was vested in the Federal Environmental Protection Agency. The new
Ministry has now absorbed the Agency. The EIA Decree No. 86 of 1992 gives specific powers to
FEPA to facilitate EIA on all new projects in Nigeria and make EIA mandatory for new major
public or private sector projects.
2.5.3 The State Environmental Protection Agencies (SEPAs), and the Federal Environmental
Protection Agency have responsibility for the protection of the environment, biodiversity
conservation and sustainable exploitation of the State's natural resources in general and
environmental technology, including the initiation of policies in relation to environmental research
and technology. Other duties of SEPAs include: formulate environmental protection policy
guidelines and any such policy and standards existing at the Federal level and to ensure that such
state standards are not below the Federal Government set standard guidelines; support to
community based environmental improvement efforts. There has also been a marked increase in the
number of civil society organizations including non-governmental organizations and community-

5
based organizations, which are concerned with the environment. The prominent NGOs include the
Nigerian Conservation Foundation, Forestry Association of Nigeria, the Nigerian Environment
Study/Action Team; Savannah Conservation, among others.
2.6

Donor Intervention and Lessons Learnt

2.6.1 Various donors including Bank Group have been supporting the Federal Governments
efforts to implement the Rural Development Strategy. IFAD was the first donor to effectively
contribute to the Rural Development Strategy by financing community-based agriculture and rural
development activities in 2002. Its contribution is about USD 30.00 million with a focus on
capacity building at community, local, and state level and production and rural infrastructure
development through a Community Development Fund, which is managed by the Local
Government Councils. The project is being implemented in all the selected eight states and the
physical execution of the activities is progressing well.
2.6.2 The World Bank financed the National Fadama Phase I Project from 1994 to 1999. This
project, with a total cost of USD 67.5 million, was built on the achievements of some of the
Agricultural Development Programs in the north of the country in developing the Fadama irrigation
system through the extraction of shallow groundwater with low-cost pumping devices. By making
agricultural production less dependent on erratic rainfall, the project raised farmers incomes and
contributed to food security and poverty alleviation. One of the shortcomings of the project,
however, was that not enough attention was accorded to downstream processing and marketing.
2.6.3 Other donor institutions which financed agriculture and rural development activities in
Nigeria are the United States Agency for International Development (USAID) through its National
Rural Sector Enhancement Program (USD 800,000); the Special Program for Food Security,
financed by IFAD and managed by the FAO (USD 45.20 million) and DFID through its
Promoting Pro-poor Opportunities from Commodity and Service Markets Project, which aims at
improving the livelihood of the poor by facilitating the development of viable agriculture
commodity and service markets.
2.6.4 One of the most recent initiatives was the review of Agricultural Sector Institutions
finalized in 2003 carried out by FAO and financed by the Bank Group, World Bank, IFAD and
FAO. The study, which cost USD 315,000 was intended to assess the existing situation and provide
a framework to streamline some of the institutions involved in agriculture and rural development. It
will provide a common platform for donor intervention, as well as for the design and
implementation of this project.
2.6.5 The Bank Group, and the World Bank co-financed in November 2000 the CommunityBased Poverty Reduction Project (UA 20.00 million). This project has two components: capacity
building focusing on policy formulation at the state and local governments and community based
initiatives through a Community Development Fund, which is managed by Local Government
Authorities. This project is part of an overall program of community based development of which
IFAD intervention of 2002 is part. The Bank Group financed the Community Based Agriculture
and Rural Development approved in 2003 (UA13.00 million with a capacity building component of
UA5.3 million). The Fadama Development Project approve in 2003 (UA22.00 million with a
capacity building component of UA12.36 million), constitute part of the broader program of
community development. Other Bank Group projects include: the Institutional Support Program to
the Nigeria Agricultural Co-operative Bank approved in 1992 and completed in 1997 (UA 4.61
million); the Nigeria Forestry Development Project approved in 1986 and completed in 2000 (UA
69.55 million), the Bacita Sugar Expansion Project approved in 1989 (UA 67.48 million) and the
Savannah Sugar Rehabilitation and Expansion Project approved in 1991 and completed in 2000

6
(UA 52.24 million). All these projects had capacity building components. However, the capacity
building components in the projects highlighted above focused on state governments, local
authorities and beneficiary communities with limited support to the federal government. The Bank
did not intervene earlier at the federal level in the projects approved in 2003 because at the time
these projects were being appraised, the study to assess the existing situation was also being
conducted.
2.6.6 The lessons learnt in the context of capacity building, from the implementation of these
projects is that the capacity of an executing agency should be thoroughly analysed and if areas of
weakness are found, then these should be strengthened before it executes any development
interventions. Other lessons include the need to not just provide equipment and training but also to
provide systems and strategies, which are sustainable. In view of these lessons learnt, it should be
noted that the Bank Group has two projects in the Agriculture sector which became effective on
May 04, 2004. These projects were designed with a component that will address capacity building
issues at state and local government levels as well as the communities and improve the
implementation performance of agriculture development projects.
2.6.7 In light of the above, there is a general consensus among donors that FMARD needs to be
strengthened in order to improve its delivery of services and increase the effectiveness of both
government and donor interventions in the agriculture sector. This will in turn, among others,
reduce the transaction cost of services to the farmers.
2.7

Agriculture and Poverty Reduction Policies

2.7.1 In the rural sector of Nigeria, more than 70 percent of households are poor, infant mortality
is estimated at 70 per 1000 births, and maternal mortality at 948 per 100,000. Poverty increased
from 27.2 percent in 1980 to 65 percent in 1996, and the worsening situation, particularly in the
rural areas, has led the Federal Government of Nigeria (FGN) to make the eradication of poverty
the central objective of its economic policy. In order to expedite agriculture and rural development,
FGN has put in place a national policy and strategy for agriculture and integrated rural development
that, in turn, requires a streamlined institutional framework to assure efficient provision of technical
and social services to the agriculture and rural sector.
2.7.2 The Federal Government of Nigeria launched a national policy and strategy for Integrated
Rural Development in October 2001 which was a precursor of new strategies and policies such as
the Rural Development Strategy, the White Paper and was also a reference for the preparation of
NEEDS. This was complemented in 2002 by the agriculture development policy. Within the
broader framework of poverty reduction strategy, the Government of Nigeria has just concluded the
development of her home-grown National Economic Empowerment and Development Strategy,
commonly known as NEEDS. The NEEDS is a nationally coordinated framework of action in
close collaboration with the states and Local Government.
2.7.3 The major thrusts of the national policy are: (i) Creating a conducive macro-economic
environment to stimulate greater private sector investment in agriculture; (ii) Rationalising the roles
of the different tiers of government; (iii) Re-organising and rationalizing the institutional
framework for government intervention in the sector; (iv) Actualising and implementing integrated
rural development; (v) Increased budgetary allocation to enhance production and productivity; (vi)
Increasing fiscal incentives to agriculture and reviewing trade regulations; and (viii) Promoting
increased use of machinery and inputs through favourable tariff policy.

7
2.7.4 Effective implementation of this policy has been constrained due to: (i) the predominant
urban bias in the selection of projects and policy measures; (ii) a lack of community participation in
the dialogue and key decisions which concern rural development; (iii) the insufficient attention
accorded by the Federal Government to production development and (iv) pervasive public
interference in what, in fact, should be private enterprise. Recently, however, the Government has
made concerted efforts, through its decentralisation policy, in providing state and local
governments with additional resources, to enable them improve service provision in production,
infrastructure development and social services.
2.7.5 The NEEDS also focuses on four key strategies: reforming the way government and its
institutions work, promoting the private sector, implementing a social charter for the people, and reorientation of the people with an enduring African value system. The agriculture and the rural
development sector issues are tackled under the theme of reforming the way government works,
including its institutions, with the objective of increasing the productivity of peasant farmers since
over 50% of the poor are in agriculture sector. Overall aspects of institutional reforms are to fight
corruption, ensure greater transparency, and promote rule of law and stricter enforcement of
contracts. The goal is to make government and public institutions serve the people, play a
developmental role and avoid misuse of resources and duplication of responsibilities.
3.

INSTITUTIONAL FRAMEWORK

3.1

Coordination of Agriculture and Rural Development

3.1.1 Nigeria is a Federal State with 36 states and the Federal Capital Territory of Abuja. The
Country is governed by Federal, State and Local Government Institutions. Most of the federal
government institutions and departments are represented at the state level.
3.1.2 Under the current constitutional guidelines, the Federal Government sets the policy
framework while the state governments develop their own specific policies to fit within the overall
framework. Furthermore, the FGN can influence the operational policies and institutional
arrangements in the states and local governments through macroeconomic policy direction, for
which it has executive powers, and by directly intervening in agriculture and rural development
using its own budget and resources.
3.2

Federal Institutions

3.2.1 At the Federal level, the Federal Ministry of Agriculture and Rural Development (FMARD)
is responsible for development, review and implementation of policies for agricultural development
dealing with crops, livestock, fisheries, and forestry and, until recently environment. The Ministry
objective is to improve agricultural production and, in turn, enhance national food security and
alleviate rural poverty. It provides technical support, production infrastructure, and supplies inputs
to promote adoption of productivity enhancing techniques.
3.2.2 The Agriculture and Rural Institutions in Nigeria fall under the FMARD. The ministry has
12 departments and one unit, namely: Department of Agriculture; Department of Rural
Development; Department of Planning, Research and Statistics; Department of Agricultural
Science; Department of Livestock and Pest Control Services; Department of Cooperatives
Department of Storage and Strategic Grain Reserve; Department of Fertilizer; Department of Land
Resources; Department of Fisheries; Department of Finance; Department of Administration and
Supplies; and the Project Coordinating Unit. The ministry has a total of 486 professional staff of
whom 35 hold PhD, 126 M.Sc., 267 Bachelors degrees and 58 diploma holders. Of the 486 staff,
140 about 30% are women. Most of these staff need to undertake refresher courses to enable them

8
respond more effectively to the current needs of the agriculture sector. It is estimated that about 350
of the current staff require training. A brief description of the FMARD departments is given below.
3.2.3 The Federal Department of Planning, Research and Statistics (FDPRS) oversees sectoral
planning, monitoring and evaluation of plans, maintains liaisons with external donors and
financiers, carries out policy research, and maintains the data bank for the agricultural sector. It also
serves as the Secretariat of the National Agricultural Council and the Ministerial Tenders Board.
The department is constrained by low capacity, over staffing, unskilled manpower and staff
turnover and lack of equipment. This has resulted into poor quality data because of poorly trained
and poorly supervised staff. Information within FMARD indicates that the last statistical data update by the Department was undertaken in 1998. Although this department is mandate with the
collection, analysis and storage of agriculture and rural statistics, it has only one operational
computer.
3.2.4 Federal Department of Rural Development (FDRD) has responsibility for formulating
policies and strategies for rural development and for fostering integrated rural development. Its
mandate is to accelerate the transformation of the nations rural life and landscape in a coordinated
and sustainable manner with a view to eradicate rural poverty, expand rural economic
opportunities, enhance food security and integrate rural dwellers into the mainstream of national
development. The FDRD, like the other departments, maintains offices in most states with little or
no service linkages with the state ministries or ADPs.
3.2.5 The Federal Department of Agriculture (FDA) has four technical divisions that implement
federal government-supported programs at the state level and provide technical backstopping to
state ministries of agriculture, including ADPs. Although the divisions within the FDA have
experienced staff to provide the backstopping and training required by the SMOAs and ADPs, poor
service linkages have not permitted such utilization of staff.
3.2.6 Project Coordinating Unit (PCU) was created in 2000 through the merger of the Federal
Agricultural Coordinating Unit (FACU) and the Agricultural Project Monitoring and Evaluation
Unit (APMEU). The PCU has a complex organization and a large staff, as the FACU-APMEU
merger did not cut back PCU services in light of the reduced role of FGN in the management of
Agricultural Development Programmes under the decentralized, democratic governance. The PCU
was organized to meet the needs of financial institutions, particularly the World Bank that had set
up FACU and APMEU to coordinate/monitor/evaluate the extensive projects and programs that
they financed.
3.2.7 The Federal Department of Agricultural Sciences (FDAS) oversees agricultural research
through 15 National Agriculture Research Institutes (NARI) and ten federal agriculture colleges.
The NARIs carry out basic, applied, adaptive and farm system research on the assigned enterprises.
They are also responsible for the production of breeder seed for bulking. Four of the institutes are
university based: Institute for Agricultural Research Training (IART), Institute for Agricultural
Research (IAR), National Animal Production Research Institute (NAPRI), and National
Agricultural Extension and Research Liaison Services (NAERLS).
3.2.8 The Federal Department of Fisheries (FDF) formulates policies and strategies for the
development of fisheries resources and for assuring sustainable exploitation of fisheries resources.
The Department has exclusive responsibility for coastal and marine fisheries and shares
responsibility for inland waterways fisheries with the respective states and Federal Capital Territory
(FCT). The department is responsible for artisanal resource development, aquaculture breeding
and hatcheries, adaptive research in fish vessel technology, fishing methods, gear development and

9
operation, fish storage, processing and marketing. It also performs quarantine services and quality
control. It further oversees international agreements and surveillance to prevent over fishing.
3.2.9 The Federal Department of Land Resources (FDLR) is responsible for land management,
land use, soil fertility, soil conservation including agro-forestry, soil testing, and land survey and
evaluation. The FDLR professional staff can be used in improving the agricultural resource base if
provided with adequate logistics and targeted programs. The soil testing service provided by the
department is crucial for better soil management. On-farm erosion control is another service, which
is important in many states.
3.2.10 The Federal Department of Livestock and Pest Control Services (FDLPC) oversees policy
development and implementation for livestock development, veterinary matters and pest control
services; promotes livestock development and coordination of livestock development services;
maintains liaisons with states and FCT to achieve the national objectives for livestock development.
The services of Livestock and Pest Control Department are decentralized, operating in four zones
(south east, south west, north west and north east). It is also in liaison with state veterinary services
and provides technical and financial support to state animal breeding farms. Policies and programs
are coordinated through a National Livestock Development Committee.
3.2.11 The Federal Department of Cooperatives (FDC) mandate and functions includes
formulation and implementation of policies and strategies for cooperative development and the
promotion of the cooperative movement in Nigeria. Its functions include; promotion, development,
supervision, inspection and certification of primary cooperative organizations as well as national
cooperative apexes; formation and review of cooperative policies; carrying out cooperative
research, assembling and disseminating information and statistics; and coordination of cooperative
activities.
3.2.12 The Federal Department of Storage and Strategic Grain Reserve (FDSSGR) is responsible
for the maintenance of strategic grain reserves in all 36 states. Within its strategic grain reserve
mandate, it serves as buyer of last resort to enhance grain price stability. The Department manages
the National Agricultural Development Fund aimed at supporting the three multi-commodity
marketing companies, namely; the Arable Crops Development and Marketing Company, Tree
Crops Development and Marketing Company, and Livestock and Fisheries Development and
Marketing Company.
3.2.13 The Federal Department of Fertilizer (FDF) responsibilities include: (i) Market Stabilization
through the introduction of measures to enhance fertilizer market stability, (ii) Quality control and
monitoring for organic and inorganic fertilizer; (iii) Monitoring of fertilizer use by farmers and
industries, (iv) Conducting of tests and trials on new fertilizer technology and products to generate
information for fertilizer recommendations; and (v) Development and promotion of the use of
organic fertilizers.
3.3

State Level Institutions

3.3.1 Administratively, below the Federal level is the State level. At the state level, all state-level
ministries are similar with minor differences resulting from each states ecological situation.
Usually, the following technical departments define the State Ministry of Agriculture (SMOA),
Agriculture Development, Livestock and Veterinary Services, Engineering Department, Fisheries
Department and Forestry Department. Some states in addition, have the Cooperative Development
Department and the Produce Grading, Inspection and Pest Control Department, while others have
such departments in the Ministry of Commerce and Industry.

10
3.3.2 A number of states have a Department of Integrated Rural Development, which promotes
rural infrastructure, and Community Based Organizations (CBO) development, and supports social
services and information dissemination. Apart from its direct activities, the SMOA also supervise
other agencies including Area Development Agencies/Area Development Projects, input supply
companies, and semi-autonomous agricultural development projects. Each of the state ministries in
general terms have two service departments: Finance and Administration which is responsible for
finance, accounts, budget, administration and personnel including human resource development;
and Planning, Research and Statistics which collaborates with other departments in planning
research, studies and data collection, management, rolling and annual plans, and monitoring and
evaluation.
3.3.3 The Local Government Councils (LGCs), which are the government tier closest to the rural
community, have the function of supporting the state governments in agriculture and rural
development. The Fourth Schedule of the 1999 Constitution of Nigeria, gives local councils, inter
alia, the authority to; provide and maintain primary, adult, and vocational education; develop
agriculture and natural resources other than the exploitation of minerals; and provide and maintain
primary health services.
3.3.4 The sharing of responsibilities for agriculture and rural development by the FGN between
the states and LGCs, coupled by lack of horizontal integration and linkages certainly requires an
effective coordination of strategies, policies and institutional arrangements for effective utilization
of resources for purposeful agriculture and rural development. Secondly, considering the nature of
complexity of the agriculture and rural development institutional network, and the current limited
scope of the A-PSF to disentangle such institutional complexities, it has been found prudent for this
project to focus its attention to the Federal level institutions only. By rationalizing and re-aligning
departmental responsibilities and functions of the FMARD, an institutional platform and interface
will be created that will later enable the A-PSF to deal with the state and LGC level institutions
accordingly.
3.4

Training Institutions
Agricultural and Rural Management Training Institute (ARMTI)

3.4.1 ARMTI is a parastatal organization under the Federal Ministry of Agriculture and Rural
Development of the Federal Government of Nigeria. An Act of Law established it in 1980. Its
mission is to improve management practice in the agricultural and rural sector through appropriate
management interventions towards poverty alleviation.
3.4.2 In so doing, ARMTI has been mandated to conduct special studies and research into
management needs and problems in agricultural and rural sectors; conduct training needs analysis;
provide management training as part of interventions for identified needs and problems (including
gender and youth related issues); provide consultancy services towards improving managerial
effectiveness and efficiency in the sector; disseminate agricultural and rural information; contribute
to policy development for effective management.
3.4.3 The Decree establishing ARMTI provides for a 7-member Board of Governors including
the Director of the Institute. The Board is the highest policy-making body with responsibility for
among others to formulate policies for proper governance of the Institute; approve programmes and
budget and to ensure adequate funding for ARMTI and proper management of the Institute's
finance. A Director who sees its day-to-day administration heads the Institute.

11
The Nigerian Institute of Social and Economic Research (NISER)
3.4.4 The Nigerian Institute of Social and Economic Research (NISER) located in Ibadan was
established in 1960 as a research and consultancy parastatal of the Federal Government of Nigeria.
The functions of the Institute, as stated in the NISER act of 1990 are: to provide consultancy
services to the Federal and State Governments, their agencies and organizations, in the field of
economic and social development, conduct research into the economic and social problems of the
country with a view to the applications of the results thereof, to organize seminars and conferences
on problems of economic and social development in the country, whether on its own accounts or on
behalf of the government of Nigeria or their agencies, to cooperate with Nigerian universities,
research institutes and other institutions in the mobilization of the country's research potential for
the task of national development and dissemination of research findings for the use of policy
makers
3.4.5 Apart from the Department of Administration and Finance, the Institute has the following
research departments, units and a center with expertise in varying fields. The research departments
are: Agricultural and Rural Development; Business and Technology Development; Economic
Development; Human Resources Development; Physical Development; Political Development; and
Social Development.
3.5

Constraints to Effective Service Delivery

3.5.1 The FGN has weak institutional arrangement for coordinating rural and agricultural
development activities. This is a result of poor coordination and in some instance no coordination at
all between the departments which leads to duplication of responsibilities and wastage of resources.
Although a number of structures exist for consultation and policy harmonization such as the
National Council on Rural and Agricultural Development, which includes the Federal Ministry of
Agriculture and Rural Development (FMARD), and the State Ministries of Agriculture (SMOAs),
they do not meet regularly to provide guidance and also review progress of the interventions in the
sector. The Council meets annually to deliberate on policy issues and advise on policy
development. Similarly, national councils for other sectors also exist and performing similar
functions for water resources, health, and environment. National technical committees such as
those for extension, research, fisheries, livestock and statistics support these councils.
3.5.2 Duplication of roles and responsibilities is evident in most of the departments. The Projects
Coordinating Unit duplicates several functions of other departments of FMARD, in particular
Department of Agriculture, Department of Rural Development and Department of Planning
Research and Statistics. It is also involved in services such as consultancy and information
technology development that could be better left to the private sector. Monitoring and Evaluation
is a mandate of the Planning, Research and Statistics Department at the federal level. However, the
Projects Coordinating Unit also has a broad mandate which includes the development and
installation of training and supervision of M&E systems in the Agricultural Development Programs
as well as to define key indicators for monitoring and evaluating project impact. In addition, the
Department of Rural Development is also required to develop strong M&E capacity by defining
indicators for monitoring and evaluating the impact of agriculture and rural development
programmes.
3.5.3 Furthermore, the involvement of the Department of Rural Development in direct rural
infrastructure development duplicates the role of the Federal Department of Agriculture, the LGCs
and, where they exist at state levels, the roles of Directorate of Rural Development. It further
duplicates the Department of Agricultures role of providing mechanization services and operation

12
of enclave agriculture programmes. FMARD would utilize resources more efficiently and deliver
services effectively if the roles and responsibilities of the various departments are re-aligned and
rationalized.
3.5.4 The Nigerian civil service employs a large cadre of staff in a various of ministries and
agencies who need to be trained to deliver services for demand-driven and sustainable
development. There is a heavy, top-down orientation to the role of government and civil society.
The majority of the institutions, training intensity has been low, especially in the last decade.
Beside induction courses, most staff do not receive any other type of training. The FMARD
conducts training on an adhoc basis. The ministry does not undertake regular training based on
needs assessment and as a result there is no training or organized career development plan. This is
partly because the recruitment and staff development activities are supposed to be undertaken by
the Federal Ministry of Public Service. The key areas of concern under training include: human
resources development policy; procedures for determining staff training needs; inadequacy of
training facilities, trainers and funds; lack of congruency between HRD and human resource
utilization; poor staff morale and motivation; and inadequate collaboration with the private sector
and NGOs in HRD.
3.5.5 Dissemination of most agricultural technologies involves extension services of FMARD,
the state ministries of agriculture, ADAs/ADPs, and the NARIs. Through a decision of the National
Council of Agriculture, all states have agreed to operate a unified extension service in each state.
Under this approach, a single village-level extension agent, backed by appropriate extension
supervisor and subject matter specialists, will be the farmers principal contact for the
dissemination of agricultural technology. The implementation of this policy has met resistance due
to differences in extension approach, and lack of a system to operate the policy. Operating a
unified extension system requires proper linkages of national and state agricultural services which
are not in place at the moment. Limited well trained staff and inadequate logistical support pose a
problem, but the bigger challenge is to develop an affordable system responsive to the needs of
farmers. Therefore, developing an effective institutional framework, and having a critical mass of
well trained extension staff will enhance the responsiveness of the rural and agriculture institutions
to the needs of the farmers.
3.5.6 The Monitoring and Evaluation of Agriculture and Rural interventions and their impact to
the farmer is not effectively carried out. The major constraints in the M&E system include; poor
quality data because of poorly trained and poorly supervised staff; inadequate funding for
equipment; uncoordinated data collection activities because M&E units often work independently
of each other; data are often not analysed beyond totals and averages and where results are
analysed, staff members do not take a broader view of their implications. According to the
Department of Planning, Research and Statistics, agriculture and rural statistics data were last
updated in 1998. This department, which is the national repository of such data has only one
operational computer.
3.5.7 Access to reliable and up-to-date information reduces the uncertainty in planning and
management by helping identify and analyse situations and issues. Strategies to resolve particular
issues are prepared and implemented, with the impacts monitored as part of an overall system. The
value of the information and the effectiveness of the decision-making/planning processes are very
closely related to the quality and completeness of the information and the manner in which it is
made available. In this respect data access, management, integration, analysis, standards, and
communication are key to effective service delivery.

13
3.5.8 A number of FGN services have been decentralized. The research services have been
decentralized through the National Agricultural Research Institute (NARI) system, which is based
on agro-ecological regions and enterprises development patterns. The Ministry of Water Resources
has also decentralized its services through its network of River Basin Development Authorities
(RBDAs). Other federal ministries that are important in agriculture and rural development and have
devolved services to the states include the FMARD, Federal Ministry of Health (FMH), and the
Federal Office of Statistics (FOS) of the National Planning Commission (NPC). The
decentralization and devolution exercises have not included arrangements for programme
coordination and service linkage between the various ministries that have devolved some activities
to the states and also with the state-level ministries and agencies.
3.5.9 The state ministries and agencies have established zones to support decentralization but the
same arrangement has not been generally adopted. Thus inter-ministerial/agency coordination of
services and programs in the zones cannot be assured. Even though ministries and agencies operate
at the LGC level, there is little or no coordination of activities or linkage of services. The zonal
arrangements, as practiced at the state level, are also generally practiced by the LGCs. The LGC
zones are sub-zones of state zones but as of yet, offer no coordination of activities and services.
3.5.10 It is evident that, although departments that are supposed to implement the policies,
strategies and priority areas of focus for agriculture and rural development exist, the FGN has no
effective institutional arrangement for their efficient coordination. Secondly, despite the articulation
of government policies, strategies and programs and the commitment of Government and donors to
the broader framework of pro-poor rural development, many complex issues regarding the design,
implementation, and monitoring and evaluation remain unresolved. The policy development and
research community in Nigeria at present does not have sufficient capacity to adequately support,
implement, and advance the rural development strategy and the NEEDS agenda that Nigeria has
embarked on. This deficiency is due to a number of factors, including lack of resources, human
power, appropriate skills and inadequate investment in data support systems.
3.6

Opportunities for Effective Service Delivery

3.6.1 While the national, state and local tiers of government have definitive and complementary
roles in implementing policy, collaboration between the public and private sector is needed to
facilitate effective resource flow and provision of efficient services to the agriculture and rural
sector. However, in defining roles for the public and private sectors, including non-governmental
organizations (NGOs) and the rural communities themselves, it becomes obvious that there are role
duplications and overlapping functions that should be minimized for better resource utilization and
efficient management.
3.6.2 The overlap of responsibility among the three tiers of government is mainly attributed to the
existence of most agricultural and rural development responsibilities in the concurrent legislative
list of 1999 Constitution. Despite the constitutional provision, it is possible to streamline
responsibilities and avoid operational conflicts and wastage of resources. There is a need to assure
both vertical and horizontal operational linkages at national and state levels, and among state
ministries/agencies and LGC departments. Operational collaboration needs to be improved among
departments of FMARD as well as their state counterparts, for efficient use of resources and create
synergy to improve delivery of services for agricultural and rural development.
3.6.3 In order to minimize duplications, issues of mandate of the institutions relating to major
activities that cut across state boundaries and agro-ecological zones need to be reviewed. The
Federal Government will oversee the development of National Agriculture Policies and Rural
Development Strategies. The state governments will implement national policies and make laws

14
and regulations that relate to agriculture and rural development activities within their defined areas
of jurisdiction. The local governments, i.e. the Local Government Councils (LGCs), will have
responsibility for the coordinated and effective utilization of resources to provide agricultural and
social services to the rural communities and for infrastructure development within the defined local
government areas. LGCs will also have responsibility for mobilization, organization and training of
rural communities to support the development of socio-economic activities and their sustainability;
and for the collection, analysis, storage and dissemination of primary data for agricultural and rural
development planning, monitoring and evaluation.
3.6.4 Therefore, by re-aligning and strengthening the institutional capacity of the Federal
Ministry of Agriculture and Rural Development, this project is aimed at assisting the Federal
Government achieve its objectives with particular emphasis on the efficient implementation of the
activities geared towards agriculture and rural development. The Project will therefore focus on
defining an appropriate institutional framework for the effective and sustainable development of
Nigerias agriculture and rural sector that is consistent with democratic decentralized governance
and promotes collaboration and linkages both within the public sector and between the public and
private sectors.
4.

THE PROGRAMME

The proposed project is part of an overall program , which has been conceived to put the countrys
PRSP (NEEDS) and the Rural Development Sector Strategy into an effective operation. The
program is aimed at improving the efficiency of the agriculture and rural development institutions
so that they can effectively deliver services to the farmers. The program includes the following core
principles: i) sector reforms, which will allow effective empowerment of the rural communities,
ensure consistency in government interventions, harmonisation and rationalisation of institutional
responsibilities, reduce duplication and limit government intervention; ii) development of a
common vehicle for transferring resources to the communities; iii) a participatory approach to cater
for the needs of the communities and the development of the capacity at community and the local
government; and iv) equity amongst groups and by gender. Three donors have already taken actions
to finance the programme. These include CIDA, DFID and USAID who will provide USD 6.00
million through the A-PSF. Further, IFAD and FAO are currently undertaking a project preparation
for the Nigeria Rural and Micro-finance Capacity Building. The estimated total project cost is about
US$ 45.00 million. Other donors such as the World Bank have expressed interest in co-financing
this project as part of the overall program.
4.1

Project Concept and Rationale

4.1.1 In the year 2000, the FGN undertook the study of the rural sector under the theme of the
"Nigeria Rural Sector Strategy Study, which resulted into a Rural Development Strategy. The goal
of this strategy, which is based on the principles of non-intervention; consistency; participation;
sustainability and greater equity, is poverty reduction by improving the livelihood and living
conditions of the rural poor. The strategy also aims to contribute to food security through improved
service delivery to the farmers.
4.1.2 The challenges of implementing the recommendations of the 2000 Rural Sector Strategy
study compelled the FGN to seek assistance from the African Development Bank, World Bank, and
International Fund for Agricultural Development (IFAD) in 2001 to review and later on further
help in streamlining institutional framework to assure efficient provision of technical and social
services to the agriculture and rural sector. With the overriding goal of alleviating rural poverty, the
objective of the ADB/WB/IFAD review was to define an institutional framework for the effective
and sustainable development of Nigerias agriculture and rural sector that is consistent with

15
democratic decentralized governance and promotes collaboration and linkages both within the
public sector and between the public and private sectors.
4.1.3 The current findings of the NEEDS in the agriculture sector are in line with the findings of
the ADB/IFAD/WB Agriculture and Rural Institutions Review report, which basically call for
institutional streamlining of the operations of the FMARD to avoid over laps and duplication of
efforts. The recommended streamlining is intended to create effective collaboration among the
departments, which currently duplicate the roles and functions of each other. The re-alignment
further intends to create a system for coordination of interdepartmental activities as well as
maintain strong operational links with the state counterparts.
4.1.4 Following the recommendations from the above review, FMARD, in April 2004 constituted
a senior management committee to re-define existing institutional arrangements that are meant to
serve as a blue print for planning, implementing, monitoring and evaluating agriculture and rural
development initiatives and to harmonize the mandates and activities of its Departments. To guide
the process, the Ministry as earlier noted, issued a White Paper providing recommendations and the
way forward on the rationalization process.
4.1.5 Arising out of the NEEDS and the Review of Agriculture and Rural Development
Institutions, this Project has been collaboratively designed as part of the A-PSF, which on the
Government side involves FMARD, National Planning Council, Ministry of Finance, National
Assembly and the Office of the Presidency.
4.1.6 Therefore, by providing support to address the challenges and constraints faced by the
sector as expounded in the NEEDS and the ADB, WB IFAD Agricultural Sector Review Report,
the Project activities include inter alia; offer of institutional support to the FMARD by
strengthening and re-defining the functions and the strategic orientation of the FMARD and its
departments, capacity building in terms of staff training, re-tooling and equipping and support to
agricultural data collection, analysis, monitoring and evaluation. It is anticipated that this will
clearly spell out the roles and responsibilities of various departments in delivering pro-poor growth
and poverty reduction and harmoniously provide good landing ground for the CIDA led A-PSF.
The project was designed in a participatory manner through consultation and involvement of all
Directors of the technical departments and the Heads of the Regional Offices.
4.1.7 In the design of this Project, positive lessons have been drawn from earlier donor
interventions, including harmonization of on-going donor approaches, funding and implementation
mechanisms. For instance, by tackling poverty alleviation using demand driven approaches and
human skills development in a coordinated manner, which is in line with the Governments
decentralization policy. The design also takes into account sufficient attention to capacity building,
and the need to institutionalise the process of demand driven approach to development. These
lessons have been incorpoarated into the design and implementation of this project.
4.1.8 As indicated in section 2.6, most of the interventions in the agriculture sector have focused
on capacity building at state and local government levels. This project will focus its interventions at
the federal government and its six regional offices that provide technical backstopping to the states.
Since each regional office serves six states, this project will directly benefit the states through those
offices.

16
4.2

Project Area and Beneficiaries

The project will focus on the FMARD and its ten departments in ABUJA. The project will also
cover the six regional offices located in Kaduna, Jos, Enugu, Ibadan, Maiduguri and Port Harcourt.
The FMARD departments and the six regional offices will directly benefit from the project through
the streamlining of their roles and responsibilities, establishment of computerized systems for data
collection and establishment of a MIS. The staff will also directly benefit through training to be
conducted and attachments to specialized institutions. Since each regional office serves six states,
the state ministries of agriculture and rural development will indirectly benefit from the project
through the improvement in service delivery by the regional offices.
4.3

Strategic Context

4.3.1 The FGN has shown determination to reverse the process of economic and social decline. It
emphasizes and reinforces its policy on decentralized planning and development. It has put more
concerted effort to rural development through productive farm and non-farm enterprises at the
grass-root level. Efforts have also been made to build the capacities of Agriculture and Rural
Institutions for efficient service delivery to the communities so as to enhance their participation in
development and improve their livelihood and well-being.
4.3.2 Given the present state of the delivery of services to the rural population and the risk of
further deterioration, there is an urgent need for intervention in capacity building, streamlining of
activities to ensure that the investment financiers make in the sector produce positive impact on the
population.
4.3.3 The project is in line with the Country Strategy Paper (CSP) for Nigeria 2002-2004 in that it
will address the constraints related to socio-economic infrastructure, increased production and
capacity building, and with the Banks Vision for Poverty Alleviation through agriculture and rural
development. The project is also is designed to address of the core issues raised in the countrys
PRSP (NEEDS) and the Rural Development Sector Strategy.
4.4

Project Objective

4.4.1 The sector goal to strengthen institutions to respond effectively and efficiently to the needs
of the farmers and other participants in rural development for the enhancement of food security
and reducing poverty. The project objective is to enhance the capacity of the agriculture and rural
institutions for effective and sustainable service delivery to the farmers. The results will be
improved implementation of interventions and programs by government and donors for the
agriculture and rural sector.
4.4.2 The Project outputs include: a rationalized institutional framework necessary for the
effective and sustainable development of Nigerias agriculture and rural sector, well trained staff,
technologically equipped departments, improved data collection, analysis and storage and improved
delivery of extension services.
4.5

Project Description

4.5.1 The Project has three components, namely; a) Institutional Support and Rationalization, b)
Capacity Building and, c) Project Management.

17
(A)

Institutional Support and Rationalization

4.5.2 Due to institutional inefficiencies arising from duplication of responsibilities, this project is
designed to address the rationalization of responsibilities at the FMARD and the six regional
offices. Three outputs are to be delivered from this component, namely; i) guidelines for
departmental coordination of activities, ii) an institutional performance indicators handbook, and
iii) a comprehensive human development strategy.
4.5.3 The project using consultancy services will develop guidelines for departmental
coordination of activities. This will involve review, redefinition and harmonization of all
departmental functions and responsibilities, including mandates and strategies in relation to
FMARD targets and objectives. Key coordination linkages will be established to improve
efficiency of both managerial and technical staff. In order to foster accountability, departmental
terms of reference will be developed and responsibilities clearly spelt out. The Institutional
Development Expert to be recruited by the project will lead this process. The project has made
provision for 30 man months for the Institutional Development Expert to be recruited competitively
through a consulting firm.
4.5.4 An inter-departmental committee will be established to review, approve and adopt the
proposals of the Institutional Development Expert. The Committee shall be chaired by the
Permanent Secretary of FMARD. At the start of the project, this committee will meet weekly and
then reduce to monthly by project year two. This Committee will consist of all the A-PSF
collaborating institutions, which are CIDA, DFID and USAID. Furthermore, individual meetings
and discussions with stakeholders including senior management and staff will be held monthly so
as to identify key coordination linkages within the departments including the regional offices.
Efficient communication channels will be established and departmental responsibilities re-aligned.
4.5.5 An institutional performance indicators handbook will be prepared to guide departments in
the preparation and implementation of their work programs. To foster the harmonization of
planning and sharing of information, weekly meetings will be held by Directors. To this effect, the
Project will install a computer based management information system to improve the sharing of
information regarding issues of planning, budgeting and coordination. Furthermore, a dual-way
information flow between federal and state institutions will be developed through internet
connection via VSAT at the six regional offices at Kaduna, Jos, Enugu, Ibadan, Maiduguri and Port
Harcourt.
4.5.6 Although recruitment under the civil service is a prerogative of the Federal Ministry of
Public Service, the project will assist FMARD to develop a comprehensive human resources
development strategy aimed at enhancing performance and the career development of its staff.
Departmental staffing levels and skills will be updated and computerized. Performance indicators
will be applied in the staff evaluation process. In addition, elaborate and transparent criteria for
staff promotion and transfer will be established. Staff will be involved in the discussion and
validation of the departmental coordination guidelines, performance indicators handbook, and
human resource strategy through individual meetings and participation in the validation workshops.
(B)

Capacity Building

4.5.7 Because of the need to strengthen staff skills and because of poor agriculture and rural
statistical data, the second component of this project will focus on capacity building which will
deliver the following three outputs, namely; i) Staff training based on actual needs assessment, ii)
agricultural data collection, analysis and computerization, and iii) establishment of a Management
Information System. The objectives of this component are to, a) improve the staff skills and

18
efficiency, b) strengthen the existing system for agricultural and rural development, c) improve
communication mechanisms and avenues between institutions and the FMARD in setting priorities
and resource allocation and management for agriculture and rural development and; iv) enhance use
of information technology.
4.5.8 Training: The Agriculture and Rural Development Policy and NEEDS call for major
retraining and re-equipping of public staff in FMARD, SMOA, LGC and key institutions that are
involved in agriculture and rural development. The project will set up a Training Needs
Assessment Framework (TNAF) which will help in staff performance assessment and
determination of training needs. The TNAF will be designed in such a way as to enhance
collaboration with the private and NGO sector. Staff will be closely involved in the provision and
validation of information to be used in the TNAF.
4.5.9 About 75% of the 486 ministry staff will be trained in various fields including project
management, information technology, financial management, statistics, monitoring and evaluation,
results based management, poverty alleviation, and communication skills. Attachments to
specialized institutions both locally and internationally will also be conducted. The training will
involve only short courses that will range from 3 weeks to 4 months. The attachments will be for
periods not exceeding 6 months. Some staff, especially those in administrative positions, may
attend more than two courses. On average each staff to be trained will undertake at least 2 courses.
Out of the total number of staff to be trained about 40% will be women. Local training will be
conducted at the Nigerian Institute of Social and Economic Research. In addition to the above
training, three validation workshops will be held at the ministry to inform staff of the project and
also collect their views with respect to project implementation.
4.5.10 The project will also support the implementation of the on-going financial management
package as being piloted by the office of the Accountant General in the FMARD. The focus will be
to graduate it into a Web Based Financial Management System to eliminate misallocations and
mismatches between the budget and the rolling plan. To achieve this, the project will training 12
staff to implement the on going pilot effort on to the package from the office of the Accountant
General. It will provide 18 local need-based training sessions in Financial Management and
Budgeting, Procurement, Stores and Inventory Management. It will support the revision or up-date
and disseminate financial instructions and procurement guidelines. The project will also support
administrative mechanisms to act on audit findings and recommendations.
4.5.11 To enhance staff performance in the processing and delivery of information, the project will
purchase 86 computers for the departments and two sets of laboratory quality equipment for the
Department of Fertilizers. The extension staff, subject matter specialists and M&E field officers
need logistical support to enable them to rapidly respond to the requirements of the FMARD and
the needs of farmers. The project will provide 150 motor bikes to facilitate the mobility of these
staff between the regional and state government offices.
4.5.12 Agriculture and Rural Statistics, Monitoring and Evaluation: The department of planning,
Research and Statistics is the custodian of agriculture and rural statistics. According to its records,
agriculture and rural statistics were last updated in 1998. The project will support the continuous
collection and update of data so as to make it meaningful. To this effect, the project will work with
the department of Planning, Research and Statistics to:
i)

Design a new system for data collection using the introduced IT and MIS to ensure
efficient, up-to-date, and accurate agriculture statistics for the sector including
information dissemination to stakeholders;

19
ii)

Review the existing data analysis System and techniques and proposed updated system
including cost of production, farm budgets, labour, yield, cultivated areas, crop
production, market prices, supply and demand of crops . etc;

iii)

The M&E Expert will review completed agriculture and rural development projects to
draw lessons for incorporation in the new management system including M&E;

iv)

Prepare, a Project Monitoring and Evaluation Plan, which will outline in detail the scope
and purpose of the M&E system to be used in the FMARD. The plan will provide key
performance indicators, report format, in addition to those mentioned in the project
matrix;

v)

Propose a mechanism for the incorporation of the M&E outputs into all future
development interventions in the sector;

vi)

Provide 12 need-based staff training sessions for data collection, collation, storage and
analysis. The training sessions will be undertaken by a local training institution.

4.5.13 For the implementation of the above activities, the project has made provision for the
recruitment of a Monitoring and Evaluation Expert and a Statistician for 10 and 8 man months
respectively to work with the Project Team in undertaking the above tasks. The above-experts will
be recruited through a consulting firm.
4.5.14 The project will establish a Management Information System with the aim of improving
information management and use. The establishment of the MIS will involve:
i)

Establishment of department and interdepartmental work processes. The source of the


information for the MIS will be all departments and the regional offices. Information
will be entered as events occur in the course of agency activities. Information will be
subject to continuous correction and updating.

ii)

Identification of information needs for the various users from both within and outside
the FMARD. The MIS will be designed and administered as a management tool for
FMARD to help it direct its resources. Employees will be encouraged to review the
validity, accuracy and completeness of the data.

iii)

Establishment of work flows and responsibilities that will be clearly documented in a


responsibilities matrix for staff use;

iv)

Development of reporting and authority formats that will be documented in an


operational manual for staff use.

4.5.15 The FMARD will be able to produce accurate and timely reports once the MIS is
established and information technology is widely used. To implement this component, the project
has made provision for 12 man months for an Information Technology / Management Information
Systems Expert to be recruited competitively through a consulting firm. The recruited expert will
be charged with the development and operationalization of the system.

20
(C)

Project Management

4.5.16 The Federal Ministry of Agriculture and Rural Development will appoint a Project Team,
which will be responsible for the implementation of the project. The Project Team will be located
in the Federal Department of Planning, Research and Statistics (FDPRS). The Project Team will
comprise of a Team Leader, Accountant/Procurement Officer, Statistician and Monitoring and
Evaluation Officer. The Project Team will be headed by a Team Leader who will report to the
Permanent Secretary through the Director FDPRS. The Team Leader will be well qualified with a
Masters degree in management and seven years practical experience while the rest will be with
Masters degrees and at least four years experience. The Project Team will also be assisted by two
Technical Assistants namely; Institutional Development Expert and IT/MIS Expert recommended
from a firm of consultants. The terms of reference for the Project Team are summarised in Annex 7
and the details provided in Volume II.
4.5.17 The Project Team will be responsible for the day-to-day management of the Project
including preparation of annual work plans, follow up of all activities in the two components as
described above, procurement of goods and services, preparation of quarterly progress reports
(QPR), preparation of mid-term review, annual audit and project completion reports. Three support
staff the secretary, driver and office messenger/cleaner will be assigned to the project by
FMARD. The Project Team will be provided with office equipment, logistics and running costs, to
carry out its operations. The Project will make provisions for financing annual planning meetings
including the Project Steering Committee (PSC) meetings. The Project will finance incremental
operating costs for the Project Team including travel / subsistence allowances for the staff. The
Project Team will be provided with two 4WD pick- ups to facilitate mobility.
4.6

Environmental Impact

The project is not expected to have an adverse impact on the environment. Therefore, it was
classified as category III under the Banks environmental classification of projects. Further, by
strengthening the countrys capacity in project planning and programming, the proposed project
will indirectly have a positive effect on the environment through improved project design, appraisal
and implementation. Nevertheless, the project cycle and sector-planning component of the training
program will put emphasis on the importance of protecting the environment, through staff training
program. Therefore, it is expected that the project will increase the conservation efforts and
enhance the awareness of the environment.
4.7

Project Cost

4.7.1 The total project cost, excluding taxes and duties but including physical and price
contingencies is estimated to be UA 3.22 million (Naira 654 million as at January 2005 exchange
rates). Of this, the foreign exchange costs are estimated to be UA 2.66 million or 83% and local
costs to be UA 0.56 million or 17%. Table 4.1 presents the summary Project cost estimates by
component.
Table 4.1.
Summary Cost Estimates by Component
Naira 000
Component
1 Inst. Support & Rationalization
2. Capacity Building
3. Project Management

UA '000

%FE

Local

Foreign

Total

Local

Foreign

Total

9,000.00

133,200.00

142,200.00

44.27

655.17

699.44

94

77,200.00

336,166.00

413,366.00

379.72

1,652.70

2,032.42

81

23,799.00

36,558.00

60,357.00

117.06

179.82

296.88

61

21
Total Base-cost

109,999.00

505,924.00

615,923.00

541.05

2,487.69

3,028.74

82

Physical Contingences

2,926.00

19,753.00

22,679.00

14.39

97.16

111.55

87

Price Contingences

1,911.05

14,265.01

16,176.06

9.40

70.94

80.34

88

114,836.05

539,942.01

654,778.06

564.84

2,655.79

3,220.63

82

Total Project Cost

4.7.2 The detailed Project Costs by Category of Expenditure is outlined in volume II and
summarized in Table 4.2 below.
Table 4.2:

Summary Project Costs by Category of Expenditure


Naira 000

Category
1. Goods
2. Services
3. Operating Cost
Total Basecost
Physical Contingences
Price Contingences
Total Project Cost

Table 4.3:

Local

UA '000

Foreign

Total

Local

Foreign

Total

% FE

2,000.00

194,166.00

196,166.00

9.84

955.04

964.84

99

48,200.00

275,200.00

323,400.00

237.08

1,352.83

1,589.91

59

59,799.00

36,558.00

96,357.00

294.13

179.82

473.95

29

109,999.00

505,924.00

615,923.00

541.05

2,487.69

3,028.74

82

2,926.00

19,753.00

22,679.00

14.39

97.16

111.55

87

1,911.05

14,265.01

16,176.06

9.40

70.94

80.34

88

114,836.05

539,942.01

654,778.06

564.84

2,655.79

3,220.63

82

Summary Project Costs by Category and Financier


UA000

Expenditure Category by Financier


Goods
Services
Operating Expenses
Total Project Cost

4.8

ADF Grant
1,053.77
1,683.43
262.80
3,000.00

Total
1,053.77
1,683.43
483.43
3,220.63

GOVT

0.00
0.00
220.63
220.63

Sources of Finance and Expenditure Schedule

4.8.1 The source of finance as shown in Table 4.3 is ADF and the FGN in the proportions of 93%
and 7% respectively.
Table 4.4

Source of Financing
ADF Grant
Government
TOTAL

Summary Cost Estimates by Source of Financing

Local

Naira 000
Foreign

Total

Local

UA '000
Foreign

107,636.05

502,287.27

609,923.32

529.42

2,470.58

3,000.00

93

7,200.00

37,654.74

44,854.74

35.42

185.21

220.63

114,836.05

539,942.01

654,778.06

564.84

2,655.79

3,220.63

Total % of Total

100

4.8.2 The project duration is estimated at 3 years after entry into force of the grant agreement.
Tables 4.4 and 4.5 below show expenditure schedule by component and by source of finance.

22
Table 4.5

Summary Expenditure Schedule by Component


UA '000

Component
1. Institutional Support & Rationalization.
2. Capacity Building
3. Project Management
Total cost

Table 4.6

2005
269.59
1,077.87
102.12
1,449.58

2006
269.59
834.16
102.12
1,205.87

2007 TOTAL
218.46
757.64
244.61 2,156.64
102.11
306.35
565.18 3,220.63

Summary Expenditure Schedule by Source of Financing


UA '000

Source of Finance
ADF Grant
Government
TOTAL

2005
1,376.03
73.55
1,449.58

5.

PROJECT IMPLEMENTATION

5.1

Executing Agency

2006
1,132.33
73.54
1,205.87

2007
491.64
73.54
565.18

TOTAL
3,000.00
220.63
3,220.63

5.1.1 The Federal Ministry of Agriculture and Rural Development (FMARD) will be the
Executing Agency. A Project Team , which will be based in the Federal Department of Planning,
Research and Statistics (FDPRS), will be set-up to undertake implementation of the project. It will
be headed by a Team Leader whose major tasks will be: (i) To co-ordinate the activities of the
project at the technical and administrative levels, (ii) with the assistance of the procurement officer
and the accountant, undertake all Project procurement and disbursement activities and, (iv) prepare
progress reports and organize project audits.
5.2

Institutional Arrangements

5.2.1 A Project Steering Committee (SC) will be set-up to oversee the overall implementation of
the project. The Steering Committee will consist of the Permanent Secretary, Departmental Heads
of the FMARD, the Technical Specialists (in IT and Human Resources) and the Project Team
Leader who will serve as Secretary to the Committee. The Chairman of SC shall be the Permanent
Secretary, FMARD. The SC will have meetings once every quarter to appraise donors and other
stakeholders of the progress of the project. The formation of the Steering Committee will be one of
the conditions precedent to first disbursement.
5.2.2 The steering committee will meet once a month to review the progress of implementation
and resolve any problems encountered. The SC will provide guidance, co-ordinate and monitor the
implementation of the project. The Steering Committee will be charged with the following
functions and responsibilities: to review and approve the annual work program and procurement
plan; to establish and monitor a timetable for the implementation of the project; to review and
approve the procurement of goods and services; to co-ordinate and approve the various project
components so as to ensure coherence and compatibility in design, management, and
implementation, to develop the consensus on, and continuing commitment to the project; and to
make recommendations on policy issues which may arise in the design and implementation of the
project. For day-to-day management, the Team Leader will report to the Permanent Secretary,
FMARD through the Director FDPRS.

23
5.2.3 The FMARD will appoint a Project Team Leader, whose qualification will be approved by
the Bank. As indicated in paragraph 4.4.16, the Team Leader will be assisted by three qualified and
technically proficient officers and two Technical Assistants (consultants) to direct the
implementation of the Project.
5.3

Supervision and Implementation Schedule

5.3.1 The project will be implemented over a three year period beginning July 2005. The
implementation schedule shown in Annex 2 reflects the understanding reached by the Bank with
the Borrower. In collaboration with NGCO, the Bank will undertake a launching mission to ensure
that project activities commence on time. Given below is a summary of the implementation
schedule.
Table 5.1:
Summary Implementation Schedule
ITEM
1
2
3
4
5
6
7
8
9
10

ACTIVITY
Board presentation
Protocol of Agreement signed and effective
Project Team appointed
Launching Mission
Conditions precedent to disbursement fulfilled
Draft bidding docs & shortlists submitted
Approval of draft bidding documents
Contracts awarded to consultant and suppliers
Equipment and vehicles supplied
Project Completion

TARGET DATE
April 2005
May 2005
May 2005
June 2005
July 2005
July 2005
Aug. 2005
Oct. 2006
Nov. 2006
May 2008

ACTION BY
ADF
ADF/FGN
FGN
ADF/FGN
FGN
FGN
ADF
FGN
FGN
FGN

5.3.2 The project will be supervised at least twice a year after loan effectiveness. The Bank's
country office in Nigeria will regularly monitor the progress of project implementation and also
participate in supervision missions as well as assist in resolving major outstanding issues likely to
impede the smooth implementation of the project. The Bank and the borrower will undertake a
mid-term review of the project in 2007 to review its progress in the implementation of its subcomponents and assess its overall performance.
5.4

Procurement Arrangements

5.4.1 All procurement of goods, works, and acquisition of consulting services financed by the
ADF will be in accordance with the Banks Rules of Procedure for Procurement of Goods and
Works or, as appropriate, Rules of Procedure for the Use of Consultants, using the relevant Bank
Standard Bidding Documents. Procurement arrangements are summarized in Table 5.2 below.
5.4.2 Goods: The procurement of Computers, office and laboratory equipment valued at
UA405,120 and UA450,000 respectively, as well as motor cycles and vehicles valued at
UA110,110 and UA39,350 respectively, will be procured through National Competitive bidding
(NCB) mode of procurement in accordance with the Bank's Rules of Procedure for Procurement of
Goods. NCB is appropriate because in Nigeria there is an adequate number of local agents of
international suppliers and this will ensure competitive prices. In addition, these contracts are
unlikely to attract bids from outside the participating countries of the project. The extent, the mode,
and the text of the advertisement will be agreed upon and be approved by the Bank. The firm
selected, to supply the equipment and or computers will be in charge of implementing the entire
system including the installation and provision of back-up and maintenance services. Publications
on agriculture economics, information technology and management valued at UA49,190 will
procured through Direct Purchase.

24
Table 5.2:

Summary of Procurement Arrangements


UA 000

Project Categories
NCB

SL

Other

TOTAL

1. Goods
1.1 Equipment
Computer & Off. Equip
Lab. Equipment

1.2 Motorcycles

405.12
(405.12)
450.00
(450.00)

405.12
(405.12)
450.00
(450.00)

110.11
(110.11)

110.11
(110.11)

39.35
(39.35)

39.35
(39.35)

1.3 Vehicles

49.19
(49.19)

1.4 Publications (Liberally)

49.19
(49.19)

2. Services
2.1 Technical Assistance
2.2 Training
Local
International
2.3 Audit/MTR

502.00
(502.00)

502.00
(502.00)

644.34
(644.34)
503.00
(503.00)

644.34
(644.34)
503.00
(503.00)

34.09
(34.09)

34.09
(34.09)

3. Operating Cost
3.1 Salaries
3.2 Field/Subs. Allowance
3.3 Office Rent including
utilities
3.4 Other recurrent costs
TOTAL

1,004.58
(1,004.58)

1,683.43
(1,683.43)

185.21
(0.00)
177.07
(177.07)
35.41
(0.00)
85.73
(85.73)
532.62
(311.99)

185.21
(0.00)
177.07
(177.07)
35.41
(0.00)
85.73
(85.73)
3,220.63
(3,000.00)

Figures in parenthesis indicate ADF financing

5.4.3 Services and Training: Technical assistance worth UA502,000 and the services of an
external audit firm valued at UA34,090 will be procured through a shortlist in accordance with
Bank's Rules of Procedure for the Use of Consultants. During the evaluation process, the technical
evaluation will be done first and sent to the Bank for approval before the opening and evaluation of
the financial proposals. The training services for modules / courses estimated at UA644,340 will be
provided by the Agricultural and Rural Management Training Institute (ARMTI) and the Nigerian
Institute of Social and Economic Research (NISER). These two institutions were evaluated and

25
found to have satisfactory technical and physical capacity to undertake the assignment. The
international training estimated at UA503,000 will be undertaken in management training
institutions from eligible member countries.
5.4.4 Operating Expenses: The operating expenses including travel and subsistence expenses of
the project management team, operations and maintenance, office supplies and utilities and other
eligible operating costs shall be procured from the special account using government procedures.
The government procurement procedures were reviewed and found acceptable to the Bank.
5.4.5 General Procurement Notice and Review Procedures: General Procurement Notice (GPN)
will be agreed with the Federal Government of Nigeria and will be issued for publication in
Development Business following approval by the ADF Board of Directors of the proposed project.
The following documents will be subject to review and approval by the Bank before promulgation:
specific procurement notices; short list; tender documents or requests for proposal; tender
evaluation reports or evaluation of consultants and draft contracts.
5.5

Disbursements Arrangements

Direct payment and special account disbursement methods will be utilized. The beneficiary will
open a special account in a bank acceptable to the ADF for this project. The grant resources
required to meet the ADF's share of the first six months of local expenses will be deposited in this
special account. The ADF will replenish the special account, at the request of the Executing
Agency, after sufficient justification for the use of at least 50% of the previous deposit has been
provided. The beneficiary will also open a separate local currency account in a bank acceptable to
the ADF, to be operated by the PMU, into which the Federal Government of Nigeria will pay its
local counterpart funds contribution for the project.
5.6

Monitoring and Evaluation

5.6.1 Adequate arrangements have been made to ensure satisfactory monitoring of the project.
The Bank will undertake regular supervision missions to the project in order to keep abreast of the
progress of implementation and ensure that the grant resources are used as intended and the benefits
of the project are realized. The beneficiary departments will submit quarterly reports on progress of
their departments in the implementation of the project activities. These will provide the basis of
quarterly reports on progress of the project.
5.6.2 The main purpose of the monitoring and evaluation system is to provide the information
needed for impact-oriented project management and to involve key stakeholders in learning how to
improve project implementation. It will provide information on service quality and project progress
to the stakeholders, furnishing analysis to identify concrete improvements, as well as providing
regular reports on project progress to funding agencies and responsible ministries.
5.6.3 The Project Team with the assistance of the M & E Expert will prepare, a Project
Monitoring and Evaluation Plan, which will outline in detail the scope and purpose of the
monitoring and evaluation system to be used under the project. The plan will provide key
performance indicators, report format, in addition to those mentioned in the project matrix as well
as information on the organizational arrangements to be undertaken.
5.6.4 The Bank will insist on timely preparation and transmission of the quarterly progress reports
highlighting key issues and problem areas and will make recommendations for resolving identified
problems. These reports will be submitted by the Executing Agency to the Bank through the
Project Team Leader. The project will also be reviewed six months after its commencement to

26
ensure the timely implementation of the different activities under the components of the projects,
followed by regular supervision until its completion.
5.6.5 At the end of the second year of project implementation, a Mid-term Review will be carried
out to assess: i) compliance with project loan conditions, ii) completion progress relative to planned
targets, and iii) performance of the departments. This review will form the basis for review of the
project in terms of size and design to facilitate improved performance during the remaining
implementation period. Within three months before the end of the project implementation period,
the Project Team will prepare, following ADB format, the Borrowers Project Completion Report
and submit it to the Bank. This report will form the basis of the Banks version of the Project
Completion Report entailing verification of the information in the Borrowers PCR, and
recommendation of measures necessary to ensure sustainability of project benefits and draw lessons
for future interventions.
5.7

Financial Reporting and Auditing

The PMU will keep accounts that will enable the monitoring and control of expenditure by category
to be done effectively. The Executing Agency will be required to submit to the Fund an external
audit report covering the project's operations in the previous year. An independent external auditor
acceptable to the ADF will carry out the audit and provisions have been made in the project budget
for the cost of the audits. The annual audit report and accompanying financial statements,
including bank statements and statements of expenditure will be submitted to the ADF for review
no later than six months after closure of the financial year.
5.8

Aid Co-ordination

5.8.1 At the macro-level, donor co-ordination is ensured under the joint chairmanship of the
United Nations Development Program and the National Planning Commission. Multilateral and
bilateral agencies, such as the World Bank, the NGCO of the Bank, IFAD, CIDA, USAID, and
DFID, among others have established an informal donor coordination mechanism for projects and
programs in the Agriculture and Rural Development Sector. They meet once per month and discuss
thematic issues within the sector. Meetings are held in Abuja and the chair is rotating among the
donors.
5.8.2 At the federal level, FMARD launched in 2002 the Agriculture and Rural Development
Consultative Group (ARDCG) as a formal donor coordination mechanism. It is chaired by the
Minister of Agriculture and Rural Development and comprises all government, multilateral and
bilateral agencies involved in agriculture and rural development. Its role is to review progress of
donor-assisted programs and projects in the context of poverty alleviation. To strengthen donor
coordination activities, the project has provided for a quarterly meeting where the project steering
committee will meet with all donors and stakeholders in the agriculture sector and appraise them on
the progress of the project.
6

PROJECT SUSTAINABILITY AND RISKS

6.1

Recurrent Costs

The recurrent costs will be minimal as soon as the project is completed as the project will be builtin the structure FMARD. The Project Team which will be appointed for project coordination and
facilitation will be permanent staff of the FMARD whose salaries are paid with or without the
project. The remaining recurrent costs will easily be met from the Government budget as most of
the represent costs are already being paid.

27
6.2.

Project Sustainability

6.2.1 The project by its nature is sustainable as the focus is made on the training where 66% of
the project cost is allocated to capacity building of exiting staff. The proposed training program will
be based on the assessment of the medium and long terms needs and will include the training of
trainers. This design will ensure efficient and effective human resource development initiatives
thereby having a long-lasting sustainability.
6.2.2 The emphasis on human development is intended to ensure that the key personnel in the
beneficiary units are equipped with the technical skills and necessary tools to substantially increase
their productivity. Furthermore, since the average age is around 40 years, trained staff will have
enough time to practice new techniques and then transfer their adopted knowledge within the
existing system to the new and younger staff. This nature of the training program is long lasting and
sustainable.
6.2.3 Rationalization of responsibilities and interdepartmental communication has been designed
to reduce duplication of activities. This will enhance the efficient use of available staff and
financial resources. Such efficiency will be reflected in the institutional performance in terms of
quality of services to be provided to farmers and rural population. That is institutional efficiency
that is based on robust build-in systems, procedures and information technology is sustainable.
6.2.4 The rationalisation to be built-in the existing system of FMARD, and systems to be
developed and procedures to be established will ensure that the roles and responsibilities reflect the
new way of doing business, and that procedures work smoother under the new system. This system
will be developed in a participatory manner by involving all staff through the validation workshops.
The inclusion of Directors of all the departments on the steering committee will help in the
enforcement of the new roles and the sustainability of the project.
6.2.5 The institutional support as designed in the project will increase accountability and improve
staff performance through the use of more subjective performance criteria for their work program
design and evaluation. Further, the inclusion of staff promotion and transfer will reduce possible
staff turnover. Also, the Federal Government will enforce its bonding requirements, to minimize
the turnover of staff trained under the project for further sustainability purposes.
6.2.6 Extension staff will be given the option to acquire motorcycles and pay 70 per cent of its
cost. This staff contribution, will be deducted from their salaries and deposited in the project local
account to be used for the purchase of more motorcycles for the same purpose. Ownership will be
transferred to staff when staff contribution is completed. This will make the scheme sustainable as
the extension staff will own the motorcycles and as such incur the cost of maintenance.
6.3

Critical Assumptions, Risks and Mitigating Measures

6.3.1 Project success will depend on the lasting commitment of Federal Government to treat
agriculture and rural development as high priority sector. It will also depend on the commitment of
donors to support the sector. In this respect, it is assumed that the Government will remain
committed to agricultural institutional support. Actions taken by the FMARD indicate Government
commitments toward the success of the project. Such actions are explained in the White Paper and
NEEDS that were issued in 2003 to address the necessity to strengthen agricultural and rural
institutions. Further, the project designed with the full participation of the various Department
Directors in addition to the establishment of a Steering Committee of senior officials will ensure
that they are fully committed to the success of the project.

28
6.3.2 Given that the rationalisation of roles and responsibilities will reduce activities of some
departments and increase those others, there may be resistance to these changes. Staff may be
uncertain of their abilities to learn new skills, their aptitude with new systems, or their ability to
take on new roles. To ensure that all staff are involved and understand the changes, validation
workshops will be held to inform staff of the progress of project implementation and to gather their
views on the project. Since all Directors of the various departments will be members of the steering
committee, they will be directly involved and as such closely follow up on the activities of the
Institutional Development Expert who will make proposals for their review and approval. As per
the operations of the civil service, the Permanent Secretary will issue circulars instructing staff to
implement the decisions made by the steering committee to adopt and implement the new
strategies.
6.3.3 Staff turnover among government employees might be a risk to the project as some of the
trained staff may leave the FMARD to private sector for better income. Attrition may make
threaten the full achievement of the project objective. The project, in its design adopted the staff
promotion mechanism to be built-in the system through the human resource management strategy,
which includes accountability enhancement, staff performance improvement, and subjective
indicators to better control institutional performance. It is expected that staff promotion and transfer
systems will minimize staff turnover. Also, the Federal Government will provide adequate
incentives for key personnel. Staff who will undertake external courses will be bonded to serve the
Ministry for a maximum of five years. In addition, there will be a transparent process in the criteria
for selection of staff to be trained. This will assist in ensuring that the right staff are selected for the
appropriate training.
7

PROJECT BENEFITS

7.1
The project will benefit all the Federal Departments of the FMARD including its regional
institutions. Overall, the benefit shall include, effective and well coordinated work processes and
procedures in the achievement of the FMARD constitutional objectives of agriculture and rural
development modernization. A well-rationalized and effective working system will eliminate staff
antagonism and conflicts. Clear roles and mandates will enable easy performance assessment and
goal setting.
7.2
The following benefits will directly accrue; the FMARD will be able to efficiently and
effectively deploy its human and financial resources properly for the attainment of its objectives
including organized and coordinated on-ground implementation of government policies that are
targeted towards agriculture and rural development. More importantly, the FMARD will be at
contact with all its zonal offices very easily and thus be able to respond to issues and reports arising
from zonal offices and indeed from farmers very promptly. Easy reach by FMARD to its zonal
offices takes the FMARD very close to the farmers. This leads to a reduction in transaction costs
and an increase in income for the farmers and as such contribute to poverty reduction. In addition,
the efficient delivery of services will lead to increases in agricultural production and increased food
security.
7.3
Capacity building in the project has two dimensions: i) training and skills development; and
ii) provision of equipment and information technology for the FMARD and key of its institutions.
These two aspects of capacity building are very paramount for better service delivery. In this
context, the FMARD and its targeted State level institutions will benefit by having strengthened
systems of agriculture and rural development planning, monitoring and evaluation which will be
reflected on service delivery to farmers in terms of better communication, extension, decision
making, and problem solving. This in turn will strengthen efforts toward poverty reduction.

29
7.4
By undertaking both re-tooling and training, FMARD will be able after long years of
dormancy, conduct field visits to collect more accurate data and analyze it properly. Lack of
laboratory equipment, computers and appropriate information management system had rendered
data collection, collation and dissemination weak in FMARD responsibilities. Hence all the
planning and decision-making have been under taken without thorough analysis of the on-ground
situation. Forecasting had become the thing of the past, as data was either non-existent or obsolete.
Project intervention through capacity building will eliminate this problem.
7.5
Good public sector management entails transparency and accountability in the use of public
resources. In this context, FMARD will benefit by having effective computerized financial
management and budgeting and accountability control system. The Ministrys internal financial
work processes and procedures will be automated for the first time. The automation process will
link financial management into the annual planning and budgeting process. The automation process
will also enable the Ministrys executive have good control of their budgets and activities, hence
enabling good decision making in the use of resources.
8.

CONCLUSIONS AND RECOMMENDATIONS

8.1

Conclusions

8.1.1 The Federal Government of Nigeria is committed to improving service delivery to the
farmers which in-turn will contribute to increase in food security the reduction of rural poverty.
Given its mandate, the Federal Ministry of Agriculture and Rural Development will play a key in
the achievement of these objectives. The rationalization and re-alignment of the departmental
activities will reduce duplication and wastage of resources whereas the training and provision of
equipment will enhance the efficiency of the staff. Provision of logistical support to the extension
workers will lead to rapid and effective dissemination of agricultural technologies and related
extension services while improvement of the monitoring and evaluation services will enable
FMARD obtain timely and relevant data on the impact of the interventions in the agriculture sector.
8.1.2 The proposed project is consistent with the development objectives of the Government of
Nigeria. It is in line with the governments Rural Development Strategy, the National Economic
Empowerment Development Strategy and the Banks group strategy for agricultural sector
development in the Country. The Project is expected to contribute to the sustainable management of
the agricultural resource base and substantially increase the food production through improved
services delivery by the agriculture and rural institutions. This in turn contributes to improved
household food security and reduction of poverty.
8.2

Recommendations

8.2.1 It is, therefore, recommended that the Board approves a grant not exceeding UA 3.00
million be provided to the Federal Government of Nigeria to finance the implementation of the
project as described in this report subject to the following conditions:
A

Conditions Precedent to Entry into Force

8.2.2 The entry into force of the Protocol Agreement shall be subject to the fulfilment by the
Recipient of the provisions of Section 4.01 of the General Conditions applicable to the Protocols of
Agreement dated 19 June 1991.

30
B.

Conditions Precedent to Disbursement

8.2.3

Prior to the first disbursement, the Federal Government, shall have:

i.
Provided evidence of having set up a Steering Committee consisting of the Permanent
Secretary (Chairman), Departmental Heads of the FMARD, the two Technical Specialists (in IT
and Human Resources) and the Project Team Leader who will serve as Secretary to the Committee.
(Paragraph 5.2.1)
ii.
Established a Project Team to be headed by a full-time Team Leader and comprising of an
Accountant/Procurement Expert, a Statistician and a Monitoring and Evaluation Expert whose
qualifications and experience shall have been accepted by the Fund. (Paragraph 4.4.16)
iii.

Provided adequate office accommodation for the Project Team.

iv.
Opening of a Special Account in convertible currency at a bank acceptable to the Fund into
which the proceeds of the loan will be deposited.
C.

Other Conditions

In addition, the Federal Government shall:


Submit to the Fund documentary evidence that each person selected for external training or
attachment has signed a bond agreeing to serve a minimum period of five years in the Beneficiary's
relevant employment or to reimburse the full cost of his or her training in case of failure to honour
the bond.

Annex 2
Tentative Implementation Schedule
ITEM

ACTIVITY

A
A.1
A.2
A.3
A.4
A.5
B

ADMINISTRATION
Board presentation
Protocol Agreement signed and effective
Project Team appointed
Mid-term review
Project Completion Report
PROJECT COORDINATION AND
MANAGEMENT
Project Team appointed
Launching Mission
EQUIPMENT
Draft bidding documents, shortlists submitted
Approval of draft bidding documents
Bids invited and received
Bids evaluated
Bid evaluation reports approved
Contracts awarded
Equipment and vehicles supplied
CONSULTANCIES
TORs, draft LOI and shortlists submitted and
approved
Advertisement and submission of proposals
Proposals evaluated
Evaluation reports approved
Contracts awarded
PROJECT AUDIT
Shortlist of auditors submitted
Approval of shortlist
Selection of candidates
Evaluation report approved
Contract awarded & signed

B.1
B.2
C.
C.1
C.2
C.3
C.4
C.5
C.6
C.7
D.
D.1
D.2
D.3
D.4
D.5
E.
E.1
E.2
E.3
E.4
E.5

TARGET
DATE

ACTION
BY

April 2005
May 2005
May 2005
June 2007
Dec 2008

ADF
ADF/FGN
ADF
ADF
ADF/FGN

May 2005
Jun. 2005

FGN
ADF/FGN

Jul. 2005
Aug. 2005
Sep. 2005
Oct. 2005
Nov. 2005
Nov. 2005
Dec. 2005

FGN
ADF
FGN
FGN
ADF
FGN
FGN

May 2005

FGN

Jun. 2005
Aug.. 2005
Aug. 2005
Sep. 2005

ADF/FGN
FGN
ADF
FGN

June 2006
June 2006
Aug. 2006
Sept. 2006
Oct. 2006

FGN
ADF
FGN
ADF
FGN

Annex 3
AGRICULTURE AND RURAL INSTITUTIONS SUPPORT PROJECT
PROVISIONAL LIST OF GOODS AND SERVICES

PROJECT CATEGORTY
1. Goods
1.1. Equipment
1.2 Reference Materials
1.3 Vehicles
1.4 Motorcycles
Sub-total
2. Services
2.1. Training
2.2. Technical Assistance
2.3 Annual Audits & Studies
Sub-total
3. Operating Cost
3.1. Field/Subs. Allowances
3.2 Other recurrent costs
Sub-total
TOTAL GRANT

UA 000

855.12
49.19
39.35
110.11
1,053.77

1,147.34
502.00
34.09
1,683.43

177.07
85.73
262.80
3,000.00

Annex 4
AGRICULTURE AND RURAL INSTITUTIONS SUPPORT PROJECT
SUMMARY OF BANK GROUP OPERATIONS
Amount
Project/Study

Approve
d (UA n.)

Date
Apprd

Date
signed

Date of
Entry
into
Force

Amount
Disbd

%
Disbd

Loan/
Grant
Closing
Date

Status/
Remarks

(UA Mn.)

AGRICULTURE
1 NACB Line of Credit I (ADB)
2. Forestry Development (ADB)
4. Sugar Expansion I (ADB)
5. Bacita Sugar Expansion II ADB)
6. Rivers State Rice Irrigation Study (TAF)
7. Middle Rima Study (TAF)
8. Savannah Sugar Rehabilitation
(ADB/ADF)
9. Agro-Climat. & Ecol. Zones Study (TAF)
10.Institutional Strengthen to NACB (ADF)
11. NACB Line of Credit II (ADB)
12. Forestry Resources Study (ADF)
13. Akwa Ibom Agric. Study (ADF)
14. Comm. Based Agric & Rural Devt ADF)
15. Fadama Development Project (ADF)
16. Niger Delta Env. & Social Study (ADF)

73.00
69.55
1.42
67.48
1.38
1.72
45.80
6.45
0.78
4.61
100.0
2.72
1.42
13.00
22.00
1.70

28/09/86
28/10/86
2/03/71
21/11/89
25/02/91
21/05/91
23/09/91
23/09/91
23/03/92
21/04/92
18/12/90
10/10/93
28/08/91
11/09/03
10/12/03
30/06/04

23/10/87
23/10/87
24/03/72
21/10/90
12/04/91
19/12/91
20/06/94
11/04/92
09/11/92
10/09/92
07/11/91
13/05/94
08/05/92
12/11/04
12/12/03
29/07/04

08/02/92
08/12/88
1/12/88
05/03/91
03/05/91
18/08/92
19/12/94
19/12/92
16/08/93
03/10/93
08/12/88
19/01/96
20/10/92
05/04/04
05/04/04
29/07/04

71.96
43.12
1.42
67.48
1.34
1.66.
45.65
6.40
0.78
3.08
99.82
2.71
1.33
0.00
0.00
0.00

98.50
62.4
100
100
97.1
87.0
95.5
99.2
100.0
66.8
99.82
100.0
94.0
0.00
0.00
0.00

30/06/82
31/12/00
31/12/00
31/12/03
30/06/96
31/12/00
31/12/00
31/07/97
31/12/97
31/12/95
30/06/95
30/06/99
30/06/99
31/12/09
31/12/11
30/06/07

Compd
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
On-going
On-going
On-going

80.00
40.00
100.00

23/03/89
23/09/86
29/01/91

30/05/89
05/04/87
07/11/91

29/09/89
22/09/87
26/09/92

69.64
40.00
100.00

87.1
100.0
100.0

31/09/99
31/12/94
31/12/95

Completed
Completed
Completed

3.40
4.75

26/01/72
27/06/74

24/03/72
11/06/74

31/12/72
31/12/74

3.40
4.75

100.0
100.0

30/09/78
31/12/79

Completed
Completed

2.41
78.74
26.00
74.14
3.21
90.17
3.83
119.10
14.92
81.70
44.95
61.69
1.96

06/12/90
06/12/90
23/12/86
05/02/91
05/02/91
05/02/91
05/02/91
02/10/92
02/10/92
21/04/89
18/10/88
17/04/90
17/04/90

18/01/91
18/01/91
04/05/87
19/12/91
19/12/91
19/12/91
19/12/91
29/06/94
29/06/94
21/04/91
30/05/89
27/11/90
27/11/90

06/03/91
06/03/91
28/10/87
09/06/92
09/06/92
07/03/92
07/03/92
11/01/95
11/01/95
21/12/95
27/11/90
14/03/91
14/03/91

2.27
78.74
15.82
74.14
3.17
89.12
3.56
101.56
8.66
61.04
4.95
61.68
1.96

94.3
100
76.0
100
96.1
98.0
73.5
85.28
58.11
74.7
100
100.0
100.0

31/12/97
31/12/95
30/16/96
31/12/02
31/12/02
31/12/02
31/12/02
31/12/03
31/12/03
31/12/01
25/10/94
31/12/97
31/12/97

Completed

22.57
13.08
55.26
34.74

16/01/90
18/12/90
29/10/92
11/09/02

07/04/90
07/11/91
12/05/93
15/10/02

17/12/90
25/02/94
17/09/93
-

22.54
12.22
48.16

100.0
99.54
87.15

31/12/99
30/09/03
30/09/03

Completed
On-Going ?
On-Going
Not yet
Effective

180
20
4

26/06/87
03/11/00
02/11/00

30/05/88
02/02/01
02/02/01

27/08/88
11/09/02
9/10/02

100
0.52
25.65

30/05/98
31/12/07
31/12/04

Completed
On-going
On-going

INDUSTRY
1. NIDB Line of Credit (ADB)
2. NBCI Line of Credit (ADB)
3. NERFUND-SMEs (ADB)
TRANSPORT SECTOR
1. Enugu Airport Reconstruction (ADB)
2. Calabar Airport Reconstruction (ADB)

PUBLIC UTILITIES
1. Edo/Delta States Water Supply (TAF)
(ADB)
2. Ibadan Emergen. Water Supply I (ADB)
3. Ibadan Water Supply II (ADB)
(TAF)
4. Plateau State Water Supply (ADB)
(ADF)
5. First Multi-State Water Supply (ADB)
(ADF)
6. Anambra/Enugu States Infrastr.(ADB)
7. Bauchi State Water Supp. Project (ADB)
8. Niger State Water Supply (ADB)
(TAF)
SOCIAL SECTOR
1. Bauchi State Health (ADF)
2. Kwara/Kogi/Niger Sta. Heth Proj. (ADF)
3. Health Services Rehab. Project (ADF)
4. Health Systems Development (ADF)

Completed
Completed
Completed
On-going
Closed
Completed
Completed

MULTI-SECTOR
1.Export Stimulation Loan
2 Community-based Poverty Red. Project
3. Instit. Supt for Cap. Build. & governce

180
0.104
1.026

Annex 5

AGRICULTURE AND RURAL INSTITUTIONS SUPPORT PROJECT


ORGANISATION CHART

Project Steering Committee


(Chaired by PS)

Project Management
Unit

FDA

Regional
Offices

FDRD

Regional
Offices

FDLD

FDF

Regional
Offices

Regional
Offices

Annex 6

LIST OF ITEMS IN VOLUME II

1.

Detailed Project Cost Tables

2.

Agriculture and Rural Institutions Review Report

3.

Government White Paper

4.

Terms of Reference for Project Team Leader

5.

Terms of Reference for the Monitoring and Evaluation Officer

6.

Terms of Reference for the Accountant/Procurement Officer

7.

Terms of Reference for the Statistician

8.

Terms of Reference for the Technical Assistants

9.

Terms of Reference for Project Steering Committee

Annex 7
Page 1/2
TERMS OF REFERENCE FOR PROJECT TEAM
The Team Leader, will be a well-qualified person with a relevant Masters degree in
Management. S/he should have a minimum of seven years of practical experience in
Programme/project development and management. Experience in management of public
sector reform and or institutional development projects will be an added advantage. The
Project Team Leader will be based within the Federal Department of Planning, Research and
Statistics and will be responsible for the day-to-day management of the Project ensuring;
procurement of goods and services, preparation of annual work plans, follow up of all
activities in the two components, preparation of quarterly progress reports, preparation of
mid-term review and project completion reports.
Institutional Development Specialist will be answerable to the Project Team Leader. S/he
will assist the Project Team leader undertake functions of FMARD rationalization, capacity
building and over all institutional development as elaborated in the Project intentions. On the
day-to-day basis, s/he will be responsible for assisting the Project Team Leader in all project
institutional development matters and issues such as all activities that are meant to achieve
departmental rationalization, capacity building, i.e. re-tooling, equipping and training,
development of staff performance and appraisal systems, development of efficient work
processes and procedures, including development of Ministrys training needs assessment
manual as well planning and execution of all planned training interventions. S/he will work
together with the Information Technology Specialist, Monitoring and Evaluation Officer and
the Statistician to define specific areas of capacity building for the entire Ministry in areas of
financial management, budgeting, audit, IT, monitoring, evaluation, data collection and
management. S/he will work with the entire team to develop the Project Annual Work Plan
and Budget. Given that this is a key task and core of this Project, the proposed Specialist
should posses at least a Masters degree in any of the following fields; Public Administration,
Public Sector Management, Public Policy, Development Administration, Political Science,
with at least seven (7) years post-graduate experience, 5 of which must have been at
managerial level. Knowledge in Public Sector and or Public Administration issues and
experience in implementing and managing public sector and institutional reform projects will
be an advantage. Additional training in Financial, Human Resources Development and
Management or Organizational Management would be advantageous.
Information Technology Specialist, While working under the authority of the Project Team
Leader, the Information Technology Specialist will be responsible for establishment and
maintenance of FMARD establishment, operation and management of the Ministrys
information, management and monitoring and evaluation systems. S/he will technically
support FMARD undertake systematic analysis of data collected through the M&E system so
as to generate lessons learnt, highlight key issues and bring them to the attention of PSC, APSF team and all the relevant institutions concerned. S/he will also work together with the
Institutional Development Expert to define specific areas for reform in the workflow process,
systems and procedures, including thereof, capacity building and automation. S/he will
support activities that lead to enhanced strategic planning and management using IT, i.e. in
budgeting, financial management, planning and allocation of resources, M & E, data analysis,
collation and dissemination. The Specialist will work with the rest in developing the Project

Annex 7
Page 2/2
work plan, budget and performance indicators, as well as support the M & E O and the
statisticians in managing Ministry and Project Management Information and Monitoring and
Evaluation systems. The preferred candidate must posses a higher degree (minimum of a
Masters Degree) in one of the subjects relevant to project design, management, monitoring
and evaluation (Information Sciences, Rural Development, Agricultural Economics,
Development Economics or any applied Social Science subject, with at least 4 years postgraduate experience in monitoring and evaluation, 3 of which must have been obtained from
internationally funded projects or NGO. Experience in developing monitoring and evaluation
systems of agricultural or integrated rural development projects would be advantageous.
The Accountant/Procurement Officer will be responsible for the maintenance of project
accounts, and for the setting up an appropriate accounting/reporting system to ensure that the
Project Team Leader and the Project Steering Committee (PSC) are informed of the on-going
situation, and that all the Project financial transactions are properly recorded. S/he shall be
responsible for all project procurement, particularly ensuring that it is done according to Bank
rules and procedures. By handling the two roles of Project accounting and procurement, the
officer will ensure to provide all the required financial reports to the Team Leader for
submission to the Permanent Secretary and to the PSC through the Director, FDPRS on
quarterly and annual basis. S/he will also maintain all records in a form appropriate for audit.
For that matter, s/he will also assist the Team Leader in maintaining project stores and
inventory system; making timely payment to Project suppliers and service providers,
preparing reimbursement claims and disbursement vouchers for submission to the Bank.
The Monitoring and Evaluation (M & E) Officer will work to support the establishment
and maintenance of the Ministry and Project management information and monitoring and
evaluation systems. S/he will undertake systematic analysis of data collected through the
M&E system so as to generate lessons learnt, highlight key issues and bring them to the
attention of project management. The officer will also contribute to the preparation of the
Project Annual Work Plan and Budget as well as write the Project quarterly, bi annual and
annual reports, including any other reports that will required by the Project and the Bank. For
that matter, it would be preferable if the Government can second a person with a wide
knowledge in community development, PRA approaches, with ability to use basic data to
generate findings that enhance management and decision-making especially in the domain of
institutional development, capacity building, information technology and human resource
management. Experience in developing monitoring and evaluation systems of agricultural or
integrated rural development projects will be more advantageous to the Project.
The Statistician, will work to support design, development, collection and analysis of
agricultural data. Working together with the Monitoring and Evaluation Officer, s/he will
work to define institutional responsibilities for collection, monitoring and evaluation of
agriculture and rural statistics at all tiers of government, define reporting and information
dissemination processes for monitoring and evaluation, prepare together with the M & E O all
information and data sheets collection and presentation formats, train staff on the job for data
collection, analysis and reporting. S/he will also assist the Team Leader in defining specific
tasks and overseeing their design and execution.