Attachment_J.6_-_FTF_Nigeria_Agro-Inputs_Project_Final_report_Dec_7_2017.pdf

Nigeria Agro-Inputs Project

Final Report October 2014 - October 2017

Grant Agreement No.AID-620-IO-15-00001

December 2017

This end-of-project final report was produced for review by the United States Agency for International Development. It was prepared by IFDC under the Feed the Future Nigeria Agro-Inputs Project Grant Agreement.

Feed the Future Nigeria Agro-Inputs Project Final Report | Oct 2014 to Oct 2017 i

Feed the Future

Nigeria Agro-Inputs Project

Final Report October 2014 - October 2017

P.O. Box 2040 Muscle Shoals, Alabama, 35662 USA www.ifdc.org

DISCLAIMER

This report is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of IFDC and do not necessarily reflect the views of USAID or the United States Government.

Feed the Future Nigeria Agro-Inputs Project Final Report | Oct 2014 to Oct 2017 ii

Table of Contents

1. Executive Summary

2. Program Overview/Summary

2.1 Program Description/Introduction

3. Implementation Strategy and Partnerships

3.1 Implementation Strategy

3.2 Beneficiaries, Indicators, and LOP Targets

3.3 Partnerships

4. Activities and Achievements

4.1 IR 1: Private Sector Participation in Agro-Inputs Supply Strengthened

4.1.1 Private Sector Capacity Building Activities

4.1.2 Key Private Sector Capacity Building Results

4.2 IR 2: Agricultural Productivity Increased

4.2.1 Productivity-Enhancing Activities

4.2.2 Key Productivity-Enhancing Results

4.3 IR 3: Access to Finance Improved

4.3.1 Access to Finance Activities

4.3.2 Key Access to Finance Results

5. Overall Project Performance and Early Impacts

5.1 Overall Project Performance

5.2 Early Impacts of Project Interventions on Beneficiaries

6. Challenges and Lessons Learned

6.1 Project Implementation Challenges

6.2Lessons Learned

7. Mechanisms for Sustaining Project Achievements

8. Conclusions and Areas in Need of Future Assistance

9. Success Stories

10. Appendices

Appendix 1. Project Partners’ Roles and Partnership Results

Appendix2.Cereal Yields from Various TTC Field Locations, 2015-2017

Feed the Future Nigeria Agro-Inputs Project Final Report | Oct 2014 to Oct 2017 iii

List of Tables

Table 1. Nigeria Agro-Inputs Project Indicators and LOP Targets

Table 2. Agro-Input Dealers Trained by Master Trainers

Table 3. Off-Farm Farmer Training by the New-Generation Agro-Input Dealers

Table 4. Improved Technology Yields Compared With Conventional Farmers’ Practice Yields

Table 5. Economic Benefits of FB-UDP Technology for Selected Crops

Table 6. LOP Targets versus Achievements

Table 7. Type and Value of New Investments Made by Agro-Input Dealers, FY 2015-

FY 2017

List of Figures

Figure 1. FTF Nigeria Agro-Inputs Project Intervention States

Figure 2. Typical Off-Farm, Classroom-Style Agro-Input Dealer Training Sessions

Figure 3. A Female Master Trainer in Training (left) and a Branded Banner (right)

Figure 4. New-Generation Agro-Input Dealers’ Training (left) and Branded Banner (right)

Figure 5. Number of Agro-Input Dealers Trained by State and by Gender, FY 15 to

FY 17

Figure 6. Typical On-Farm Training Sessions by New-Generation Agro-Input Dealers

Figure 7. Field Trials and Locations for Demonstrating the Effects of FB-UDP Technology, 2015-2017

Figure 8. Typical “Green & Brown Field Day “Farmer Trainings in Intervention States

Figure 9. New Retail Shops Added by Agro-Input Dealers as a Result of Project Intervention

Figure 10. Farmer Customers Served per Agro-Input Dealer (2015-2017)

Figure 11. Rate of Application of Management Practices by Agro-Input Dealers

Figure 12. Sources of Finance Accessed by Project Beneficiaries

Figure 13. Project Intervention Impacts on Beneficiary Business and Livelihood

Figure 14. Army Worm-Infested Maize Technology Transfer Center, FCT

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Acronyms 2SCALE Toward Sustainable Clusters in Agribusiness through Learning in

Entrepreneurship ABP Anchor Borrowers Program APEx Agro-Inputs to Production Expansion CARI Competitive African Rice Initiative CBN Central Bank of Nigeria COP Chief of Party CRS Catholic Relief Services FB-UDP Fertilizer Blend-based Urea Deep Placement Technology FCT Federal Capital Territory FEPSAN Fertilizer Producers and Suppliers Association of Nigeria FGN Federal Government of Nigeria FISS Farm Inputs and Support Services FMARD Federal Ministry of Agriculture and Rural Development FTF Feed the Future FY Fiscal Year GES Growth Enhancement Scheme ha hectare IFDC International Fertilizer Development Center IR Intermediate Result K Potassium LAPO Lift Above Poverty Organisation LGA Local Government Area LOP Length of Project MFB Microfinance Bank MOU Memorandum of Understanding MSME Micro, Small, and Medium Enterprise mt metric ton N Nitrogen NAEC Nigerian Agribusiness and Extension Curriculum NAIDA Nigeria Agro-Input Dealer Association NASC National Agricultural Seed Council NGN Nigerian Naira NGO Non-Governmental Organization NPFS National Program for Food Security P Phosphorus RIFAN Rice Farmers’ Association of Nigeria S Sulfur SCL Saiauwanaj Jumai Consultaine SMN Secondary and Micronutrients TTC Technology Transfer Center UDP Urea Deep Placement Technology USAID United States Agency for International Development USG United States Government Zn Zinc

Feed the Future Nigeria Agro-Inputs Project Final Report | Oct 2014 to Oct 2017 1

Nigeria Agro-Inputs Project Final Report October 2014 - October 2017

1. Executive Summary

The three-year Feed the Future Nigeria Agro-Inputs Project (October 2014 to October 2017) partnered with various stakeholders in the private sector(fertilizer, seed, and agro-chemical companies), the Federal and State Government of Nigeria, and development partner projects to promote a private sector-led agricultural inputs market that supports farmers’ access to quality and affordable inputs to increase agricultural productivity in Nigeria.

The project targeted 4,000 smallholder farmer beneficiaries in the cassava, maize, rice, and sorghum value chains in the Federal Capital Territory (FCT) and the states of Jigawa, Kaduna, Kano, Kogi, Niger, Oyo, and Sokoto to build capacities for the application of improved productivity-enhancing technologies. The project and its partners demonstrated urea deep placement (UDP) technology, which makes more efficient use of fertilizer, seed, and water, to beneficiary farmers. The project’s major contribution to increase productivity was the modification of UDP technology to include soil- and crop-specific fertilizer (NPK 20-10-

10+1Zn+2S) to replace the blanket NPK 15-15-15 fertilizer. The modified UDP technology, referred to as “Fertilizer Blend-based UDP (FB-UDP) Technology,” was promoted and demonstrated to beneficiary farmers at 25 Technology Transfer Center (TTC) locations in the intervention states. In addition to the increased nutrient use efficiency associated with the technology and the resulting reduction in urea use, the technology also increased yields by 25% to 200% over the conventional farmers’ practice.

In addition to farmer beneficiaries, the project targeted 1,400 mid- to downstream agro-input dealers in fertilizer, seed, and agro-chemicals to build their technical and entrepreneurial capacities and strengthen their participation in the input supply market. The project innovated and built the skill setof a critical mass of Master Trainers that will continue training new agro-input dealers and mentors that will support the newly trained agro-input dealers. It also trained and empowered” New-Generation Agro-Input Dealers” to build farmer capacities, thereby

Feed the Future Nigeria Agro-Inputs Project Final Report | Oct 2014 to Oct 2017 2 providing the missing link of an effective private sector input and service provision system that reaches smallholder farmers with improved seeds, appropriate fertilizers, agro-chemicals, and extension advisory services.

As a result of capacity building, mentorship, and linkages to sources of finance, project beneficiaries made new investments in their businesses valued atU.S.$488,357 (against $500,000 targeted for new investments). About 40% of the agro-input dealer beneficiaries added at least one new retail shop, 49% added two new retail shops, and 11% added three or more retail shops closer to farmers to reduce distances farmers travel to access inputs. Sixty percent of the targeted

5,400 beneficiaries have applied improved technologies and business management practices on their farms or business premises.

The challenges faced in implementing the project included the unforeseen withdrawal of the

Federal Government’s support for the project and a change in focus of the project to realign with the Feed the Future initiative. These events necessitated the realignment of the project, which slowed down project activities in FY 2015. The government also banned the importation of urea and restricted its movement within the country for security reasons, resulting in a urea shortage and high costs for farmers. Through the Special Presidential Fertilizer Initiative in FY 2017, the government returned to public sector fertilizer procurement and distribution, crowding out the private sector distribution that the project sought to promote. Natural disasters, such as the invasion and destruction of cereal fields by army worms, increased farmers’ risks of investing in productivity-enhancing technologies.

Despite the challenges, project interventions made positive impacts on beneficiary businesses and family livelihoods. The 3,279 beneficiaries who applied improved technologies and business management practices also confirmed that the project positively influenced their businesses as well as their livelihoods. Thirty percent claimed that they earned enough income to pay their children’s school fees, while25% said they had expanded and diversified their businesses. For example, agro-input dealers started venturing into farming and farmers began engaging in value addition by processing their produce. Some used incomes from their businesses to procure a means of transportation or to build or renovate their homes.

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Project staff learned the following major lessons from their experiences promoting improved technology:

• Although successful demonstrations raised awareness and interest, they were not sufficient for larger scale adoption.

• Larger scale adoption requires farmers to see their neighbors succeed using the new technology (they should see that it is higher yielding and more profitable than their own practices).

• Improved seeds, appropriate fertilizer blends, agro-chemicals, and other technology components should be available and easily accessible to the farmers.

• Continuous farmer education through off-farm training and through on-farm visits and extension advice is essential for technology use and adoption.

• Government “buy-in” to create enabling environments and incentives for investments by agro-input dealers and farmers is essential for technology adoption.

As an exit strategy, the project developed the following mechanisms for sustaining project achievements:

• The project’s agro-dealer and farmer databases have been shared with selected strategic partners to continue relationships with them when the project ends. For example, Fortis

Microfinance Bank will continue lending to the project’s networked farmers and agro-input dealers. Hello Tractor will enlist the New-Generation Agro-Input Dealers in the eight intervention states and use them as booking agents for tractors and other inputs on a commission basis.

• The project adequately equipped a critical mass of Master Trainers with training materials and skills to provide private commercial agro-dealer training services. To create a sustainable demand for private commercial training, the project encouraged the Federal Government to make the agro-input dealer training a prerequisite for agro-input dealer registration in

Nigeria.

• The project has established a mentor/mentee program to extend distribution networks into rural areas. A critical mass of experienced agro-input dealers were provided with mentorship skills to mentor newly trained agro-input dealers in the FCT and seven states of project intervention. The mentorship includes providing technical and entrepreneurial advice and

Feed the Future Nigeria Agro-Inputs Project Final Report | Oct 2014 to Oct 2017 4 supplying mentees with goods on credit while supporting them to extend the distribution network to rural areas.

• The project also trained and equipped “New-Generation Agro-Input Dealers” to build farmers’ capacities and provide extension advisory services in their communities. This involved assigning 50 New-Generation Agro-Input Dealers to 189 farmer groups for capacity building and service provision. These farmer groups involved 4,118 farmer members in cassava, maize, rice, and sorghum value chains in 16 Local Government Areas (LGAs) in the

FCT and seven project intervention states. The project coached the agro-dealers and supplied them with teaching materials for on-farm training and extension advisory services to pilot a

“New-Generation Agro-Input Dealer-focused Input Supply and Extension Service Delivery

Model.”Through this model, the New-Generation Agro-Input Dealers are empowered to provide an effective private sector input and service provision system, reaching smallholder farmers with improved seeds, appropriate fertilizers, agro-chemicals, and extension advisory services in their farming communities.

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2. Program Overview/Summary

Feed the Future Nigeria Agro-Inputs Project

Activity Start Date and End Date: October 27, 2014 – October 26, 2017 Name of Prime Implementing Partner: International Fertilizer Development Center (IFDC) (Contract/Agreement) Number: AID-620-IO-15-00001 Geographic Coverage: Federal Capital Territory (FCT), Jigawa, Kaduna, Kano, Kogi, Niger, Oyo, and Sokoto states Value Chain Coverage: Cassava, maize, rice, and sorghum Reporting Period: October 2014–October 2017

2.1 Program Description/Introduction

On October 27, 2014, the United States Agency for International Development (USAID) awarded the International Fertilizer Development Center (IFDC) a grant of $3 million to implement the Agro-Inputs to Production Expansion (APEx) project ending October 26, 2017.

The project sought to assist the Federal Government of Nigeria (FGN) to gradually exit from the procurement and distribution of subsidized inputs through its Growth Enhancement Support

(GES) scheme while strengthening the role of private input sector companies to serve as principal suppliers in the input subsector. The Federal Government’s cost-share contribution to implement the “Increased Efficiency of FMARD’s GES Scheme” component of the project was$1.53 million, bringing the total project budget to $4.53 million.

In April 2015, the Federal Government withdrew its support and funding for the project because of uncertainty in implementing the GES scheme. This necessitated a realignment of project activities and budget. In June 2015, USAID officially changed the title of the project from APEx to the Feed the Future Nigeria Agro-Inputs Project to align with Feed the Future and the Federal

Government of Nigeria’s objective of increased private sector participation in the agricultural inputs market, leading to a more efficient marketing system that allows the private sector to reach smallholder farmers at their farm gates.

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The project implemented its field activities in the Federal Capital

Territory (FCT) and the states of

Jigawa, Kaduna, Kano, Kogi, Niger, Oyo, and Sokoto (Figure

1) Project activities covered the cassava, maize, sorghum, and rice value chains.

3. Implementation Strategy and Partnerships

3.1 Implementation Strategy

The project anchored its implementation strategy on what it considered to be “wins” (i.e., what successful implementation would look like at the project’s end) and planned its strategy and work plan accordingly. The project would be considered successful if:

• The project’s approved Length-of-Project (LOP) performance indicator targets were achieved.

• Project interventions begin to impact the lives of direct and indirect beneficiaries.

• Project activities and interventions are placed on the path of sustainability by the time the project ends.

The project conducted baseline studies to collect data that would be used to evaluate progress toward achieving project goals and also to set baseline values for impact and outcome performance indicators during the life of the Feed the Future Nigeria Agro-Inputs Project in the intervention states.

Figure 1. FTF Nigeria Agro-Inputs Project Intervention States

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In addition, the baseline values would also serve as benchmarks against which to evaluate the project’s success, inform the project implementation approach, and help the team to identify challenges and opportunities for improving beneficiary and partner performance.

To build capacities of project beneficiaries (mid- to downstream agro-input dealers and smallholder farmers in the selected value chains), the project adopted a dual strategy of off-farm

“classroom-type” and on-farm “hands-on” approaches that are necessary to increase agro-input dealers’ technical and entrepreneurial capacities as well as farmers’ capacities to apply improved productivity-enhancing technologies.

3.2 Beneficiaries, Indicators, and LOP Targets

The project targeted a total of 5,400 beneficiaries composed of:

• 1,400 mid- and downstream agro-inputs (fertilizer, seed, and agro-chemical) dealers, representing 35% of the untrained agro-dealer population in Nigeria.

• 4,000 smallholder farmers in the cassava, maize, rice, and sorghum value chains in the FCT and the states of Jigawa, Kaduna, Kano, Kogi, Niger, Oyo, and Sokoto.

Three Intermediate Results (IRs) contributed to meeting the project’s objective of ensuring a private sector-led agricultural inputs market, supporting farmers to access quality and affordable inputs. The IRs are:

• IR 1 – Private Sector Participation in Agro-Inputs Supply Strengthened.

• IR 2 –Agricultural Productivity Increased.

• IR 3 – Access to Finance Improved.

Activities from the IRs fed into the following indicators, with start-of-project baselines and LOP targets summarized in Table 1.

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Table 1. Nigeria Agro-Inputs Project Indicators and LOP Targets

Standard and Custom Indicators Baseline LOP Target

IR 1: Private Sector Participation in Agro-Inputs Supply Strengthened 1a. FTF-4.5.2(12): Number of public-private partnerships formed as a result of FTF assistance

0 10

1b. FTF 4.5.2(38): Value of new private sector investment in the agriculture sector or food chain leveraged by FTF implementation (U.S. $)

0 500,000

IR 2: Agricultural Productivity Increased 1.1d. FTF 4.5.2(7): Number of individuals who received USG supported short-term agriculture sector productivity or food security training

292 5,400

1.1a. FTF 4.5.2(5): Number of farmers and others who have applied improved technologies or management practices as a result of USG assistance

520 3,240

IR3: Access to Finance Improved 2.2a. FTF 4.5.2(37): Number of micro, small, and medium enterprises(MSMEs) including farmers receiving business development services from USG-assisted sources

292 5,400

FTF 4.5.2-30: Number of MSMEs including farmers, receiving USG assistance to access loans

0 1,350

Custom Indicator Custom: Percentage of loan applications approved by banks 0 25%

3.3 Partnerships

The project entered into strategic partnerships with the private sector, public sector, and development partner projects to leverage resources and expertise to meet project objectives.

Partnerships were formalized through Memoranda of Understanding (MOU) that clearly specified partnership objectives as well as each partner’s roles and responsibilities. The partners agreed to:(i) jointly build technical and entrepreneurial capacities of agro-input dealers;(ii) introduce and train farmers to use productivity-enhancing technologies; and (iii) link beneficiaries to sources of finance to catalyze investments in improved technologies and business management practices.

The private sector partners included fertilizer companies, blenders, and distributors (e.g., Notore, AGTHO Merchants, Interproducts Link, MBS, and Albarka AgroAllied). They also included agro-chemical companies (e.g., Syngenta and Harvest Field) and seed companies (e.g., Maslaha and Premier Seeds). Additional partners included agro-processing and produce off-taking companies (e.g., Ahalson Commodities, SCL, Psaltry International, and Plethora Farms) as well

Feed the Future Nigeria Agro-Inputs Project Final Report | Oct 2014 to Oct 2017 9 as financial institutions (e.g., Fortis and Lift Above Poverty Organisation [LAPO] micro-finance banks).

The public sector partners included the Farm Inputs and Support Services (FISS) directorate of the Federal Ministry of Agriculture and Rural Development (FMARD), National Program for

Food Security (NPFS), and National Agricultural Seed Council (NASC) as well as state-level agricultural development programs in the project’s intervention states.

The development partner projects included the Dutch-funded Towards Sustainable Clusters in

Agribusiness through Learning in Entrepreneurship (2SCALE) project, USAID-funded Feed the

Future Nigeria Livelihood Project (CRS) and Hello Tractor, and the German-funded Competitive

Rice Initiative (CARI). Others included the Nigeria Agro-Input Dealers’ Association (NAIDA) and Rice Farmers’ Association of Nigeria (RIFAN).

The list of partners, key areas of partnership and roles are presented in Appendix 1.

4. Activities and Achievements

This section describes the major activities conducted under each IR area that contributed to meeting activity targets over the project’s three-year lifespan (October 27, 2014 – October 26, 2017).

4.1 IR 1: Private Sector Participation in Agro-Inputs Supply Strengthened

4.1.1 Private Sector Capacity Building Activities

The baseline study conducted by the project prior to its implementation showed approximately

6,000 mid- to downstream agro-input dealers operating in Nigeria. Only about 2,000 were trained, leaving 4,000 who had not yet been trained.The Feed the Future Nigeria Agro-Inputs

Project’s agro-dealer training target was set at 1,400, representing 35% of the untrained agro-dealer population.

For the residential classroom-type off-farm training, the project deployed the IFDC agro-dealer curriculum and the Nigerian Agribusiness and Extension Curriculum (NAEC). While the IFDC

Feed the Future Nigeria Agro-Inputs Project Final Report | Oct 2014 to Oct 2017 10 curriculum is designed to build technical and entrepreneurial capacities to become effective agro-entrepreneurs and service providers, the NAEC empowers them to become better managers of their enterprises to run agriculture as a business. The training modules covered topics on business management, access to finance, and case studies of best practices in handling fertilizers, seeds, and pesticides. It also involved role-playing exercises and simulations that strongly emphasized the lessons to adult learners in order to result in behavioral changes. The NAEC simulation exercises helped the trainees to learn how to plan, access and repay loans, and become aware of the risks associated with agribusiness and how to mitigate them.

The agro-input dealers to be trained were either identified by the project during the baseline survey or identified and recommended to the project by:(i) the Nigeria Agro-Input Dealer

Association (NAIDA);(ii) development partner projects, e.g., Feed the Future Nigeria Livelihood

Project; and (iii) fertilizer, seed, and agro-chemical companies, such as Notore, Maslaha, and

Syngenta.

A typical off-farm agro-input dealer training lasted three days and was offered in a classroom-type setting (Figure 2). Participants who completed the sessions were awarded certificates of participation, fully recognized by FMARD.

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Figure 2. Typical Off-Farm, Classroom-Style Agro-Input Dealer Training

Sessions

Training has resulted in building a critical mass of private commercial agro-input dealer training service providers.

In the quest to build a critical mass of private commercial agro-input dealer training service providers, the project, in partnership with NAIDA, further trained a total of 25 experienced agro-

Dr. Kofi Debrah, Chief of Party, facilitating a session at an agro-input dealer training in Kaduna.

Mr. Sunday Oyor from Notore explaining how newly trained agro-dealers could become Notore fertilizer distributors at a training session in Kogi.

A training session in Kano. Mr. Dangana, Input Marketing Specialist, assisting trained agro-dealers to form cooperative groups.

Participants conducting a group exercise at a training session in Sokoto under the supervision of Sunny Ogidi, Training Specialist.

Feed the Future Nigeria Agro-Inputs Project Final Report | Oct 2014 to Oct 2017 12 dealers (three females, 22 males; three trainees from each of the seven states and four from FCT).

The trainees were branded as “Master Trainers” and equipped to become private agro-input dealer training service providers in readiness to meet anticipated demand in agro-input dealer training and ensure sustainability after the project ends. Upon successful completion of the training, the Master Trainers were recognized with branded banners (Figure 3) to identify that they were capable of providing private training services to new agro-input dealers.

Figure 3. A Female Master Trainer in Training (left) and a Branded Banner (right)

Training has resulted in building a critical mass of New-Generation Agro-Input Dealers capable of providing extension advisory services to farmers.

In the belief that farmers would use more inputs and apply productivity-enhancing technologies if they had timely access to inputs, technologies, and extension advisory services, the project provided additional skills to47 previously trained agro-input dealers (44 males and three females). The dealers were trained to provide continuous on- and off-farm technical and advisory services to farmers in their communities. With these skills, the branded “New-Generation Agro-

Input Dealers” are capable of training farmers and providing extension advisory services in their communities (Figure 4).

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Figure 4. New-Generation Agro-Input Dealers’ Training (left) and Branded

Banner (right)

4.1.2 Key Private Sector Capacity Building Results

The project and its Master Trainer partners trained a total of 1,512 agro-input dealers, including

1,240 males (82%) and 272females (18%), across the FCT and seven project intervention states over the three-year period (Figure 5). Because agro-input dealership is a male-dominated business in Nigeria, women accounted for only 18% of all trainees. The fewest number of women trained came from Kano and Sokoto states where women-led agro-dealerships are not common.

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Figure 5. Number of Agro-Input Dealers Trained by State and by Gender, FY 15 to FY 17

The Master Trainers trained of a total of 860 new agro-input dealers, including 734 males (85%) and 126females (15%), from the FCT and seven project intervention states (Table 2).

Table 2. Agro-Input Dealers Trained by Master Trainers

State # of Male Agro-Dealers Trained

# of Female Agro-Dealers Trained

Total # of Agro-Dealers Trained

FCT 68 6 74

Jigawa 99 12 111 Kaduna 90 44 134 Kano 133 21 154 Kogi 88 17 105 Niger 70 8 78 Oyo 128 10 138 Sokoto 58 8 66 Total 734 126 860

Similarly, the New-Generation Agro-Dealers built the capacities of a total of 1,152 farmers, including 810 males (70%) and 342females (30%) off-farm across the FCT and project states of intervention (Table3).

126 124

19 20 14 7

OYO KOGI NIGER JIGAWA FCT KANO KADUNA SOKOTO

Male Female

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Table 3. Off-Farm Farmer Training by the New-Generation Agro-Input Dealers

State # of New- Generation Agro- Dealers

# of Male Farmers Trained

# of Female Farmers Trained

Total # of Farmers Trained

FCT 4 83 22 105

Jigawa 10 162 12 174 Kaduna 6 188 140 328 Kano 1 0 50 50 Kogi 1 29 6 35 Niger 4 160 49 209 Oyo 4 125 59 184 Sokoto 3 63 4 67 Total 33 810 342 1,152

The New-Generation Agro-Input Dealers’ off-farm farmer capacity-building activities were followed by hands-on training on the farms of volunteer farmers from the farmer groups. During the one-day on-farm training, other farmers from the group participated and benefited from training on the improved technologies and good agricultural practices promoted by the project.

Typical on-farm training sessions delivered by the agro-input dealers are shown in Figure 6. The first sessions in each intervention state were supervised by the project staff to ensure the farmers obtained quality training and to answer questions farmers might have.

The training provided by the New-Generation Agro-Input Dealers to farmers in the community was well received and appreciated. According to Shaibu Sumaila, one of the farmers trained by the New-Generation Agro-Input Dealer in Kogi state, “I am happy about this training because I know my teacher. He lives in my community, so anytime I have a problem on my farm, I know where to go.”The New-Generation Agro-Input Dealers are equally excited about their new vocation, and according to dealer Aliyu Abdulkadir from Niger, “The strength of the farmers is our strength. When they succeed, we succeed in our businesses.”

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Figure 6. Typical On-Farm Training Sessions by New-Generation Agro-Input Dealers

4.2 IR 2: Agricultural Productivity Increased

4.2.1 Productivity-Enhancing Activities

Soil- and Crop-Specific Fertilizer Technology in Root Crops and Cereals A major project contribution was the introduction of soil- and crop-specific fertilizer blends in promoting productivity-enhancing technologies in root and tuber crops and cereals.

Dr. Debrah, COP, and Mr. Ogidi supervising an on-farm training by New-Generation Agro- Dealers in Jigawa.

Farmers gather on a group member’s farm for on-farm training by New-Generation Agro-Input Dealers in Niger.

Mr. Mbabie, Project Agronomist, supervising an on-farm training by New-Generation Agro- Dealers in FCT.

On-farm training by New-Generation Agro Dealers in Kogi.

Feed the Future Nigeria Agro-Inputs Project Final Report | Oct 2014 to Oct 2017 17

In Oyo State, the project introduced a fertilizer blend (NPKS 3.5-13-34-4.5) to increase the productivity of cassava in partnership with Notore Chemical Industries, the Dutch-funded

2SCALE project, and Psaltry International. This blend was formulated taking into account cassava’s high demand for potassium and sulfur and was demonstrated to farmers at six cassava

Technology Training Centers (TTCs) in the Iseyin local government area (LGA) in Oyo.

In FCT, Jigawa, Kaduna, Kano, Kogi, Niger, and Sokoto, the project partnered with NPFS and

AGTHO Merchants (a private fertilizer manufacturer) to conduct soil tests that culminated in the formulation of a soil- and crop-specific fertilizer blend (NPK 20-10-10+1Zn+2S) that included two secondary and micronutrients (SMNs).

With the new fertilizer blend, the project built on the urea deep placement (UDP) technology, which was successfully introduced in Nigeria by earlier projects in 2012. UDP technology is an innovative fertilizer management technology that improves productivity, increases nutrient use efficiency, and is environmentally friendly. The major contribution of the project was modification of the technology by introducing and demonstrating the soil- and crop-specific fertilizer blend (NPK 20-10-10+1Zn+2S) as are placement to NPK 15-15-15 or NPK 20-10-10, which are usually used with urea supergranules in UDP.

The modified UDP technology, known as “Fertilizer Blend-based UDP (FB-UDP) Technology” was promoted and demonstrated to beneficiary farmers at the TTCs to increase the productivity of rice, maize, and sorghum.

Box 1 highlights the improved FB-UDP technology and the conventional farmers’ practice for rice.

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Box 1. Improved FB-UDP Technology and the Conventional Farmers’ Practices

Highlights of FB-UDP Technology

• Land preparation (manual or herbicide application).

• Nursery raising.

• Line transplanting for optimum plant population.

• Basal application of NPK 20-10-10-1Zn-2S fertilizer blend to replace the conventional NPK

15-15-15 or NPK 20-10-10.

• Deep placement of urea super granules as topdressing to replace broadcast or band application.

• Good cultural, pest, and disease management practices (including protecting fields with bird nets instead of using human labor to scare birds).

• Timely harvesting, threshing, and bagging on tarpaulins to minimize waste.

Highlights of the Conventional Farmers’ Practice

• Land preparation (manual but also herbicide application).

• Planting by direct seeding or seed broadcast.

• Basal application of fertilizer (NPK 15-15-15 or NPK 20-10-10) depending on availability.

• Granular urea as topdressing (broadcast or band placement).

• Good cultural, pest, and disease management practices (including the use of scarecrows or human labor to scare birds).

• Harvesting, threshing, and bagging.

The project conducted field trials to evaluate the yield effects of the FB-UDP technology and demonstrated it to farmers through its TTCs in 25 locations in the rice, maize and sorghum value chains across the 8 states (Figure 7).

Feed the Future Nigeria Agro-Inputs Project Final Report | Oct 2014 to Oct 2017 19

Figure 7. Field Trials and Locations for Demonstrating the Effects of FB-UDP Technology, 2015-2017

The 4,000 targeted farmer beneficiaries received training on the FB-UDP technology through organized TTCs where they received practical training during “green” and “brown “field days dedicated to mid-season and harvest season trainings, respectively. The training sessions were usually conducted by the lead farmers, project staff, and the agricultural extension agents from the state-level agricultural development programs. Figure 8 shows farmers being trained in typical green and brown field days in FCT and interventions states of Jigawa, Kaduna, Kano, Kogi, Niger, Oyo, and Sokoto.

Feed the Future Nigeria Agro-Inputs Project Final Report | Oct 2014 to Oct 2017 20

Aliyu providing training to women farmers on a 2-row mechanical USG applicator in Goronyo, Sokoto

Figure 8. Typical “Green & Brown Field Day “Farmer Trainings in Intervention States

4.2.2 Key Productivity-Enhancing Results

Yield Benefits of the Improved Technology Table 4 provides a summary of the yield benefits from the FB-UDP technology compared with conventional farmer practice from the various TTC locations across seasons in the FCT and seven project intervention states between 2015 and 2017. Detailed yield data by crop, state, LGA, and location are provided in Appendix 2.

Mr. LabboAliyu, a lead farmer, demonstrating the use of a urea super granule applicator during a green field day in Goronyo, Sokoto.

On-farm training for women sorghum farmers during a green field day in Kano.

On-farm training during a green field day organized by New-Generation Agro-Dealers in Kogi.

On-farm training during a cassava brown field day organized by lead farmers in Oyo.

Feed the Future Nigeria Agro-Inputs Project Final Report | Oct 2014 to Oct 2017 21

Table 4. Improved Technology Yields Compared With Conventional Farmers’ Practice Yields

Crop

National Baseline Yield Values (mt/ha)a

Yield from

FB-UDP

Technology (mt/ha)b

Yield from Conventional Farmers’ Practice (mt/ha)b

Yield Gain over Conventional Farmers’ Practice (mt/ha)

Yield Increase over Conventional Farmers’ Practice (%)

Rice 2.95 6.35 3.99 2.36 59% Maize 2.36 3.67 2.39 1.28 53% Sorghum 1.39 2.49 1.50 0.99 66% Cassavac 8.55 21.50 10.00 11.50 115%

a. 2014-15 national average yields from Nigerian Joint Sector Review: Agricultural Sector Performance 2015-2016 report.

b. Described in Box 1.

c. Using a high-potassium sulfur-based cassava fertilizer blend (NPKS 3.5-13-34-4.5) as an improved fertilizer management technology.

The average rice yield from the FB-UDP technology fields across all locations and seasons was

6.35 metric tons per hectare (mt/ha), compared with an average of 3.99 mt/ha from the farmers’ conventional practice fields. Using the improved FB-UDP technology increases rice yields by

2.36 mt/ha, a 59% increase over farmers’ conventional practice. Compared with a national average rice yield of 2.95 mt/ha, the FB-UDP technology increases this national average by

3.40 mt/ha.

The average maize yield from the FB-UDP technology fields across all locations and seasons was 3.67 mt/ha compared with 2.39 mt/ha from farmers’ conventional practice fields. The improved technology results in1.28 mt/ha higher yield (53% higher yield) over the conventional farmer practice and 1.31 mt/ha higher yield compared with the national average yield of

2.36 mt/ha.

Similarly, sorghum yields from FB-UDP technology fields across locations and seasons averaged

2.49 mt/ha compared with 1.50 mt/ha from the farmers’ fields, giving a yield increase of

0.99 mt/ha, or 66%. Compared with a national average sorghum yield of 1.39 mt/ha, the FB-

UDP technology increases this national average by 1.10 mt/ha.

Feed the Future Nigeria Agro-Inputs Project Final Report | Oct 2014 to Oct 2017 22

The promotion of the soil- and crop-specific fertilizer technology was not limited only to cereals but was extended to root and tuber crops. The project used a special high-potassium sulfur-based cassava fertilizer blend (NPKS 3.5-13-34-4.5) in Oyo as an improved fertilizer management technology and obtained a yield of 21.5 mt/ha compared to 10 mt/ha on farmers’ fields fertilized with the blanket NPK, 15-15-15 fertilizer. The use of the improved fertilizer blend technology yields 11.50 mt/ha over the conventional farmer practice and 12.95 mt more than the national average yields.

Economic Benefits of the Improved Technology Table 5 summarizes the economic benefits of using improved technology, specifically soil- and crop-specific fertilizer blend-based technologies compared with the conventional farmers’ practice in growing rice, maize, sorghum, and cassava. At prevailing average crop prices and purchased input costs, the improved technology returns higher net revenues than the conventional farmers’ practices. The profit advantages provided by the improved technology

(column G) are $661, $244, $200, and $354 per hectare for rice, maize, sorghum, and cassava, respectively.

Feed the Future Nigeria Agro-Inputs Project Final Report | Oct 2014 to Oct 2017 23

Table 5. Economic Benefits of FB-UDP Technology for Selected Crops

Soil and Crop-Specific Fertilizer Blend-Based UDP Technology

Conventional Farmer Practice

Profit Advantage of the Technology over Farmer Practice

Crop A Total Revenue NGN/ha ($/ha)

B Total Cost NGN/ha ($/ha)

C Revenue less Costs (A-B) NGN/ha ($/ha)

D Total Revenue NGN/ha ($/ha)

E Total Cost NGN/ha ($/ha)

F Revenue less Costs (D-E) NGN/ha ($/ha)

G Technology Advantage (C-F) NGN/ha ($/ha)

Rice 559,520 ($1,865)

275,500 ($918)

284,020 ($947)

349,636 ($1,165)

263,943 ($880)

85,693 ($286)

198,327 ($661)

Maize 237,743 ($792)

138,200 ($461)

99,543 ($331)

154,824 ($516)

128,700 ($429)

26,124 ($87)

73,419 ($244)

Sorghum 189,987 ($633)

110,439 ($368)

79,548 ($265)

114,450 ($382)

95,138 ($317)

19,312 ($65)

60,236 ($200)

Cassava 279,500 ($932)

141,633 ($472)

137,867 ($460)

130,000 ($433)

98,300 ($328)

31,700 ($106)

106,167 ($354)

Average prevailing farm-gate prices: Rice paddy: NGN 88,113 ($294)/mt; Maize: NGN 64,780/mt; Sorghum: NGN 76,300/mt; Cassava: NGN 13,000 ($43)/mt.

Open market fertilizer prices: NPK 20-10-10: NGN6,000 ($20)/50-kg bag; NPK 20-10-10-1Zn-2S: NGN 6,100 ($20.30)/50-kg bag; NPKS 3.5-13-34-4.5: NGN 6,400 ($21.3)/50-kg bag; Granular Urea: NGN 6,000 ($20)/50-kg bag; Urea Super granules: NGN 6,500 ($21.67)/50-kg bag.

4.3 IR 3: Access to Finance Improved

4.3.1 Access to Finance Activities

Accessing finance through the commercial banks has been difficult because of the high interest rates and stringent collateral requirements, and this has negatively affected investment incentives to procure modern inputs that are necessary for adopting improved technologies promoted by the project.

The project therefore explored other options, including partnerships with Fortis and LAPO microfinance banks (MFBs), to facilitate beneficiaries ‘access to finance. Fortis was responsible for providing financing for project beneficiaries in FCT and Sokoto while LAPO was assigned

Jigawa, Kaduna, Kano, Niger, Oyo, and Sokoto.

Fortis and LAPO MFB partners and project staff conducted sensitization and verification exercises for potential beneficiary loan recipients on financial literacy and procedures involved

Feed the Future Nigeria Agro-Inputs Project Final Report | Oct 2014 to Oct 2017 24 in accessing loans from the institutions. On the recommendation of the MFBs, the project assisted trained agro-input dealers to form agro-input dealer cooperatives in FCT, Jigawa, Kogi, Niger, Oyo, and Sokoto to facilitate the disbursement and repayment of loans. The formation of cooperatives has increased the rate of loan approval by the MFBs.

4.3.2 Key Access to Finance Results

All 1,350 micro, small, and medium enterprises (MSMEs), including farmers, targeted for assistance in accessing loans obtained loans from different sources. The sources included LAPO and Fortis MFBs, produce off-takers, such as Plethora Farms in Kaduna and Psaltry International

Ltd. in Oyo, and the Central Bank of Nigeria’s (CBN) Anchor Borrowers’ Program (ABP).

Plethora Farms, as maize off-takers from farmers, facilitated loans in the amount of $78,857 to

102 MSMEs through Fortis to produce maize for processing into animal feed. Psaltry

International also facilitated loans through the ABP to 252 cassava farmers in the amount of

$429,244 to produce cassava for processing into high-quality cassava flour.

Beneficiaries also accessed financing through their own efforts, which included obtaining loans from family members and relatives and using goods on credit, but the majority used part of their personal savings to finance their businesses.

5. Overall Project Performance and Early Impacts

5.1 Overall Project Performance

The project implementation strategy listed the following “wins,” which would serve assigns of successful implementation at the end of the project:

• Meeting approved LOP performance indicator targets.

• Intervention begins to impact the lives of project direct and indirect beneficiaries.

• Project activities and interventions are on the path of sustainability.

Feed the Future Nigeria Agro-Inputs Project Final Report | Oct 2014 to Oct 2017 25

The project successfully achieved the LOP targets in five of the six standard indicators while overachieving one standard indicator and a custom indicator (Table 6).1Of the 10 public-private partnerships targeted to be formed as a result of FTF assistance during the LOP, 15 were formed, thus overachieving the target by 50%. At the time of target setting, the project did not anticipate the huge demand that would come from partners and set the target at 10. However, in the course of implementation, the project generated interest from new strategic partners and added post-harvest transformation and multi-focus partners that were necessary to meet project objectives.

Similarly the target for the percentage of loan applications approved by banks (25%) was largely overachieved. The initial target was set low based on the loan approval rates by commercial banks for agricultural activities. However, since FY 2016, more loan applications were approved than expected because of the project’s partnerships with MFBs, which have more flexible lending conditions, and the project’s efforts and education to increase beneficiaries’ financial literacy as well as the organization of individual agro-input dealers into cooperatives.

1 A performance target is achieved if the results are between 90% and 110% of the target.

Feed the Future Nigeria Agro-Inputs Project Final Report | Oct 2014 to Oct 2017 26

Table 6. LOP Targets versus Achievements

Standard/Custom Indicators Baseline LOP Target

FY 2015

Result

FY 2016

Result

FY 2017

Result

LOP Actual FY 2015-2017 Results

% of LOP Target

IR 1: Private Sector Participation in Agro-Inputs Supply Strengthened 1a. FTF-4.5.2(12): Number of public-private partnerships formed as a result of FTF assistance

0 10 1 11 3 15 150%

1b. FTF 4.5.2(38): Value of new private sector investment in the agriculture sector or food chain leveraged by FTF implementation (U.S. $)

0 500,000 0 276,602 211,755 488,357 98%

IR 2: Agricultural Productivity Increased 1.1d. FTF 4.5.2(7): Number of individuals who received USG supported short-term agriculture sector productivity or food security training

292 5,400 1,281 2,515 1,716 5,512 102%

1.1a. FTF 4.5.2(5): Number of farmers and others who have applied improved technologies or management practices as a result of USG assistance

520 3,240 0 1,708 1,571 3,279 101%

IR3: Access to Finance Improved 2.2a. FTF 4.5.2(37): Number of MSMEs including farmers receiving business development services from USG-assisted sources

292 5,400 0 2,740 2,725 5,465 101%

FTF 4.5.2-30: Number of MSMEs including farmers, receiving USG assistance to access loans

0 1,350 0 388 984 1,372 102%

Custom Indicator Percentage of loan applications approved by banks

0 25% 0 26.3% 28.8% 55.1% 220%

Feed the Future Nigeria Agro-Inputs Project Final Report | Oct 2014 to Oct 2017 27

5.2 Early Impacts of Project Interventions on Beneficiaries

In the past three years, the Feed the Future Nigeria Agro-Inputs Project built the capacities of beneficiary agro-input dealers to supply quality inputs for farmers so they can apply improved technologies for increased agricultural productivity. It trained agro-input dealers in good business and management practices and strengthened farmers’ and producer organizations’ capacities in UDP and FB-UDP technologies for growing rice, maize, sorghum, and cassava.

This was done mainly through the establishment of demonstration plots, also known as TTCs, in

FCT, Jigawa, Kaduna, Kano, Kogi, Niger, Oyo, and Sokoto. The project’s expectation was that agro-input dealers and farmers would apply the business management practices and improved technologies to increase incomes and livelihood.

To ascertain how trained beneficiaries were applying the technologies and management practices and how this had influenced their businesses and livelihood, the project conducted a survey on a random sample of project-trained agro-input dealers and networked farmers in the final quarter of FY 2017. A multistage sampling methodology, starting at the state level and ending at the

LGA level, was used in selecting respondents, and questionnaires were administered at the household level to collect data. A 90% confidence level with a margin of error at 10% was used in selecting the sample. Data collection forms were developed and independent short-term consultants were trained to administer the questionnaires. They were supervised by project staff.

The questionnaires were administered to a total of 2,314 project beneficiaries (60% farmers and

40% agro-input dealers) in FCT, Jigawa, Kaduna, Kano, Kogi, Niger, Oyo, and Sokoto, and results are summarized as follows:

Agro-Input Dealers Made New Investments in Their Businesses

Agro-inputs dealer beneficiaries made new investments directly encouraged or facilitated by activities of the project. Table 7 summarizes the types of new investments made, including investments in equipment, machinery, and transportation. They also invested in retail store improvements either through the expansion of existing shops or new additions from construction or rentals, and invested in fertilizer, agro-chemicals and improved seeds. About 29% of the total value of new investments was made in store improvement to respond to the increased farmer

Feed the Future Nigeria Agro-Inputs Project Final Report | Oct 2014 to Oct 2017 28 demand in fertilizer from rural areas. New fertilizer investments represented about 38% of the total value of all new investments in the sector.

Table 7. Type and Value of New Investments Made by Agro-Input Dealers, FY 2015-FY 2017

New Investment Type Value of New Investments (U.S. $) % of Total

Investments in new equipment, machinery, and related transportation

35,986 7.4%

Retail store improvement (expansion or addition through construction or rental)

142,381 29.2%

New investments in fertilizer 187,205 38.3% New investments in agro-chemicals 84,983 17.4% New investments in improved seeds 37,802 7.7% Total New Investments 488,367 100%

Agro-Input Dealers Increased the Number of Retail Shops Extending into Rural Areas As a result of project intervention

(e.g., capacity building, mentorship, and linkages to sources of finance), the agro-input dealer beneficiaries either expanded their existing retail shops or added at least one new retail shop closer to the farmers to reduce the distance farmers travel to access inputs. Figure 9 shows that of the 1,512 agro-input dealer beneficiaries, 595 (40%) have either expanded existing retail shops or added at least one new one. A total of 745 dealers, representing 49%, have added two new retail shops, while 170, (11%) have added three or more.

Figure 9. New Retail Shops Added by Agro- Input Dealers as a Result of Project Intervention

Feed the Future Nigeria Agro-Inputs Project…