NIGERIA: BINATIONAL COMMISSION FOOD SECURITY AND

UNCLAS ABUJA 002141 SENSITIVE SIPDIS C O R R E C T E D COPY CAPTION STATE FOR AF/FO, AF/W, AF/RSA, DRL, INR/AA, S/CIEA, AF/PDPA DEPARTMENT PASS TO USAID FOR AFR/WA (DALZOUMA) USDA FOR FAS/OCBD/PATRICA SHEIKH E.O. 12958: N/A TAGS: PGOV PREL PHUM PINS PTER KDEM NI SUBJECT: NIGERIA: BINATIONAL COMMISSION FOOD SECURITY AND AGRICULTURE WORKING GROUP REF: (A) ABUJA 2016 (B) ABUJA 2046 (C) ABUJA 2052 ¶1. (SBU) Mission Nigeria has met several times since March 2009 to discuss initiatives to increase reliable access to food in Nigeria and the region through improvements in agriculture and trade policy. We understand that the goals of the Binational Commission's Food Security and Agriculture Working Group are to improve access to agriculture inputs, processing, and post harvest storage facilities that increase income of farmers, processors, and transporters; work together to improve regional agricultural trade; and improve harmonization of regional trade policies. In addition, our efforts on food security will promote partnerships among Nigerian agencies and institutions, and U.S. policy research institutions, including agricultural research universities, and advance Millennium Development Goals (MDG). The Mission is providing game plans for each of the proposed BNC working groups. Reftels contain Mission game plans for the BNC Working Groups on Energy and Investment, Niger Delta and Regional Security Cooperation and the proposed Government, Transparency and Integrity (GTI) focused areas of election reform and anti-corruption. We understand that the BNC themes are still being discussed in Washington; therefore the themes in the game plans can be recast accordingly once there is a final decision. End Summary. -------------- BACKGROUND -------------- ¶2. (SBU) For FY 2009, the USG is supporting a $25 million Global Food Security Response (GFSR) program to assist the Government of Nigeria (GON) and the private agriculture sector to: 1) double agricultural productivity and expand the market supply of essential staple food crops; and 2) remove constraints to the movement of staple crops within Nigeria and throughout the wider region. The FY 2009 program supports the Ministry of Agriculture and Water Resources (MAWR) to implement key elements of its National Food Security Program. GFSR is a three-pronged integrated package to Increase Agricultural Productivity; Reduce Trade, Transport and Supply Chain Bottlenecks; and Promote Sound Market-Based Principles. This program directly supports the African Union's New Partnership for Africa's Development and Nigeria's Comprehensive Africa Agriculture Development Program (CAADP). -------------- -------------- CURRENT USG AGRICULTURE AND FOOD SECURITY ACTIVITIES -------------- -------------- ¶3. (SBU) Through an on-going technical assistance and training program with farmers, processors, and GON officials, the USG seeks to increase productivity and market development of rice, sorghum, millet, maize and cassava value chains. The program will help over 200,000 farmers and processors create 100,000 jobs, generate $190 million in revenues, leverage $23 million in credit, improve the transportation environment, and strengthen trade and agriculture policy. The current specific areas of focus and related activities are: ¶4. (SBU) Increasing Agricultural Productivity: USG implementing partner (MARKETS) is helping 215,000 farmers and processors gain Qpartner (MARKETS) is helping 215,000 farmers and processors gain improved technologies, management practices and processing options, increasing yields by an average of 26% to 50% and generating gross on- and off-farm income exceeding $40 million. This is being achieved by: 1) improving access to science and technology particularly for seeds, fertilizer, and new cultivation practices; 2) enhancing resource management and irrigation for an integrated rice value chain program; and 3) developing agroprocessing capacity by working with agri-business partners in the core food crops, and forming commercial linkages with organized smallholder farmers and producer groups. The USG is helping to strengthen cooperatives through technical exchanges and has developed public-private partnerships with international research institutes, the West Africa Seed Alliance and the Gates Foundation, amongst others. ¶5. (SBU) Reduced Trade, Transport and Supply Chain Bottlenecks: The USG is providing technical assistance and training to the GON (National Customs Service, the Ministry of Commerce and Industry, and Ministry of Transportation),shippers, and transporters to reduce costs of trade and transportation; reduce transit times to trade staple crops; link 50,000 producers with improved private sector distribution, processing and storage; strengthen the capacity of agribusiness partners to expand and diversify final product markets; and improve marketing and food distribution to consumers. The USG is assisting the GON to develop post-harvest storage facilities. The USG will mobilize $7 million in new commercial credit for firms and farmers. ¶6. (SBU) Promoting Sound Market-Based Principles: The USG provided experts and training, organized stakeholder meetings, and conducted research to help the GON host a CAADP roundtable and develop a CAADP compact (October 2009). The USG is funding a Senior Agriculture Policy Advisor and in-depth analysis jointly with the Ministry of Agriculture and Water Resources and Nigerian policy research groups and is providing assistance to build MAWR capacity in agriculture statistics. -------------- -------------- PROPOSED USG AGRICULTURE AND FOOD SECURITY ACTIVITIES -------------- -------------- ¶7. (SBU) The U.S. Mission is proposing a $32.75 million FY 2010 Global Health and Food Security Program called the Agriculture Transformation Program (ATP) for Nigeria. ATP expands the FY 2009 GFSR Program and supports the GON's implementation of the CAADP and the new GON Five-Point Plan for Agriculture. The FY 2010 program is a four-pronged package to Increase Agricultural Productivity; Reduce Trade, Transport and Supply Chain Bottlenecks; Promote Sound Market-Based Principles; and Accelerate the Participation of the Very Poor in Market Economies. The FY 2010 program will build our current efforts and the GON capacity for a significantly larger program starting in FY 2011. ¶8. (SBU) The FY 2010 program will significantly expand the current program. The objectives of the FY 2010 program are to: --Increase agricultural productivity by 50-75% for key commodities in 10 states; --Increase incomes of 750,000 processors, and shippers by $90 per year over two years; --Expand domestic and regional market supply of essential foods by 900,000 tons per year; --Improve the policy environment for agriculture development and West African regional trade; and --Build the capacity of the public and private sector for a larger transformational program in the framework of CAADP. Specific areas of focus and activities that will be implemented as follows: ¶9. (SBU) Increase Agricultural Productivity: Technical assistance, training, and development of public private partnerships will assist farmers and processors to increase productivity and sales of food commodities to the consumers. Further, the USG and GON will seek to attract domestic and foreign investment in agriculture processing and production to: --Identify and remove bottlenecks in key food commodities value Q--Identify and remove bottlenecks in key food commodities value chains; --Form business linkages between farmers and small to large-scale commercial processors; --Improve access to technology, fertilizer, seeds, and farm equipment for farmers (rice, sorghum, cowpea, cassava, maize, aquaculture, sesame, and fruit); --Expand private sector entrepreneurs' agro-processing and post harvest storage capacity and work with the GON to improve grain post harvest storage and handling practices at federal and state level. --Expand development of private fertilizer and commercial seed companies; --Improve water management in key irrigation areas; and --Increase access to financing from commercial banks (e.g., Bank of Industry, First Bank). ¶10. (SBU) Reduce Trade and Transportation Barriers: Technical assistance will be provided to the GON to: --Reduce bottlenecks in trade and transportation by removing procedural delays; --Improve transportation corridor management to increase trade along the Lagos-Maradi, Republic of Niger; and Lagos-Cotonou, Benin roads; --Continue to modernize the Nigerian Customs Service; --Build capacity to address trade policies, including expanding on the draft GON trade and industrial policy that provides for a better enabling environment for investors; and --Accelerate the African Development Bank and World Bank investments in rural roads. ¶11. (SBU) Improve Sound Market-Based Principles for Agriculture Growth: The USG will provide technical experts and conduct training to build the MAWR' and Nigerian policy groups' capacities in agriculture policy and planning. Specific areas for assistance will include: --Revising the national agriculture strategy; --Implementing the CAADP compact; --Addressing the role of women in agriculture; --Establishing a strong monitoring and evaluation system for agriculture programs; --Improving national statistics through a national agriculture census, and strengthening information systems; --Conducting short-term analysis of agriculture policy for emerging issues; --Promoting biotechnology, food safety policy, sanitary and phytosanitary measures; and --Planning for adaptation to climate change. The USG will build the capacity and skills to design and implement fertilizer, seed, and mechanization policies. ¶12. (SBU) Accelerate participation of the very poor and improve nutrition: The USG will: --Design a program to assist the very poor in on-farm productivity in collaboration with the World Bank Fadama program, or to work with other partners; and --Develop a nutrition project for northern Nigerian States where malnutrition and stunting are the highest in the country. -------------- Major Expected Results with FY 2010 Resources -------------- ¶13. (SBU) The targeted results of USG support to the GON and partners are to: --Increase the sales of agriculture products by $220 million for 750,000 farmers, processors, and shippers, of which 300,000 are women (40% of the overall beneficiaries); --Create 50,000 new jobs, of which a high percentage will be for women and the very poor; --Increase the yields of rice, sorghum, cowpeas, cassava, millet, maize, aquaculture, and fruit by 50-75%; --Leverage $30 million for small holder and agribusiness in commercial credit; --Train at least 250 federal and state officials in the USAID MARKETS private sector model; --Increase trade along improved roads allowing more farm produce to reach markets; --Improve trade corridor operations (Lagos-Maradi, Republic of Niger; Lagos-Cotonou, Benin) by reducing administrative barriers and building more rural roads; --Improve the policy environment for agriculture and trade in support of the CAADP Compact; --Develop a program to address the very poor and reduce malnourishment; and --Design a nutrition program for two states and identify beneficiaries and expected results. Q ¶14. (SBU) COMMENT: The activities proposed under the BNC's Food Security and Agriculture Working Group have the potential to reap significant results, given the President's emphasis on Food Security and promised additional funding for this area and the GON interest in expanding its agricultural sector. Mission Team members are coordinating internally and with other donors on food security and agriculture assistance being provided to Nigeria, including robust public diplomacy and outreach efforts with GON. We are actively pursuing public-private partnerships with the private sector to increase agriculture investments. In addition, the Mission will work with other USG agencies such as EXIM, FAS, USCS, OPIC and USTDA to attract additional resources for these activities. This coordination will continue under the rubric of the BNC Food Security and Agriculture Working Group. ¶15. (U) Embassy Abuja coordinated this telegram with ConGen Lagos. SANDERS