nads project overview

Project Summary

NADSNigeria Agro-Dealer Support

t Cover photo: An agro-dealer’s shop in Kano, northern Nigeria.

u A NADS training specialist holds an agro-dealer training session in Bali, Taraba State.

Table of ContentsExecutive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Introduction and Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Achievements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Lessons Learned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Annexes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Annex 1. Measurable Activities, Inputs, Outputs and Outcomes . . . . . . . . . . . . . . . . . . . . . .22

Annex 2. Acronyms & Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28

The information in this document was prepared in 2011.

Text – Dan Waterman, members of the NADS staff and Scott Mall

Editing – Scott Mall

Primary Design – Meg Ross

Design Adaptation – Victoria L. Antoine

NADS Project Summary

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Executive SummaryThe support by the Alliance for a Green Revolution in Africa (AGRA) for agro-dealer development in Nigeria enabled IFDC and partners to maintain momentum in a decade-long quest to build a trained and organized private sector cadre of dealers that would help convince the federal and state governments that the private sector could effectively and efficiently supply and serve farmers. The AGRA-financed Nigeria Agro-Dealer Support (NADS) project and successful fertilizer voucher programs demonstrated that a private sector-oriented approach makes sound developmental and fiscal sense. NADS reinforced awareness among agro-dealers of the vital role they can play in the nation’s agricultural development.

The new plans to transform agriculture under the Federal Ministry of Agriculture and Rural Development’s (FMARD) Growth Enhancement Support Scheme (GESS) and the Federal Government’s Nigerian Incentive-based Risk Sharing System for Agricultural Lending (NIRSAL) are expected to liberalize policies on fertilizer and seed distribution and shift direction to the private sector and to value chain development. The new directions of FMARD directly reflect achievements of NADS in such areas as the establishment of regional agro-dealer associations, the value of better trained agro-dealers who also serve as agents for technology transfer and the need for better access to credit.

Despite many constraints facing the agro-input sector, NADS succeeded in achieving its basic objectives and most measurable targets – in addition to the positive influence it had on reshaping the input sector.

p A village meeting with agro-dealers in Kano State.

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For example, the project:

u Trained over 2,300 agro-dealers, which led to significant increases in their sales of inputs. An in-place, replicable training system using master trainers resulted in 5,000 trained agro-dealers in the country.

u Conducted 240 field demonstrations and provided technical advice to farmers.

u Supported advocacy efforts with the Nigeria Agency for Food and Drug Administration and Control (NAFDAC) that resulted in the certification of 1,200 dealers in crop protection product (CPP) knowledge and safe use, and collaborated with FMARD to provide market-friendly subsidies for fertilizer and seed.

u Compiled the first comprehensive directory of agro-dealers in 16 states, a valuable tool for implementing new policy reforms; and conducted an extensive survey of agro-dealers that describes their scale of operations and needs.

u Transformed four state-based agro-dealer trade associations into four regional associations covering 16 states (increasing membership from 400 to 2,700).

u Leveraged limited project resources with 25 percent cost-sharing through effective collaboration with a number of other projects and public and private organizations.

u Orchestrated a modest but important breakthrough by helping agro-dealers gain access to US $725,000 in credit from micro-finance institutions (MFIs) and suppliers for the first time.

The major disappointment was the lack of interest by banks to participate in the planned $500,000 loan guarantee plan intended to leverage credit for agro-dealers. Despite repeated efforts, the banks regarded the amount as small and the risk as high and were unwilling to ease restrictive conditions for agro-input-related lending. Instead, the project worked with MFIs. IFDC anticipates that some of the groundwork with the banks will begin bearing fruit under the Central Bank of Nigeria’s (CBN) new NIRSAL program.

The achievements and the lessons learned in the NADS project present an excellent and timely opportunity to capitalize on AGRA’s investment and the new directions of the government. IFDC recommends that additional funding be made available to help achieve the GESS goal of training another 20,000 dealers over the next four years and enabling the private sector agro-dealers to become a critical driving force in the revitalization of Nigeria’s agriculture sector.

p Agro-dealers during a fertilizer voucher training program in Taraba State.


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Introduction and BackgroundIn 2008, IFDC proposed a project to AGRA that would help address a major constraint to agricultural development in Nigeria – most farmers’ insufficient use of agro-inputs and modern agricultural practices that are necessary for increased productivity and farm incomes. The situation at that time was described as:

u The use of modern agro-inputs (quality seeds, fertilizers and CPPs) was estimated at less than 15 percent of the market potential. At project inception, fertilizer use was only 13 kilograms per hectare (kg/ha) and only 8,000 metric tons (mt) of improved seeds were produced per year. As a result, crop yields were low and soil nutrients were being depleted.

u The agro-input marketing system was seriously underdeveloped, contributing to high input costs, poor information transfer to farmers and lack of timely access to appropriate and essential inputs.

u Extension services were public sector-based and virtually non-functional.

u There was limited or no access to credit for agro-dealers and farmers.

u Regressive government policies and poorly managed, non-targeted subsidies distorted markets and undermined the private sector.

Increased yield per hectare at a profit to farmers is the driver of agricultural competitiveness. Nigeria has one of the lowest usage rates of agro-inputs, with corresponding yields that are 20 to 50 percent lower than those obtained in other African countries. Despite the large number of agro-dealers in the country – estimated at over 12,000 – farmers are faced with poor services and poor-quality products from many of them. Nationwide, only a fraction of the dealers have been trained.

The seed sector remains particularly challenged, with the country’s production meeting approximately one-tenth of the potential demand, and the majority of the seed produced of

p A NADS training specialist holds an agro-dealer training session in Bali, Taraba State.

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p AfielddemonstrationofaRumptstadtractoratatechnologytransfercenter(TTC)inAbuja.

sub-standard quality. The quantity of fertilizer used is only one-third of what it was 20 years ago, and the nutrient content of the fertilizer sold often does not correspond to the labels on the packaging – nor to the crop requirements in the various regions. Supply of CPPs is better, but their sale and use are not sufficiently regulated.

The Nigerian federal and state governments’ multiple roles in distribution and regulation of agricultural inputs have undermined and distorted the development of a healthy input market in Nigeria for three primary reasons:

u The heavy involvement of government in producing, procuring and distributing inputs has been inefficient and has kept private sector investment to a minimum . Aside from the purportedly corrupt practices spawned by government, it is nearly impossible to compete with products that are most often highly subsidized by the government.

u Government drives the market and is the preferred client of major private sector input companies, with the result that farmers are poorly served by both government and private input suppliers.

u It is unrealistic to expect the Federal Government of Nigeria (FGN) to perform the traditional regulatory role in the input sector when it is also a significant player . The regulation of the fertilizer and CPP sectors has been focused at the point of entry into Nigeria and not at the point of sale in rural markets – enabling large quantities of adulterated and/or sub-quality products to be sold to farmers without consequence. The National Agricultural Seed Council’s strict regulation of the seed sector tends to prevent international seed companies from entering the market rather than ensuring the quality of domestically produced seed.

This was the context in which AGRA awarded IFDC a grant in July 2008 to conduct the three-year NADS project. NADS was designed to boost the capacity of private sector agro-dealers to provide more quality inputs and services to farmers. The project was officially launched in October 2008 and was later extended through October 2011. IFDC committed to leverage additional resources through cost-sharing with related projects and with Nigerian public and private collaborators.

IFDC was able to capitalize on a series of its activities dating back to 2001 aimed at developing private sector input distribution networks and reforming policies that impede a private, market-oriented and competitive system that would better serve farmers. NADS was based on foundations


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established by the Africa Fertilizer Summit in 2006 and previous IFDC projects such as Developing Agro-Input Markets in Nigeria (DAIMINA) and Maximizing Agricultural Revenue and Key Enterprises in Targeted Sites (MARKETS). NADS staff members collaborated with the staff of other IFDC projects such as Agro-Dealer Network Development (AND), Bridge to Markets 2/Global Food Security Relief (BTM2/GFSR), Cassava+ and Marketing Inputs Regionally Plus (MIR Plus). NADS staff also worked with established agro-input trade associations, AGRA seed activities and CropLife, and with NAFDAC, National Food Reserve Agency (NFRA) and other Nigerian federal and state agencies.

The project started by reviving four state-based trade associations established earlier and by drawing on a valuable library of training and other materials that were further compiled and translated into the Hausa language under the AND project. This included training materials and information on proven methodology. The phases of training of trainers (ToT) covered all relevant aspects of business, technical subjects and trade association development. The AND project, Cassava+ and the voucher program under BTM2 also helped identify agro-dealers in 12 states through a state-level census.

This brochure highlights the activities, achievements, challenges and lessons learned during the project implementation. During the project, IFDC submitted formal semi-annual reports and

a final report to AGRA that provided detailed descriptions of activities, achievements and problems, and reported progress on targets set

for the specific periods covered. In October 2010, an independent team commissioned by AGRA audited the project.

During September 2011, the project provided AGRA with informal updates,

including field visits and a summary presentation to a high-level delegation from AGRA/Bill & Melinda Gates Foundation in Kano.

Annex 1 contains a table that describes the project’s activities,

inputs, outputs and outcomes.

pReviewingvouchersduringthe2011fertilizervoucherprogram.

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Activities The goal of the project was to increase the agricultural productivity and incomes of one million smallholder farmers by increasing the availability, accessibility and affordability of quality seeds and other agricultural inputs in rural areas. The main project activities included: Agro-Dealer Capacity Building NADS provided training and technical assistance to more than 2,000 agro-dealers to strengthen their technical and business capacities. NADS also helped them expand business linkages with input suppliers and extend their retail networks to provide more farmers with modern agro-inputs and sound scientific advice. Specifically, the project:

u Developed a proven set of instruction manuals and a ToT program.

u Compiled the first comprehensive directory of agro-dealers in 16 states.

u Conducted a census of agro-dealers and a survey of their operations and needs.

u Organized roundtables with input suppliers and study tours to seed farms.

u Linked agro-dealers with international seed and farm equipment suppliers.

Institutional Strengthening

NADS encouraged agro-dealers to join already established trade associations and provided them the organizational training to serve members and customers effectively to lobby for policy reform and to generate revenue for financial self-sufficiency. Specifically:

u Provided funds for five staff members in each of the four initial states and then regional trade association offices to build capabilities and work toward sustainability.

u Guided formation of elected boards of directors, by-laws and annual general meetings.

“We will end the dysfunctional and inefficient system of government fertilizer distribution.Todayonly11percentoffarmersgetthesubsidizedfertilizers.

Thisisoneofthereasonswhyweseerisingpovertyinourruralareas.Wearesimplysubsidizingcorruption.Wesubsidize,butfarmersaresuffering.Wemustbefiscallyandsociallyresponsible.“Wewillmoveawayfromflatpricesubsidytotargetedsupport–whatwearecallingGrowthEnhancementSupport–directlytoreach20millionfarmers.Thatmeanswe will expand the number of farmers getting fertilizers and seed from the current 550,000farmersto20millionfarmers,bytargetingfivemillionfarmersperyear,overfouryears.Wewillgetthegovernmentoutofthedistributionoffertilizersandmovetoasystemwheretheprivatesectordistributesfertilizers.Wewillmoverapidlytowards incentives to encourage local manufacturing of fertilizers, drawing on the gas industrializationpolicy.Thiswilllowerthecostoffertilizersinthecountry.”

Akin Adesina MinisterofAgricultureandRuralDevelopment All Farmers Association of Nigeria September 12, 2011


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Financial Support

The project facilitated agro-dealers’ access to credit for business development through risk-sharing arrangements. NADS worked with banks, MFIs and other credit institutions to improve their understanding of the needs of agro-dealers and opportunities for lending – and with dealers to make them more credit-worthy. Specifically:

u Held policy meetings with CBN and nine financial institutions to increase their awareness of needs and risk-sharing opportunities for providing credit to agro-dealers.

u Guided the NIRSAL team to formulate policy so that agro-dealers would be able to receive access to credit through risk-sharing mechanisms.

u Worked with MFIs, AGRA-supported seed producers and fertilizer companies participating in the voucher program to extend trade credit to agro-dealers.

Technology Transfer

NADS convinced agro-dealers of the economic and goodwill returns from providing value-added services to farmers. The project trained agro-dealers via their trade associations in how to conduct field demonstrations and soil testing and how to promote better agricultural practices. Specifically, the project:

u Worked with agro-dealers to establish field demonstrations and lay the foundation for permanent Technology Transfer Centers (TTCs).

u Introduced innovative practices (e.g., soil fertility test kits, urea deep placement [UDP] and farm equipment) targeting smallholder farmers.

u Linked dealers with institutions such as the Africa Rice Center, the Small Holders in Agricultural Extension Foundation and the Soil Science Society of Nigeria.

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AchievementsThe table below highlights the results of the project against its targets. A comprehensive summary of activities, inputs, outputs and outcomes can be found in Annex 1.

Table 1. Results of NADS compared to targets

Indicators Target Achieved Variance

No. of agro-dealers trained/certified in business, management and marketing 1,400 2,112 +712

No. of agro-dealers trained/certified in technical aspects of agricultural inputs 1,400 1,875 +475

No. of agro-dealers certified by NAFDAC to sell CPPs 1,170 1,200 +30

No. of input field demonstrations 261 215 -46

No. of field days 374 278 -96

Qty. of high-yielding variety (HYV) seeds sold by dealers (mt) 5,750 4,515 -1,235

Qty. of fertilizer sold by dealers (mt) 14,000 45,600 +31,600

No. of agro-dealers accessing loans 410 294 -116

Value of loans issued to agro-dealers (US $) $700,000 $724,432 +$24,432

No. of new shops opened 751 424 -327

No. of farmers benefiting from the project 1 million 1 million 0

Note: The number of farmers reached by project-trained dealers is extrapolated to total one million, based on an average of 500 customers for each of the 2,000 dealers.

p An agro-dealer receives a check in Ibadan.


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t WithNADS’assistance,agro-dealershavebeenabletoaccessfinancialresourcesthatenable them to expand their businesses. A successful agro-dealer with his staff and stock are shown in these photos.

In addition to the intermediate results indicators shown in Table 1 and in Annex 1, the major achievements of NADS include:

u The presence of functioning agro-dealer trade associations helped convince the federal and key state governments (e.g., Kano and Taraba) to ‘buy into’ the targeted voucher subsidy plan using private agro-dealers to sell government-supported fertilizers more cost-efficiently than distributing fertilizers through government channels.

u Advocacy efforts with NAFDAC and collaboration with CropLife resulted in the certification of 1,200 agro-dealers in CPP knowledge and safe use; and collaboration with FMARD resulted in more market-friendly subsidies for fertilizer and seed.

u Transformed four state-based dealer trade associations into four regional trade associations that are grassroots-based, with bottom-up elected leadership. The associations represent 16 state chapters and a total of 64 zonal groups of dealers. Membership increased from 400 to 2,700, of which 10 percent are women. The regional organizations are:

• NEAIDA (North East Agro-Input Dealers Association) based in Jalingo, Taraba State. • NOCAIDA (North Central Agro-Input Dealers Association) based in Abuja, Federal Capital Territory (FCT). • NOWAIDA (North West Agro-Input Dealers Association) based in Kano, Kano State. • WAIDA (West Agro-Input Dealers Association) based in Ibadan, Oyo State.

“We are training people to help the government achieve

the objectives of the food security program.We’realsotrainingthemtohelperadicatequackeryintheprofession and we have training modulestogivetoeverystudentwhichareregularlyupdatedandupgradedto meet the challenges of modern, mechanized and commercial farming. Sowearereallycontributingtothedevelopment of agriculture in the country.Notonlythat,wearealsoencouragingyouthstoembracefarminginordertobanishpovertyandhungerinthecountry.”

AlhajiAkinmade President WAIDA


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The first three are formally registered with the FGN and all members are dues-paying, a major accomplishment. WAIDA is the most advanced and is a model for a zonal-state-regional organization. NEAIDA was created with NADS’ help and is still in its infancy as it is only registered in Taraba State, with most of the 437 members not yet on a dues-paying basis.

WAIDA President, Alhaji Akinmade, told Tribune Agriculture that graduates of the training programs are now qualified to be extension service officers in the area of agro-inputs.

u Through outreach efforts, hundreds of thousands of agro-dealers, farmers and members of the public were made aware of project messages and activities – and of the support from AGRA Outreach efforts included NADS project newsletters, public presentations and programs produced in partnership with the News Agency of Nigeria and the Nigerian Television Authority.

u The relationships established with the MFIs Grooming Centre and Development Exchange Centre (DEC) will continue to provide a source of credit to agro-dealers and has set the stage for NIRSAL and FMARD to support risk-sharing mechanisms for the entire sector.

u Trained agro-dealers are providing extension services and filling the gap of the Agricultural Development Programs (ADPs), which are dysfunctional in many states.

u Agro-dealers in Taraba State sold improved varieties of cassava cuttings. With NADS’ guidance, agro-dealers purchased 11 truckloads of cassava cuttings which were then sold to farmers in the Cassava+ intervention areas of Taraba State. The Taraba State Government subsidized the transportation costs and Dutch Agricultural Development & Trading Company (DADTCO) (a cassava flour processor) provided its trucks to move the stems from north-central Nigeria to Taraba (northeastern Nigeria).

u Collaboration with other projects leveraged NADS’ resources and enabled it to have additional impact. The total cost-share amounted to $875,000. For example:

• Other IFDC projects contributed staff and funds for the agro-dealer census, consultancies on trade association capacity building, ToT, voucher programs and help in monitoring and evaluation (M&E).

• Nigerian federal and state agencies provided funds and in-kind support worth over $460,000 (e.g., the state governments of Kano and Taraba provided office space for the dealer association staff and Taraba contributed $184,000 in cost-share).

• Agro-dealers, CropLife and other partners provided cost-share valued at $145,000.

p The signing of a memorandum of understanding between IFDC and the MFI Grooming Centre, a Nigerian non-governmentalorganization(NGO).

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“I started this agro-dealership with some savings, a fact which made the going very tough at the initial stage.ThereweretimeswhenIhadtoborrowmoney

fromfriendstorestock.ThesavinggracecameafterIjoinedNOCAIDAasamemberagro-dealerandhadtheopportunityforthefirsttimetoaccessaloanformallyfromGroomingCentre.ItookaloanofN250,000inFebruary2010andrepaidtheloanfullywithinthestipulatedsixmonths.Myfaithfulnesstotherepaymentschedulegavemetheopportunitytoaccessanotherloan,thistimetothetuneofN300,000,whichIalsopaidbackwithinfivemonths.Ihaveaccessedthethirdloan,alsoasumofN300,000,andplantorepaywithinthenextfourmonths.”

ChiefMadukinawentontoreportthathisannualsalesinthelastthreeyearshadhoveredaroundN7million($46,000)butthatasaresultofhisjudicioususeoftheloans,hissalesleapttoN10million($66,000),indicatingasubstantialincreaseduringthe2010season.ChiefMadukinacurrentlyoperatestwooutletsintheNyanyaareaofAbujaandisplanningtoopenathirdone.Hecurrentlyemployssixstaff members.

u There was an increase in the participation of women in agro-dealer associations as a result of project activities. The project association/gender specialist and all other staff made special efforts to encourage female dealers to join the trade associations. They achieved significant progress; in the southwest, 90 women agro-dealers are members (14 percent of the total). The north has been more difficult, but staff was able to increase participation in NOWAIDA from one woman in 2008 to 12 by 2010 and to 65 presently. Women represented 16 percent of participants in the series of training programs for agro-dealers. NADS helped many female agro-dealers link with wholesale suppliers.

The impact of the project extends far beyond its specific achievements. The activities have helped influence fundamental changes in policy by demonstrating the capability and greater effectiveness of the private sector than the government in supplying farmers with inputs. Moreover, agro-dealers who were at first reluctant to join with competitors came to realize the mutual benefits of working together with one voice through their regional trade associations.

NADS worked at the community level to attract agro-dealers to the association concept and grouped them into zones that are represented at the state level. Each of the state chapters has a seat on the boards of the regional organizations. Agro-dealers value networking with their counterparts as well as with suppliers, credit institutions, government agencies and donor-funded and publicly-funded projects. They also appreciate how their role and voice through the trade associations can influence policy reform.


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ChallengesImplementing a project such as NADS that seeks to develop private sector agricultural supply networks faces many constraints which are well-documented and mentioned in the Introduction and Background section. Insufficient infrastructure (roads, power, etc.) impede all aspects of the economy. Nigeria’s agricultural input sector has suffered from both significant government involvement and lack of regulation over the last 30 years – widening the trust gap between the public and private input sectors. Rather than fulfill the traditional governmental role of regulator of quality, the FGN and states have intervened in the markets. The changing and statist policies have undermined the private sector, causing confusion and uncertainty for dealers and farmers alike.

Though the FGN is promising dramatic change, there is still a challenge with the 36 states and the FCT that are also players and interveners in the fertilizer and seed sectors. For example,

Bauchi State was one of the early intended partner states, but officials there wanted to retain control of fertilizer and seed and were interested in the training of private agro-dealers but not interested in allowing them to ‘drive’ the sales and delivery of agro-inputs to farmers. New incentives for the states to tap into the GESS and NIRSAL programs may help convince states, such as Bauchi, to change.

The reluctance of banks to participate in the NADS budgeted $500,000 credit guarantee program meant that the project was unable to leverage that money as anticipated in order to help

pAcreditofficerconductsatrainingsessioninWudil,KanoState.

“F armers respect my advice. I’m a woman,butmanyfarmersrespect

myadviceandcounsel.Thisisduetothe knowledge I have about agriculture, especiallyonagro-inputusageandhowtheycouldbeusedon-farmtoguaranteeabumperharvest.WAIDA/IFDC-organized trainings for agro- dealershaveaddedvaluetous.Theyhavepositionedusonaveryimportantand strategic platform as change agents in the nation’s agricultural sector, especiallyinachievingfoodsecurity.” Mrs.RachaelOkediran Agro-dealer Eruwa,Ibarapa-East,OyoState

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pMrs.Okoli,anagro-dealerinIbadan.

agro-dealers gain access to the credit they need to expand their businesses. The problem was only partially resolved (and then at a late stage of the project) when MFIs and suppliers agreed to provide credit to dealers. The project also helped prepare agro-dealers to apply for credit under the soon-to-be-launched NIRSAL initiative that is expected to expand financing for the agriculture sector.

In addition to the external constraints, the project faced the challenge of attempting to conduct activities and achieve the targets laid out in the IFDC proposal that originally requested twice as much funding than was actually allocated. That meant stretching thin resources and added to the difficulty of managing a project with four field operations (each with five staff members) and covering 64 widespread zonal groups. The aim of reaching a targeted number of agro-dealers sometimes came at the expense of the quality of support to those agro-dealers. It also resulted in late reporting and inadequate project M&E.

The project staffing budget did not allow for an M&E specialist (who would have been able to assist in collecting information and reports from the trade association staff, dealers and others); nor did it allow for a seed marketing specialist. The limitations of involving international consultants also hampered project implementation. For example, it would have been helpful to engage expert agronomists to work with producers and dealers to improve seed quality and distribution. In Nigeria the FGN is the main purchaser from seed farms, which results both in poor-quality seed and a lack of people with private sector experience.

“F armers visit us more than they do agricultural experts. The training

program is a welcome development and should be a continuous exercise. Ithasgonealongwaytoimproveandupdate our knowledge about agro-inputs and the nation’s agricultural sector.Wearenowliketeacherstomanyfarmersbecausetheyvaluetheimportant information we give them on agricultural practices. Don’t forget that farmers often visit us for advice even beforetheythinkofotherprofessionalsintheagriculturalsector.” EjioyeMathew Agro-dealer Ado-Ekiti, Ekiti State


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Lessons LearnedLessons that will be important in crafting future activities that support the FGN’s new direction in revitalizing agriculture include:

u Focus on states where governments are receptive to and supportive of the private sector and of project objectives.

u Adjust activities to new information and changing conditions. The comprehensive survey of agro-dealers in nine states undertaken in 2010 noted that most agro-dealers are small and poorly financed, with half considered mobile ‘table-top’ dealers with no significant storage capacity. These dealers need to be brought into a supply network since they are an important part of the value chain and often farmers’ only source of inputs. The fertilizer voucher activities implemented by IFDC show that farmers are most impressed with product quality – which is due to agro-dealers being directly linked to supply chains.

u Link more agro-dealers with seed producers, encourage farmer-market orientation and increase association advocacy efforts to reform the seed sector. The lack of accountability in the seed certification process has resulted in little truth-in-labeling in terms of varietal purity, germination rate, quality of foundation seed, etc.

t Dr.AndrédeJager(farleft),DirectorofIFDC’sNorthandWestAfricaDivision,talkswithanagro-dealerduringavisittotheNADSproject.


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u Work with ADPs and farmers on demonstration plots and field days to attract more farmers and to develop TTCs that are effective and sustainable. More work is needed to make TTCs a reality. Under the new policies, there will be more interest on the part of state governments, ADPs, agro-dealers and farmers for technical advice. Staffing TTCs with qualified and dedicated agronomists

is critical. Recent demonstration successes utilized farmer-implemented demonstration fields facilitated by agro-dealers and

coordinated by local ADP extension agents.

u The project used its staff, those assigned to the associations and master trainers to

conduct most of the agro-dealer trainings. For specialized business topics, the project also engaged professional training companies. They provided additional mentoring of the dealers by experts who have an economic interest in marketing their consulting services.

A broader lesson is that persistence in pushing for reform pays off. The NADS

project was a critical link in the 10-year chain of efforts by IFDC and others to change the

federal and state governments’ interventionist agro-input policies and practices. The GESS and NIRSAL initiatives promise major reform and should help to reinvigorate private sector agro-input producers and dealers. For example, the CBN and FMARD are already working with IFDC and other partners on the rollout of the N450 billion facility with commercial banks.

p A farmer in Bauchi State signs a receipt for fertilizer purchased with a voucher.

u Agro-dealers can stock more cost-effective quantitieswhentheyknowthereisregularfarmer demand for agro-inputs.

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Conclusion There is a unique opportunity to capitalize on NADS by supporting the goal of the Growth Enhancement Support Scheme to identify and train another 20,000 agro-dealers. The momentum and proven approaches of NADS should be continued to help ensure that agro-dealers will be able to adequately serve farmers who follow the country’s new directions in agriculture. The successes achieved by NADS in working to establish functioning input supply chains in rural Nigeria should be continued and expanded.

Much more work needs to be done in building agro-dealer and trade association capacity, reach and access to finance; and in providing sound technical advice that leads to farmer adoption of improved inputs and sound agricultural practices.

The promised unleashing of the power of the private sector in Nigerian agriculture offers a unique and timely opportunity to continue establishing a demand-oriented agro-input marketing system that can support the transformation of the agricultural sector and improve farmer livelihoods. The entrepreneurial talent and commercial potential exists. The regional agro-dealer trade associations, IFDC’s work using smart subsidies to pull the private sector into the market and IFDC’s unparalleled knowledge of Nigeria’s input sector offer a solid base on which to build. The fully privatized Notore fertilizer production facility is championing the domestic production of urea, and additional nitrogen plants are under construction. With the FMARD’s current support to the seed sector, there is an opportunity to extend seed production, develop seed farms into market-oriented seed companies and link them to private distribution channels.

The NADS project served as a lesson for key policymakers in the FGN and state governments. They saw and appreciated what a relatively small and focused program could achieve if properly designed and managed – and most importantly – built with a private sector architecture and foundation. The time is opportune to complete the structure. n

pFarmersdisplaythevoucherstheyreceivedatavoucherdistributionpoint.

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Annexes


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Annex 1. Measurable Activities, Inputs, Outputs and OutcomesThe table below describes project results through the conclusion of the project in 2011.

COMPONENT 1 – Agro-Dealer Capacity Building: Strengthen capacity of agro-dealers in product knowledge, input marketing, agricultural extension and business management and create linkages with seed and other input suppliers.

Activity 1.1 Conduct a baseline survey of agro-dealers in Nigeria in Year 1 and impact survey in Years 2 and 3.

Inputs Outputs Outcome(s)

Engagement of a database consulting company – Practical Sampling International (PSI) – in late 2008 to carry out a baseline survey of agro-dealers in Nigeria.

Submission of a report of work completion, including a database and maps of agro-dealers in some parts of the country by PSI, three months after the commencement of the project.

Report of survey made available to other stakeholders within the country.

Engagement of IFDC-trained database staff and enumerators to verify the data supplied by PSI and coverage of parts not originally sampled due to expansion of activities under the NADS project – September 2010.

Collated data on agro-dealers in 10 states that were not captured by PSI in 2008 and verification/review of already submitted data in IFDC archive. Generated reports and submitted same to AGRA.

Reviewed data and newly collated report on the agro-dealer baseline survey publicized and shared with both local and international partners/stakeholders, thus affording such partners access to reliable and up-to-date information on agro-dealers.

Activity 1.2 Organize study tours to seed production facilities, seed suppliers and model agro-dealers in the region as well as in Southern and East Africa.


Organized and undertook working/familiarization tours to indigenous seed companies – Maslaha, Premier and Alheri in June 2009 and March 2010.

A total of 50 agro-dealers, made up of 25 dealers each year and selected from each of the four project-supported regional agro-dealer associations participated in the tour.

Business linkages/synergy created between the agro-dealer associations and the seed companies visited. Seed companies thus have more outlets and an expanded distribution chain for their products.

Organized and undertook a series of business linkage/field visits for a women-only group of agro-dealers in the northern region – April 2011. Maslaha, Manoma and Premier Seeds were visited.

48 women from across the three regional agro-dealer associations in the north – NEAIDA, NOCAIDA and NOWAIDA – benefited from the trips.

More than 50 percent of the women who were hitherto part-time dealers were encouraged to start the business on a full-scale. Participation of women in training and other related programs increased by at least 30 percent after the business linkage trip.

Activity 1.3 Facilitate roundtable meetings and dialogue between agro-dealers, seed companies and state and national governments.


Facilitated numerous ground-breaking round-table meetings between all active stakeholders in the industry between 2009 and 2011 across the four regional agro-dealer associations.

48 roundtable meetings were held by the project both at the national (NADS) and regional (AIDA) levels during the project with various stakeholders (banks, seed companies, NAFDAC, agro-chemical companies, farmers, etc.).

Several ground-breaking policies and statements were announced by the FGN. Some of these policies are currently being actualized through the Federal Ministry’s Agricultural Transformation Agenda.

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Activity 1.4 Update and develop training curriculum for agro-dealers.


Agro-dealer training curriculum developed and reviewed by IFDC in collaboration with other stakeholders: CropLife, National Agricultural Seed Council, NAFDAC and the FMARD.

A comprehensive and all-inclusive training curriculum was developed for use in training agro-dealers across the six geo-political regions of the country.

More than 2,500 agro-dealers were trained and certified via the use of the curriculum produced from these collaborations within three years.

Activity 1.5 Facilitate basic training courses on responsible and professional sales of agro-inputs through AIDAs.


Agro-dealer training in business management, seeds, fertilizers and CPPs conducted in more than 16 states of the country across the four regional agro-dealer associations during the project life.

A total of 2,500 agro-dealers received multiple trainings during the life of the project. About 16 percent were women.

Trained dealers are now exposed to the latest knowledge and technology under the modules that were created.

Activity 1.6 Facilitate advanced training courses on responsible and professional sales of agro-inputs.


Training in procurement skills and demand pooling facilitated in collaboration with MIR Plus project across four locations – Kano, Jalingo, Ibadan and Abuja in 2010 and 2011.

64 agro-dealers trained (four were women). Dealers now able to better pool their resources together with a view to collective bargaining, thereby minimizing cost and maximizing profits.

COMPONENT 2 – Institutional Strengthening: Facilitate agro-dealer association strengthening and linkages among the various actors and institutions in the input sector.

Activity 2.1 Support institutional capacity building of association staff under three units (association development, business development services and agronomic services).


NADS facilitated the establishment of regional associations in four regions (North Central, North East, North West and South Western) via the successful organization of inaugural annual general meetings for the associations.

Democratically elected boards of directors (BoD) were installed for each association. In addition, state and zonal executive committees were similarly established in all states under each region.

Elected BoD members were able to better advocate for the welfare and progress of the regional associations at different levels of government. Most states now recognize the voice and relevance of the AIDAs in their respective domains.

Activity 2.2 Facilitate training of trainers (ToT) courses to association staff and key technical partners.


Formalized working relationships with a number of capacity building firms and organizations (Growing Business Foundation, OICI, Leap-Africa, Brandz & Data International Ltd. and Guros Ventures) during the project period to facilitate the ToT collaboration.

27 BoD members and 52 selected members of the four regional associations were successfully trained through the ToT program and duly certified by the various training firms between 2010 and 2011.

Trained agro-dealers are now better able to conduct their businesses in line with acceptable standards in the country. Also, graduates of the ToT program are passing the knowledge gained to fellow dealers via step-down trainings.

Activity 2.3 NAIDA, in conjunction with national partner associations, will create an advocacy action plan for national issues.


NADS team met with executives of NAIDA and brainstormed on establishing the associations in the South-South and South-East regions.

Other stakeholders were contacted and meetings scheduled for incorporating the remaining two regions of South-East And South-South in the national body.

Existing NAIDA executive members are now aware of the relevance and importance of establishing a national association.


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Activity 2.4 Support AIDAs in provision of market prices and information to their members and farmer-customers as business decision tools.


National stakeholders’ forum was organized with relevant bodies and parastatals to deliberate on market price data. NOCAIDA was responsible for organizing all logistics and coordinating activities at the forum.

Trainings were organized for some selected members of the association to provide input prices monthly for members through the Internet.

Members are aware of current prices of agricultural inputs – especially seed, fertilizer and CPPs.

A stakeholders’ workshop was held in Ouagadougou, Burkina Faso, in April 2011 to finalize all data to be adopted and used on a price and data platform for use in Nigeria. 8 agro-dealers (two were women) were in attendance from Nigeria.

A consensus was reached by the stakeholders and a test platform was immediately launched and programmed for a test run in member countries.

Agro-dealers, importers of agro-chemicals and other stakeholders can now access prices and data for inputs on a website via the platform that was launched. Prices and data are updated by dedicated agro-dealers on a monthly basis.

Activity 2.5 Support association staff in conducting membership drives to increase association membership.


NADS provided both logistical and technical support to the four regional associations toward the recruitment of new members as well as the continued re-sensitization of existing ones. 64 meetings were held during the course of the project.

Membership strength was increased substantially from a total of 424 across the four associations to over 2,500 dues-paying members as of August 2011. Approximately 10 percent of these members are women.

The reach of agro-dealers to rural areas became enhanced as more dealers are now available to render services to their farmer- clients, even in the remote villages. Members are trained, certified and now able to add more value to their services.

Activity 2.6 Support association staff and executive council in developing an organizational structure and communication platform for members.


All four associations were supported and encouraged to evolve their own unique structure and method of communicating with their environment. Private sector layers in the input sub-sector were actively engaged and the responses received were mostly favorable.

Sponsorship sought and received from corporate members for extension of a 30-minute radio program to one hour, known as the ‘WAIDA Hour,’ with phone-in opportunity for listeners.

The expanded program accommodated more discourse and generated more feedback.

NOWAIDA also has a radio program established on the popular Radio Kaduna Network station. It is currently a 30-minute weekly enlightenment and phone-in program that commands an appreciable audience in and around Kaduna and Kano states.

Audience benefited more from the program extension and phone-in facility.

COMPONENT 3 – Financial Support: Facilitate agro-dealers’ access to finance for business development through risk- sharing arrangements.

Activity 3.1 Assess training and technical assistance needs on agricultural lending among commercial banks and the Nigerian Development Banks.


Training and technical needs of lending institutions were assessed in 2009.

Training curriculum developed based on identified skills gap.

Curriculum available to other stakeholders in the agricultural development business in Nigeria.

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Activity 3.2 Identify risk-sharing arrangements between willing financial institutions and agro-dealer associations.


Existing risk-sharing models were appraised and banks and other financial institutions approached for the provision of financial services to project-supported agro-dealers in Nigeria.

The CBN’s ‘Trust Fund Model’ was leveraged to serve as a platform for the launch of a workable and sustainable financial service provision to agro-dealers.

Availability of a tested and trusted platform for use by commercial banks and other financial institutions willing to lend to input providers.

NADS successfully engaged both Grooming Centre and DEC – both are NGO/MFIs – in August 2009 and April 2011, respectively.

Two MFIs became available for loan disbursement to project-supported agro-dealers who in turn expanded their businesses via the loans obtained.

Activity 3.3 Develop training programs for financial institutions to enhance agricultural loan assessment capacity and understanding of agricultural lending.


Training program developed in collaboration with the CBN, leading agricultural lending commercial banks and prominent MFIs.

A number of two-day training sessions organized for desk officers of selected commercial banks and MFIs in the four operational regions of NADS.

Desk officers of lending institutions became aware of the financial needs of agro-dealers and also became familiar with the peculiarities of the agro-input business and its cycle.

Activity 3.4 Facilitate credit linkages and loan disbursement between agro-dealers and wholesale input providers.


325 project-supported agro-dealers applied for loan access at the inception of the 2010 and 2011 farming seasons.

308 dealers accessed loans worth US $724,432 between February 2010 and August 2011 from both Grooming Centre (221 loans) and DEC (87 loans). As of September 2011, reports from Grooming Centre showed that the repayment rate stood at 98.88 percent.

Dealers who have accessed and judiciously utilized loans for the first time have learned the habit of proper loan utilization and a healthy savings culture.

Both Grooming Centre and DEC have committed to a long-term provision of service to the agro-dealer associations.

pRobGroot(left),thenDirectorofIFDC’sNorthandWestAfricaDivision,speakingattheNADSprojectlaunchin Abuja,October2008.


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COMPONENT 4 – Technology Transfer

Activity 4.1 Organize TTCs for association members and their farmer-customers to demonstrate new technologies, inputs and best practices.


TTCs and agro-dealer-based demonstration plots established by NOCAIDA, NEAIDA and WAIDA on the dissemination of improved seeds, fertilizer application and methods, and the use of improved cultural practices, with the following titles: (a) Good attributes of improved varieties of maize, sorghum, soybeans and rice over the farmer saved seeds. (b) Good attributes of improved cassava varieties over local varieties. (c). Responses of hybrid and open-pollinated maize varieties to various levels of compound fertilizers produced in Nigeria. (d) Response of improved sorghum varieties to various levels of compound fertilizers produced in Nigeria.(e) The effects of plant density, planting materials and UDP on rice yield. (f) Integrated soil fertility management (ISFM) practices in the production of maize.

Training was also given to agro-dealers, farmers and extension specialists and scholars on how to use a soil test kit.

A total of 12 TTCs and 50 agro-dealer-based demonstration plots were established and field days organized in some of the locations for use by agro-dealers and farmers. In addition, the use of improved rice seeds and UDP was demonstrated in two locations in Kano State. The aggregated numbers of attendees in all locations is as follows: Agro-dealers – 291 Farmers – 455 Extension staff/scholars – 125 Total – 871 92.31 percent of participants were men; 7.69 percent were women.

Training and demonstration of soil test kit. Total number of : Agro-dealers – 178 Farmers – 131 Extension staff/scholars – 125 Total – 434

(a) Participating agro-dealers and farmers requested samples of briquette urea that could be displayed or experimented in shops and farms, respectively. This confirmed their readiness to adopt the technology. (b) There were requests for more participation by agro-dealers and farmers in on-farm demonstration of this technology.(c) Some perceived a higher amount of labor would be required in the application of briquette urea and were more inquisitive to know if an applicator (machine) had been designed or invented to reduce the time for briquette urea application. This signifies their comprehension. (d) Some admitted that the labor requirement for UDP is not a barrier in as much as the efforts would culminate in higher yields, increased income and reduction in fertilizer requirement in the production of rice. (e) Some of the agro-dealers were eager to acquire the urea supergranule (USG) machine for business purposes. (f) Some of the farmers requested directions to the seed distributing locations where some of the improved seeds can be purchased, especially the short and early maturing varieties of sorghum. (g) Agro-dealers and farmers now know the importance of soil testing, which is a pre-requisite to good cultural practices and improved crop yield.

Activity 4.2 Develop and disseminate technical publications, leaflets, brochures or fliers on topics related to agro-inputs.


Technical materials currently being collated by AIDAs to produce the publication.

Three of the project-supported regional associations have produced information booklets, brochures and fliers for their dues- paying members. The same materials are being distributed during advocacy visits.

Farmers are better informed on the activities and relevance of agro-dealer associations in their domains.

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Activity 4.3 Support AIDAs/TTCs to organize demonstrations and field days on agro-inputs.


11 input providers collaborated to demonstrate 11 improved varieties of maize, three improved varieties of sorghum, four improved varieties of rice and one improved variety of soybeans. Others include three types of soil amendment materials (fertilizer) provided by three fertilizer companies and 10 types of herbicides provided by two agro-chemical companies.

Good performance of demonstration activities at eight of the TTCs established.

Support from: (1) PREMIER SEEDS, Zaria (2) MAINA SEEDS, Kano (3) SEED PROJECT, Kano (4) MANOMA SEEDS (5) ALHERI SEEDS, Zaria (6) DA-ALL GREEN SEEDS, Zaria (7) DIZENDGOFF NIG, Lagos (8) FITSCO, Ibadan (9) Crystallizer Super Fertilizer(10) Notore, Port Harcourt (11) Golden Fertilizer, Lagos

More agro-dealers and farmers request their farms/plots to be used for demonstrations in future activities.

Feedback on input performances was disseminated to all input providers during the stakeholders’ forum organized before the commencement of 2011 cropping season.

IFDC/GFSR project provided financial support for land preparation and other labor inputs.

IFDC/NADS project sponsored green and brown field days.

Activity 4.4 Publication in the local, national and regional media of main results of agro-dealer development.


Between November 29, 2010, and December 8, 2010, the NADS project collaborated with the Nigerian Television Authority to shoot and broadcast a documentary program on the use of improved seeds and other quality agro-inputs. Seed production activities discussed included: (a) Performances of improved seed over farm saved seeds at TTCs.(b) Seed processing plant and demonstration of seed processing activities. (c) Interviews with agro-dealers and farmers to discuss that seeds improved yields. Both discussed sales and performances of improved seed over farm-saved seed. (d) Interview conducted with a board member of one of the AIDAs. He described the impact of NADS on the association.

An estimated audience of 60 million people saw the documentary in both urban and rural areas throughout the country.

NADS received feedback from audience across all 36 states (including FCT) of Nigeria. They described how informative and educational the program was and expressed their desire to receive more information on other agricultural inputs and commodities.


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Annex 2. Acronyms & AbbreviationsADPs.................... Agricultural Development ProgramsAGRA ................... Alliance for a Green Revolution in AfricaAIDA .................... agro-input dealers associationAND ..................... Agro-Dealers Network DevelopmentBTM2 ................... Bridge to Markets 2CBN ...................... Central Bank of NigeriaCPP ...................... crop protection productDAIMINA ............ Developing Agro-Input Markets in NigeriaFCT ....................... Federal Capital TerritoryFGN ...................... Federal Government of NigeriaFMARD ............... Federal Ministry of Agriculture and Rural DevelopmentGESS.................... Growth Enhancement Support SchemeGFSR .................... Global Food Security Reliefha ......................... hectareIFDC ..................... International Fertilizer Development Centerkg ......................... kilogramMARKETS .......... Maximizing Agricultural Revenue and Key Enterprises in Targeted SitesM&E ..................... monitoring and evaluationMFIs ..................... Micro-Finance InstitutionsMIR Plus ............. Marketing Inputs Regionally Plusmt ........................ metric tonNADS ................... Nigeria Agro-Dealer Support NAFDAC ............. Nigerian Agency for Food and Drug Administration and ControlNEAIDA............... North East Agro-Input Dealers AssociationNFRA ................... National Food Reserve AgencyNGO .................... non-governemental organizationNIRSAL ................ Nigerian Incentive-based Risk Sharing System for Agricultural LendingNOCAIDA ........... North Central Agro-Input Dealers AssociationNOWAIDA .......... North West Agro-Input Dealers AssociationToT........................ Training of TrainersTTC ....................... Technology Transfer CenterUDP ..................... urea deep placementUSAID.................. U.S. Agency for International DevelopmentWAIDA ................ West Agro-Input Dealers Association

pDignitariesataNOCAIDAmeetinginNigeria.

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pFarmersshowingthevoucherstheyreceived from participating in a voucher systemintendedtohelpintroducethe use of mineral fertilizers.

u Back cover: Field demonstration at a TTC in Kano State.

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For additional information about IFDC and/or the NADS project, visit www.ifdc.org.

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