Nigeria

INVESTMENT PRESENTATION

Nigeria Investment Plans and Opportunities
HiH Investment Forum 2023

THE PROPOSAL

The Hand-in-Hand Initiative has been working with the government of Nigeria in defining and supporting two main priority pillars: livelihood resilience and value chain development.

The livelihood resilience pillar has as main objective to create, sustain, and improve livelihoods to withstand shocks in focus areas, leading to improved sustainable access to food, diversification of earnings, and promotion of climate smart agriculture. This track will support programme investment plans in territories facing emergency threats and shocks, more specifically in six states: Katsina, Borno, Niger, Cross River, Ebonyi, and Oyo.

Poverty

Potential

Efficiency

COMMODITIES AND INTERVENTIONS

The value chain development pillar is aiming to achieve sustainable enabling infrastructure, environment and market accessibility for the production and commercialization, focusing on agricultural produce in target locations within the country. This track prioritizes three main commodities, cassava, tomato and maize, and targets on states with high agricultural potential and poverty: Kano, Ogun, Anambra, Rivers, Bauchi, Kwara and Kaduna.

Cassava

Cassava is a major crop in Nigeria, with a high national production and demand for both domestic consumption and industrial uses, such as in the production of ethanol and animal feed. The sector phases several challenges such as limited access to improved varieties and quality planting materials, post-harvest losses, and significant gap between production and utilization.

Investments in the cassava value chain add up to 382 million USD, aiming to benefit 207 thousand hectares and more than 45 thousand beneficiaries by supporting access to finance, installation of processing units, establishment of centres for agricultural inputs, and support clusters for small producers. The IRR is 15% with a net present value of 188 million USD.

Nigeria is the largest producer of maize in Africa, where about 25% of production is processed into flour, oil, and animal feed. The sector phases challenges related to Inadequate access to improved seeds and inputs, post-harvest losses, and limited value addition.

Maize

Investments in the maize value chain add up to 1 billion USD, aiming to benefit 1 million hectares and more than 2 million beneficiaries by supporting capacity building, installation of processing units, establishment of centres for agricultural inputs, and support research centres. The IRR is 18% with a net present value of 75 million USD.

Tomato

Nigeria is the second-largest tomato producer in Africa and a key exporter of tomato derivatives. Nevertheless, only about 20% of tomato production in Nigeria is processed, mainly due to a lack of modern processing infrastructure. Additionally, post-harvest losses in the tomato value chain in Nigeria can reach up to 50%, there is limited access to finance from smallholder producers, and non-consistent quality standards for export.

Investments for the Tomato value chain add up to 869 million USD, aiming to benefit 72 thousand hectares and more than 36 thousand beneficiaries by supporting access to inputs and technology, installation of processing unit plants, establishment of multiplication centres, and R&D development. The IRR is 12.5% with a net present value of 171 million USD.

Dairy

Investments in the dairy value chain add up to 476 million USD, aiming to benefit more than 37 thousand beneficiaries by supporting access to improved breeds, establishment of fodder production models, milk processing units, and milk collection points, and facilitate access to finance. The IRR is 21% with a net present value of 173 million USD.

Fisheries and Aquaculture

Investments in fisheries and aquaculture add up to 114 million USD, aiming to benefit more than 50 thousand beneficiaries by facilitating access to fish inputs, promote research and development, provide training, and establishment of hatcheries centers and feed fish mills. The IRR is 12% with a net present value of 77 million USD.

RESOURCES

See the investment plan slide deck presentation from Nigeria for IF 2023.

CONTACT

For more information, please contact the Hand-in-Hand team.