EXECUTIVE SUMMARY

This document, tagged an “AGRI-BUSINESS PLAN FOR THE

SUSTAINABLE AGRI-BUSINESS INVESTMENT PROJECT”,
(SABIP), in Rivers State, starts with the review of the strategic
project development concept and the rationale behind the plan.
Apart from the over-all goal and objectives, as well as the project
target, results and opportunities, the plan also provides Economic of
Production (EoP), risk analysis, management and technical plans for
the project. It went further to analyse the principal constraints and
opportunities for the project to fly.

Based on the foregoing, a six cardinal priority Agri-Business

Investment areas was proposed, namely:-

i. Integrated Commercial Crop Production (cassava, maize,

vegetables, plantain, oil palm, pineapples)
ii. Integrated Commercial Poultry Production (breeding farm,
hatchery, pullet breeders, broilers, abattoirs etc.)
iii. Integrated Commercial Fisheries and Aquaculture Project
(catfish, hatchery, artisanal fishing and deep-sea fishing)
iv. Agro-Industrial Complex Units (feed mills, processing plants
marketing centres, storage facilities)
v. Agro-Training Centres (for sensitization and capacity building
for the project participants), and
vi. Establishment of Agri-Business Cluster Settlements.

In its very essence, this document seeks to implement a technically

and feasible project proposal where financial viability and
sustainable agri-business investment issues have been adequately
considered to tackle:
 Pervasive Poverty
 Widespread Unemployment
 Hunger and Food Insecurity
 Social Vices
The operational plan of the project shall be for 8 years with a
financing gap of 4 years. These are to be realized through the
introduction and adoption of improved technology, efficient
utilization of resources and a well-trained, skilled and highly
motivated participants at a broad-based organizational management,
trading and production clusters.

The Rivers State Government through SABIP’s Implementation

Agency shall disburse agri-business loan built into input supplies and
a little cash for farm labour and incidental expenses to the project
beneficiaries.

The loan amount per beneficiaries shall be determined by the

Economic of Production (EoP) and on cost recovery basics of 6%
interest rate for administrative and local content expenses. The
interest rate shall be deducted at the second year of the project
production cycle.

The project is designed for a rapid agri-business investment growth

to create direct jobs for over 300,000 youth and farmers with
additional 900,000 indirect farmhands (hired labour). A total of
33,165 hectares of the Rivers State Government’s gazetted and
unused agricultural land in the State shall be targeted for the pilot
project in the fourth quarter of 2024 to empower over 16,500
unemployed youth and farmers in direct jobs with the attendant
33,000 farmhands (indirect jobs). The pilot project shall gulp a sum
of ₦……………………………… whereas the overall estimated cost of the
project for the 8 years is ₦ ………………………………

There shall be additional drive for free land donation in all Local
Government Areas in the State whereby opportunities will be seized
to expand the project activities to additional cluster sites, using the
same beneficiary participatory agri-business investment approach to
meet the target and objectives of the project. At this point, the
cluster group themselves will be primarily responsible for planning
their own future and, therefore, have ownership of the project.

The project shall engage reputable input suppliers, service providers

and off-takers. The input suppliers and service providers shall be
directly paid for their supplies and services from the beneficiary’s
in-build loans. The off-takers shall promptly buy off and evacuate
the produce at pre-agreed time and price for processing, and pay
the cost of the produce to the project bank who then credits the
beneficiary account with the profit.

6 CONTEXT AND RATIONALE

6.1 Project Development Context:

One of the greatest concerns of the majority of the citizens of this

country, Nigeria, (Rivers State inclusive), is an increased food
production to meet the teeming population. To remedy this
precarious situation, various governments in the past have
introduced the following agricultural programmes to grow more
foods. At the national level, we have “Operation Feed the Nation”,
“Green Revolution”, “Back-to-Land Programme” and others. At the
Rivers State level, we have “Aggressive Agrarian Agricultural
Programme”, “School-to-Land Programme”, “Massive Food Production
Programme” and others. All these agricultural programmes of past
regimes could not achieve their goals and objectives because the
implementation was marred by improprieties of factors which
influence the objectives of agricultural development project.

The question is how to convert the lessons learnt from the past
programmes to this new agricultural plan into effective deeds that
will create the needed impact and stand the test of time. As we
cannot afford to fail this time around, it behooves us to pause and
 dexterously relate on the following contextual questions to draw the
necessary lessons and avoid making the same mistakes over and over
again. Some of the contextual questions are:

i. What have we been doing, and how have we ben doing?

ii. What did we do well, and how can we improve on what have so far
been done?
iii. What did we do badly and what was the cause of the failure, and
how can we remedy the situation?
iv. What directions should we now take as professionals and
technocrats to achieve our goals and objectives in this new
project initiative?
v. What shall we jettison to allow us achieve our agricultural vision
and mission for the state?

In the process of analyzing and providing answers to the above

questions, a team of consultants working in collaboration with the
major stakeholders from government, development partners, private
sectors and civil societies were drawn up to prepare this holistic
agricultural plan for sustainable agri-business investment for
massive job creation and poverty reduction in Rivers State.

The Rivers State with its estimated population of 5,185,400 (2006)

covers 21,850square kilometres. The State has one of the largest
deposits of oil and gas minerals on which the country’s economy
depends. Beyond mineral resources, the State has one of the
concentrations of rain forest, aquatic resources and biodiversity in
Nigeria. It is a major producer of root and tuber crops, plantain,
banana, vegetables, maize, and tree crops such as oil palm, nuts and
fruits etc. However, despite the abundant resources, the State is
bedeviled with social conflicts, youth restiveness, money rituals
(a.k.a yahoo business), kidnapping for ransome, rape, armed robbery,
and other social vices. It is widely accepted that this increase in
social vices is due to lack of jobs and decent means of livelihood for
the teeming unemployed/underemployed youth, caused mainly by
exclusion and poor governance and exacerbated by low productivity
and environmental degradation from the oil and gas exploitation.
Thus, massive unemployment and poverty have been on the increase
in the State which goes to define the extent of youth’s non-
involvement in agri-business.

In addition, the hike in prices of petroleum products engendered the

increase in prices of food items which accounted for the high
inflation rate in this period.

Besides the discovery of oil and gas in the State, agriculture is seen
by the majority of the people of this State as an “economic poverty
activity”. This negative perception discourages our youth from
engaging in agriculture to improve their livelihood.

It is on record that no nation has succeeded in recuing itself without

fixing its agricultural sector. For instance, China was able to lift its
over 1.4 billion people out of poverty within ten years by revamping
its agricultural sector. To revamp agriculture in Rivers State, we
should not continue to do the same thing in the same way. We should
have a different mindset to do things differently and by changing
our past perspectives about agriculture. We must not play politics
with agriculture. Agriculture should be declared under “State of
Emergency” in Rivers State.

Agriculture should be seen and treated as a business investment and

not as a developmental project. It should be treated as a business
investment that must generate returns, income as well as the
creation of massive and meaningful employment opportunities and
reduction of pervasive poverty, food insecurity and social conflicts
in the State.
6. 2 Project Rationale:

The strategic framework rationale of this project proposal is drawn

from the fact that Rivers State has abundant agricultural potentials
for both comparative and competitive sustainable agricultural based
industrialization in food and cash crops production, processing,
marketing including livestock, fisheries, agro-forestry and tourism
development. Unfortunately, for all the abundant agricultural
potentials in the State, too little has actually been utilized for
sustainable agribusiness to tackle hunger, unemployment, crimes,
insecurity and poverty.

Accordingly, this proposal is motivated by the wastages and

redundancy of the state’s abundant agricultural potentials combined
with the growing restlessness of an estimated 2 million unemployed
and under-employed youths in the State. The unused economically
excluded young labour force exists in the face of enormous food
demands and high cost of food. Thus, the State has its highest
portal for job creation in the agricultural sector (for now), and
where the agricultural resources are available.

In essence, this project is in line with the agricultural policy thrust

of the Rivers State Government as it is a private sector driven
project that seeks to develop the agricultural production and value
chain to provide massive food production, generate over one million
direct and indirect employment and agro-business opportunities as
well as creating enabling export platforms for the economic
transformation of the State. More so, the Rivers State Government
is desirous at providing conducive atmosphere and facilities for the
youths to earn a living in agribusiness and investment and contribute
meaningfully to the State’s economy.
There is an existing well-established Songhai Rivers farm at Bunu
Tai for the effective adoption of the “Incubator Model” to train
participants in SABIP.

Apart from adopting the “Incubator Model”, the proposal seeks to

leverage partnership with the on-going agricultural intervention
agencies, organizations, institutions as well as reputable agricultural
input suppliers, service providers and off-takers in the State and
beyond.

7 PROJECT DESCRIPTION

7.1 Project Title: SUSTAINABLE AGRI-BUSINESS

INVESTMENT PROJECT (SABIP)

7.2 Project Vision: The exploitation of the comparative and

competitive sustainable agricultural potentials of Rivers State for
agribusiness investment and industrialization to transform the
State’s economy from oil boom to food boom.

7.3 Project Mission: Establishment of a technically, feasible and

sustainable agribusiness investment for massive food production,
generation of employment and agribusiness opportunities.

7.4 Project Mandate: The implementation of sustainable

agribusiness investment and development in line with the agricultural
policy thrust of Rivers State.

7.5 Project Goal and Objectives:

7.5.1 Project Goal: The overall goal of the project is to

implement a technically, feasible and sustainable agribusiness
investment and development to create employment, massive food
production, reduction of poverty and transformation of the State’s
economy.
7.5.2 Project Development Objectives:

i. To help achieve food sufficiency, security and alleviate poverty

and starvation.
ii. To create massive employment opportunities and wealth for
the youth and the citizenry.
iii. To reduce youth restiveness and social vices.
iv. To create agricultural export platforms and ready markets.
v. To attract private sector investments and development in
agriculture.
vi. To establish agro-resource-based industries for the
enhancement of agricultural value-added productive activities.