VZCZCXYZ0001
PP RUEHWEB

DE RUEHUJA #1023/01 1611145
ZNR UUUUU ZZH
P 101145Z JUN 09
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 6257
INFO RUEHOS/AMCONSUL LAGOS PRIORITY 1486
RUEHGB/AMEMBASSY BAGHDAD 0370

UNCLAS ABUJA 001023 
 
SIPDIS 
 
STATE AFR, EB 
DEPT PASS TO USAID AFR/AA, AFR/SD, DCHA/PPM 
USAID FOR DATWOOD AFR/SD, JHILL AFR/SD/EGEA 
 
 
E.O. 12958: N/A 
TAGS: ECON EAGR EFIN ETRD NI
SUBJECT: NIGERIA: PROGRESS REPORT ON THE GLOBAL FOOD SECURITY 
RESPONSE 
 
REF: STATE 55304 
 
¶1. (U) The following is the progress report on the Global Food 
Security Response (GFSR) as requested by the reftel. 
 
¶2. (U) FY 09 Supplemental resources provided to Nigeria totaled $25 
million to implement urgent action in GFSR to increase the 
production of rice, sorghum, cowpea, and cassava in target sites in 
over 12 States throughout Nigeria.  Of this amount $23 million was 
obligated to Chemonics Inc., $1 million is for programming by the US 
Department of Agriculture Foreign Agriculture Service (FAS), and $1 
million is being used for program support and analysis.  Funds that 
were made available to USAID Nigeria in November 2008, were 
obligated in December 2008 and program activities have begun on the 
ground in over 12 states in Nigeria. 
 
OBLIGATION AND SUB-OBLIGATIONS (DETAILING NAMES OF 
CONTRACTORS AND GRANTEES) BY THE GFSR COMPONENTS 
--------------------------------------------- --- 
 
¶3. Of the $23 million obligated to Chemonics for the Maximizing 
Agricultural Revenue and Key Enterprises in Targeted Sites (MARKETS) 
program, $13.2 million is being used for subcontracts for 
international and local partners. The breakdown of these funds 
includes $3,902,635 for Nathan Associates and $85,556 for Booz Allen 
Hamilton for trade and transportation reforms. $1,981,271 for 
International Institute of Tropical Agriculture (IITA) for 
agriculture productivity in cassava; $2,248,564 for International 
Center for Soil Fertility and Agriculture Development (IFDC) and 
$1,884,837 for Winrock International for productivity; $2,000,000 
for International Food Policy Research Institute (IFPRI) for food 
policy reforms; $1,000,000 for International Crop Research Institute 
for Semi-Arid Tropics (ICRISAT) to expand the West African Seed 
Alliance (WASA) program; and $100,000 for Africa Rice Center 
(WARDA). 
 
ROGRESS BEING MADE ON THE TARGETS UNDER EACH 
COMPONENT OF THE GFSR 
--------------------------------------------- 
 
¶4. Progress has been made toward targets on all three components of 
the GFSR. Based on pre-planting and cropping activities implemented 
to date, USAID/Nigeria anticipates targets will be exceeded at 
harvest beginning the fourth quarter of FY 2009. 
 
¶5. Increasing Agricultural Productivity: USAID/MARKETS has 
contracted with IFDC, IITA, WASA, and WARDA to ensure adequate 
access to science and technology and increase productivity of 
sorghum, rice, cassava, and cowpea. Twelve agro processors have also 
been assisted; estimated gross revenue from these efforts are 
anticipated to exceed $100 million this year, and production will 
likely exceed 60 million metric tons (MT). 
 
¶6. Reduced Trade, Transport, and Supply Chain Bottlenecks: 
USAID/MARKETS has contracted with Booz Allen Hamilton and Nathan 
Associates to reduce transit times, transit costs, and link 50,000 
producers with improved processing and storage opportunities. 
Fast-Pass Analysis has been initiated and grain storage efforts are 
underway.  Commercial credit and smallholder financing to reduce 
supply chain bottlenecks is expected to exceed $30 million.  The US 
is in the lead of donors to support the new Government of Nigeria's 
Presidential customs reform initiative. 
 
¶7. Promoting Sound Market-Based Principles: USAID/MARKETS has 
partnered with IFPRI to support the CAADP roundtable, develop 
market-based agricultural policies, and provide fact-based policy 
briefs to Nigerian policy makers.  USAID/MARKETS has also contracted 
with IFDC to develop policies to facilitate market-based fertilizer 
supply. 
 
¶8. USDA conducted a needs assessment on Nigeria's national 
agricultural statistics system.  A training program and study tour 
is scheduled for July.  USDA will also be sending two technical 
experts within the next two months to develop a work program to 
assist with the development of sound agriculture and food regulatory 
policies for Nigeria.  This work will evaluate SPS regulatory 
policies and other government regulations effecting food security. 
 
 
PROGRESS BEING MADE ON THE ACTIONS BEING TAKEN TO 
DELIVER SERVICES FOR THIS CROPPING SEASON, E.G. SEED, 
FERTILIZER AND FINANCE 
--------------------------------------------- -------- 
 
¶9. USAID/MARKETS has signed agreements with private sector partners 
to facilitate increased production for 45,000 small holder farmers. 
 
In rice, for example, yield increases from 1.5 MT per hectare to 5.2 
MT per hectare are expected under these agreements based on previous 
year's performance.  Financing will also be provided through private 
banks for approximately 50% of these beneficiaries.  Signed 
agreements are also in place to provide 220,000 farmers with 
fertilizer under a voucher scheme this year. 
 
ACTIONS BEING TAKEN TO ADVANCE THE CAADP PROCESS 
--------------------------------------------- ---- 
 
¶10. USAID/MARKETS has partnered with IFPRI to support Nigeria in the 
CAADP.  Initial stakeholder meetings are anticipated in Q3 FY09. 
USDA is also providing support for Nigeria to participate in the 
CAADP process. 
 
ACTIONS BEING TAKEN AT POST TO COORDINATE USG 
ACTIONS BEING TAKEN BY ALL AGENCIES TO IMPROVE FOOD 
SECURITY 
--------------------------------------------- -------- 
 
¶11. The Mission has a whole-of-government approach to economic 
policy work and development.  Regular meetings on the process of 
implementation are held monthly to coordinate activities and to 
provide the situation update.  USAID and the Embassy Economic team, 
Foreign Agriculture Service, and Foreign Commercial Service in Abuja 
and Lagos coordinate closely on policy and implementation matters. 
Coordination is extensive between the USG and the key Government of 
Nigeria institutions such as Ministry of Agriculture and Water 
Resources, National Food Reserve Agency, the Ministry of Commerce 
and Industry, Ministry of Transportation, Ministry of Finance and 
the National Customs Service, National Export Promotion Council, the 
Nigerian Export Import Banks, and the Nigerian private sector and 
civil society.   This coordination is extended to other donors where 
USAID collaborates closely with the World Bank, the African 
Development Bank, the U.K. Department for International Development 
(DFID) amongst others. 
 
¶12. The Ambassador is also taking a leadership role in ensuring 
implementation through a series of nation wide workshops including 
under the Mission's Pilot Engagement with States (PES)Initiative, 
which highlights this program and the work under the GFSR?  In 
addition, she will be hosting a two day Agriculture event June 9-10 
in Lagos focused on the three areas of the GFSR, which includes all 
Mission elements (USAID, FAS, FCS) as well as EXIM, OPIC, and 
USTDA. 
 
¶13.  This report was coordinated with Consulate Lagos. 
 
SANDERS