VZCZCXYZ0009
PP RUEHWEB

DE RUEHUJA #2141/01 3291133
ZNR UUUUU ZZH (CCY ADE0550C MSI5219-695)
P 251133Z NOV 09
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 7587
INFO RUEHOS/AMCONSUL LAGOS 2370
RUEHLO/AMEMBASSY LONDON 0630
RHMFISS/HQ USAFRICOM STUTTGART GE
RUEHZO/AFRICAN UNION COLLECTIVE
RUEHZK/ECOWAS COLLECTIVE
RHEHNSC/NSC WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEKDIA/DIA WASHDC
RUCLRFA/USDA WASHINGTON DC
RHMFISS/HQ USEUCOM VAIHINGEN GE

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