NIGERIA: UTF/NIR/048 Rehabilitation of the Coconut Belt of Lagos State

Report of a Project Re-formulation Mission September 19 – 29, 2006 by

Brahim Kebe Crop Production and Pasture Officer, FAO/RAFA Accra, Ghana and

Anthony Youdeowei Consultant IPPM & Training Specialist, Abidjan Cote d’Ivoire & FAO/RAFA Accra Ghana

Accra, 1 October 2006

Background to the mission

Although the Lagos State/FAO UTF project, Rehabilitation of the Coconut Belt of Lagos State, was prepared for implementation since 2001, final administrative and financial arrangements were never concluded, even up till 2006, therefore project activities could not be initiated on schedule. Nevertheless, the Lagos State Government maintained interest in the project since the development of the coconut industry is considered a priority for the state. Since 2001 when the project was developed, significant changes have occurred in the cost of materials and services, as well as in project development concepts, therefore it is clear that the project could not be realistically implemented in its present form and a review of the project document is therefore strongly desirable.

At the request of the Lagos State Government to the FAO/RAF, a re-formulation mission was commissioned from 19 to 29 September to review the project document with partners at the Lagos State Government with a view to revise and update the project document in line with current costs and concepts.

The mission consisted of Brahim Kebe Crop Production and Pasture Officer, FAO/RAFA, Accra, Ghana and Anthony Youdeowei, Consultant IPPM & Training Specialist, Abidjan, Cote d’Ivoire and FAO/RAFA Accra, Ghana.

This report summarises the main outcome of the mission (see annex I for the itinerary) and includes an annex II of the revised UTF project document (excluding the budget tables, which are in Excel), prepared on return of the mission to Accra.

Itinerary and mission process

The mission team departed Accra to Lagos, Nigeria on 19 September and returned on Friday 29 September. In Nigeria, the mission held consultations with technical officers and very high officials of the Lagos State Government; the high government officials included the following:

• Mrs F M Oguntuase, Permanent Secretary Ministry of Economic Planning and Budget • Mr T O Raji, Permanent Secretary, Ministry of Agriculture • Mrs S T Adewunmi, Director Technical Aids, Ministry of Economic Planning and Budget • Mr J A B Sanuth, Director of Planning, Ministry of Agriculture & Cooperatives • A. M. Adepoju, Director of Agriculture, Ministry of Agriculture & Cooperatives • Engr. Layi Alaka, General Manager, Lagos State Coconut Development Authority

NIFOR, the Nigerian Institute for Oil Palm Research, which has national mandate for research on palms including coconuts, was well represented at the technical meetings to advise on research inputs into the project activities.

In addition to technical discussion and meetings, the mission undertook field visits to the coconut belt at Badagry, Ojo, Eti-Osa, Obadore, Magbon Begin, and Ibeju-Lekki. At Ojo, the mission was received by Ap. Solomon A. Akin-Aina, the Executive Chairman of the Ojo Local Government and later visited the main coconut market at Ojo. During the field visits, the mission examined the coconut plantations and discussed the production constraints with farmers.

After the field visits, the Lagos State Government set up a small technical working group to work with the mission to revise the UTF project document according to the decisions made at the technical meetings.

On the 26 of September, the mission proceeded to Abuja to brief the FAOR Mr Helder Muteia, on the discussions with the Lagos State Government and the field visits and to develop a follow up process for final approval of this project for implementation early in year 2007.

The opportunity of the meeting with the FAOR was taken to mention the concern of the Bayelsa State Government over the delay in the response of FAO to the UTF project developed in 2005. Furthermore, action by FAO on the Kano State UTF project formulated in 2005 is also awaited.

Major issues

1. Lagos State UTF Coconut Rehabilitation Project.

Following detailed review of the UTF project document, the following changes were agreed. • Project duration should be reduced to 10 years. • Project should be implemented in 2 phases, (i) preparatory phase from 2007 – 2012 and (ii) expansion phase from 2013 – 2017. • The project budget should be reduced to U$ 4 million envelope. • Project activities should be modified to incorporate the following major components: (i) Integrated Production and Pest Management, IPPM and training of extension agents and farmers (ii) Conservation Agriculture (iii) Crop Diversification (iv) Coconut enterprise development (v) Coconut Processing, Utilization and Marketing

The UTF project document will be revised by the working group and the FAO mission according to the decisions arrived at during the review meetings.

2. Further actions:

• FAO and the Lagos State Government working group will complete revision of the UTF project document by 10 October 2006. • The revised version of the UTF project document will be sent to the Lagos State Government and to FAO for approval latest by the end of October 2006 • Following approval, the Lagos State Government will include funding for the project in the 2007 budget which is being prepared. • FAO will prepare the UTF agreement for signature latest by November 2006, so that project implementation can commence early in 2007.

Acknowledgements

The mission is deeply grateful to the Lagos State Government for hospitality and outstanding collaboration with the mission and commitment to working with FAO in the implementation of this project.

Other matters

3. Bayelsa State UTF project.

The Government of Bayelsa State has already approved the UTF project and included funds in the 2006 budget for project implementation but further actions by FAO are anxiously awaited to initiate project activities. The Bayelsa State Ministry of Agriculture is deeply concerned that this delay by FAO will seriously jeopardise funding and implementation of this important project.

4. Kano State UTF Project

The FAOR will request FAO action on the Kano State UTF Project.

Documents consulted

1. Project Document UTF/NIR/048 Coconut Rehabilitation in Lagos State. Final Version 2 January 2001

2. Perspectives on Lagos Economy – A collection of presentations on aspects of Lagos State Economy (July 1999 – June 2004)

Annex I Mission Itinerary

Sunday 17 September depart Abidjan to Accra ( Youdeowei only )

Monday 18 September in Accra: preparation for mission

Tuesday 19 September depart Accra to Lagos

Wednesday 20 September meetings with officials Lagos State Government

Thursday 21 September field visit to coconut plantations in Badagry and Aivoji, Ojo

Friday 22 September field visit to coconut plantations & farmers at Epe, Obadore, Magbun Begin, Epe, Ibeju-Lekki.

Saturday 23 September development of field notes

Sunday 24 September development of field notes

Monday 25 September technical meetings with working group

Tuesday 26 September depart Lagos to Abuja. Meeting with FAOR

Wednesday 27 September depart Abuja to Lagos

Thursday 28 September de-briefing meetings with Lagos State Government Officials

Friday 29 September depart Lagos to Accra & preparation of mission report

Saturday 30 September in Accra – preparation of mission report

Sunday 1 October depart Accra to Abidjan ( Youdeowei only )

Annex II Revised UTF Project document

Final Revision (4) 30 September 2006

PROJECT DOCUMENT

Country: Nigeria

Title: Coconut Rehabilitation in Lagos State

Project number: UTF/NIR/048

Donor: The Lagos State Government in the Federal Republic of Nigeria

Donor Contribution: US$ 4.0 million

Implementing Lagos State Coconut Development Agency: Authority (LASCODA)

Executing Agency Food and Agriculture Organisation of the United Nations (FAO)

Estimated Starting Date: January 2007

Duration: 10 years

ACRONYMS

ADA Agricultural Development Authority ADP Agriculture Development Project CGA Coconut Growers Association CID Cooperative and Insurance Department of Ministry of Agric & Cooperatives DFFRI Directorate for Food, Roads and Rural Infrastructures FAO Food and Agriculture Organisation of the United Nations FDA Federal Department of Agriculture FMI Fund Management Institution FNT Forthnight Trainings GAP Good Agricultural Practices IPPM Integrated Production and Pest Management IWAT Improved West African Tall LAISA Lagos State Agricultural Inputs Supply Authority LASCODA Lagos State Coconut Development Authority LGA Local Government Area LSADA Lagos State Agricultural Development Authority M&E Monitoring and Evaluation MEPB Ministry of Economic Planning and Budget MOAC Ministry of Agriculture and Co-operatives MTR Mid-Term Review MTRM Monthly Technical Review Meeting NIFOR Nigerian Institute for Oil Palm Research PSC Project Servicing Cost RMRD Raw Materials and Research Department SPAT Small Plot Adoption Technique TAD Technical Aids Department of Ministry of Economic Planning & Budget TRM Technical Review Meetings UTF Unilateral Trust Fund WAT West African Tall

Exchange Rate: 1 US$ = N125

Project Description: i. Coconut is the major tree crop in Lagos State, Nigeria, providing income and livelihood for about 30,000 farming families. However, traditional cultivars and technologies with a few improved and hybrid cultivars are involved in its production, resulting in low output and income, and an indequate supply of raw materials to satisfy the growing local demands for coconut-based products. ii. The project is designed to increase coconut production through the rehabilitation of over 10,000 hectares of aged and low-yielding coconut plantations grown mainly by smallholders, within the Lagos State Coconut Belt stretching along 180 km of the Atlantic coast line. This requires the production and provision of planting material of improved cultivars, and inputs including fertiliser and pesticides, together with a micro-credit scheme to aid enterprise diversification. In addition, a logistics and capacity strengthening programme for LASCODA, nominated by the donor Lagos State Government, as the implementing agency, and a training programme would enable LSADA to provide extension and training services to coconut producers. FAO would be the executing agency for this Unilateral Trust Fund project.

iii. Commencing in 2007 and implemented in two phases over a ten (10) year period at a total cost of US$ 4million, the project would result in substantial improvements in farmers’ overall income, and increased supplies of food and coconut-based raw materials. Increased production of coconut and other crops will be promoted in the context of crop diversification and environmental protection of the coastal area. Production in excess of domestic requirements would be exported from Lagos State and, as a result the project will promote domestic, sub-regional, regional and international export trade and enterprises. This output conforms with current development policies of the Lagos State Government to address issues of poverty reduction and improved sustainable livelihoods of rural communities.

A. BACKGROUND

Coconut and Lagos State

1. Lagos State is the smallest in the Federal Republic of Nigeria, with a surface area of 3,577 km 2, representing only 0.4% of the country. Nevertheless, Lagos State accounts for about 90% of national production of coconuts and coconut products, for which it has a comparative advantage. Coconut is the state’s most important tree crop, providing income for some 30,000 farming families along the Atlantic coastline and riverine areas and, to a lesser extent, in some upland communities.

2. The so-called “Coconut Belt” of Lagos State is a continuation of the plantations or groves along the West African coast; running from Côte d’Ivoire and southwards through Ghana, Togo and Benin to Lagos State in Nigeria The belt continues in a 1 km wide strip along some 180 km of coastline, and across seven of the state’s 20 Local Government Areas (LGAs); Badagry, Ojo, Amuwo-Odofin, Apapa, Eti-Osa, Ibeju-Lekki and Epe. Badagry and Ojo LGAs in the west have the largest areas devoted to coconut, between them accounting for over 90% of the coconut area in Lagos State (Table 1). However, felling of the old groves most especially in the Eastern zone of the State for non-agricultural purposes had diminished the estimated total hecterage available.

3. Until the 1960s, coconut was grown along the entire coastline of Nigeria, from the border with Benin to Cameroon. Until that time, coconut products were exported, but neglect during the civil war of the late 1960s and the oil boom of the early 1970s further reduced production to satisfy only local use. Today, coconut is little grown along the coastline outside of Lagos State.

Table 1: Coconut area and production in Lagos State, 1995 1

Local Coconut No of Total no. Nuts per tree Percent Government area trees of trees per year State Area (‘000ha) per ha (‘000) prod’n Badagry 6.9 156 1,071 106 54 Ojo 5.7 156 885 93 39 Eti-Osa 0.5 191 72 83 3 Ibeju-Lekki 0.5 252 137 60 4 Epe 0.1 252 19 40 <1 Others <0.1 100 3 80 <1 Total 13.6 2,186 1 Derived from The Bench Mark Survey on Coconut Production, Lagos State, 1995.

Coconut Hectarage

4. A Benchmark survey conducted by the Lagos State Ministry of Agriculture and Co- operatives (MOAC) in 1995 estimated the total area of coconut in Lagos State at some 13,600 ha, containing about 2 million trees. Most of the coconuts are grown on traditional and family operated smallholdings; ranging in size from 0.5 to 1 ha. This figure had reduced to about 10,000 due to felling of the groves for non-agricultural uses of land mostly in the eastern zone of the State. Another survey would be able to provide a more accurate information on the current hectarage.

5. Recently established coconut plantations are often larger; up to 10 ha or more. These include co-operatively owned farms and institutional holdings; for example those at the NIFOR Research Sub-Station, Lagos State farm and that owned by Badagry Local Government.

Coconut production systems

6. Traditional system. Production in Lagos State is largely based on the tall, but low yielding cultivar known as West African Tall (WAT). With less than optimal plant population and minimal use of seasonal inputs such as fertiliser and organic manure, annual production seldom exceeds 80 nuts per tree. Moreover, and despite regular replacement of dead palms with new seedlings, many of the plantation trees are now more than 80 years old, and approaching the end of their economically viable life span. Nevertheless, the value of nuts harvested in Lagos State is estimated at over 1 billion Naira (US$10 million) each year.

7. Coconut seedlings are raised from nuts selected from high yielding mother trees, and maintained during germination in wet or damp areas of the farm, or in specially constructed wet beds. After 12 months, seedlings are planted out in the field, always during the rainy season and usually some 10m apart, particularly in Badagry LGA, although closer together in other areas, at some 4m apart. The WAT ecotype is late maturing and will bear little fruit until 7 years after planting. Harvesting is manual and throughout the year; generally on a quarterly basis.

8. The major pests constraining the sustainable production of coconuts include the coconut beetles, the leaf yellow disease, leaf spot, and termites which attack young coconuts and create problems during the establishment of young coconut plantations. Pest management practices are rudimentary involving hand picking of large beetles and spraying infected palms with kerosene. Integrated pest management practices have not been adopted in a coordinated manner and reliable data on crop losses attributable to these pests is not available. Furthermore, crop protection capacities of extension agents and farmers remain weak therefore successful pest management to significantly reduce crops losses is not achieved.

9. Improved technology. Several new cultivars have been introduced for the coastal areas including: an improved West African Tall (IWAT) obtained through mass selection of the WAT cultivar; Dwarf Green/Dwarf, Yellow/Dwarf Orange and several hybrids. These cultivars have been established in most of the newly established farms in preference to the WAT, and their yield is reported to be greater by a factor of almost two; up to about 150 nuts per tree each year. IWAT and hybrids are the most popular improved cultivars which bear fruit in 6 years or less after planting, and appears to have a greater tolerance to some pests and diseases than WAT. New plantations, mainly of improved cultivars, tend to utilise higher plant populations of 200 palms per ha and on a 7.5m triangular plant spacing that allows better utilisation of light and water resources. The hybrid available at NIFOR is sweeter, high yielding and Leaf Yellow Disease (LYD) tolerant.

10. The production of seedlings of improved cultivars and hybrids is an involved process and the multiplication rate for coconut is low. In the absence of commercially viable vegetative methods, mature mother trees must be manually pollinated with pollen harvested from the selected male parent. With hand-controlled pollination, yields seldom exceed 20 nuts per tree, which mature and are harvested one year after pollination.

11. Of these harvested nuts, and depending upon the level of care during the further one year in the nursery, only about two-thirds can be expected to produce seedlings of the required quality for field establishment. Thus a seed garden with 200 hand-pollinated mother trees per ha would give rise to only 3,000 seedlings some 2 years after pollination, and a similar number annually thereafter.

Production and utilisation practice

12. Establishment. On most family-owned smallholdings, land for new planting is prepared manually using cutlasses, axes and hoes, and subsequent cultivation is also by hand. On more commercial units however, especially those plantations established within the past 20 years, tractor-drawn equipment and implements are used for land preparation. Rarely is new or virgin land opened up by coastal farmers for coconut plantation; most is already cultivated.

Intercropping and grazing

13. During the first three years after land preparation for coconut seedling establishment, it is customary to grow cassava, cocoyam, melon, cowpea and pineapple until the shade effect makes annual cultivation impractical or economically not worthwhile. Thereafter, natural grasses are allowed to establish and the area under developing plantations are used for grazing cattle and small ruminants.

14. In circumstances of adequate soil fertility, seed of improved pasture grasses can be established under coconut palms, providing increased production of superior quality fodder for livestock utilisation. Such systems require additional management if swards/fields are

not to revert to local and less productive species, and good technical advice. In the absence of access to credit facilities, and despite an interest in livestock production, most smallholder growers do not have sufficient capital resources to invest in such profitable enterprises.

Utilisation and marketing

15. The majority of nuts produced are sold direct to the fresh market, with limited processing prior to sale. However, the sale of fresh nuts probably represents a relatively high value market outlet when compared, for example, with low value copra.

16. Of over 100 products that can be derived from the coconut palm, only 12 are known to Lagos State coconut users: these are coconut water, oil, toffee, gratté, broom, shuk-shuk, copra, wood, root, frond, shell and the husk itself. Nevertheless, Lagos is reported to represent one of the largest domestic markets for coconut products in Africa.

17. Although a flourishing export market apparently existed until the 1960s, coconut is currently not exported officially from Nigeria. Nevertheless, informal transportation of fresh nuts to states adjacent to Lagos State and neighbouring countries undoubtedly occurs. Other than the demand from the massive domestic market for coconut in southern Nigeria, there is no reason why the export of coconut products should not be viable in the future, should levels of production are substantially increased to provide surpluses to domestic consumption.

Promotion of coconut production and utilisation

18. In the early 1990s, the Government of Lagos State recognised the stagnation and shortfall in coconut production, and the potential in the coconut sub-sector for increased income generation as a crop for local processing, and also as a foreign exchange earner. As a result, The Bench Mark Survey on Coconut Production in Lagos State was conducted in 1995, to identify the problems responsible for this situation as well as possible solutions. Another survey would be necessary in 2007 to obtain more current information for project implementation.

19. The 1995 survey involved many agencies and institutions including: Nigerian Institute for Oil Palm Research (NIFOR); Raw Materials Research and Development Council (RMRDC); Lagos State MOAC; Agricultural Development Project (ADP); Ministry of Commerce, Industry and Tourism; Directorate for Food, Roads and Rural Infrastructures (DFRRI); Centre for Rural Development at Lagos State University (CERUD); and nine LGAs within Lagos State. A coordinating mechanism to ensure delivery of service would be developed at the Technical Department of LASCODA.

20. The major constraints identified by the survey as hindering the development of the coconut industry in Lagos State, included:

• advancing age of palms with declining levels of production; • minimal use of coconut production inputs; • inadequate rural infrastructure in coconut growing areas; • absence of policy and institutional support for coconut production; • poor utilisation of coconut products in Lagos State; and • absence of coconut plantation rehabilitation efforts.

21. Following the results of this survey, the Executive Council of Lagos State Government articulated the Lagos State Government Policy on Coconut Production. Subsequently in 1996 the establishment of the Lagos State Coconut Development Authority (LASCODA) was approved, so as to implement the policy, remove the constraints identified in the benchmark survey, and promote coconut production within the state. LASCODA commenced operations in 1998.

B. RELEVANT INSTITUTIONS

Ministry of Agriculture and Co-operatives (MOAC)

22. Responsible for support to smallholder agricultural activities throughout within the state, the Ministry of Agriculture and Co-operatives (MOAC) is responsible for several parastatal organisations involved in the coconut sub-sector. These include Lagos State Coconut Development Authority (LASCODA) responsible for coconut development, Lagos State Agricultural Development Authority (LSADA) with responsibilities for all extension activities in the agricultural sector and Lagos State Agricultural Inputs Supply Authority (LAISA) which procures and distributes agricultural inputs on behalf of the government.

23. The Ministry of Agriculture and Cooperatives has a Management meeting involving all Heads of its Department and Parastatals that meet monthly to review progress of all programmes being implemented. It also has a Monthly Progress Review meeting monthly that involves all Heads of Department and Parastatals, Heads of Divisions to review implementation progress. However, it would be necessary that a Board under the Chairmanship of the Permanent Secretary, with membership of relevant directors in the Ministry (5), Programme Manager of LSADA and LAISA, Representative of Ministry of Economic Planning and Budget, Finance, Rural Development, Commerce and Industry as well as CERUD. Federal Agencies on the Board would include Raw material Research and Development Council, FIIRO and NIFOR. The Board would meet at least four (4) times a year while LASCODA will serve as its secretariat.

24. The Planning Department of MOAC currently operates a micro-credit scheme for farmers generally. However, the specific needs of the coconut growers were rarely met because of the long gestation period the crop required. It might therefore be necessary to put in place a

25. Lagos State Coconut Development Authority: LASCODA established in 1996 is headed by a General Manager assisted by two Assistant General Managers, and with a staff of 22.

There are five departments: Technical Services; Industrial and Commercial Services; Planning, Research and Development; Administration and Personnel; and Finance. Each Department is expected to be headed by an Assistant General Manager and they will constitute the Management Committee of the Authority which shall see to the day to day running of the Authority.

26. LASCODA has established 4 hectare coconut seed gardens and 2 hectare nurseries for the production of seedlings of improved cultivars with high yielding or other beneficial characteristics. Although adequate space is available for the production of 360,000 coconut seedlings per year, LASCODA currently has resources for the production of only 60,000 seedlings per year. However, the mature parent trees within LASCODA’s seed gardens and, mother trees planted can be improved upon in a well coordinated coconut crossing programme to produce improved planting materials from 2007.

27. LASCODA operates 44 ha of old plantations at Gberefu out of which 20 ha are fully developed as commercial farm. A 1.0 hectare demonstration farm had been established at Mowo-Pota to assist in the training of farmers on improved production techniques. Two other demonstration farms would be established by the project. To-date, 136 farmers were trained on improved coconut development since 1998.

28. The efficiency of LASCODA suffers from several key operational constraints at the institutional level. The head office accommodation at Ikeja is not only distant from the main coconut producing areas, but has inadequate equipment, vehicles and space for effective staff operations. The zonal offices would be located in the coconut growing belt to move the Authority nearer to its beneficiaries preferably at Mowo and Temu, Epe.

29. Lagos State Agricultural Development Authority (LSADA): LSADA, previously the Agricultural Development Project, is the sole agency charged with sole responsibility for agricultural extension services in Lagos State, and also facilitates access to micro-credits for smallholders. Any agricultural project involving field extension would require the collaboration of LSADA. Currently LSADA with 105 Extension Agents operates a unified agricultural extension programme with 50 Extension Agents in the coconut growing belt of the state. LASCODA anticipates that LSADA would retain the trained extension personnel in the coconut growing belt of the State. LASCODA will support the extension services with material inputs and logistics for additional work by the extension officers.

30. Lagos State Agricultural Inputs Supply Authority (LAISA). Responsible for the procurement and distribution of production inputs in Lagos State, include seed and planting materials. LAISA would be involved in the procurement of Fertilizer, agro- chemical and equipment under this project.. LAISA has only two (2) farm Service Centres in the coconut growing belt with farmers expected to patronise them at this distant centres. LASCODA would ensure the availability of all inputs to the beneficiaries from whatever sources as near as possible and at affordable cost. Use of licensed distributors may also be considered to move the input nearer to the people.

31. The Cooperative and Insurance Department of the MOAC : The Department has the mandate for the registration and supervision of all groups as a cooperative society in the State. It shall among others be involved in the registration of the beneficiaries as societies, monitor their operation and audit their account annually to ensure their going-concern and sustainability.

Federal Ministry of Agriculture and Rural Development Department of Agriculture (FDA)

32. Plant Quarantine Services. The Federal Department of Agriculture (FDA) within the Federal Ministry of Agriculture and Rural Development, is the plant regulatory authority in Nigeria. FDA is responsible both for the regulation of the introduction and importation of plant materials into Nigeria, as well as plant quarantine services for the control of pests and diseases of national and international significance. Any coconut development programme intending to import plant materials, whether as pollen, seednuts or seedlings would require approval from Plant Quarantine Services.

33. Nigerian Institute for Oil Palm Research (NIFOR). NIFOR has the responsibility for all research on palms including coconut in Nigeria, and has implemented a breeding and maintenance programme to select cultivars more suitable for smallholder and plantation production, than the locally grown West African Tall ecotype. The collaboration of NIFOR would be essential for the supply of foundation planting materials for the production of improved coconut seedlings, as well as for the training of staff in coconut breeding, crossing techniques and other related fields on contract basis. LASCODA shall have the responsibility to ensure the supply of the seedlings from NIFOR and other sources in and outside Nigeria as and when needed.

34. Although there is a small coconut breeding programme at NIFOR’s headquarters at Benin City in Edo State, some 350 km to the south-east of Lagos, the main breeding centre is at Badagry, near LASCODA’s main seed garden and nursery. NIFOR now produces commercial quantities of improved planting materials.

35. Other initiatives. There are other programmes initiated by FGN, through the Federal Ministry of Agriculture and Rural Development, to provide a micro-credit to coconut farmers. The Presidential Initiative of Tree Crops Production also existed and coconut is also part of the trees of interest. This project would take advantage of such initiatives where possible to enhance its operation.

C. PROJECT RATIONALE AND STRATEGY

Rationale

36. Following the efforts of NIFOR and LASCODA, ten newly established plantations with over 15 hectares involving the use of improved coconut cultivars and seasonal inputs are

already in place. However, the majority of smallholder growers are not able to replace their existing plantations of West African Tall cultivars, established in the early 1900s and with a low and decreasing yield potential, despite the greater income potential of the improved cultivars. Spot rehabilitation of old trees is now being promoted by LASCODA with over 11,500 seedlings and 1,000 seed nuts of hybrid coconut.

37. The introduction of improved coconut varieties and other technologies is expected to raise the average annual coconut yield from 80 to 150 nuts per tree. A substantially improved net return per ha would result from the expected yield of some 30,000 nuts per ha under improved conditions, compared with the estimate of 15,000 nuts per ha under traditional management in the Lagos State coconut belt.

38. Lagos State Government and LASCODA are firmly of the view that smallholders would replace their established but poor yielding coconut trees with higher yielding and improved cultivars, provided access were made available to necessary resources. At the same time, there is a strong opinion that smallholders would be willing to invest in enterprises that would complement coconut growing, such as small ruminants utilising grazing underneath coconut. However, a majority of smallholders do not have the cash resources for either of these investments, and there is currently no access to micro-finance facilities to enable their participation.

39. Currently, seedlings of improved cultivars are commercially available in sufficient numbers but not at attractive prices. For widescale replanting to be realistic, LASCODA has presented a rationale for the sale of planting material at subsidised prices. It is believed that this would provide sufficient incentive to encourage the mass replacement of local tall cultivars by high quality planting material with greater yield potential than the local WAT.

40 The expected successful rehabilitation of the coconut plantations will require the acquisition of up-to-date knowledge and skills in the efficient management of crop pests and soil fertility in order to minimize the crop losses caused by pests and poor soils.

41. Fourteen (14) processors had been developed between 1998 and 2006 with possible increase to utilise the expected 10% annual increase in coconut production to be processed locally, thus providing opportunities for incremental employment. Other anticipated impacts of a rise in production would include:

• further employment opportunities in the rural areas following the promotion of cottage industries associated with coconut products;

• enhanced tourism opportunities in coastal areas from improvements to landscape and increased availability of coconut-based artefacts; and,

• increased and diversified sources of government revenue from duties and taxes on the anticipated export of coconut products.

42. It is the Lagos State Government’s considered judgement that not only would the use of improved planting material enhance productivity and falling incomes of mainly smallholder family producers of coconut, but would also increase the supply of coconut-based products into the market place. This in turn would create employment opportunities from the increased labour requirement for seasonal work on coconut farms and through processing of coconut products, thus contributing to a reduction in the rural-urban population drift. At the same time, it is anticipated that the restoration of plantations would contribute to the protection of the coastal environment of Lagos State through enhancing the vegetative cover.

Strategy

43. Lagos State Government seeks the rehabilitation of the coconut belt that stretches for some 180 km and a width of about 1 km along the coast from the border with the Republic of Benin to Ibeju-Lekki at the eastern boundary of Lagos State.

44. Recognising the need for a broad-based experience of smallholder coconut farming system development that is not available in Nigeria, FAO has been requested to act as executing agency for the project. FAO responsibility would be to provide technical assistance, promote quality control and the credibility of the programme to the international donor community and development agencies.

45. The project has been designed so that LASCODA, who have responsibility for coconut development in Lagos State, can provide and co-ordinate the provision of specific technical services to coconut farmers from the numerous Agencies. These services would be aimed at boosting both coconut production and the utilisation of that production to add value within the State. The Technical Department would have competent and well informed Subject Matter Specialists that would coordinate the services in addition to Seed garden maintenance, training and input quality control.

46. The strategy implemented would recognize the severe resource limitations of coconut farmers for direct investment in the rehabilitation of coconut farms, for supporting increased coconut production and the establishment of coconut enterprises. Components of the strategy will include: • Establishing efficient organizational and project management system, and technical support facility at LASCODA for coconut production, utilization, processing and marketing. • Facilitating farmer’ access to improved coconut and other crop/livestock production technologies. • Training in integrated production and pest management (IPPM) practices in the context of Good Agricultural Practices, GAP • Training in conservation agriculture for soil fertility management. • Strengthening the technical capacities of the extension services to effectively deliver coconut production extension • Training in crop diversification and crop/livestock integration production systems

• Strengthening the capacities of farmers and farmer organizations, as well as rural processors for effective utilization and marketing of coconuts and coconut products. • Encouraging farmers to engage in more diversified farming activities through easy access to micro-credits for the purchase of inputs such as improved planting materials, small ruminants, feeds and veterinary products and services. • Promoting farmer networking especially for information sharing and marketing and exploring new national and international market opportunities for coconuts and coconut products. • Promoting and facilitating the establishment of cottage coconut processing, utilization and marketing enterprises which will also promote tourism to Lagos State.

47. Coconut replacement programme. Seedlings of the Improved West African Tall (IWAT) in particular, and possibly certain dwarf hybrids, would be made available at a subsidised price in order to encourage widespread replacement of the local but low yielding WAT cultivar. The replanting programme would be supported by a well-resourced Extension Service from LSADA, trained in coconut establishment methods and production techniques and Subject Matter Specialist on LASCODA. Farmer-farmer extension services using Farmers Field School would also be used to ensure sustainability of the programme.

48. Coconut utilisation and processing. In order to add value to coconut production, interested farmers and local entrepreneurs would receive training in appropriate village level coconut processing technologies. The aim would be the better utilisation of all parts of the coconut, a broadening of the local market, and added value to boost local incomes

49. A micro-credit facility would be necessary to enable coconut smallholders to take advantage of the opportunities for enterprise diversification and the purchase of coconut seedlings for the rehabilitation of existing plantations. The credit which would be mostly in kind would attract 5- 10% interest rate to ensure its growth while the repayment would be into the Societies account for re-lending to other members of their community.

50. Farm diversification. The micro-credit facility would not only assist with seedling purchase, but also with costs associated with intercropping and diversification. The mix farming involving livestock, improved forage production and fish farming would be promoted among smallholders in the coverage area through the micro-credit. A credit Unit will be established under the Planning Department of the Authority to prepare appraisals, monitor repayment and adherence to the workplan.

D. DEVELOPMENT OBJECTIVES

51. The proposed project aims to support and facilitate rehabilitation of the coconut industry in Lagos State to: • improve the income generation capacity of coconut producers and the livelihoods of rural dwellers;

• increase the foreign exchange earning potential of Lagos State on the economy through export of coconut and coconut products as well as tourism; • improve the value addition to raw coconut through establishment of cottage industries; and • protect the coastal environment of the State.

E. PROJECT IMPLEMENTATION

52. A preparatory year 2007 is envisaged to put in place partnership agreements, capacity building and logistics for the implementation of the Project.

53 During the 10-year project period, some 2,000 hectare of coconut groves would be rehabilitated in the pilot phase and additional 8,000 ha of coconut plantations would be rehabilitated in the Expansion phase. The rehabilitation exercise involves the replacement of about 2 million trees. This rehabilitation is in accordance with State Government Policy on Coconut Production, and would be implemented in 2 distinct phases as follows:

• Phase I 2007 – 2012. Pilot phase: Preparatory, capacity strengthening of LASCODA organization and project management, rehabilitation of 2000 ha of coconuts, strengthening of extension technical support to coconut production and capacity strengthening of farmer organizations.

• Phase II 2013 – 2017. Expansion phase: Completion of rehabilitation process involving 8000 ha of coconuts, further strengthening of farmer’s organizations, consolidation of marketing mechanisms for coconuts/coconut products and coconut enterprises.

Immediate objectives, outputs and activities: Phase I Pilot Phase

54. Phase I: (Pilot Phase) preparation and capacity building, 2007-2012. LASCODA, as the direct project beneficiary, would raise its capacity and capability to deliver services to existing and potential coconut farmers. During Phase I, coconut farmers as target beneficiaries would receive technical training in preparation for future rehabilitation of plantations, and access to credit facilities for farm diversification. In addition,

55. Coconut Belt Rehabilitation: the nurseries and seed gardens established by LASCODA Phase I would be in production of an estimated 360,000 seedlings of the Improved West African Tall (and hybrids where suitable) would be distributed by 2012. Trained farmers, supported by a skilled LASCODA/LSADA extension service, would establish these improved planting materials into existing coconut lands, eventually replacing the local West African Tall cultivars.

Immediate objective1. Identification of project sites, participating farmers and farmer’s organizations and relevant stakeholders

Output 1.1 Project sites identified and demarcated, participating farmers and farmer’s organizations selected and awareness raised on project activities and expected benefits of the project. Stakeholders especially for coconut processing, marketing and enterprise promotion identified.

Activity 1.1.1 Design set of criteria for suitable project sites and the broad terms for participation of farmers and farmer’s organizations in the project. Undertake field visits to the entire coconut belt in Lagos State to identify and select potential project sites based on the approved selection criteria. Identify potential farmers and farmer’s organizations in each site and discuss acceptance of the terms of their participation in the project implementation .($ 3000)

Immediate objective 2. Strengthen the organizational and project management capacity of LASCODA.

Output 2 Organizational and project management capacity of LASCODA strengthened.

Activity 2.1.1 Conduct short-term training for LASCODA staff on organizational and project management systems. Arrange study tours for senior LASCODA staff to successful project management sites in African countries . ($5000)

Activity 2.1.2 Establish a Technical Support Unit at LASCODA and a mechanism to effectively coordinate technical support from service providers to coconut producers and stakeholders identified as project implementation partners. ($1500)

Immediate objective 3. Strengthening technical capacity for sustainable coconut and agricultural production in the coconut belt of Lagos State.

Output 3. Detailed document on current patterns of and socio-economic production, processing, utilization and marketing of coconuts and other crops, IPPM capacities, structure of farmer’s organizations and technical support to agricultural production in the coconut belt of Lagos State. Field Agricultural Extension agents (150) and Coconut Farmers (5500) trained in IPPM practices, Crop diversification and Conservation Agriculture.

Activity 3.1.1 Conduct a comprehensive diagnostic baseline study in the coconut belt of Lagos State to collect information on the following: • Coconut and other crops produced in the belt, the production practices adopted and other priority crops preferred by farmers. • The crop diversity, crop mixtures and sequence of crop plantings. Status of development of integrated farming in the coconut belt. • The major biotic and abiotic factors constraining agricultural production in the different locations. • The pest management practices adopted by coconut farmers and the relative levels of success achieved by the practices.

• The post-harvest practices adopted, the processing, utilization and marketing systems for coconut and other crops produced. • The economic returns of coconut production and the importance of crop/livestock integration systems adopted by farmers in the coconut belt of Lagos State; including the patterns of household income generation • The sources of technical information and extension support for crop and livestock production to farmers in the coconut belt. • The marketing systems adopted for coconut production. • The status of development of cottage enterprises/industries for coconuts and other crops cultivated in the coconut belt. • Existence of farmer groups and farmer’s organizations or farmers cooperatives and their organizational structures .($25,000)

Activity 3.1.2 Using the reports of the diagnostic baseline study, conduct a 10 day workshop to develop curricula for training of extension agents and farmer groups in integrated production and pest management/GAP, and conservation agriculture for soil fertility management. Obtain Modules prepared by FAO Accra on aspects of conservation agriculture as resource materials for group training . ($20,000)

Activity 3.1.3 Conduct group training courses, each for 2-3 weeks for (i) 150 field extension agents and (ii) 500 selected farmers groups of 25 persons in each training course in. • Integrated Production and Pest Management – principles and practice • Integrated Production and Pest Management in Vegetable production systems • Conservation Agriculture • Integrated Agricultural Production. These extension agents and farmers will become trainers to be used for training other farmers. ($55,000) Activity 3.1.4 Using the trainer extension agents and farmers as resource persons, conduct further field training 10 days each, for additional 5000 farmers in IPPM and Conservation agriculture. ($100,000)

Activity 3.1.5 Conduct a survey of trained farmers in the coconut belt on the adoption of IPPM practices and Conservation agriculture and evaluate the farmer’s performance in agricultural production. ($2000)

Immediate Objective 4 : LASCODA’s capacity developed to produce up to 450,000 good quality coconut seedlings of improved cultivars by 2012

Output 4.1: 360,000 field-ready seedlings per annum produced from 2012.

Activity 4.1.1: Expansion of the existing 20 ha seed garden to 50 ha and in several locations, so as to maintain 7,500 mother trees, each producing 60-100 viable seed nuts or 45 to75 coconut seedlings per year. MOAC, on behalf of LASCODA, would ensure adequate number of staff to maintain the seed gardens, and further skilled personnel to undertake the hand-pollination process ;

Activity 4.1.2: Expansion of the existing 2.0 ha LASCODA coconut nursery to 5 ha in several locations, and in total capable of holding some 500,000 seedlings at any one time. This area will allow germination of selected nuts from the seed garden, and growing out at 0.6m triangular spacing for about 1 year until planting out. Nurseries would be expanded further as demand increases. As with seed gardens, staff and workers in the nursery would be recruited by MOAC on behalf of LASCODA;

Activity 4.1.3: Procurement by LASCODA in collaboration with NIFOR and with the approval of FDA’s Plant Quarantine Service procure selected seednuts, sprouted nuts and seedlings from internal and external sources as may be found expedient. This planting material will be used to establish the mother tree seed gardens expanded in Activity 4.1.1 above;

Activity 4.1.4: Procurement by LASCODA of production inputs such as fertiliser, pesticides, small tools etc. for use in the seed gardens and nurseries.

Activity 4.1.5: Establishment of farm infrastructure to provide irrigation water for 2 nurseries (one each in west and east of Lagos State) totalling 5 ha, using sprinkler or preferably drip systems. LASCODA to design irrigation system with assistance from MOAC and/or FDA, and subsequently to procure equipment and employ contractors for system installation.

Activity 4.1.6: Initiation of annual production of 360,000 seedlings of improved cultivars, using purchased pollens on maturing mother trees in LASCODA seed gardens (from year 2012);

Activity 4.1.7: Distribution and sale by LASCODA of about 360,000 coconut seedlings each year, and at subsidised price (from year 2012).

Immediate Objective 5 : Skills and potential of LASCODA, Technical Aids(MEPB) staff and LSADA Extension Agents improved for the effective delivery of necessary services to support coconut growers in plantation rehabilitation and enterprise diversification.

Output 5.1: Increased staff and Extension Agents’ capabilities in quality technical service delivery.

Activity 5.1.1: Undertake study tours and exchanges of experience with coconut institutions in relevant countries for LASCODA, LSADA and Technical Aids (MEPB) staff. (20 staff for 5 years);

Activity 5.1.2: Organise technical workshops for LSADA Extension Agents and LASCODA staff held at LASCODA/LSADA centres and facilitated by

LASCODA Agricultural Officers, NIFOR Officers as well as private sector service providers as the need arises.

Activity 5.1.3: In-house training of 50 (may be increased in future) Extension Agents in technical aspects of coconut production and processing by LASCODA Agricultural Officers, NIFOR Officers as well as private sector service provider as situation demands.

Activity 5.1.4: Ten (10)In-house training of extension staff to support the livestock forage development programme that will run in parallel with the Micro-Credit Fund for the purchase of small ruminants

Activity 5.1.5: Organisation of specialised short duration courses for relevant staff of LASCODA, LSADA at NIFOR coconut sub-station at Badagry or any other relevant Institutions in and out side Nigeria (10 Trainings).

Immediate Objective 6 :Farmers at least 5,000, supported by LASCODA and LSADA to acquire the technical capability in establishment and production from improved coconut planting material and forage development.

Output 6.1: Increased awareness of improved coconut production technologies and farm diversification opportunities by 5,000 farm families.

Activity 6.1.1: Create awareness amongst farmers by LASCODA/LSADA staff of the value and benefits of high yielding varieties (IWAT and various hybrids) and improved agronomic techniques involving plant spacing, manuring, and disease and pest management, through Demonstrations and Field Days at LASCODA and on- farm demonstration plots (1,000 participants per year from 2008);

Activity 6.1.2: Acquaint farmers with the benefits of rehabilitating plantations of ageing and relatively unproductive trees, through LASCODA-organised Demonstrations and Field Days;

Activity 6.1.3: In collaboration with relevant Institutes LASCODA to conduct a minimum of one (1) on-farm adaptive research trial each year based on improved coconut production technologies, and with farmers’ participation (Each trial would be replicated in each affected Local Government Area every year);

Activity 6.1.4: Conduct 20 Training of farmers periodically in 2 groups facilitated by LASCODA/LSADA staff, one group of 9 farmers (Badagry: 4, Ojo: 3, Amuwo- Odofin: 2) and the other group of 8 farmers (Apapa: 2, Eti-Osa: 2, Ibeju-Lekki: 2, Epe: 2) in all aspects of production and processing annually.

Activity 6.1.5:Conduct 12 Trainings for women processors in groups of 7 based on one woman processor per Local Government Area per annum. Training given by

LASCODA, following instruction and training by consultants previously taken by staff;

Activity 6.1.6: Organisation of farmer-to-farmer visits by LASCODA/LSADA for the exchange of first hand and practical experiences in plantation rehabilitation and farm diversification, with 20 visits each year from 2008;

Activity 6.1.7: Establishment and operation by LASCODA of 2 Demonstration Centres for coconut utilisation techniques at a strategic location, such as Badagry and Oko-Oba, Agege, for training purposes by 2008;

Output 6.2: Some 20 F armer organisations developed to facilitate access to financial, marketing and other services.

Activity 6.2.1: Organisation by LASCODA/LSADA staff, with assistance from staff of the Co-operative Department of MOAC, of farmers in each of the 7 Local Government Areas into about 20 Coconut Growers Associations (CGA) at village level (from 2001);

Output 6.3: All coconut growers provided with access to credit sources, through the CGA, for the purchase of improved coconut planting materials, as well as the initiation of diversified enterprises.

Activity 6.3.1: Identification and, following approval by the Steering Group/Board (see below), appointment of one or more experienced Fund Management Institutions (FMI) based in Lagos State, for the widescale operation of a micro-credit facility for coconut producers by LASCODA (2008);

Activity 6.3.2: Creation of awareness by LASCODA/LSADA of the opportunities for farm intensification and diversification by coconut producers through the micro-credit scheme (2007-2009);

Activity 6.3.3: Operation of the micro-credit scheme from July 2008 by selected FMI(s) for the purchase of livestock for integration with coconut production, forage plant materials for intercropping and improved coconut planting material; and

Activity 6.3.4: In parallel with the micro-credit scheme, provision of advice to smallholders from LASCODA/LSADA Extension Agents with training in livestock management and the establishment of improved forage using forage seeds and planting materials. Links with veterinarian support also provided.

Immediate Objective 7 : To design, undertake and maintain an inventory and progress of existing farm land in the Coconut Belt of Lagos State.

Output 7.1: Completed inventory available to LASCODA of actual and potential coconut plantations and developments thereafter. Activity 7.1.1: Systematic and precise measurement of farm land in the Coconut Belt by LASCODA enumerators annually; and

Activity 7.1.2: Up-dating of the existing coconut belt map by LASCODA enumerators annually.

Output 7.2: Database and evaluated information available to LASCODA management of up-to-date coconut production statistics. Activity 7.2.1: Establishment of a database on coconut production in the Belt including: number of farms; cropped area; farm families; production; location; and sales. Data to be collected and evaluated by LASCODA enumerator team under the Planning Department from year 2007.

Activity 7.2.3: Development by LASCODA, in co-operation with the Monitoring and Evaluation Unit of MOAC and the Parastatal Monitoring Unit, of a simple physical database of project inputs and outputs, for use in day-to-day project management (2001), and its subsequent operation.

Immediate Objective 8 : The creation of an appropriate administrative environment for the implementation of the Coconut Rehabilitation Project by LASCODA.

Output 8.1: Appropriate project administration and management structure established.

Activity 8.1.1: Formation of project Steering Committee chaired by the Permanent Secretary of MOAC, and General Manager, LASCODA as Secretary in 2007. Membership is as defined in item 22 above.

Activity 8.1.2: Presentation by LASCODA of reports, Mid-Term Reviews and evaluations as stated in the Project Agreement to the Board and other Agencies;

Output 8.2: Appropriate infrastructural facilities developed for effective operation of LASCODA.

Activity 8.2.1: Renovation by local builders under contract with LASCODA, of 2 existing office buildings and 2 stores at Mowo/Pota and 1 office building at Ilogbo in Badagry LGA; for use by West Zone officers of LASCODA/LSADA ( 2008);

Activity 8.2.2: Construction under contract with LASCODA, and in consultation with Lagos State Ministry of Works, of 1 office building at Gberefu Sea Beach plantation and 1 office building at Temu seed garden; for use by East Zone officers of LASCODA/LSADA (2008);

Activity 8.2.3: Construction under contract with LASCODA, and in consultation with Lagos State Ministry of Works, of 1 training hall at Mowo/Pota and 1 training hall at Temu,Epe for producers’ training in West and East Zones respectively (2008);

Activity 8.2.4: Construction under contract with LASCODA, and in consultation with Lagos State Ministry of Works, of LASCODA’s headquarters office complex at Ojo or renovation of existing head Office (2008);

Output 8.3: Logistic support provided to facilitate the achievement of LASCODA’s mandate and project objectives. Activity 8.3.1: Purchase of vehicles for use by LASCODA and LSADA staff: 2 Four Wheel Drive Jeeps (2008, 2013) 4 Double Cabin (4x4) (2008, 2013) 2 Mini-bus (18 seater Bus) (2008, 2013) 2 Flat bed lorries (15T) (2008, 2013) 2 Tractor with implements (2008, 2013) 2 Fibre Glass Outboard Boat with Engine (2008, 2013)

Output 8.4: Office and field equipment provided to enable high efficiency of service delivery to coconut growers.

Activity 8.4.1: Purchase by LASCODA/FAO of office and communication equipment as listed in Cost tables.

PHASE II: Expansion Phase: Coconut Belt Rehabilitation: 2013-2018

56. During this final phase, the rehabilitation of the coconut belt would be completed, replacing local cultivars with improved West African Tall and hybrids where suitable.

Immediate Objective 1 : A further 1.5 million improved and quality coconut seedlings produced by LASCODA and established by smallholders, completing the rehabilitation of the coconut belt.

Output 1.1: Some 8,000 ha of improved coconut cultivars established by smallholders and other plantation owners (2013-2017).

Activity 1.1.1: Production and distribution by LASCODA/LAISA of 375,000 seedlings of improved varieties per year (2013-2017);

Activity 1.1.2: Continued intensification of extension activities by LASCODA/LSADA as detailed in Phase I;

Activity 1.1.3: Procurement by LASCODA of relevant production inputs such as fertiliser, pesticides, small tools etc., and of pollen from selected male strains for use in its seed gardens and nurseries;.

Activity 1.1.4: Gradual removal by coconut farmers of old WAT coconut palms as newly established and interplanted seedlings develop and fruit (from 2014).

Immediate Objective 2 : Farmers continue to acquire the technical capability in establishment and production from improved coconut planting material and diversified enterprises.

Output 2.1: Farmer organisations supported to facilitate access to financial, marketing and other services.

Activity 2.1.1: Continued support by LASCODA/LSADA staff, with assistance from staff of the Co-operative Department of MOAC, of farmers in each of the 20 Coconut Growers Associations (CGA) at village level (from 2013);

Output 2.2 : Coconut growers with access to credit sources for the purchase of improved coconut planting materials, as well as the initiation of diversified enterprises.

Activity 2.2.1: Continued creation of awareness by LASCODA/LSADA of the opportunities for farm intensification and diversification by coconut producers through the micro-credit scheme (from 2012);

Activity 2.2.2: Operation of the micro-credit scheme by selected FMI(s) for the purchase of livestock for crop integration as well as forage production, intercropping plant materials and, improved coconut planting material etc. (from 2012);

Activity 2.2.3: In parallel with the micro-credit scheme, provision of advice from LASCODA/MOAC/LSADA Extension Agents with training in livestock management and forage production techniques.

Immediate Objective 3 : Coconut production statistics collected and evaluated To continue the collection and evaluation of coconut production statistics from the Coconut Belt of Lagos State.

Output 3.1: Database available to LASCODA of up-to-date coconut production statistics. Activity 3.1.1: Maintenance of the database on coconut production in the Belt including: number of farms;, cropped area;, farm families;, production;, location;, and sales, etc.

Immediate Objective 4 : The maintenance of an appropriate administrative environment maintained for the implementation by LASCODA of the Coconut Rehabilitation Project.

Output 4.1: Appropriate project administration and management structure maintained.

Activity 4.1.1: Maintenance by LASCODA, in co-operation with the Monitoring and Evaluation Unit of MOAC and the Parastatal Monitoring Unit, of a simple physical database for use in day-to-day project management decision making;

Activity 4.1.2: Presentation by LASCODA of reports, Mid-Term Reviews and evaluations as stated in the Project Agreement ;

F. ORGANISATION AND MANAGEMENT Executing Agency

56. Unilateral Trust Fund. The Lagos State Government through the Federal Government of Nigeria has requested assistance from the Food and Agriculture Organisation of the United Nations (FAO) for the establishment of a Unilateral Trust Fund (UTF). This partnership with FAO would provide the essential broad-based experience of smallholder coconut farming systems that is currently lacking, as well as assurance of quality control and the credibility of the programme to the international donor community and development agencies. The UTF would provide sufficient resources for technical backstopping and support by FAO for the achievement of project objectives, as well as a Project Servicing Cost (PSC). In the context of this project, the PSC includes 7% of total costs of Equipment and Supplies, this cost being in excess of 40% of total project costs, and 13% on all other budget components.

57. FAO, Executing Agency. FAO would be the Executing Agency of the project with responsibilities and those of the Government articulated and detailed in the UTF Agreement. Fund management and disbursement as well as specific procurements would be the responsibilities of FAO. FAO would also assist the Steering Group/Board in the identification of international consultants that may be required by the project; after convincing itself that such service cannot be performed by locally recruited personnel. In addition, local consultants will be hired and necessary Terms of Consultation prepared.

58. Short-term credit facility. LASCODA and, by request FAO, would select and recommend for approval by the Steering Group, one or more reputable Lagos State-based Fund Management Institutions (FMI) to operate the micro-credit scheme under a tripartite agreement. This facility would enable smallholders to diversify into complementary enterprises, such as small ruminant production. Funds for credit distribution to smallholders would be made available to the FMI from the UTF budget. However, the selected FMI would take responsibility for credit distribution according to established criteria as well as future collection of repayments from smallholder recipients against agreed payment schedules.

59. Training and study tours. When appropriate and requested, FAO would assist with the provision of location and placement of relevant staff for training, visit and study tours outside Nigeria.

Project Implementation

60. LASCODA. The sole implementing agency for this project would be the Lagos State Coconut Development Authority (LASCODA), a parastatal organisation of the Lagos State Ministry of Agriculture and Co-operatives. The Lagos State Government would retain overall responsibility for the project, and payment to FAO as project executing agency would derive from Lagos State Government. It is anticipated that the Honourable Commissioners for Economic Planning and Budget and or Finance, Lagos State would be the signatory to the Unilateral Trust Fund (UTF) agreement with FAO, on behalf of the Lagos State Government.

61. Support and incentives for LASCODA staff would continue to be provided through the annual budgetary recurrent expenditure of LASCODA. Additional allowances for project related activities would be available to LASCODA staff from the same source.

62. Steering Group/Board. Day-to-day management of the project would be the responsibility of the General Manager of LASCODA, reporting to a Steering Group chaired by the Permanent Secretary of MOAC, with membership representing those institutions involved in project implementation, including: Ministry of Agriculture and Co-operatives; Ministry of Economic Planning and Budget; Parastatals Monitoring Office; Lagos State Agriculture Development Authority; NIFOR; representative of LGAs in the Coconut Belt (2) and FAO. Other members include Directors of Agric Services, Agric Planning, Cooperatives and General Manager, LAISA. LASCODA would provide the secretariat for the Steering Group.

63. Production of improved seedlings. The development of efficiently-operated and appropriate seed gardens and nurseries would be of vital importance to project outcome, as the supply of vigorous, quality planting material of known potential for production, would be essential in gaining and maintaining farmer credibility. Although operated by LASCODA, these facilities would draw heavily upon the experience and skills of NIFOR staff, both for the techniques and training required in such a large-scale palm breeding programme, as well as for the day-to-day management of these units.

64. LASCODA seed gardens and nurseries would be expanded from 20 ha to 50 ha and 2.0 to 5 ha respectively. Staffs operating the current facilities are employed by Lagos State Government. It is anticipated that, as the area of seed garden and nursery expands, the additional staff required will be redeployed from MOAC. Similarly, skilled and unskilled casual workers would be remunerated from a separate monthly subvention to LASCODA.

65. Sale of improved seedlings. LASCODA would be responsible for the distribution and sale of improved coconut seedlings to smallholders, usually for cash, at the subsidised rate.

66. Technical support. The Lagos State Government has indicated that national experts from government institutions would be made available, to the extent possible, to assist the project. In the absence of further indications on the availability of these national experts

financed by the Lagos State Government, details of the precise specialisations of consultants, both national and international, would await project implementation.

67. National technical assistance would be required for a range of programmes, likely to include the role of Women in Coconut Development Programmes and how to ensure the full participation of women farmers and entrepreneurs in the development programme. The cost tables show some 300 workdays of local consultancy over the project period, not including involvement with the Mid-Term Reviews.

68. International support would be required in situations where appropriate local consultants are not available; FAO would provide advice to LASCODA on the selection of suitable candidates. Short inputs to provide up-to-date technical guidance in Coconut Nursery Management during the period, and a Coconut Processing specialist are likely requirements. Support from a Marketing and Rural Finance consultant for the selection of the micro-finance institution, and its operation would also be necessary. Terms of reference are presented in Appendix 1. Other international expertise would be procured as required; examples might include expertise in the new FAO processing technology for long shelf-life coconut water.

69. FAO backstopping support from a team of technical expertise would also be required throughout the project period. FAO would provide short inputs of general backstopping support in the specialisations of Tree Crop Production and Crop Protection and a TCDC IPPM Consultant. FAO participation in the Mid-Term Review (see below) in 2013, would involve the Crop Production specialist.

Collaborating agencies

70. Although LASCODA field staff would be devoted full-time to the project, the collaboration of key agencies would be essential. Of particular importance would be NIFOR (coconut breeding and sources of improved planting materials), MOAC and LSADA (Extension Services), LAISA (supply of seasonal inputs) and the Plant Quarantine Services of the Federal Department of Agriculture. These institutions would be invited to be represented on the project Steering Committee.

71.. Additional co-operation would be sought with Direction de la Recherche Agronomique, at Sèmè on the border between Lagos State and the Republic of Benin, and Direction de la Recherche Agronomique in Abidjan; Côte d’Ivoire is one of the most advanced countries in the world in the agronomy of coconut and a potential location for study tours and staff training in the region. Similarly, close relations would be promoted between LASCODA and Ghana’s on-going Coconut Sector Development Project, as well as coconut development programmes in Tanzania and Mozambique and the Coconut Development Authority in Sri-Lanka.

G. RISKS

72. The routine and regular commitment of funds to operate the project is an essential pre- requisite for effective project implementation. Untimely release of funds on the part of the donor Lagos State, would be a major risk to the fulfilment of project objectives. However, in the event of funding delays, a reduction in the scale of the rehabilitation programme would enable activities to continue, until such time as agreed fund flows recommenced.

73. Inevitably, bearing in mind future economic change, there is a risk that the enthusiasm and commitment of smallholder coconut producers for rehabilitation has been overestimated, and that growers would not be willing to replace some or all of their traditional cultivars. The project design, based on two Phases of five years each, would allow an extended period of demonstration and extension in the first phase and the implementation of rehabilitation in the second phase. Thus, routine M&E would highlight any lack of physical progress, and the Steering Group /Board would determine whether the project should proceed to the next subsequent phase.

74. Although every effort has been made by LASCODA in conjunction with FAO to establish the needs and priorities of this project, there is inevitably a degree of uncertainty of the precise future annual budget requirements, particularly in a project of such long duration. To reduce the level of uncertainty over future financial requirements, a budget review would be undertaken by the Executing Agency and Implementing Agency at end of first year.

H. PRIOR OBLIGATIONS AND PRE-REQUISITES

75. Pre-condition for FAO assistance. The Lagos State Government would be required to take necessary steps to guarantee and ensure, to the extent possible, a continuity of trained extension staff for coconut development activities, through MOAC and LSADA for the duration of the programme.

76. Incremental staff required for seed garden and nursery management, coconut and livestock extension, data enumerators and vehicle drivers have not been costed in the project. It is assumed by LASCODA that these and other similar costs would be the responsibility of the Lagos State Government through the annual budgetary subvention to LASCODA. In addition, it is anticipated by LASCODA, that Lagos State Government will assume responsibility for incremental costs due to inflation, as part of annual budgetary allocation.

77. The project document would be signed by FAO as Executing Agency, and by the Honourable Commissioner for Economic Planning and Budget/Finance Lagos State. FAO assistance to the project would be provided only if the prior obligations stipulated above have been met to FAO’s satisfaction.

I. PROJECT MONITORING, REPORTING AND EVALUATION

Reporting on project activities

78. As Chief Executive of the project implementing agency, the General Manager of LASCODA would be ultimately responsible for all reports to Government and FAO, as indicated in the UTF agreement. General progress and achievements would be documented in biannual progress reports to the Steering Group which would: • compare actual implementation of activities to those planned; • identify problems and constraints in implementation (technical, socio-economic and financial), together with options and proposals for corrective measures; and • prepare a detail the workplan for the following reporting period.

79. Progress Reports would be prepared by LASCODA in accordance with the procedures of FAO, and submitted to Lagos State Government as donor, and to FAO (Headquarters, Regional Office and FAO Permanent Representation in Nigeria) as executing agency.

Project monitoring

80. LASCODA monitoring. An important aspect of the development of this highly focused project would be the early establishment of a practical and simple Monitoring and Evaluation (M&E) programme, in order to quantify the impact of the project, both as an aid to day-to-day management and for final evaluation purposes. Routine internal monitoring of the project activities would be the responsibility of the Planning Department of LASCODA, and externally by the Parastatals Monitoring Office within the Lagos State Governor’s Office.

81 LASCODA’s Zonal Officers would have specific responsibility for the day-to-day monitoring of project activities and their impact, although guidance on the monitoring process would be provided by the M&E Unit within MOAC. Production and productivity indicators would include:

• areas of seed gardens/nurseries established; • number of mother trees pollinated per year, seed nuts germinated and quality seedlings produced; • numbers of seedlings sold and area of improved ecotypes established; • coconut crop yields, with and without project; • quantity of credit distributed, number of recipients, purpose of loan, number and type of stock purchased, level of repayment.

82. FAO monitoring support. FAO would provide monitoring support in several ways:

• attendance at quarterly Steering Committee meetings, represented by either technical support officers from FAO, Rome or, more usually, by FAO technical representation from the regional or national level; • scheduled back-stopping missions involving annual project review by FAO technical staff or consultants, Lagos State MOAC and staff from the Parastatals Monitoring Office. These reviews would provide the basis for subsequent re-orientation of the project, if necessary.

Project evaluation

83. The two phases of the project would be evaluated as separate exercises, each with a Mid- Term Review (MTR) based on project six-monthly and annual reports as well as field visits would be undertaken by a consultant team comprising an agricultural economist and coconut production specialist. MTR would be programmed for Phase I in 2010 and for the expansion phase in 2015.

84. Similarly, end-of-phase evaluation would be undertaken by a tripartite team consisting of FAO, Government and appropriate consultants at the conclusion of each phase of the project. These reviews are important to determine whether strategic changes of direction are required, and would be initiated three months before the conclusion of Phases I. This would allow time for the findings to be evaluated and any recommendations for changes in project implementation approved by the Steering Committee.

J. PROJECT COSTS

85. Total project costs over the 15-year project period, are estimated at $5 million; with Phase I accounting for $3.3 million (65%), and Phase II for $1.1 million (21%). Details of cost estimates are presented in the attached Cost Tables 1-5, and exclude import duties and taxes.

86. The 10-year project period necessitated by the low multiplication rate of coconut raises issues of cost inflation. The costings presented are based on current 2006 prices and take no account of future inflation. It is anticipated by LASCODA, that Lagos State Government will assume responsibility for incremental costs due to inflation, as part of annual budgetary allocation.

87. LASCODA similarly makes the assumption that the salaries and allowances of incremental staff employed to achieve project objectives, would be the responsibility of Lagos State Government. This would include staff involved in nursery development, coconut and livestock extension services, as well as drivers and miscellaneous staff.

88. It is considered prudent that the Executing Agency in conjunction with Lagos State Government and LASCODA, would review the project and the proposed budget at the end

of 2008. This would enable LASCODA to provide confirmation of the appropriateness of the proposed budget or, if this is not the case, to present an alternative and more viable proposal for the consideration and approval of the Steering Committee.

89. Similarly, and in consideration of the long project duration, there will be a need to determine the level of inflationary budget pressure in later years and to determine the implications for project funding support. An appropriate time to undertake this analysis would be the Mid-Term Review in Phase I, anticipated for 2010.

APPENDIX I

Terms of Reference: International Technical Support

1. CROP PRODUCTION OFFICER: BACKSTOPPING

Role: The AGPC/RAF Regional Officer will, in collaboration with the FAOR Nigeria and the General Manager, LASCODA, and under the operational supervision of the Chief RAFR, periodically undertake field missions planned or requested by LASCODA General Manager during the implementation of the project, including the Mid-Term Reviews.

Input: Regular short-term inputs over the 10 year project period, equivalent to an average of 20 days per year.

Duties: With inputs coinciding with meetings of the Project Steering Committee, the Officer will : • visit project location to assess progress of program implementation; • take note of constraints for further action; • provide advice on crop production technology, particularly coconut seedling production; • assess level of crop and livestock integration; • avail the project management of the latest findings on coconut production; • meet and discuss with coconut producers, as part of the Mid-Term Review.

2. CROP PROTECTION OFFICER: BACKSTOPPING

Role: The AGPP/RAF Regional Officer will, in collaboration with the FAO Representation in Nigeria and the General Manager, LASCODA, and under the operational supervision of the chief, RAFR, periodically undertake field missions planned or requested by LASCODA General Manager during the implementation of the project.

Input: Regular short-term inputs over the 10 year project period, equivalent to an average of 20 days per year. Duties: Especially, the Officer will : • visit the nurseries and seed gardens for pests and disease identification, management advice and control measures; • visit the Coconut Belt and provide guidance to extension workers on pests and diseases management and control • suggest measures for strict plant movement regulation;

• advise on the comprehensive diagnostic baseline study and curriculum workshop including participation in the group training activities for extension staff and farmers • advise on IPPM (Integrated Production and Pest Management) training and extension

3. TECHNICAL ADVISOR: TCDC CONSULTANT – Retired Expert

Role : Under the overall supervision of the Global IPM Facility AGPP/FAO Rome and in consultation with the Crop Protection Officer at RAFA and in collaboration with the FAOR-Nigeria , the Technical Advisor will undertake periodic missions to Lagos State to provide technical advice and supervision to project implementation.

Input: Technical contributions to organization and management of diagnostic baseline survey, and training of extension agents and farmers in IPPM and overall project implementation.

Duties: - provide technical advice and inputs to the overall implementation of the project. - facilitate the Curriculum development and training planning workshop and provide technical inputs. - visit all the IPPM training sites to provide technical advice on management and delivery of training. - work with a local Non-Formal education consultant to prepare training materials on non-formal education for IPPM - prepare and submit an end-of-assignment report describing the major activities, findings and recommendations for review by RAFA

Qualifications and experience : Postgraduate degree in agricultural or related sciences with specialization in Plant Protection. Proven practical experience of over 15 years in tropical plant protection research and development together with West African experience in planning and implementing IPPM Training of Trainers and Farmers Field Schools. Competence and experience in the writing and production of Plant Protection and IPPM Field Guides will be an advantage.

4. MARKETING AND RURAL F INANCE SPECIALIST

Role: In collaboration with the FAO Representation in Nigeria and the General Manager of LASCODA and under the operational supervision of the chief RAFR, and the technical supervision of AGSM, the consultant will be responsible for technical support to the micro-credit programme for coconut smallholders.

Input: Regular short-term inputs over the 10 year project period, equivalent to an average of 10 days per year.

Duties: Especially, the Officer will :

• with LASCODA staff undertake a survey of existing Fund Management Institutions in Lagos State; • identify three (3) top performing FMIs and recommend one or more to LASCODA and FAO for selection and appointment; • prepare the draft tripartite agreement between LASCODA, FAO and the selected FMI(s); • submit mission report to the General Manager, LASCODA and FAO; • pay follow-up visits on a regular basis to assess the implementation of the micro-credit scheme mechanism.

5 LONG-SHELF-LIFE COCONUT WATER PROCESSING SPECIALIST

Role: To provide technical training support to LASCODA staff and to village and family groups in the implementation of this new low cost process.

Input: Several short-term inputs during Phase I from FAO (AGSI).

Duties: The specialist will : • provide LASCODA with detailed information for the purchase and import of the equipment and materials required for coconut water processing; • together with LASCODA staff, identify suitable village groups and entrepreneurs for whom this process will be attractive; • provide training and follow-up support to LASCODA and selected trainees; • facilitate production by local craftsmen of the simple and cheap processor that can be operated by single families, and arrange for appropriate training. END