FOOD SECURITY & LIVELIHOODS MARKET ASSESSMENT REPORT OCTOBER, 2017

PROTECTING AND PROMOTING THE FOOD AND NUTRITION SECURITY IN , PHASE II, NORTH- EASTERN YOBE STATE, NIGERIA LGA MARKET ASSESSMENT REPORT M&E UNIT, YOBE

FUNDED BY:

ACKNOWLEDGEMENT

This Market Assessment is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of Action Against Hunger and do not necessarily reflect the views of USAID of the United States Government.

Statement on Copyright © Action Against Hunger Unless otherwise indicated, reproduction is authorized on condition that the source is credited. If reproduction or use of texts and visual materials (sound, images, software, etc.) is subject to prior authorization, such authorization will render null and void the above-mentioned general authorization and will clearly indicate any restrictions on use.

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TABLE OF CONTENTS

Acknowledgement ...... ii Table of Contents ...... iii 1. Executive Summary ...... 1 2. Introduction ...... 2 3. Objectives ...... 3 4. Methodology ...... 3 5. Results ...... 4 5.1 Market Associations Legal Status ...... 4

5.2 Vendor Categories ...... 4

5.3 Trade ...... 6

5.4 Markets ...... 9

5.5 Infrastructure ...... 10

6. Conclusions ...... 11 7. Annexes ...... 12

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1. EXECUTIVE SUMMARY

Gujba Local Government Area is one of the areas affected by the on-going conflict between the Nigerian Armed Forces and Non-State Armed Groups that has brought about dire humanitarian crises. Furthermore, the area has been classified by cadre harmonise in Phase 3. The food and nutrition security situation was at critical level. The aim of the Food For Peace project being implemented is to increase the short-term purchasing power of vulnerable households in Gujba and LGAs to meet immediate food needs and increase dietary diversity through providing six months cash transfer. The cash-based transfers in Gujba LGA is complemented by a market strengthening intervention where by Action Against Hunger is working to improve the capacity of relevant market actors. The Market association assessment was carried out in Gujba (53,169 Pop), Goniri (34,315 Pop), Wagir and Katarko (11,240 Pop) and Buniyadi (65,386 Pop) wards of Gujba LGA. One of the basic prerequisite for the market strengthening activity is the identification of existing associations however, it was discovered that there were no existing formal associations in these communities. Consequently, the identified shop owners were grouped according to their nature of businesses like groceries shops, butcheries and so on. Data analysis reflects that there is no formal or organized market associations but there are unregistered private associations, organized informally by local independent shop keepers in all three targeted wards. In total, 11 community markets were assessed in three targeted wards (Mutai has 7 communities, Goniri has one major community for shop keepers and Gotala Gotumba ward has three identified communities with shops). Identified key shopkeepers are grouped according to their types of business. One important finding in the assessment was that there are no female shopkeepers currently, and there were none pre-crisis. While all the identified shopkeepers have pre crisis and post crisis experience, all communities in Gujba LGA were displaced during the conflict and have returned and restarted their businesses. In terms of trade, groceries, pharmacies, chemical and butcher shops are all available in these communities with the volume of trade showing a reduction in post crises when compared to pre- crisis period. This is because the demand has reduced drastically, linked to the lack of means of livelihoods and reduced income amongst the returnees. The source of goods in all the three wards of Mutai, Goniri and Gotala Gotumba during the pre-crisis period was from regional and state markets while the current sources of supply by all these shop keepers is at the local community level within the ward. Shop owners of Goniri communities access the main Goniri market for supplies on Wednesdays, Gotala Gotumba shop owners access Buniyadi main market on Fridays and Mutai shop owners get their supplies from Wagir main market that operates on Tuesdays. The supply is therefore irregular as the major markets operate once in a week and in case of high demand for input and services from the communities by the inhabitants of such communities, the local shop owners would not have any means of satisfying the needs until the next major market day. There are many identified needs for these markets in the wards of Goniri, Gotala Gotumba and Wagir as explained by the shop owners which includes capital for business investment and access to good roads. In terms of mechanism to improve access to goods and services, investment is being intensified in farming and animal rearing, supporting one another with credit facilities as it relates to payment for goods and services purchased in major markets of Goniri, Buniyadi and Wagir. Many barriers or challenges are being faced by these local shop owners in these local markets which has significant influence on the viability and functionality of their market operations. Road access,

Action Against Hunger Nigeria | Gujba LGA Market Assessment Report 1 price increase, lack of customers with purchasing power, government policy on restriction of certain goods and services and lack of capital for businesses are the major barriers to the businesses. Grouping of unregistered private associations among the existing shop owners in the communities was considered as a welcome development that would have positive impact on the businesses and functionality of the operators within the markets. At time of grouping, they were all willing for grouping the private associations in large scope. Among the expected roles of the market association in the communities when formulated includes fees collection (small monthly contributions by each member for communal welfare), price stabilization, coordination among shop owners, registration of new members, assisting members in terms of borrowing and credit facilities for members. Inputs and services with high demands varies across the local markets. In Mutai ward, local rice, groundnut oil, flour, salt, ginger, tea items, maize and soya beans are the major items with high demand. Maize, rice, sorghum, millet, flour and groundnut oil are majorly demanded in Goniri communities. While maize, rice, beans, flour, soya beans, sorghum, millet groundnut and salt and majorly demanded in Gotala Gotumba ward. The shop owners confirmed that they deal in items that are majorly demanded by the customers within the communities. Price determination in the markets is determined through cost analysis as explained by the shop owners by comparing the cost of purchases from major dealers in the main market and cost of transportation to determine the margin. Marketing process for the input and services is an indirect method that involves middlemen which serves as intermediaries between the producers and the shop owners in the community shops. Transportation from the local communities to the main markets is considered as one of the biggest challenges that erodes the importance and impacts of having access to all the needed commodities by the community members. Finally, the shop owners explained their understanding of business concept of buying and selling to make profit but do not have knowledge on the standardized accounting principles which makes them to request for capacity building training or record keeping and usage of invoices.

2. INTRODUCTION

Action Against Hunger is implementing a cash transfer program in selected wards of Gujba and Fune LGAs to increase purchasing power to meet immediate food needs, increase dietary diversity, and support the restoration of livelihoods among the vulnerable households. Markets system in Gujba selected wards is highly distorted due to the negative effects of the conflict. The monthly cash transfer activity will be implemented targeted Gujba LGA to targeting 6,000 HHs. Each household is entitled to receive 25,000 NGN per month to fulfil their immediate food needs. This cash-based transfer activity is complemented by market strengthening activity in Gujba LGA. Main relevant market actors will be considered for this activity that provides inputs such as seeds and food commodities. Support in marketing will be provided to the identification of associations or networks that provide vulnerable beneficiaries the required services. In the first phase, a General Market Assessment was conducted in Gujba LGA focusing on different markets including Goniri market, Katarko Market, Gujba Market, Wagir Market and Buniyadi Market. In the second phase, a Market Association Assessment was conducted for functional markets as once in a week in different wards of Gujba LGA. Then in the third phase, local community markets were targeted to reach to local shop owners who are functional in the local community. This report is now focusing on local market association assessment. This assessment focuses on presence of different market associations at local community level, trade trends, food products availability, current challenges and market value chain system and business knowledge.

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3. OBJECTIVES

The general objective of this assessment is to understand the value chain system of local market associations. Specific objectives of this assessment are:

• To identify different local community market associations • To know the local trends of trade and products availability • To understand access to suppliers and current challenges facing by traders • To analyse business patrons, infrastructure and shop owners business knowledge

4. METHODOLOGY

Market assessment for local traders within the communities was conducted through 9 key informant interviews at community shops levels. The shop owners within the communities were interviewed both individually and as a group based on their kind of businesses. Many types of businesses were identified through the shop owners across the communities of Goniri, Gotala Gotumba and Mutai wards. The details of KII participants are as follows:

Community Level Key Informant Interview Participants Details Market Name Ward # of KII Total # of Business Type Number participants (Participants) of shop in KII owners on location Nasarawa Mutai 1 16 8 Grocery (7), Butcher (1) Market Labba Kuka Mutai 1 16 14 Grocery (7), Tea Seller (3), Market Butcher (1), Pharmacy (3) Daddawel Mutai 1 21 15 Grocery (8), Tea Seller (2), Market Butcher (2), Pharmacy (3) Dabalam Mutai 1 18 18 Grocery (6), Tea Seller (4), Market Butcher (4), Pharmacy (4) Bukkel Mutai 1 23 15 Grocery (8), Tea Seller (3), Market Butcher (1), Pharmacy (3) Mutai Market Mutai 1 14 14 Grocery (9), Tea Seller (2), Pharmacy (3) Nynkire Mutai 1 14 13 Grocery (9), Tea Seller (2), Market Butcher (1), Pharmacy (1) Gotala Gotala 1 6 6 Grocery (3), Pharmacy (3) Gotumba Gotumba Market Goneri Market Goneri 1 40 20 Grocery (10), Tea Seller (4), Butcher (4), Pharmacy (2) Total 3 9 168 123 Grocery (67), Tea Seller (20), Butcher (14), Pharmacy (22) In Mutai ward, the communities visited were Bukel, Mutai town, Labba Kuka, Dabbalam, Nyakire, Nasarawa and Deddewel for shop owners which ranges from groceries sellers, butcheries,

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pharmacists, tea and grains sellers. Goniri community has shop owners that operate within the local market and throughout the week. While in Gotala Gotumba ward, Boferi community, Gotumba and Gotala communities shop owners were interviewed through a structured questionnaire.

5. RESULTS

5.1 Market Associations Legal Status During the assessment, all the identified shop owners in the three wards of Goniri, Mutai and Gotala Gotumba reported that they do not have a formal or registered association in their various communities and local markets. The shop owners are independent but have formed informal/unregistered private associations. This finding shows that during project implementation different unregistered private associations should be be categorized in same groups having similar trade e.g. food traders, vegetable traders, and livestock traders.

5.2 Vendor Categories As mentioned above that there are unregistered private associations’ existence in all communities of Mutai, Goniri and Gotala Gotumba wards of Gujba LGA. However, all the shop owners operate on their own accord without any legal restrictions from any associations that could regulate their activities. However, below table shows different vendor categories working in local community markets of Mutai ward in Gujba LGA as:

Table 1: Local Market vendors by Category in Mutai ward

Communi # Vendors per Category Vendors Working experience community (# of months) Men Women Pre-crisis Post-crisis Bukkel Groceries 13 0 48 months 13 months pharmacies 6 0 36 months 14 months

Tea seller 3 0 20 months 15 months 23 Butcher 1 0 58 months 14 months Mutai Groceries 9 0 48 months 12 months pharmacies 3 0 36 months 12 months

Tea seller 2 0 24 months 14 months 14 Labba kuk Groceries 9 0 36 months 16 months pharmacies 3 0 48 months 15 months

Tea seller 3 0 24 months 12 months Chemical 2 0 34 months 12 months 18 Butcher 1 0 34 months 12 months Dabalam Groceries 6 0 58 months 17 months Tea seller 4 0 48 months 14 months

Butcher 4 0 37 months 15 months 17 pharmacies 3 0 24 months 13 months Nyakire Groceries 9 0 44 months 15 months Tea seller 2 0 18 months 10 months

Pharmacies 2 0 28 months 12 months

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Butcher 1 0 24 months 13 months 14 Nasarawa Groceries 7 0 30 months 12 months Pharmacies 4 0 24 months 14 months

Butcher 3 0 28 months 12 months 16 Tea seller 2 0 24 months 13 months Daddawel Groceries 8 0 35 months 14 months pharmacies 6 0 24 months 12 months

Tea seller 4 0 28 months 12 months Butcher 3 0 21 months 12 months Grains 2 0 38 months 17 months Ladies fashion 2 0 26 months 14 months 26 Chemicals 1 0 18 months 11 months Total 128 128 0 Average 32.7 Average 13.2 Mo Months

In Mutai ward, 7 different communities were targeted for assessment with 128 shop owners; (48%) are groceries shop owners followed by 27 (21%) Pharmacy shop owners, 20 (16%) tea sellers, 13 (10%) Butchers, 3 (2%) chemical shop owners, 2 (1.5%) women’s garment seller and 2 (1.5%) grain seller. The Table above shows that first priority should be given to groceries, tea sellers, Butcher and grain shop owner category. These shop owners business contribute to food security in local markets where the current cash transfer program is being implemented. Second priority can be given to Pharmacies, chemicals (pesticides for farming) and women’s garment shop owners as beneficiaries also spend a portion of cash transfer on health and other social activities. There are currently no women vendors in Mutai. All these shop owners have an experience of pre and post crises situation with an objective to contribute in local market.

Table 2: Local Market vendors by category in Goniri ward

Association Members Working experience (# of months) community Category Men Women Pre-crises Post-crises

Groceries 23 0 60 months 16 months

Butcher 10 0 48 months 16 months

Goniri Tea seller 7 0 30 months 13 months

Pharmacies 3 0 24 months 12 months

Chemicals 2 0 20 months 13 months

Total 45 0 Average 36.4 Average 11.6

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months months

The above table shows that out of the total 45 shop owners, 23 (51%) of traders are in groceries category followed by 10 (22%) butcher shop owners, 7 (16%) tea sellers, 3 (7%) pharmacies and 2 (4%) are chemical shop keepers. It is also advisable that the first priority needs to be given to Groceries, butchers, and tea seller whereas pharmacies shop owners can be targeted on second priority. There are no female shop owners in Goniri markets. The shop owners assessed have an experience of pre and post crisis situation with an objective to contribute in local market. Transporters association has 40 members with 33 years pre-crisis experience and 24 months post crisis experience. Lastly, fishermen association have 40 members with 25 years pre-crisis experience and 24 months post crisis experience

Table 3: Local Market vendors by category in Gotala/ Gotumba ward

Association Working experience (# of Members months) Community Category Men Women Pre-crises Post-crises

Groceries 4 0 36 months 12 months

Boferi Tea seller 2 0 24 months 11 months

Pharmacies 1 0 32 months 12 months

Groceries 5 0 48 months 14 months Gotumba Tea seller 2 0 24 months 12 months

Groceries 3 0 36 months 12 months Gatala Pharmacies 3 0 24 months 11 months

Total 20 0 Average 32 Average 12 months months

Above table shows that 12 (60%) traders are groceries followed by 4 (20%) are tea sellers and 4 (20%) are pharmacies. First priority needs to be given to Groceries, butcheries and tea seller whereas pharmacies shop owners can be targeted on second priority. There are no female shop keepers in Gotala/ Gotumba market.

5.3 Trade a. Primary source of goods

Table 5: Primary source of goods Ward Primary Source of good supplier - Location of Location of supplier - Post- Distance to community Market supplier - Pre crises

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crises Goniri ward Goniri main market (functional on eacRegional Now at local (ward) level Wednesday) – within 1 km distance as and State its same community and market level Mutai ward Wagir market (functional on each Regional Now at local (ward) level Tuesday) –Min 2 KM & Max 50 KM and State level Gotala/ Gotumba Buniyadi market (functional on each Regional Now at local (ward) level ward Friday) – 20 KM to 90 KM, Goniri and State market (functional on each level Wednesday) – 4 KM to 20 KM and Wagir main Markets (functional on each Tuesday) – 30 KM to 70 KM

In post crises, the primary suppliers to these local shop owners varied from one community to the other. For Goniri local market operators within the community, the source of supply is the Goniri main market that is operated on every Wednesday of the week while Gotala Gotumba community shop owners get their supplies from Buniyadi, Goniri and Wagir markets and Mutai shop owners within the communities get their supplies from Wagir market that is operated on Tuesdays of every week. However, pre-crisis sources of supply for all the markets was regional and state levels while the post crisis is local from all the main ward markets of Buniyadi, Goniri and Mutai wards. Pre- crisis, shop owners were able to get their supply from the source or a central warehouse at state or regional level, rather than go to another local, albeit larger, market and where there are smaller quantities available at higher prices. While previously they could buy in larger quantities at lower price and now have to buy at another local market and are dependent on the competition for demand from community in those locations. The major reason of change in pattern from state/ regional markets to ward markets level are because of less capital with the shop owners. In pre crises, they have established business in which they invested enough capital but due to crises, the business is affected and capital is lost. So in post crises, all shop owners re-established their business with limited capital relying on ward level markets.

b. Irregularity affected in supply goods Irregularities in supply of goods often affect the local markets and shops within the communities of Goniri, Gotala Gotumba and Mutai wards. The main markets as a major sources of supply, operates once in a week. Unavailability of any food items or commodities simply means the items would not be available in the local shops within communities. This often makes the demand of the local community members not to be met by these available shops. Also to be noted as the capacity and level of demand for commodities in these local markets by the community dwellers due to high poverty level even if the supplies are readily available in the local shops.

c. Markets sell inputs/ services Assessment reflects that all major inputs and services are being sold at the local market level. Only a very limited number of community members travelled to other larger markets, e.g. in , for additional purchasing. All the village shops and community markets sell their commodities to the local community members. It should be noted however that, these shops owners in the local communities get their supplies from the major markets across the LGA and they sell within the communities.

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d. Access to supplies products and immediate needs Limited product stock is available in almost all the local markets with a small quantities of different products. Major reason is that their main sources of supply to the communities is through the weekly markets across the LGA which are functional once in a week. Another reason is that the mode of the business is debt/balance method as they give the products on credit from the suppliers to the shop owners. Due to local security protocols, there is need for security clearance to visit certain communities, such as Gotumba. The military requires that any vendor moving with bulk items needs to be cleared by the check point military before entered in area.

Shop owners also shared their immediate needs is the capital in terms of investment in their business because many traders lost their capital as a result of crises. Another major need is access to good roads to transport the products from the main markets to the local markets. In some areas, road accessibility also creates commodities scarcity especially in from Mutai to Daddawel, Nasarawa, Dabalam the road is just too bad and nearly inaccessible during raining season time.

e. Mechanism to improve goods access Currently different mechanisms are being used by traders to improve goods access in terms of productivity, capital and access to major markets. Regarding productivity, traders also started investment in farming and animal rearing in order to increase the productivity at local level. Due to lack of capital, they are also supporting each other by giving items on credit for sale which are always reimbursed at later stage. To access to markets, they also purchased items from other vendors in other main and major markets.

f. Main constraints placed upon trade business Major constraints faced for trade business are as follows:

• Lack of patronage from members of the community due to poverty • Lack of capital by shop owners for expansion in case of increase in demand • High cost of commodities/continuous increase in price in major markets due to exchange rate and seasonality of some of the agricultural produce.

g. Barriers/ challenges currently facing in trade/ business

Currently, all shop owners are facing different challenges as: • Lack of good road to transport the goods from major market to the communities • Price increase • Lack of buyers/customers • Government policies on restrictions through check points because of insecurity • Lack of capital for business expansion.

h. Availability of financial resources Current financial resources are not sufficient for the businesses across all the communities in order to scale-up or properly functionalize the business. Majority of liquid cash is used to feed family members in daily life. There is no other support from any humanitarian organization or support from government. Main livelihood activities were fully affected during crises which are

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not restored in proper manners. Currently no financial institution or services are available to get benefit for properly operating the business.

i. Volume of current business Across all the local markets in Goniri, Gotala Gotumba and Mutai wards, all the traders confirmed that their volume of businesses is lower than pre-crisis, having different reasons. Main reason is lack of financial support to increase the business as was in pre-crisis situation. Another reason is Low patronage from the community members due to their purchasing power as of poverty.

j. Creation of trade associations’ impact on the market In Goniri markets within the communities, all the shop owners attested to expected positive impact to having an association that would control all the affairs and promotes mutual understanding between the members. In Mutai ward, the shop owners do not understand the importance of having an association as they have been doing their personal businesses for years without any association but would be happy if such association can be formed. In Gotala Gotumba, the shop owners have positive hope as to the impact of having the association within the communities but call for proper organization and fairness to all the members.

k. Additional roles of the trade associations Table 6: Additional role of trader association Ward Role Mutai 1. Collection of fees 2. Representing the association with government 3. Having regular meetings Gotala Gotumba 1. Price fixing 2. Coordination of the shop owners

Goniri 1. Registration of new members 2. Protection of members from any challenge 3. Assisting the members in terms of borrowing money 4. Selling of items on credit to association members in terms of need

All the shop owners in the three wards of Mutai, Goniri and Gotala Gotumba have different understanding of the additional roles of the trade association when it is formed. All these markets do not have existing associations that regulates the activities of all the members but the shops are been operated independently by all the owners.

5.4 Markets a. High demand kinds of input/services in markets For all the local shops in the three wards of Goniri, Gotala Gotumba and Mutai, the inputs and services that are highly demanded by the customers of the local communities are mentioned in below table. There is great similarity in these demand across the locations. For example, there is demand for rice (Both local and Foreign), Soya beans, Flour, Beans, Wheat flour and Groundnut oil in all the local markets.

Ward Input/ service in high demand

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Mutai Local rice, groundnut oil, flour, salt, Ginger, tea items, Maize, soya beans Goniri Maize, rice(Local and Foreign) beans, soya beans, sorghum, millet, Groundnut oil, Flour Gotala Gotumba Maize, rice, beans, Flour, soya beans, sorghum, millet, Groundnut oil, Salt,

Local traders and shop owners confirmed that the input and services they render meet the market demand and needs of their immediate customers. They explained that what informed their decision to venture into the businesses within the communities was as a result of the identified needs.

b. Primary weakness of inputs/services in trade In response to the primary weakness of inputs or services that the local traders engage themselves in, all the shop owners shared that high prices and unreliable supply are the primary weaknesses of input and services in trade. Also, lack of patronage was considered as another weakness. A further probe to the local traders on the reason for high price and unreliable supply was attributed to the cost of transportation and weekly market functionality. For example, Goniri main market operates on Wednesday, Wagir market that serves Mutai ward operates on Tuesday and Buniyadi market that serves Gotala Gotumba functions on Fridays.

c. Marketing process of inputs/services Findings revealed that the marketing process in which the local traders and shop owners of Goniri, Mutai and Gotala Gotumba wards trade is through middlemen that serves as intermediaries between the retailers and the final consumers.

d. Commodities Price Determine Considering the determination of prices for inputs and services in all the local markets, it was discovered that despite the lack of any organization body, or any market associations, prices are determined through cost analysis by comparing the buying cost from the major marketers and other cost variables to determine the final price. Also, some traders within the communities set their prices lower than others in order to attract customers for competitive reason. All the local shop owners also shared that their prices are competitive in the market place. One reason is that most of the vendors are local who knows local price trends.

5.5 Infrastructure a. Transportation services Mode of transporting inputs and services is through dedicated transportation within the communities and it is similar across the communities of Mutai, Goniri and Gotala Gotumba wards. The local shop owners confirmed that, there are local transporters within the communities that aid the transportation and movement of people, goods and services to the main markets of Mutai, Goniri and Buniyadi on the market days. They used mostly pickups for goods transportation and the cost is calculated on basis of goods weight carried to particular location with respect to distance covered; for example 50 KG bag of rice from Wagir to Mutai ward is charged as 300 NGN and 50 KG bag of rice from Gotala Gotumba ward to Goniri ward is charged by 200 NGN. The current transportation system is not grossly adequate in all the local communities as there could be only one vehicle to transport people in a day. Therefore, inability of anyone to meet up with the departure time of such vehicle leads to total loss of the movement.

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b. Main obstacles of trading Data shows the demographic distribution of the main obstacles that affects the trade in inputs and services across the communities of Goniri, Gotala Gotumba and Mutai wards. It shows that, difficulties in accessing commercial transportation to the main markets is one of the biggest challenges, poor road condition is another obstacle and lack of enough capital for business inhibits their trading in inputs and services. In addition, they are not facing any particular difficulties in selling inputs/ services to small farmers or any other customers.

c. Sufficient Knowledge As regards the knowledge of running businesses like accounting and management, the local shop owners confirmed their rudimentary knowledge of business and accounting. They know how to buy and sell and calculate their profits after all deductions like cost of transportation and other logistics. Although, they do not have any standard way of doing the accounting and business management. But in terms of capacity building training, their major interest is in record keeping and usage of invoices. In addition, all targeted shop owners shared that more supportive legislation will help the products more successfully at national market in terms of focusing on general infrastructure and food & animal safety and health.

d. Policies/ practices affecting ability of selling the products Two wards (Mutai and Gotala Gotomba ward) shopkeeper shared that there are no formal policy or products that affect their sell ratio except Goniri ward shop owners who shared that in post crisis situation, they are restricted from selling the products in bulk meaning each individual is supposed to do purchasing in small quantity (e.g in Modu or number of Kgs) instead of purchasing whole 50 kg of rice/ sorghum bag except at individual level depending on special occasion or social events, Restriction is applied by security bodies in order of suspecting support to wards AoGs.

6. CONCLUSIONS

It was observed that in Goniri, Mutai and Gotala Gotumba wards of Gujba LGA, there is no existing association in the local communities across board. There are shop owners and owners in all the communities of the three intervening wards who operate their businesses without any formal association that regulates their activities as members. These set of traders within the communities usually buy their wares from main markets of Buniyadi, Wagir and Goniri which are operational on weekly basis.

Challenges faced by traders as they go about their businesses include bad road conditions which makes it difficult to reach some villages that depend on the supply from markets assessed, lack of capital for business expansion and lack of good transportation for easy movements

Recommendations

Now in activity implementation, unregistered private shop owners identified having similar type of business, will be grouped. Similar type of shop owners will be grouped within particular community market. Business plan will be prepared for each group and financial assistance will be given them as a group with taking each shop keeper details. All the shop owners’ details will be uploaded on RedRose platform and cash assistance will also be provided through using RedRose platform.

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Along with the financial assistance, all shop owner will also be advocate to formulate associations at local level which will be beneficial for their future.

One day business training will also be conducted by exploring external trainer. Advocacy on restricted movement can be done at state level.

7. ANNEXES

Market Association Survey

Interviewer ______Date ______

BIOGRAPHICAL INFORMATION Association: ______Address: ______Village/ Community:______Ward: ______LGA: ______

1. Legal Status of Association • Un registered Private • Registered Private • Government • Other: ______

2: Category of Association, List any other business the association does in addition to core business Suppliers Category Current Association Working experience (# of Months) Members Men Women Pre-crises Post-crises

TRADE 3. In what products do you trade and in what quantities per month? List all that apply.

Product Quantity (Pre-Crises) Quantity (Post-Crises)

4.Who is the primary goods supplier to members? Where is their source of supply?

Supplier Source of supply (State, Regional, National, International) Pre-Crises Post crises

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Small household farms Large farms Markets Importers Small Manufacturer Large Manufacturer Other 5. Is your business often affected by irregularity in the supply of goods? • yes, supply is very irregular and much lower than my capacity to trade • yes, supply is irregular but in line with my capabilities to trade • no, supply is regular but consistently lower than my capacity to trade • no, supply is regular and in line with my capabilities to trade • other: ______

6. To which markets do you sell inputs/services? • Village/ community market • Ward market • District market • LGA Market • State Market • Other______

ACCESS TO SUPPLIES PRODUCTS 7. Do you have easy access to products (inputs) in which to trade? Please explain. Yes / No

8. Do you have specific needs for trade? Please explain. Yes / No

MECHANISMS 9. What do you do to improve your access to goods (inputs) in which to trade? Please explain. ______

______

10. If you do nothing, what could be done? Please explain. ______

______

11. What are the main constraints placed upon your trade business? Please explain.

______

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______

12. What are the barriers/challenges that you are currently facing in your trade/business? List all challenges or barriers mentioned. ______

______

13. Are your financial resources sufficient to cover the costs of operating your business? If not, why? • yes • no, because ______

14. Would you benefit by the presence of more readily accessible or easily-obtained financial services? If no, please explain. • yes • no, because ______

15. Compared to other traders in this area and in your line of business, would you consider the volume of your business to be high, average, or low? What do you believe the reason to be? High / Average / Low

______

______

16. Do you think that the creation of trade associations could have a positive impact on the market? • yes • no • I have no information

17 What do you think would be additional roles of the trade associations? ______

______

MARKETS 18. What price and profit do you get for the goods in which you trade?

Product Unit Profit Margin (%)

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19. What kinds of input/service are in high demand in the markets? ______

______

20. Do you think the inputs/services in which you trade meet market demand? Yes / No ______

21. What would you say is the primary weakness of the inputs/services in which you trade? • low quality • high prices • poor quality / lack of packaging • unreliable supply • uneconomical quantity • other: ______

22. Please describe the marketing process for the inputs/services in which you trade. • Direct to final customer (farmer or processor) • Via another trader (a) middleman (b) retailer

23. How do you determine the prices for the inputs/services in which you trade? • prices are set by the government • the market is characterized by monopoly prices • I try to set them the same as everyone else • By the associations • Market executive committees • I try to set them lower than everyone else • based on cost analysis • the purchaser pays whatever he/she is able

24. Do you believe that your prices are competitive in the marketplace? • yes • no, because ______• I don’t know

25. Who is principle competitor to your association? ______

______

INFRASTRUCTURE 26. How do you transport the inputs/services in which you trade to market? • use own personal automobile • Dedicated transportation • Through third-party: Who: ______• Other: ______

27. Is available transportation adequate for your needs? Please explain. Yes / No: Why (If, No): ______

Action Against Hunger Nigeria | Gujba LGA Market Assessment Report 15

______

28. What do you perceive to be the main obstacles to trade in inputs/services? (check all that apply) • high costs • high customs fees • difficulty in accessing commercial transport • poor roadway condition • below-standard packaging • lack of / sub-standard storage or collection facilities • presence of monopolies • high competition • superiority of imported products • other: ______

29. Do you have particular difficulties selling inputs/services to very small farmers? Yes / No: Why (If, Yes): ______

(Which inputs/services and Why?) (List no more than 5))

Which input/ services Why

30. What are the best remedies for this difficulty? (Top 3, as ‘1’, ‘2’, ‘3’) • They should form groups to buy • Microfinance for them • Training them in the use/value of the inputs/services • Introductions to supplier-enterprises/services of my type • Marketing training for supplier-enterprises/services of my type • End Government or NGO price subsidies/grants • other: ______

KNOWLEDGE SOURCES

31. Do you think you have sufficient knowledge on running a small business, such as accounting or management? • yes • no

32. What types of trainings would you be interested? Please explain.

______

33. Do you believe that more supportive legislation will help the products in which you trade more

Action Against Hunger Nigeria | Gujba LGA Market Assessment Report 16 successfully reach national markets? • yes, related to general infrastructure • yes, related to food & animal safety & health • yes, related to international trade • no • I don’t know

34. Are there any policies or practices that affect your ability to sell the products in which you trade? Please explain. • Monopoly • Public policy • Corruption • Moral pressure • other: ______

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