Technical Cooperation for Development Planning on the One
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The Federal Republic of Nigeria Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) Technical Cooperation for Development Planning on the One Local Government One Product Programme for Revitalising the Rural Economy in the Federal Republic of Nigeria FINAL REPORT December 2011 Japan International Cooperation Agency (JICA) IC Net Limited Overseas Merchandise Inspection Co., Ltd. Yachiyo Engineering Co., Ltd. A2 Kano State Katsina State A9 Jigawa State Kunchi MakodaDambatta A9 Tsanyawa A9 Nigeria all area Bichi Minjibir Gabasawa Bagwai DawakinT Ungogo Shanono A2 Gezawa Tofa Dala RiminGad Ajingi Lake Chad Gwarzo Kumbotso Warawa Sokoto Lake Chad Kabo A2 Madobi DawakinKK a n o S t a t e Karaye Kura Gaya Kano NdjamenaNdjamena Wudil Maiduguri Garum Mallam Bunkure A2 Albasu Kiru Garko Kaduna Rogo Bebeji Kaduna Rano Kibiya Takai A2 AbujaAbuja A2 Sumaila Tundun Wada Ilorin A126 IbadanIbadan A2 LagosLagos A236 Enugu PortoPorto NovoNovo Benin City Doguwa A11 ¯ A11 Port Harcourt Yaounde A11 A11 Douala 0Malabo75 150 300 450 600 750 Kaduna State A11 Km A236 A235 0 10 20 40 60 80 100 A236 Km A126 A1 Zamfara State Kebbi State Kebbi State Rijau A1 A2 Agwara A1 Kaduna State A125 Mariga Kaduna State A125 Niger State A235 A125 Magama Kontogur A2 Borgu A125 A2 Rafi A125 Shiroro Niger State Niger State Mashegu Legend A1 Muya Wushishi p Airports Chanchaga A7 Bosso Primary road A2 Paikoro Local road Lavun A124 A2A124 Katcha Gurara Urban Areas Mokwa Gbako Tafa A124 Suleja A234 Intermittent stream A7 Bida A124 Perennial stream A7 Kwara State Edati Agaie Water bodies: Intermittent A1 Lavun A2 Water bodies: Perennial A1 A7 Lapai National Boundary O y o S t a t e A1 State Boundary A123 A1 Niger and Kano State Nassarawa State 0 10 20 40 60 80 A123100 Km A123 LGA Boundary K o g i S t a t e Source: ESRI Japan; Study Team Map of Nigeria iii Table of contents Abbreviations and acronyms ................................................................................................................ viii CHAPTER 1 Background, objectives, and implementation flow of Technical Cooperation . 1-1 1.1 Background .................................................................................................................................... 1-1 1.2 Objective and outputs ..................................................................................................................... 1-1 1.3 Implementation flow ...................................................................................................................... 1-1 CHAPTER 2 Review of the OLOP Programme ......................................................................... 2-1 2.1 Methodology of reviewing the OLOP Programme ........................................................................ 2-1 2.1.1 OLOP Programme Concept Paper ......................................................................................... 2-1 2.1.2 Methodology of reviewing the OLOP Programme ................................................................ 2-1 2.2 Relevance of the basic concept of the OLOP Programme to specific policies .............................. 2-3 2.2.1 Relevance to the developmental policies of the Federal Government of Nigeria .................. 2-3 2.2.2 Relevance to the Federal Government of Nigeria’s policies on MSME promotion .............. 2-3 2.2.3 Relevance to the Kano and Niger State Governments’ policies on MSME promotion ......... 2-4 2.3 Feasibility of the proposed institutional framework ....................................................................... 2-5 2.3.1 Assessment of concerned organisations ................................................................................. 2-5 (1) Federal Ministry of Trade and Investment ........................................................................... 2-5 (2) SMEDAN ............................................................................................................................. 2-6 (3) State Ministry of Industry and Commerce in Kano and Niger State .................................. 2-10 (4) Local Government Areas in Kano and Niger States ........................................................... 2-14 (5) Current situation and roles of service providers ................................................................. 2-17 2.3.2 Proposed institutional framework for the OLOP Programme .............................................. 2-19 (1) Basic principles .................................................................................................................. 2-19 (2) Institutional framework and implementation management ................................................ 2-19 2.4 MSME demand for BDS provision .............................................................................................. 2-21 2.4.1 Current situation and issues .................................................................................................. 2-21 2.4.2 Proposed measures ............................................................................................................... 2-22 2.5 Effectiveness of the proposed approach of the OLOP Programme .............................................. 2-22 2.5.1 Selection of products, clusters, business types, and enterprises for BDS delivery .............. 2-22 (1) Situation prior to pilot project implementation .................................................................. 2-22 (2) Issues and measures ............................................................................................................ 2-22 (3) Results of pilot project implementation ............................................................................. 2-23 2.5.2 Provision of services to MSMEs within the selected clusters .............................................. 2-25 (1) Situation prior to pilot project implementation .................................................................. 2-25 (2) Issues and measures ............................................................................................................ 2-26 (3) Results of pilot project implementation ............................................................................. 2-26 CHAPTER 3 OLOP Programme Action Plan ............................................................................ 3-1 3.1 Overview of the OLOP Programme Action Plan ........................................................................... 3-1 3.1.1 Background and objective ...................................................................................................... 3-1 3.1.2 Management principle of OLOP Programme Action Plan .................................................... 3-2 iv 3.1.3 Implementation arrangement .................................................................................................. 3-3 3.1.4 Action Plan component structure ........................................................................................... 3-4 3.2 Description of Action Plan components ......................................................................................... 3-5 Component 1: Business Development Service ............................................................................... 3-5 Sub-component 1-1: BDS Officer and young entrepreneur training ......................................... 3-6 Sub-component 1-2: Selection of products, clusters, and enterprises ...................................... 3-11 Sub-component 1-3: Continuous, dynamic, and fact-based BDS provision ............................ 3-12 Component 2: Access to finance ................................................................................................... 3-14 Component 3: Business management training .............................................................................. 3-18 Component 4: Production skills and technology ........................................................................... 3-20 Component 5: Programme management, and monitoring and evaluation .................................... 3-22 3.3 Implementation schedule and financial resource requirements .................................................... 3-23 3.3.1 Implementation schedule...................................................................................................... 3-23 3.3.2 Financial resource requirement ............................................................................................ 3-23 CHAPTER 4 CHAPTER IV OLOP Programme Implementation Guidelines ........................ 4-1 4.1 Management cycle of an MSME project ........................................................................................ 4-2 4.2 Preparation of BDS provision by SMEDAN and SBDSIAs .......................................................... 4-2 4.2.1 Development of a short list of products and selection of products ........................................ 4-2 4.2.2 Value chain survey, analysis, and identification of BDSPs ................................................... 4-3 (1) Value chain survey and analysis ........................................................................................... 4-4 (2) Baseline Survey .................................................................................................................... 4-7 (3) BDSP research ...................................................................................................................... 4-9 4.2.3 Selection of target cluster, business type, and enterprises by SBDSIA for BDS provision ... 4-9 (1) Selection of cluster