Federal Republic of Nigeria Enable Youth Nigeria Appraisal Report

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Federal Republic of Nigeria Enable Youth Nigeria Appraisal Report AFRICAN DEVELOPMENT BANK Public Disclosure Authorized FEDERAL REPUBLIC OF NIGERIA ENABLE YOUTH NIGERIA APPRAISAL REPORT Public Disclosure Authorized OSAN DEPARTMENT November 2016 TABLE OF CONTENTS Currency Equivalents………………………. ……………………………………… …i Fiscal Year……………………………………………… ………………………………i Weights and Measures .................................................................................................... i Acronyms and Abbreviations…………………………………… …………………….ii Program Information Sheet ............................................................................................. iv Project Summary ............................................................................................................. vi 1. STRATEGIC THRUST & RATIONALE………………………………………..1 1.1. Programme Linkages with Country Strategies and Objectives ..............................1 1.2 Rationale for Bank’s Involvement .........................................................................1 2. PROGRAMME DESCRIPTION……… ………………………… ……………3 2.1. Programme Components ........................................................................................3 2.2 Technical Solutions Retained and Other Alternatives Explored ............................6 2.3 Programme Type ....................................................................................................6 2.4 Programme Cost and Financing Arrangements .....................................................7 2.5 Programme Area and Beneficiaries ........................................................................8 2.6 Participatory Approach to Programme Formulation, Design and Implementation9 2.7 Bank Group Experience, Lessons Reflected in Project Design .............................9 2.8 Programme’s Performance Indicator ...................................................................10 3. PROGRAMME FEASIBILITY…… ………………………………………….11 3.1. Economic and Financial Performance ..................................................................11 3.2 Environmental and Social Impacts .......................................................................12 4. IMPLEMENTATION…………………………………………………………..14 4.1. Implementation Arrangements .............................................................................14 4.2 Monitoring ............................................................................................................17 4.3 Governance ...........................................................................................................18 4.4 Sustainability ........................................................................................................18 4.5 Risk Management .................................................................................................19 4.6 Knowledge Building ............................................................................................19 5. LEGAL INSTRUMENTS AND AUTHORITY………………………… …….20 5.1. Legal Instrument ..................................................................................................20 5.2. Conditions Associated with Bank Group Intervention ........................................20 5.3. Compliance with Bank Policies ...........................................................................20 6 RECOMMENDATION……………………………………… ………………..20 Appendix Appendix I(a): Country Comparative Socio-Economic Indicators Appendix I (b) : Unemployment Rates by states in Nigeria Appendix II: AfDB’s portfolio in Nigeria Appendix III: Map of the Project Area Appendix IV: Similar Projects Financed by Other Development Partners in the Country Appendix V: Organizational Structure for Program Implementation Appendix VI: Project Description Appendix VII: Nigerian Incentive based Risk Sharing System for Agricultural Lending (NIRSAL PLC) List of Tables Table 1: Financing Plan Table 2: AfDB’s Key Financing Information (overall components) Table 3: Timeframe - Main Milestones (expected) Table 4: Result-Based Logical Framework (RBLF) Table 5: Project Timeframe Table 2.2: Technical Alternatives Considered and Reasons for Rejection Table 2.3: Project Cost Estimates by Components Table 2.3: Source of financing Table 2.5: Project Cost by Category of Expenditure Table 2.6: Category of Expenditure by Sources of Financing Table 2.7: Expenditure Schedule by Component (UA million) Table 2.8: Consideration of Lessons Learnt in Project Design Table 3.1: Summary of Sensitivity Analysis Table 4.1: Potential Risk and Mitigation Measures List of Figures Figure 1: The project Governance Framework Currency Equivalents September, 2016 1 UA 1.40 US$ 1US$ 312.28 Naira 1 UA 435.43 Naira Fiscal Year 01 January – 31 December Weights and Measures 1 metric ton 2,204 pounds (lbs) 1 kilogramme (kg) 2.200 lbs 1 meter (m) 3.28 feet (ft) 1 millimetre (mm) 0.03937 inch (“) 1 kilometre (km) 0.62 mile 1 hectare (ha) 2.471 acres i Acronyms and Abbreviations ADF African Development Fund AfDB African Development Bank AGTF Africa Growing Together Fund AGRA Alliance for a Green Revolution in Africa APPB Annual Performance Plan and Budget APP Agricultural Promotion Policy ADWG Agriculture Donor Working Group ATA Agricultural Transformation Agenda AVC Agricultural Value Chain BDS Business Development Service CBN Central Bank of Nigeria CIDA Canadian International Development Agency CSP Country’s Strategy Paper CPM Country Portfolio Manager CPMT Country Programme Management Team CPPR Country Portfolio Performance Review DANIDA Danish International Development Agency DfID Department for International Development DPs Development Partners EIRR Economic Internal Rate of Return EU European Union RBLF Results-Based Logical Framework FAO Food and Agriculture Organisation of the United Nations FCT Federal Capital Territory FIRR Financial Internal Rate of Return FGN Federal Government of Nigeria FMARD Federal Ministry of Agriculture and Rural Development GAP Gender Action Plan GDP Gross domestic product GIZ German Technical Cooperation GoN Government of Nigeria GPRS-I Nigeria Poverty Reduction Strategy-Phase I GPRS II Growth and Poverty Reduction Strategy-Phase II IE Interim Evaluation IFAD International Fund for Agricultural Development IMF International Monetary Fund IITA International Institute of Tropical Agriculture JICA Japan International Cooperation Agency MDA Ministries, Departments and Agencies M&E Monitoring and Evaluation MGF Matching Grant Fund MOFEP Ministry of Finance and Economic Planning MSME Micro Small and Medium Scale Enterprise MTNDP Medium Term National Development Plan MTR Mid-Term Review NGO Non-Governmental Organization ii NBS National Bureau for Statistics NGN Nigerian Naira NCO National Coordination Office NIRSAL Nigeria Incentive Based Risk Sharing Facility for Agricultural Lending NSC National Steering Committee PDR Programme Design Report PFI Participating Financial Institution PCR Project Completion Report QA Quality Assurance PMRRO Program Monitoring, Reporting and Remedial Office SSC State Steering Committee SIUs State Implementation Units SI Sensitivity Indicator SDF Skills Development Fund SSE Small Scale Enterprises SV Switching Value TA Technical Assistance TBD To Be Determined UA Unit of Account UNDP United Nations Development Programme UNICEF United Nations International Children’s Education Fund UNODC United Nations Office on Drugs and Crime USD United State Dollar USAID United States Agency for International Development WHO World Health Organisation iii Loan Information Client’s information __________________________________________________________________________________ BORROWER: Government of the Federal Republic of Nigeria EXECUTING AGENCY: Federal Ministry of Agriculture and Rural Development (FMARD) Table 1. Financing plan S/N Source Amount (Million) Instrument UA US$ 1 ADB 179.32 250.00 Loan 2 AGTF 21.52 30.00 Loan 3 Federal Government of Nigeria 4.75 6.63 Own Fund 4 State Governments 48.68 67.88 Own Fund 5 NIRSAL 117.01 162.64 Own Fund 6 Beneficiaries 3.80 5.30 Own Fund TOTAL PROGRAMME COST 375.08 523.00 - Table 2: ADB/AGTF key financing information Loan Currency USD Loan Type Fully Flexible Loan Tenor TBD (Up to 25 years inclusive of grace period) Grace period TBD (Up to 8 years) Average Loan Maturity TBD (function of the amortization profile) Repayments TBD (Consecutive semi-annual payments after grace period) Interest Rate Base Rate +Funding Cost Margin+ Lending Margin + Maturity Premium if applicable Base Rate Floating Base Rate (6-month USD LIBOR reset each 1st February and 1st August). A free option to fix the Base Rate is available. Funding Cost Margin The Bank funding cost margin as determined each 1st January and 1st July and applied to the Base Rate each 1st February and 1st August Lending Margin 80 basis points (0.8%) Maturity Premium TBD: - 0% if Average Loan Maturity <= 12.75 years - 0,10% if 12.75< Average Loan Maturity <=15 - 0,20% if Average Loan Maturity >15 years Front-end fees 0.25% of the loan amount payable at latest at signature of the loan agreement Commitment fees 0.25% of the undisbursed amount. Commitment fees start accruing 60 days after signature of the loan agreement and are payable on Payment dates Option to convert the Base Rate* In addition to the free option to fix the floating Base Rate, the borrower may reconvert the fix rate to floating or refax it on part or full disbursed amount. Transaction fees are payable. Option to cap or collar the Base The borrower may cap or set both cap and floor on the Base Rate to be applied Rate* on part or full disbursed amount. Transaction fees are payable. Option
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