REQUEST FOR PROPOSAL Living Income Benchmarking (LIB) Study in Nigeria 1 1.0 General Information This document is being issued in order to solicit applications from potential [firms or consultants] to conduct a living income benchmarking study. The activity entails collecting data in four states in Nigeria, precisely in Ogun State (Odeda Local Government Area - LGA, Ijebu-Ode LGA, Ewekoro LGA, and Odogbolu LGA), Edo State (Ikpoba Okha LGA, Oredo LGA, Egor LGA), Benue State (Agatu LGA, Guma LGA, Gwer-East LGA, Gwer-West LGA, Logo LGA, Okpokwu LGA, Ogbadigbo LGA, and Kwande LGA), and Nasarawa State (Awe LGA, Doma LGA, Lafia LGA, Obi LGA). It will require at least 19 qualitative interviews (19 Focus Group Discussions and 57 Key Informant Interviews), 19 market surveys and an extensive secondary data review. Ultimately, HI anticipates the consultant to consolidate the LIBs based on cost similarities in the States, LGAs or location (Rural/Urban). The terms of reference contain background information, the desired methodology, including objectives, the timeframe, and a list of deliverables. This document also contains information about the kind of expertise that Heifer seeks for this activity and guidance on how to submit a proposal to conduct the activity. Heifer anticipates awarding a fixed award for the study and make payments based on submission and Heifer’s approval of deliverables. The award agreement will include a payment schedule with specific deliverables; all payments require 10 business days processing after approval of deliverables. 1.1 Background of Heifer International Heifer Project International (HPI) is a global non-profit working to end hunger and poverty and care for the Earth by using sustainable practices and engaging smallholder farmers in agricultural development. Heifer was founded on the simple belief that ending hunger begins with giving people the means to feed themselves, generate income and achieve sustainable livelihoods. Since 1944, Heifer has helped 20.7 million households – more than 105 million people – in over 125 countries, through community-based training, appropriate technologies and agricultural resources, enabling communities to lift themselves out of poverty and hunger on to a path of self-reliance and economic prosperity. More Info on Heifer: www.heifer.org 1.2 Heifer International Nigeria Program Nigeria’s oil-based economy is shrinking, and poverty has worsened. Government has targeted agriculture for exports and employment creation to address the problem. Nigeria is divided into three unique agro-ecological zones with soil, rainfall, economic and social differences. Federal government shares development responsibility with States and has sponsored interventions to develop private sector agribusiness, finance and value chains. Many opportunities for expanding smallholder agriculture exist and resources and policy environment are favorable. Nonetheless, key impediments to development include overly informal trade systems; poor agronomic and management skills among smallholders; and low levels of understanding of how to invest for the best financial and economic returns among farmers and development partners. Heifer Nigeria’s approach to the opportunities and challenges observed is to follow a value chain logic. This approach is embodied in Heifer’s brand which is at once an empathetic, pro-poor non-profit organization; and, an organization driven by research to optimize smallholder financial success and as a thought leader to best 2 practices in development. Heifer Nigeria aim to unlock Nigeria’s potential for food self-sufficiency, working with smallholder farmers and local value chain actors to fill local demand while closing the living income gap for families in selected value chains. To achieve this, Heifer Nigeria is currently designing a Signature Program to improve value chain productivity, bridge market system gaps, improve economic livelihood, food self-sufficiency, resilient, and environment. The program will focus on the development of three priority value chains: (i) Poultry value chain; (ii) rice value chain; and (iii) tomato value chain. Using these concepts, Heifer will endeavor to reach 1 million smallholder households by the end of 2030. The overall strategy deployed by Heifer will be a combination of strengthening social capital/values-based holistic community development (VBHCD) and reinforcing or strengthening inclusive market systems. As part of the project design, Heifer Nigeria needs to estimate the Living Income Benchmark for the geographies the Signature Program will be implemented. Living income is the minimum income people need in order to be able afford a decent standard of living. This will then be integrated into program design to inform the gap between actual income and the benchmark before the program is implemented. 1.3 Heifer’s Living Income Benchmarking Process Heifer International (HI) incorporates the Living Income approach to measure success. The approach was developed by Anker and Anker (2017) and adapted by Heifer International’s Monitoring, Evaluation and Learning team to fit Heifer’s project implementation context in remote, rural agricultural zones in underdeveloped areas of countries. Heifer developed its Living Income Benchmarking process by building on the work of the Anker Living Wage methodology and the living income community of practice. A Heifer Living Income Benchmark (LIB) ensures comparable measurements across Heifer project areas and is the standard used when designing Heifer projects. The LIB is a regional point of reference for the minimum income people need in order to be able to afford a decent standard of living. It is composed of the costs of a nutritious diet, decent housing, other basic needs (like education and healthcare), savings for future shocks/needs (resilience), and, sometimes, supporting people outside the household. Both primary and secondary data are used to define “decency” and cost for each component of the LIB. 3 2.0 Assignment Objective The objective of this assignment is to determine the living income benchmarks or LIB in four states of Nigeria to allow understanding of small holder farmers’ income gaps for different farmers to earn enough for a sustainable decent standard of living. The product should be robust, location specific Living Income Benchmarks following Heifer International’s methodology, as a basis to identify income gaps to aid design of interventions to close and surpass those gaps in Nigeria. 2.1 Specific Tasks Task 1: Work planning The Consultant will conduct a preliminary work-session with the Heifer Nigeria and HQ MELS team to refine the scope of work, fully understand Heifer’s Living Income Methodology and plan field (survey or interview) research and finalize the calendar. This will also entail reviewing any applicable tools and templates. Task 2: Desk review per LIB Review secondary data/information on all the four states, with specific focus on the project targeted locations. The review should result in an estimate of expected range of values for all Living Income components (Household size, nutritious diet, decent housing, other basic needs (like education and healthcare), savings for future shocks/needs (resilience), and, sometimes, supporting people outside the household. The consultant will accomplish the following: Determine the applicability of the LIB to be estimated in terms of geographical scope and socio demographic if applicable: Determine cost of a nutritious diet • Review state, national and international secondary data to assess household nutritional needs Determine cost of Decent Housing • Review state, national and international secondary data to assess household housing needs and cost of a decent house Determine cost of other Basic Non-food, Non-housing (NFNH) Costs 4 • Review literature to determine the cost education, health, clothing, transportation, communication, culture and entertainment, and community contributions and fees Determine cost of resilience • Estimate the cost of unexpected events or savings that enable a household to maintain decent standards of living when faced with unpredictable costs Determine cost of External Support • Determine an estimate of financial or material support or spending given by the household to anyone outside it. Task Three: Field validation per LIB The consultant will then validate the cost estimates arrived at using desk research activity with the targeted project population, and the assumptions employed. Tasks here include: • Conduct at least 3 Key Informant Interviews (KII) per Local Government Area to gather contextual information that will assist in supplementing/probing FGD responses. • Conduct at least 1 FGD per Local Government Area. • Conduct at least one market survey per Local Government Area. Each market survey should include prices from at least three market sellers. Task Four: Calculating Living Income Benchmark Consultant will: • Add up the annual costs of the components above: nutritious diet, decent housing, other basic needs, resilience, and external support. • Calculate each component’s portion of the total • Explain any discrepancy observed in the category costs • Compare cost needed to live a decent life from all states and target locations (Local Government Areas) and identify an appropriate grouping protocol/format to summarize the LIBs (Location (Local Government Areas). Or other if applicable 2.2 Deliverables (all in electronic format when applicable) • Inception report following preliminary work session