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Pilot Project Report Technical Cooperation for Development Planning on the One Local Government One Product Programme for Revitalising the Rural Economy in the Federal Republic of Nigeria TECHINICAL ANNEX FOR THE FINAL REPORT PILOT PROJECT REPORT Table of contents Abbreviations and acronyms .................................................................................................................. vi Executive summary .............................................................................................................................. viii CHAPTER 1. Background of pilot project implementation ....................................................... 1-1 CHAPTER 2. Selection of products for pilot project .................................................................. 2-1 2.1 Ranking of products by stakeholders in in Kano State ............................................................. 2-1 2.2 Ranking of products by stakeholders in in Niger State ............................................................. 2-2 2.3 Overview of the selected value chains ...................................................................................... 2-3 2.3.1 Rice ................................................................................................................................... 2-3 2.3.2 Leather .............................................................................................................................. 2-3 2.3.3 Groundnut oil .................................................................................................................... 2-4 2.3.4 Shea nut/butter .................................................................................................................. 2-4 2.3.5 Yam ................................................................................................................................... 2-5 CHAPTER 3. Baseline-survey implementation and results ........................................................ 3-1 3.1 Methodology of baseline survey ............................................................................................... 3-1 3.2 Results of baseline surveys ....................................................................................................... 3-1 3.2.1 Estimation of number and economy of targeted business types in the states .................... 3-1 3.2.2 Size of economy and business ........................................................................................... 3-4 3.2.3 Formal and informal sectors.............................................................................................. 3-7 3.2.4 Status of enterprise labour force ....................................................................................... 3-8 3.2.5 Enterprise management and financial services ............................................................... 3-15 3.2.6 Supply and Demand of BDS ........................................................................................... 3-19 3.2.7 Property and debt ............................................................................................................ 3-21 3.2.8 Market seasonality .......................................................................................................... 3-23 3.2.9 Size of trade .................................................................................................................... 3-27 3.2.10 Recognition of market trend .......................................................................................... 3-28 CHAPTER 4. Value chain analysis ............................................................................................... 4-1 4.1 Kano State ................................................................................................................................. 4-1 4.1.1 BDSPs in Kano State ........................................................................................................ 4-1 4.1.2 Rice ................................................................................................................................... 4-2 4.1.3 Leather ............................................................................................................................ 4-18 4.1.4 Groundnut ....................................................................................................................... 4-29 4.2 Niger State ............................................................................................................................... 4-43 4.2.1 BDSPs in Niger State ...................................................................................................... 4-43 4.2.2 Shea product .................................................................................................................... 4-44 4.2.3 Groundnut oil in Niger State ........................................................................................... 4-60 4.2.4 Yam in Niger State .......................................................................................................... 4-72 4.6.4 Characteristics of Paiko value chain ............................................................................... 4-74 i CHAPTER 5. Results of pilot project implementation in Kano State ....................................... 5-1 5.1 Rice ........................................................................................................................................... 5-1 5.1.1 Kura rice parboiler project ................................................................................................ 5-1 5.1.2 Kura rice miller project ..................................................................................................... 5-5 5.1.3 Kura rice trader project ..................................................................................................... 5-8 5.1.4 Fagge rice trader project.................................................................................................... 5-9 5.2 Leather....................................................................................................................................... 5-9 5.2.1 Kano traditional tannery project ........................................................................................ 5-9 5.2.2 Kano leather products manufacturer project ................................................................... 5-13 5.3 Groundnut oil .......................................................................................................................... 5-18 5.3.1 Dawakin Tofa groundnut oil traditional processor project ............................................. 5-18 5.3.2 Kano groundnut oil mechanical processor project .......................................................... 5-22 CHAPTER 6. Results of pilot project implementation in Niger State ....................................... 6-1 6.1 Shea products ............................................................................................................................ 6-1 6.1.1 Kacha shea butter traditional processor project ................................................................ 6-1 6.2 Groundnut oil ............................................................................................................................ 6-7 6.2.1 Kontagora groundnut oil traditional processor project ..................................................... 6-7 6.2.2 Kontagora groundnut oil mechanical processor project .................................................. 6-13 6.3 Yam ......................................................................................................................................... 6-19 6.3.1 Paikoro yam trader project .............................................................................................. 6-19 CHAPTER 7. Hypotheses examined by pilot projects ................................................................ 7-1 7.1 Cost of government services and economic growth .................................................................. 7-3 7.1.1 Example of analysis on rice millers in Kano State ............................................................ 7-3 7.1.2 Example of analysis on shea butter traditional processors in Niger State ......................... 7-6 7.2 Profitability and employment of MSMEs ............................................................................... 7-10 7.3 Poverty reduction .................................................................................................................... 7-11 7.4 Entrepreneurship ..................................................................................................................... 7-12 References Annex 1: Results of product ranking exercise in Kano State Annex 2: Results of product ranking exercise in Niger State Annex 3: State-wide baseline survey questionnaire Annex 4: Business enterprise baseline survey questionnaire Annex 5: Example of business consultation form Annex 6: Formats for KPI and KGI Annex 7: Simple accounting formats Annex 8: Technical improvement in rice processing Annex 9: 5S checklist Annex 10: Improvement of manual oil extraction device Annex 11: Results of activities concerning manual oil extraction device and group purchase Annex 12: Method of improving shea butter processing Annex 13: Design and specification yam storing shelf ii List of tables Table 1-1 List of pilot projects ............................................................................................................. 1-1 Table
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