Market Development Program for the Niger Delta (MADE) II

105
1 Market Development Program for the Niger Delta (MADE) II Edo State Investment Portfolio (ESIP) Inception Study Report MAIN BODY – Vol. I

Transcript of Market Development Program for the Niger Delta (MADE) II

1

Market Development Program for the Niger Delta (MADE) II

Edo State Investment Portfolio (ESIP)

Inception Study Report

MAIN BODY – Vol. I

MADE II – ESIP Inception Study Report, Volume 1

2

Contents EXECUTIVE SUMMARY ...................................................................................................................... 6

CHAPTER I Introduction ........................................................................................................... 12

1.1 Background ...................................................................................................................... 12

1.2 Purpose of Assignment .......................................................................................................... 14

1.3 Scope of Study ................................................................................................................. 14

1.4 Edo State Investment Portfolio (ESIP) Theory of Change................................................... 14

1.5 Methodology/Approach ................................................................................................... 15

1.6 Assessment Limitations ......................................................................................................... 17

CHAPTER II Geographic Socio-Economic Overview ....................................................................... 19

2.1 Nigeria ................................................................................................................................... 19

2.2 Niger Delta ............................................................................................................................ 20

2.3 Edo State ............................................................................................................................... 21

CHAPTER III ESIP Commissioned Studies ..................................................................................... 25

3.1 Summary of commissioned studies ........................................................................................ 25

CHAPTER IV Sector Selection Criteria .......................................................................................... 29

4.1 Subsector Selection Criteria ............................................................................................. 29

4.2 Lead Firm Selection Criteria ................................................................................................... 32

4.3 Target Audience .................................................................................................................... 33

CHAPTER V Sector Assessments ................................................................................................. 34

5.1 Agriculture & Agribusiness ..................................................................................................... 34

5.2 Entertainment.................................................................................................................. 38

5.3 Information Communications Technology (ICT)...................................................................... 41

5.4 Renewable Energy ................................................................................................................. 44

5.5 Fashion & Beauty ................................................................................................................... 47

5.5.1 The Nigerian Fashion Sector ........................................................................................... 47

5.5.2 The Nigerian Beauty Sector ............................................................................................ 49

5.6 Wholesale/Retail Trade ......................................................................................................... 53

CHAPTER VI Intervention design and implementation activities ................................................. 57

CHAPTER VII Summary ................................................................................................................ 65

CHAPTER VIII Implementation Proposal ........................................................................................ 67

8.1 Monitoring and Results Measurement Framework ........................................................... 67

8.2 Value for Money Strategy ............................................................................................. 76

8.3 Knowledge Management and Communication Strategy............................................ 77

CHAPTER IX Programme Management and Staffing .................................................... 83

9.1 Management Team ....................................................................................................... 83

Deleted: 5

Deleted: 11

Deleted: 11

Deleted: 13

Deleted: 13

Deleted: 13

Deleted: 14

Deleted: 16

Deleted: 18

Deleted: 18

Deleted: 19

Deleted: 20

Deleted: 24

Deleted: 24

Deleted: 28

Deleted: 28

Deleted: 31

Deleted: 32

Deleted: 33

Deleted: 33

Deleted: 37

Deleted: 40

Deleted: 43

Deleted: 46

Deleted: 46

Deleted: 48

Deleted: 52

Deleted: 56

MADE II – ESIP Inception Study Report, Volume 1

3

Team Structure ........................................................................................................................ 83

9.2 Resource Allocation ...................................................................................................... 84

Use of Grants and Activities funds ........................................................................................... 85

ANNEX 1 REFERENCES ............................................................................................................. 87

ANNEX 2 LIST OF MEETINGS HELD .......................................................................................... 90

ANNEX 3 PUBLIC SECTOR EMPLOYMENT GENERATION AGENCIES ................................................. 96

ANNEX 4 BUSINESS, PROFESSIONAL, AND TRADE ASSOCIATIONS ........................................ 101

ANNEX 5 EXAMPLE MADE II MEMORANDUM OF UNDERSTANDING .................................... 103

ANNEX 6 ESIP COMMISSIONED STUDIES MAIN REPORTS ..................................................... 106

FIGURES Figure 1: Factors of Supply and Demand Figure 2: Sector Selection Parameters Figure 3: Edo State Sector Growth in Terms of Number of Registered Entities Figure 4: Grant Applications for the Tony Elumelu Foundation Figure 5: Systemic Constraints and Prospective Solutions for the Promotion of Out-grower schemes in selected value chains in Edo Figure 6: Systemic Constraints and Prospective Solutions for the Development of last mile agro-input retail and output aggregation systems in Edo Figure 7: Results Measurement System Figure 8: Programme Impact Attribution Figure 9: IM and MRM Roles and Responsibilities Figure 10: Grant Management Roles and Responsibilities Figure 11: Spiral View of Knowledge Management Process Figure 12: MADE II Organisation Chart TABLES Table 1: Summary of Partnership Opportunities for ESIP in the Agribusiness Subsectors Table 2: Sector Emphasis by Area SWOT Analysis of the Fashion Sector Table 3: Strategic Comparison of Potential Sectors SWOT Analysis of the Beauty Sector Table 4: Ranking of Potential Interventions Table 5: Summary of Intervention Results Table 6: Scheduling of MRM Processes Table 7: VFM Metrics Table 8: Communications Approaches Table 9: Illustrative Activities

MADE II – ESIP Inception Study Report, Volume 1

4

Acronyms CSOs Civil Society Organisations

CSR Corporate Social Responsibility

DFID Department of International Development

ESIP Edo State Investment Portfolio

FIs Financial Institutions

GAP Good Agricultural Practices

GDP Gross Domestic Product

GoN Government of Nigeria

ICT Information and Communication Technology

IGs Intervention Guides

IMs Intervention Managers

IOM International Organisation for Migration

JAN Junior Achievement Nigeria

KM Knowledge Management

LGA Local Government Area

M4D Media for Development

M4P Making Markets Work for the Poor

MADE Market Development Program for the Niger Delta

MDS Modern Day Slavery

MOU Memorandum of Understanding

MRM Monitoring and Results Management

NAPTIP National Agency for the Prohibition of Trafficking in Persons

NBS National Bureau of Statistics

NGO Non-governmental Organisation

OPEC Organization of the Petroleum Exporting Countries

PIND Foundation for Partnership Initiative in the Niger Delta

SHF Smallholder Farmers

SMEs Small and Medium Enterprise

SMEDAN Small and Medium Enterprises Development Agency of

Nigeria

TAG Technical Assistance Grant

TVET Technical and vocational education

UN United Nations

USAID United States Agency for International Development

VFM Value for Money

MADE II – ESIP Inception Study Report, Volume 1

5

Acknowledgments

DAI Europe and the MADE II programme would like to acknowledge the great amount of work contributed by the following consultants in the completion of this report: Team Leader: Adam P. Saffer

Agriculture: Md. Rubaiyath Sarwar (Lead)

Busuyi Okewo

Idris Rufus

Entertainment: Marshall Bear (Lead)

Chidi Ukwu

ICT: Talia Dweck (Lead)

Hanson Johnson

Fashion: Snow Ogunjimi (Lead)

Folake Ikumapayi

Renewable Energy: Tinyan Ogiehor (Lead)

Adam P. Saffer

Wholesale/Retail: Sheriff Mohammed (Lead)

MADE II – ESIP Inception Study Report, Volume 1

6

EXECUTIVE SUMMARY

The Edo State Investment Portfolio (ESIP) is a component of the Market Development for the Niger Delta (MADE II) programme. MADE II is a two-year follow effort funded by the UK Department for International Development (DFID) and implemented by DAI Europe (the contract supplier). Using a market systems (M4P) approach, MADE II seeks to sustainably improve market access for poor producers, increase economic activity and trade and raise incomes of poor men and women. It aims to do this by generating pro-poor and inclusive economic growth in the non-oil sectors of the Niger Delta Region. The ESIP component also employs a market systems approach but is focused on creating aspirational employment and income generating opportunities for vulnerable youth1 and women in Edo state as a means to counteract the increasing prevalence of illegal international migration2. To achieve this, ESIP plans to work closely with the Edo State Government and private sector “lead firms” who are interested in investing and/or expanding their operations in Edo state. The six priority sectors initially selected for further analysis include agribusiness, internet communications technology (ICT), entertainment, renewable energy, fashion, and wholesale/retail trade. Thus, in the agribusiness sector, there will be close if not seamless coordination with the MADE II team. By addressing both demand and supply side market failures, ESIP hopes to demonstrate there are a variety of attractive economic alternatives to migration for Edo state’s young men and women.3 Put simply, ESIP aims to align with the Edo State Government in increasing the State’s capacity to provide aspirational economic opportunities and increased incomes for its vulnerable youth and women. By doing so, the end goal is to reduce the temptation to illegally emigrate overseas, and likely become a victim of human trafficking. The four pillars of ESIP’s approach are:

ü Assessing a cross section of dynamic commercial sectors, value chains, and clusters, and identifying firms with a strategic business interest in entering or expanding their operations in Edo State (“demand”).

ü Determining what skills, jobs, and career paths Edo state’s vulnerable and returnee populations are most interested in to ensure alignment with their aspirations (“supply”).

ü Assisting the lead firms to evaluate and develop opportunities to take advantage of Edo State’s conducive business environment, supportive local government, lands, culture, and other competitive advantages (“value proposition”).

ü Facilitating investments that measurably and sustainably provide aspirational economic opportunities for Edo state’s susceptible population to improve livelihoods as well as counteract human trafficking (“impact”).

The main purpose of this inception phase assignment is to assess the six priority sectors in terms of both attractiveness and applicability to the target audience, identify growth areas for investment and employment generation, and collaboratively design an initial set of proposed interventions with targeted lead firms that align with ESIP’s goals, objectives, resources, and capacity. The end objective over the two-year period is to facilitate at least £10 million of investment, build the awareness of 40,000 people about economically viable alternatives to migration, and increase the incomes of at least 24,000 people (by the end of MADE II in 2020) susceptible to illegal migration (and therefore being trafficked) in Edo state. The

1 For the purposes of this assessment, youth is defined as those men and women between 18-29 years old. 2 Illegal international migration is defined herein as those traveling with falsified documents to other countries with the intention of establishing permanent residence. 3 The main focus of the ESIP effort is on the high incidence areas which includes both the “red zones” of eastern and south eastern Edo state as well as the border regions of northern Delta state.

MADE II – ESIP Inception Study Report, Volume 1

7

assessment methodology used included secondary source desk research, key informant interviews with a broad cross section of public and private sector stakeholders, and meetings with potential lead firms, including business organisations, designers, manufacturers, off-takers, processors, and exporters.

ESIP Theory of Change: ESIP’s theory of change to reduced incidence of human trafficking centres around a livelihoods improvement pathway. More specifically, the programme will influence private sector partners (lead firms and/or service providers) who will become more sensitive to a) the circumstances and needs of the women and the youth that are more susceptible to human trafficking and b) the opportunity this ready and willing workforce presents. Selected private sector partners, who have already shown interest in either entering or expanding their operations in Edo state, will either directly or indirectly invest in the pre-selected sectors considered to have the best growth potential as well as being seen as aspirational by the target audience of vulnerable women and youth. Due to their success, proving the concept that one does not have to emigrate to be gainfully employed, and improvements in the income and quality of life of their families, who benefit from their children’s’ income, the resultant perspective about and behavioural change towards migration, will serve to reduce the attractiveness and ultimately incidence rate of human trafficking. Complimentary to this will be MADE II’s work in changing local organizations’ communication approaches when targeting the susceptible population. Improved and more messaging across the state, and country, about the negative aspects of human trafficking is a critical component to changing perceptions and behaviour around acceptable local livelihoods.

Context: In 2013, Nigeria surpassed South Africa, making it the largest economy on the African continent.4 Nigeria is now the third largest English speaking country in the world, after India and the United States; the eighth most populous country in the world; and boasts the third largest entertainment (movie) industry after Hollywood and Bollywood. It is also, albeit slowly, becoming more economically diverse. While still dominated by oil extraction, accounting for approximately 70% of the Federal Government’s revenues5, Nigeria’s oil sector contribution to GDP at 10.5% is the lowest in OPEC.6 Following the economic recession and devaluation, the economy began to stabilise in 2017 and resume its previous decade long track record of 5-7% annual growth. However, the growth has been mainly jobless. This is primarily due to the economic growth being attributable to the export of commodities such as crude petroleum and petroleum gas, rather the growth of employment-intensive industries such as manufacturing.7 This is particularly troubling for women, who tend to participate less in extractive industries. There is light at the end of the tunnel as more and more initiatives across the country, led by an unprecedented calibre of Governors, are focusing on employment, technology, economic diversification and education. As described in more detail below, Mr. Godwin Obaseki, Governor of Edo State, is one of those with the experience and commitment to turn the tide on investment and employment opportunities.

Edo state consists of eighteen (18) Local Government Areas (LGAs) with Benin City as its capital. The total population is estimated to be approximately 4,235,600 as of 2016.8 Agriculture is the mainstay of the economy. Farming is not an exclusively rural occupation, as many city dwellers own farms on the outskirts of the capital and commute regularly to work on them. Cassava, rice, yams, and maize are the major subsistence crops, while 4 In 2013, Nigeria’s gross domestic product (GDP) measured $509.9bn USD compared to South Africa’s $370.3bn USD. BBC. “Nigeria Becomes Africa’s Biggest Economy.” April 6, 2014. http://www.bbc.com/news/business-26913497. 5 British Broadcasting Corporation, “Nigerian economy slips into recession.“ http://www.bbc.com/news/business-37228741 6 Federal Ministry of Budget and National Planning. “Nigeria’s oil sector contribution to GDP lowest in OPEC – Blueprint.” http://www.nationalplanning.gov.ng/index.php/news-media/news/news-summary/333-nigeria-s-oil-sector-contribution-to-gdp-lowest-in-opec-blueprint.

7 MIT. Observatory of Economic Complexity. “Nigeria.” 2017. http://atlas.media.mit.edu/. 8 www.citypopulation.de

MADE II – ESIP Inception Study Report, Volume 1

8

rubber, timber, cocoa, and palm oil are the main cash crops. Worth noting is Edo’s strong presence in oil palm, with two of the largest palm oil processors resident (PRESCO and Okumu) as well as the Nigeria Institute for Palm Oil Research (NIFOR).

Another characteristic Edo state is recognised for is creativity, design, music, crafts, and a rich cultural history. Perhaps most known for its bronze casting, Edo people seem to have a natural gift for the arts, from carvers, bronze casters, leatherworkers, potters, and weavers to writers, musicians, actors, actresses, and movie/TV producers. Whether this is strong and prevalent enough to be considered a comparative advantage for Edo has yet to be seen. See more about this in the assessment of the entertainment industry below.

On a less positive note, Edo state is also known as the epicentre of human trafficking in Nigeria which has unfortunately taken root across the State. Driven primarily by a desire for a better life and a higher income generating opportunity abroad which has been greatly exacerbated by the devaluation, men and women, educated and uneducated, employed and unemployed, continue to be drawn to “greener pastures”. In most cases, they are taken advantage by representatives of “recruiting agencies” that are very well dressed, well-spoken, and often come through referrals by family and friends. In most cases, those emigrating have no idea that they are being trafficked until it is too late. According the 2017 report by the International Organization for Migration (IOM), as of March 2017 the number of women and girls arriving in Italy from Nigeria has risen from 1,454 in 2014 to 11,009 in 2016. This is an increase of almost 600%. IOM estimate that around 80% of these women and girls are sex trafficking victims.9 And despite various legal, regulatory, and enforcement attempts at the federal and state levels in Nigeria and in the targeted recipient countries abroad (e.g. Germany and Italy), once the women and girls are put into prostitution, there are very few exit routes. Their documents are taken from them and they are in debt to their traffickers or ‘madams’ for huge sums, anything from €50,000 - €80,000.10 Human trafficking, leading to modern day slavery (MDS), has become a well-organised and pervasive sector, and is even changing people’s attitudes towards prostitution as an accepted means of generating income. Poverty, large families, the disconnect between education and work, and unemployment, especially in the rural areas, has led to this becoming a socially acceptable path for individual as well as family wealth creation. While we were unable to obtain defining statistics on male emigrants, probably because far fewer return, we do know more and more men are being trafficked and finding themselves working 16 hours a day in sweat shops with little to no pay. Similar to the women, with a large debt to pay, very controlled living conditions, and no travel papers, it is very hard to escape. Organisations like the National Agency for the Prohibition of Trafficking in Persons (NAPTIP) are doing what they can to both prosecute those involved in this arena as well as rescue those who have been trafficked and rehabilitate and reintegrate returnees back into society, but their human and financial resources are far too little to be effective across all of their mandates. There are other NGOs operating in Edo state focused on addressing trafficking and returnees but like NAPTIP, most are underfunded and are only able to provide shelter (temporarily), medical check-ups and service as needed upon their return, and counselling. Two of the areas of greatest need are 1) capacity building in marketable skills and 2) placement into either an attractive job or funding to establish a small enterprise. Then, there is the much larger “susceptible population”, comprised mainly of unemployed youth, where there are only a few players, and as above, all are significantly underfunded. While there are laws are in place to stop trafficking, and the respective bodies are doing their best at apprehending those involved, the faster, cheaper, and overall better route to take is to eliminate or at least reduce the reasons why people emigrate. Based on extensive research

9 http://www.italy.iom.int/sites/default/files/news-documents/RAPPORTO_OIM_Vittime_di_tratta_0.pdf 10 Human Trafficking: the menace of our age, Sr. Patricia Ebegbulem

MADE II – ESIP Inception Study Report, Volume 1

9

and conversations with returnees, the number one reason for migration is to earn enough money to live decently and support their families. The luxury of doing something they are attracted to and aspire to would be considered a bonus. Thus, ESIP’s main challenge and objective is to foster locally available job opportunities that generate enough earnings to support not only the individual but also their family. The Target Audience: The target audience for ESIP are populations within Edo state and northern Delta state that are susceptible to trafficking and other aspects of MDS. The most common perceptions of this group are young unemployed girls from large families, with little to no education or skills, living in rural areas with a high incidence rate of trafficked persons. While this is certainly true of some migrants, there are many others living in the cities with tertiary education and fulltime jobs that end up being trafficked. Be they male or female, the main driver is economic pressure; in other words, theirs and their family’s desperate need for income. Oddly enough, in many cases, the youngsters, who truly believe they are headed for a better life, often do not tell their parents they are leaving. It has also been found that the route to illegal emigration typically flows through the cities, and especially Edo’s capital, Benin City. The cities are seen as more efficient ‘hunting grounds’ as many youths come to the urban areas first, in search of a better life with the primary objective being to find a job (any job) that will generate enough income to live and help support their family in the village. When unable to find work or when hired under extremely poor working conditions and low pay, they become desperate in search of any other opportunity to make money, including migration, rather than return to their homes as having failed. The only substantive data for analysis comes from the returnees, a relatively small population when compared to those still overseas and those illegally migrating on a daily basis. However, the research on returnees does have some potentially important findings. For example, the clear majority of those that were trafficked left Nigeria on a voluntary basis; and were not kidnapped as many believe. Furthermore, the majority had jobs before they left. Over 80% of the returnees were between 20-40 years of age, which is older than what many think. Based on the team’s primary research at the shelters, we would refine this to between 20-30 years of age. Also unexpected was the high percentage of Bini people (64%). Geographically, the heat map analysis shows that the highest concentration of traffickers (e.g. sponsors), both in terms of their origin and residence, are Ikpoba, Okha, Orhionmwon, Oredo, and Egor in the south, and Etsako West and Esan Central in the north. This corresponds very closely to the returnees’ areas of origin and latest local residences.11 However, most embarked on their migration journey from Benin City. Some of the findings from the interviews, verified by secondary source literature include the following:

1. While the government is one of the larger providers of jobs in the State, people no longer perceive the public sector as the best and/only viable career path;

2. Entrepreneurship is growing as more and more people venture into creating their own micro and small enterprises;

3. Technology is becoming a driving force across the board. Almost all business practices, be it manufacturing, sales or even services are rapidly becoming technology-enabled; and

4. The youth seem to have a growing interest in medium to large scale, mechanized agriculture and agribusiness prospects.

The Skills Gap: As discussed more below, there is a significant market failure between the formal educational sector and the skills requirements of today’s employers. Unemployment

11 Analysis on Victims of Trafficking, Edo State Government, January 10, 2018.

MADE II – ESIP Inception Study Report, Volume 1

10

rates are generally high regardless of education, suggesting the link we normally see between education and employment is relatively weak in Nigeria. In fact, people with post-secondary education have a higher unemployment rate (24%) than people with primary education (18%) or below primary (15%). One reason for this discrepancy is that employers are not hiring those with higher levels of education because, despite their education, they do not possess skills, knowledge, and attitudes demanded on the firm level to be able to contribute to productivity and competitiveness within a firm, and therefore justify a higher wage.12 ICT is perhaps the most glaring example as the curriculum taught in Computer Science department is simply not relevant to the aspirations or needs of the ICT industry. More often, informal gatherings in tech hubs, where young people can congregate, share ideas, collaborate, and learn from each other is found to be more beneficial. Surprisingly, the professors of these departments were highly aware of this fact but did not have the authority or leeway to deviate from the approved curriculum.

In evaluating the most critical challenges confronting Nigeria’s youth unemployment and underemployment problems, a recent job creation study produced for the Vice President, Federal Republic of Nigeria found that that: 13

• According to employers, the skills gap in Nigeria is a critical bottleneck for job creation;

• There are few linkages between the private sector and education sector; • The skills development marketplace is fragmented and characterized by overlaps in

skills delivery; • There is an overall lack of appropriate trainings and standards; • Educational program reach is insufficient both in terms of scale and geography; • Many jobseekers pursue inappropriate or unnecessary qualifications; and, • In many cases, teacher quality is poor across the education sector.14

Sector Assessment Results: While all 6 sector/clusters showed industry wide growth and expansion, not all offered the same opportunity for Edo state’s women and youth. For example, a booming and highly aspirational “Nollywood” industry coupled with Asaba as a proof of concept next door, helps position Edo as a potential new movie and film shooting hub. Many of the skills required are vocational in nature and can be taught relatively quickly. With almost everything in the industry based in Lagos, Edo state potentially offers a lower cost location with available land, labour, and an existing film academy. Looking at it from a purely employment point of view, given the highly aspirational nature of entertainment, another approach would be job placement for Edo state people in Lagos. Another exciting possibility is the ICT sector which only requires power and internet connectivity to function. Without being tied to any location or large initial capital expenditure, Edo could quite easily establish one of more platforms to offer tech hub services such as training, product development, and opportunities to freelance and generate income. With lead firms like Sabihub, Andela, CChub, and others already expressing interest, this is a relatively low cost intervention that needs to be further explored.

The largest opportunity for ESIP (and MADE II) is the agri-business sector. During the course of this assignment, the team identified several potential lead firms who are either in the latter stages of planning or about to embark on investments in Edo state. More specifically, the growth in demand for products produced in Edo, namely cassava, palm oil, rice, among others, is significant. Furthermore, increased demand for local processing, marketing and other off-farm opportunities along the value chain will create jobs that are more appealing to youth than production. Currently, the majority of youth are highly

12 Alakaiye, Olu, Alaba Olufunke, Jerome Afeikhena, and David Nabena. Understanding the Relationship Between Growth and Employment in Nigeria. 13 Dalberg Advisors. “Strategic Framework and Implementation Plan for Job Creation and Youth Employment in Nigeria.” March 2016. https://www.dalberg.com/our-ideas/strategic-framework-and-implementation-plan-job-creation-and-youth-employment-nigeria. 14 Niger Delta Youth Pathways Program, PIND/DAI, April 2018 (draft)

MADE II – ESIP Inception Study Report, Volume 1

11

concentrated in the production area. This is not surprising given both the low levels of education and training and the lack of infrastructure and government support to create off-farm employment opportunities.15 However, this seems to be changing. Edo state, led by its Governor, has and continues to offer strong incentives for the likes of large national and international companies to come to Edo to cultivate and/or off-take produce from local farmers. Literally, thousands of acres have been allocated under several agreements which could lead to a variety of very encouraging outcomes in terms of improved agricultural practices, better seeds, and inputs resulting in better yields, higher quality, and contract farming agreements from large off-takers. The spin-off effects from all of these have the potential to create several more jobs in the associated services within the off-farm value chains as well as create the momentum for needed systematic and legal and regulatory reform. However, it must be acknowledged that efforts involving land, land clearing, and weather dependent agriculture in general have an additional layer of risk that must be considered.

Other sectors like renewable energy and fashion/beauty are also growing and have potential in Edo but are not yet sufficiently scaled or organised for ESIP to achieve the impacts desired within the project period. For renewable energy (RE), one intervention that has momentum is the electrification of select local markets using a combination of solar and biomass. This initiative already has momentum with 2 strong lead firms expressing interest. However, like ICT, the best approach to create jobs may be to facilitate the use of RE in some of the other ESIP targeted sectors (e.g. agribusiness). Fashion and beauty can be characterised as a highly fragmented sector comprised of fiercely independent sole proprietors. While vast across the country, the sector is dominated by a small number of key players (namely recognised designers and brand owners) who do not seem to coordinate or cooperate in any material way. Below them is an army of informal micro-enterprises offering their products and/or services such as hair salons and make-up artists. Thus, while many youths have expressed interest in tailoring, hair dressing, cosmetics, and the like, we were not able to identify an intervention or good point of entry that would result in rapid significant additional industry investment or employment in Edo state. The one exception could be the entertainment industry, if it takes off in Edo, as it does require many costume designers, tailors, hair stylists, and make-up artists, to mention a few.

The wholesale/retail trade is a major job creator across Nigeria. Franchising as a business model is also beginning to take hold. Both offer opportunity in Edo state however, we found the retail sector, not only in Edo but across Nigeria, to be highly inefficient, resulting in a combination of lower prices to the producer, increased costs to market actors, and higher prices to the consumer. There are multiple market failures in the four main functions of the system: distribution, intelligence, exchange and merchandising. While certain opportunities were identified (e.g. the Shakti Initiative with Unilever), this may be a hard sector to affect en mass and achieve measurable numbers in a state like Edo.

Details of all of the proposed interventions by sector can be found in the main body of the report below. Copies of the full reports can be found in Vol. II – ANNEXES.

15 IFPRI. “Youth Employment, Agricultural Transformation, and Labor Dynamics in Nigeria. December 2016. http://www.ifpri.org/publication/youth-employment-agricultural-transformation-and-rural-labor-dynamics-nigeria. 15 PIND and IYF. “A Report on Niger Delta Region Youth Assessment Report.” June 2011. http://www.ndpifoundation.org/images/researchreports/reports/Youth-Assessment-Report.pdf.

Formatted: Danish

MADE II – ESIP Inception Study Report, Volume 1

12

CHAPTER I Introduction

1.1 Background

The Edo State Investment Portfolio (ESIP) is a component of the Market Development for the Niger Delta (MADE II) programme. MADE II is a two-year follow effort funded by the UK Department for International Development (DFID) and implemented by DAI Europe (the contract supplier). MADE II seeks to improve market access for poor producers, increase economic activity and trade and raise incomes of poor men and women. It aims to do this by generating pro-poor and inclusive economic growth in the non-oil sectors of the Niger Delta Region. MADE II uses the ‘making markets work for the poor’ (M4P) and market systems development approaches to address the root causes of poverty. MADE I (2013-2018) increased incomes for over 153,000 poor people, 47% of which were women, in the nine states of the Niger Delta. MADE II began in March 2018 and will continue through February 2020.

MADE II is comprised of two components:

1. The first is largely a continuation of MADE I, remaining focused on market development in a selection of agricultural value chains in the nine Niger Delta States, but with a emphasis on the four “frontline” states of Akwa Ibom, Bayelsa, Delta, and Rivers. This component works across the agricultural inputs, cassava, poultry, palm oil, and fisheries several agricultural sectors and value chain subsectors to facilitate improved practices, better performance, more value-added processing, and increased incomes by providing better access to information, technology, business development services, finance, and market linkages.

2. The second component, the Edo State Investment Portfolio (ESIP), is focused on creating aspirational employment and income generating opportunities for vulnerable youth16 and women as a means to counteract the increasing prevalence of illegal international migration17. To achieve this, ESIP plans to work with private sector “lead firms” who are interested in investing and/or expanding their operations in Edo state. The six priority subsectors initially selected for further analysis include agribusiness, internet communications technology (ICT), entertainment, renewable energy, fashion, and wholesale/retail trade. By addressing both demand and supply, ESIP hopes to demonstrate there are an increasing variety of attractive economic alternatives to migration for Edo state’s young men and women.18

Put simply, ESIP aims to increase Edo state’s capacity to provide aspirational economic opportunities and increased incomes for its vulnerable youth and women, and by doing so, reduce the temptation to illegally emigrate overseas and likely become a victim of human trafficking. The four pillars of ESIP’s approach are:

ü Assessing a cross section of dynamic commercial sectors, value chains, and clusters, and identifying firms with a strategic business interest in entering or expanding their operations in Edo State (“demand”);

ü Determining what skills, jobs, and career paths Edo State’s vulnerable and returnee populations are most interested in to ensure alignment with their aspirations (“supply”);

16 For the purposes of this assessment, youth is defined as those men and women between 18-29 years old. 17 Illegal international migration is defined herein as those traveling with falsified documents to other countries with the intention of establishing permanent residence. 18 The main focus of the ESIP effort is on the high incidence areas which includes both the “red zones” of eastern and south eastern Edo state as well as the border regions of northern Delta state.

MADE II – ESIP Inception Study Report, Volume 1

13

ü Assisting the lead firms to evaluate and develop opportunities to take advantage of Edo State’s conducive business environment, supportive local government, lands, culture, and other competitive advantages (“value proposition”); and

ü Facilitating investments that measurably and sustainably provide aspirational economic opportunities for Edo State’s susceptible population to improve livelihoods as well as counteract human trafficking.

There are two key words mentioned above that warrant further definition. First is “susceptibility” (to being trafficked) and second is “aspirational” (e.g. sectors & opportunities).

Susceptible: While ESIP’s target audience is comprised of youth and women who are susceptible to being trafficked, there are varying degrees of vulnerability. In this respect, the ESIM team is looking at a number of ‘vulnerability variables’ in developing its proposed interventions. These include but are not limited to age, gender, level of education, geographic location, current employment status, and the sector and type of job (e.g. aspirational or not). While the majority of youth in Edo state are susceptible to emigration, and therefore trafficking, the Team focused where possible on the higher risk end of the spectrum, such as unemployed women from the more vulnerable areas. As the critical path of emigration typically flows through the urban areas, many of these people first come to places like Benin City, well known as Nigeria’s epicenter of human trafficking, to find employment. In search of gainful employment in the city, which is rarely found, their quest for a better life and more income coupled with a fear of returning home in failure, often results in what appears to be a credible offer of employment overseas…and so begins their journey across Nigeria, the desert, and eventually to North Africa and Europe19.

Aspirational: Like susceptible, aspirational also has several meanings. In terms of sectors, the research and analysis that took place prior to the commencement of this inception phase study identified six of the most attractive (e.g. both growing as well as aspirational) sectors in Edo. While there are others, the six chosen certainly to address a large portion of the viable industries in Edo state. In addition to sectors, the study will identify aspirational jobs (e.g. opportunities that are attractive and compelling enough to our target audience for them to stay in Nigeria, and preferably Edo State, as opposed to emigrate). These could be new jobs requiring entry level training or existing jobs that have room for upskilling to increase individuals’ incomes.

There are several factors that can make something aspirational. Based on field interviews as well as the profiles of returnees, aspirational opportunities range widely from i) simply having something to do every day (e.g. alleviate boredom from staying at home), ii) to being passionate about the sector or work, iii) to earning enough money to take care of one’s family, iv) to gaining prestige in the community, v) to being seen as successful by the family and others, vi) to being able to point to a shop, vehicle, farm or some other owned physical representation of one’s success. Further primary research concluded that the number one driver of migration, across the board, was economic pressure. More specifically, the desire to earn enough money to take care of oneself as well as one’s family. Thus, the ESIP team adopted a multifaceted definition and emphasis on sector-based opportunities that will attract new entrants. While the team will still consider opportunities that build the capacity of those currently employed so they can move up the ladder and earn more income, the primary focus will be on job creation and entrepreneurial development.

19 In many cases, illegal migrants never make it to North Africa (typically Libya or Morocco) due to the harsh conditions and atrocities that take place whilst crossing the desert. Further, a number of those that do make it end up in slavery in North Africa and never get to Europe, as promised by their handler.

MADE II – ESIP Inception Study Report, Volume 1

14

1.2 Purpose of Assignment

The main purpose of this inception phase assignment is to assess the six priority sectors in terms of both attractiveness and applicability to the target audience, identify growth areas for investment and employment generation, and collaboratively design an initial set of proposed interventions with targeted lead firms that align with ESIP’s goals, objectives, resources, and capacity. The end objective over the two-year period is to facilitate at least £10 million of investment, build the awareness of 40,000 people about economically viable alternatives to migration, and increase the incomes of at least 24,000 (by the end of MADE II in 2020) people susceptible to illegal migration (and therefore being trafficked) in Edo state.

1.3 Scope of Study

This study will lay out a strategy for how ESIP can improve the competitiveness of the value chain/cluster subsectors with a focus on addressing income and aspirational career opportunities of our target population. The strategy will be based on leveraging the interests and commitment of select lead firms to enter or expand their business activities in Edo and/or northern Delta. Each intervention will include the sequencing of specific actions needed to facilitate behavioural as well as sustainable change, along with clear justifications, theories of change, and expected results. Given ESIP’s budget and timeframe limitations, this inception study has focused on the lowest hanging fruit to achieve substantive “quick wins”.

1.4 Edo State Investment Portfolio (ESIP) Theory of Change ESIP’s theory of change shows two pathways to reduced incidence of human trafficking: a pathway through livelihoods improvement and a second one through awareness campaigns. The first pathway, which overlaps with the market development component indicates: The programme will influence private sector partners (lead firms and/or service providers) who will become more sensitive to the circumstances and needs of the women and the youth that are more susceptible to human trafficking. Such private sector partners will begin to increase their investments in sectors considered aspirational that target susceptible households. Due to behaviour change of household members as a response to the opportunities demonstrated by partners, the households will experience improved performance, leading to increased income and eventual reduction in incidence of human trafficking. The second pathway, which addresses perception states: Local organisations will be influenced to change their communication approaches targeting the susceptible population. Due to improved messaging by local organisations about the negative aspects of human trafficking as well as opportunities in programme-supported aspirational sectors, there will be reduced pressure from families for emigration, leading to reduced incidence of human trafficking. As noted in the theory of change, DFID will have a separate project that will focus on the communications and behaviour change messaging, while MADE II will have a smaller focus on changing perceptions around acceptable livelihoods.

MADE II – ESIP Inception Study Report, Volume 1

15

Theory of change for the Edo State Investment Portfolio component.

1.5 Methodology/Approach

A market systems development approach focusing on a selected number of subsectors has been deemed to be the most effective way to scale impact. The market systems development approach does not focus on an individual or business level (“direct delivery”) approach, which is labour intensive, expensive, time consuming, and often unsustainable. Rather, it seeks to understand the root causes of market failures and then change the way market actors and systems function to:

1. Increase access to services, resources, assets, an enabling environment (including policy), and opportunities for people who are susceptible to being trafficked, and

2. Increase the agency – that is, their “voice, choice, and control” in a sustainable manner.

The first line of inquiry across the six subsector value chains/clusters studied was to understand the supply and demand side dynamics of each in Edo state, and then identify and link in the lead firms with market incentives to invest. More specifically, identifying the lead firms’ requirements to take advantage of the unique or at least most desirable commercial opportunities for business growth and expansion in Edo (demand), and the accessibility, quality, quantity, and affordability of these requisite products and services in Edo. See shown in Figure 1 below, this includes availability of unskilled, semi-skilled, and skilled labour, access to finance, land, and infrastructure such as a suitable transport network and reliable electricity supply.

MADE II – ESIP Inception Study Report, Volume 1

16

Figure 1: Factors of Supply and Demand

Stage 1: The initial step in developing and designing this project was to first identify the sectors of greatest interest and opportunity. Based on primary and secondary research, and a multifaceted approach described in more detail in Chapter 3 below, the following six sector value chains/clusters were selected for further analysis:

tAgribusiness tICT tEntertainment tFashion

tRenewable Energy tWholesale/Retail Trade

NOTE: These may not be the only subsectors the project engages with over the next two years. They have been identified as having strong potential for impact and will be the initial focus. However, additional sectors may be added as opportunities arise.

Stage 2: With experienced teams allocated for each of the six selected subsectors, a rapid assessment approach was used that comprised three primary stages:

Phase 1. Secondary Source Desk Research

Phase 2. Primary Research and Analysis

Phase 3. Recommendations for Program Interventions

Phase 1: Secondary Source Desk Research

While available current and accurate information on Edo state is very limited, the first phase of this assessment included a comprehensive literature review of the most recent research, analysis, and statistics available on Nigeria’s, the Niger Delta’s, and Edo state’s economy. This included identifying investment growth areas, market gaps, manufacturing as well as consumer trend analyses; and on-going and planned public, private, and donor interventions

MADE II – ESIP Inception Study Report, Volume 1

17

focused on private sector development, capacity building, formal and vocational youth education, investment, and employment creation. Reports and studies were also reviewed on the country’s, and especially Edo state’s, human trafficking pandemic. This not only included an analysis of the human trafficking ‘market’ but also who was doing what to combat this growing and pervasive tragedy in Nigeria, and especially Edo state. The desk research and literature review process also highlighted key stakeholders, champions, potential partners and lead firms to be follow up during the data and information collection process (phase 2) in the field. (See Annex 3 for a list of references)

Phase 2: Primary Research and Analyses (Field Interviews, Data and Information Collection)

Data collection activities to gather and analyze economic opportunities and constraints in Edo were carried out independently by each subsector team. Led by the Team Leader, team planning, and progress meetings were held periodically to update each other on any particular problems or opportunities found; present progress made; share relevant contacts, information, and knowledge gained; adjust the approach where necessary; identify synergies; minimise mission creep and remain aligned to the task at hand; and prioritise next steps. The team developed a variety of assessment tools and frameworks to optimize the data collection process and ensure consistency in the application of the market systems (M4P) approach. Given the broad scope and limited timeframe of the assignment, maintaining focus and efficiency were primary concerns.

Data collection in the six subsectors consisted of over 250 key informant interviews with private sector companies, financial institutions (FIs), government agencies, non-government organisations (NGOs), formal and vocational academic institutions, industry associations, chambers, and international donors, among others. See Annex 4 for a complete listing of all meetings held by each team. The main findings and conclusions, combined with the secondary source analyses and guidance from the MADE team, provided the basis for the proposed interventions below.

Phase 3: Recommendations for Program Intervention

Ultimately, the goal of this inception study is to identify commercially viable opportunities that ESIP can measurably contribute to that will attract investment and provide aspirational alternatives to emigration for Edo State’s vulnerable women and youth. The team adopted an anchor or “Lead Firm” (LF) approach whereby ESIP would support LFs in the selected subsectors who are committed to expanding their business in Edo state in a way that would engage Edo’s vulnerable population.

All in, this assessment aims to a) provide a contextual awareness and understanding of the key drivers, constraints, and opportunities in developing Edo state’s economy and ability to provide aspirational employment and/or entrepreneurial opportunities for its youth; b) identify the key stakeholders at the State, and where appropriate, Federal, levels; c) attract the attention and commitment of a cadre of potential lead firm partner/beneficiaries with commitments to expanding their operations in Edo state; and finally, d) recommend specific interventions across the subsectors that can be achieved during the project’s term that will result in increased incomes and investment in Edo state.

1.6 Assessment Limitations

Nigeria is a large country with a diverse and complex history and economy. In addition, the social and political context of Edo state, and more generally the Niger Delta, poses a distinct set of challenges and opportunities. The field team did its best to obtain an accurate and current understanding of each of the subsectors unique set of supply and demand issues. Given the limited availability of current and accurate quantitative data in Nigeria, and especially at the State level and below, as well as a cultural reluctance to sharing information, this study is heavily reliant on qualitative stakeholder interviews for sector

MADE II – ESIP Inception Study Report, Volume 1

18

specific as well as State level data. The limited timeframe and broad scope of the assignment also contributed to the Team’s inability to comprehensively develop the proposed intervention action plans or address all of the social, political and economic variables involved. Thus, this report should be treated as a living document, with the proposed interventions being further developed, expanded and prioritised prior to implementation.

MADE II – ESIP Inception Study Report, Volume 1

19

CHAPTER II Geographic Socio-Economic Overview 2.1 Nigeria

In 2013, Nigeria surpassed South Africa, making it the largest economy on the African continent.20 Nigeria is now the third largest English speaking country in the world, after India and the United States; the eighth most populous country in the world; and boasts the third largest entertainment (movie) industry after Hollywood and Bollywood. It is also, albeit slowly, becoming more economically diverse. While still dominated by oil extraction, accounting for approximately 70% of the Federal Government’s revenues21, Nigeria’s oil sector contribution to GDP at 10.5% is the lowest in OPEC.22 When global oil prices began to fall in 2014, the grave shortcomings of Nigeria’s economy and its heavy dependence on oil and gas sector exports was exposed. By 2016, the precipitous drop in petroleum-related foreign direct investment combined with flotation of the Naira contributed to Nigeria’s first economic recession in two decades.23

The floatation of the Naira in 2016, along with two CBN currency adjustments in 2014-2015, led to a 70 percent drop in the value of the naira as compared to the US dollar, from 155 to 360. This has had different effects depending on the sector. For example, although devaluation has opened new export and import substitution opportunities for some private sector actors, others that are highly dependent on imported inputs have been negatively affected as their products/services are now less competitive.24 As stated in the PIND/DAI report entitled, Niger Delta Youth Pathways Program, “This fluid dynamic in turn is creating increased labor demand in sectors positively affected by the devaluation and has dampened demand for labor in those sectors negatively affected. The changing value of Nigeria’s currency will continue to create uncertainty and have constant and nuanced impacts on the competitiveness and performance of the country’s key economic sectors and sub-sectors (and subsequent effects on labor demand) for the foreseeable future.” For a more in-depth analysis of the economic impacts of the floatation, see the report, The Effects of the Naira’s Devaluation in the Agricultural Sector, written by the MADE and PIND programmes, June 2017.

While the economy began to stabilize in 2017 and resume its previous decade long track record of 5-7% annual growth, the growth has been mainly jobless. Nigeria has not experienced a commensurate increase in employment. This is primarily due to the economic growth being attributable to the export of commodities such as crude petroleum and petroleum gas, rather the growth of employment-intensive industries such as manufacturing.25 This is particularly troubling for women, who tend to participate less in extractive industries. Thus, instead of decreasing during the previous period of growth, unemployment levels have increased since 2011 (due to the recession), and much of the population still lives in extreme poverty, as available jobs tend to be low production and low wage work, creating fragile employment conditions.26 However, there is light at the end of the tunnel as more and more initiatives across the country, led by an unprecedented caliber of Governors, are focusing on employment, technology, economic diversification and

20 In 2013, Nigeria’s gross domestic product (GDP) measured $509.9bn USD compared to South Africa’s $370.3bn USD. BBC. “Nigeria Becomes Africa’s Biggest Economy.” April 6, 2014. http://www.bbc.com/news/business-26913497. 21 British Broadcasting Corporation, “Nigerian economy slips into recession.“ http://www.bbc.com/news/business-37228741 22 Federal Ministry of Budget and National Planning. “Nigeria’s oil sector contribution to GDP lowest in OPEC – Blueprint.” http://www.nationalplanning.gov.ng/index.php/news-media/news/news-summary/333-nigeria-s-oil-sector-contribution-to-gdp-lowest-in-opec-blueprint.

23 IFPRI. “Youth Employment, Agricultural Transformation, and Labor Dynamics in Nigeria. December 2016. http://www.ifpri.org/publication/youth-employment-agricultural-transformation-and-rural-labor-dynamics-nigeria. 24 Niger Delta Youth Pathways Program, PIND, DAI, April 2018 (draft) 25 MIT. Observatory of Economic Complexity. “Nigeria.” 2017. http://atlas.media.mit.edu/. 26 Alakaiye, Olu, Alaba Olufunke, Jerome Afeikhena, and David Nabena. Understanding the Relationship Between Growth and Employment in Nigeria. Africa Growth Institute at Brookings. Washington, DC. May 2016. https://www.brookings.edu/wp-content/uploads/2016/07/growth-employment-nigeria-ajakaiye-jerome-nabena-alaba.pdf.

MADE II – ESIP Inception Study Report, Volume 1

20

education. As described in more detail below, Mr. Godwin Obasecki, Governor of Edo state, is one of those with the experience and commitment to turn the tide on investment and employment opportunities.

Looking more closely at the labour market, agriculture remains the largest sector. According to the most recent data from the Bureau of Statistics, of the 69.09 million employed population in Nigeria27, the agriculture sector accounts for 32.35 million persons, while the trade, other services, manufacturing and scientific and technical services sectors accounting for 10.01 million, 5.59 million, 4.92 million, 4.34 million persons respectively.28

Despite the continuing diversification of the Nigerian economy, progress has been slow due to due to limited opportunities in formal employment, and the growth of low skilled jobs and the informal sector. Nigeria has low levels of human capital and was ranked 120 of 124 countries in the 2015 World Economic Forum Human Capital Rankings.29

Notably, unemployment rates are generally high regardless of education, suggesting the link normally seen between education and employment is relatively weak in Nigeria. In some sectors, like ICT, the curriculum being taught in the universities is not relevant to the demands of the industry. Further, people with post-secondary education have a higher unemployment rate (24%) than people with primary education (18%) or below primary (15%).30 Those that do graduate from university with marketable skills often choose to leave Nigeria and go to countries that can more readily absorb their ambition and expertise, thus the continuing “brain drain” of the economy.

2.2 Niger Delta

The Niger Delta region consists of nine of Nigeria’s thirty-six states, accounting for 12% of the total area of the country and is home to 31 million people or 24% of Nigeria’s total population, over 90% of Nigeria’s proven gas and oil reserves and the world’s third largest wetland. 31 Most of Nigeria’s oil comes from the Niger Delta and oil production accounts for 90 % of national export revenues and 75% of the total state revenue. Unfortunately, despite these considerable natural resources, the Niger Delta continues to be characterized by, “poverty, economic underdevelopment, inequality, and environmental degradation.”32

Agriculture and fishing represent 44% of total employment in the Niger Delta region.33 The region, characterised by its largely rural economies, has an abundance of arable land and much of the region’s population works in agriculture. However, agricultural productivity is far below international benchmarks for multiple reasons, including competition for land driven by the oil sector, a lack of investment in agriculture infrastructure needed to increase levels of production and productivity (less than 1 percent of cropped land under irrigation), in adherence to Good Agricultural Practices (GAP) versus traditional farming methods, lack of access to suitable financial services for smallholder farmers (SHF) to obtain credit for critical inputs (e.g. better seeds, fertilizer, and pesticides as well as minerals and vaccinations for

27 In Nigeria, individuals are considered employed if they work 20 or more hours a week. National Bureau of Statistics. “Unemplyoment/Underemployment Watch: Q1 2016. 28 “Labour Force Statistics Q3 2017 Vol 2.” National Bureau of Statistics 29 World Economic Forum. “2015 Human Capital Report. http://reports.weforum.org/human-capital-report-2015/the-human-capital-index/. 30 Alakaiye, Olu, Alaba Olufunke, Jerome Afeikhena, and David Nabena. Understanding the Relationship Between Growth and Employment in Nigeria. 31 The World Bank, “Republic of Nigeria Niger Delta Social and Conflict Analysis” May, 2008 and Onyeka Ojei, “Pivoting Away From Oil: A Sector Analysis of Nigeria’s Economy Aimed at Achieving Diversification and Inclusive Growth.” Graduate School of Public and International Affairs - University of Ottawa, June 21, 2017 and https://reliefweb.int/report/niger/niger-delta-quarterly-conflict-trends-july-september-2016 32 Niger Delta Youth Pathways Program, PIND/DAI, April 2018 (draft) 33 Nextier Advisory, “Markets for Development in the Niger Delta - Recommendations for the Way Forward.” December 2015

MADE II – ESIP Inception Study Report, Volume 1

21

livestock), and the unanswered need for land clearing which to date seems to have fallen through the hands of the public and private sectors’ economic development initiatives.34

There are approximately twenty million residents below the age of 30 in the Niger Delta which is both an opportunity and a problem. If enough aspirational jobs can be created, the boost to the economy would be substantial but if not, poverty will likely lead to continued conflict, human trafficking, and other illicit activities. It is estimated that 70-85% of the labor force in the Niger Delta is in the informal sector, underscoring the prevailing inadequate levels of formal employment in the region.35

2.3 Edo State Edo state consists of eighteen (18) Local Government Areas (LGAs) with Benin City as its capital. Total population is estimated to be approximately 4,235,600 as of 2016.36 Agriculture is the mainstay of the economy. Farming is not an exclusively rural occupation, as many city dwellers own farms on the outskirts of the capital and commute regularly to work on them. Cassava, rice, yams, and maize are the major subsistence crops, while rubber, timber, cocoa, and palm oil are the main cash crops. Worth noting is Edo’s strong presence in oil palm, with two of the largest palm oil processors resident (PRESCO and Okumu) as well as the Nigeria Institute for Palm Oil Research (NIFOR). Although Edo also has some oil, mineral resources (e.g. oil, limestone and lignite), and manufacturing enterprises (e.g. pharmaceuticals, rubber, food processing, and furniture), it does not have a robust industrial base. In fact, from speaking to a wide variety of current and potential investors in Nigeria, across a broad range of sectors, Edo does not feature on anyone’s list. Lagos heavily dominates the landscape with secondary options being Kanu, Kaduna, Port Harcourt, and a couple of others.

The urban economy is dominated by government in the formal sector and trade in the informal sector. In Benin City, the capital of Edo state, the government and its agencies are the main employers for the wage-earning portion of the population. In fact, Edo state has a reputation for being a “civil servant state, receiving approximately 36% of its budget from the Federal Accounting and Allocation Committee (FAAC) and being ranked 28th out of 36 in terms of federal budget support transfers in 2017. Correspondingly, it was ranked 5th out of 36 in Internally Generated Revenue (IGR)37. The government civil service’s key role in the labour market is not surprising considering that many states in the Niger Delta have been heavily reliant on federal transfers rather than on non-oil sources generated internally within the state.38 But the Edo state government is under tremendous pressure to change this. As stated in a recent report by PricewaterhouseCoopers (PWC), it is clear that Edo state must intensify and sustain its efforts to expand its income base. Every creative means necessary must be explored. “It requires significant increases to its IGR and total revenue to meet both recurrent and capital expenditures and cannot afford to relent in its legitimate strive to expand its revenue portals if the prosperity it hankers for is to materialise.” Outside of public service, most of the urban work force is in clerical or sales-and-service professions. Men are typically involved in tailoring, carpentry, or electrical and mechanical repairs, and women tend to be hairdressers, dressmakers, and petty traders. The majority of Edo is comprised of rural communities, where like the rest of rural Nigeria, the main occupation is agriculture. In many cases, competitive value chains or clusters have at least one large firm functioning as an anchor company or lead firm, acting as a catalyst or magnet

34 Niger Delta Youth Pathways Program, PIND/DAI, April 2018 (draft) 35 Foundation for Partnership Initiatives in the Niger Delta (PIND), “A Report on Economic Opportunities in the Niger Delta.” 2011 36 www.citypopulation.de 37 2014 Edo State Budget presentation, https://www.vanguardngr.com/2017/11/governor-obaseki-presents-146bn-2018-budget-estimate-to-edo-assembly/ 38 Niger Delta Youth Pathways Program, PIND/DAI, April 2018 (draft)

MADE II – ESIP Inception Study Report, Volume 1

22

for other companies. In the context of SME development, new businesses may start out as subcontractors or suppliers to the lead firm, or they may be formed through spin–offs from the lead firm. Unfortunately, this is not the case in Edo state. Its private sector is relatively sparse in terms of larger, lead firms, product specific clusters, or high concentrations of formal SMEs, which leads to a relatively narrow economic and revenue base.39

Another characteristic Edo is recognized for is creativity, design, music, crafts, and a rich cultural history. Perhaps most known for its bronze casting, Edo people seem to have a natural gift for the arts, from carvers, bronze casters, leatherworkers, potters, and weavers to writers, musicians, actors, actresses, and movie/TV producers. Whether this is strong and prevalent enough to be considered a comparative advantage for Edo state has yet to be seen. See more about this in the assessment of the entertainment industry below.

On a less positive note, Edo state is also known as the epicenter of human trafficking in Nigeria which has unfortunately taken root across the State. Driven primarily by a desire for a better life and a higher income generating opportunity, men and women, educated and uneducated, employed and unemployed continue to be drawn to greener pastures. In most cases, they are taken advantage by representatives of “recruiting agencies” that are very well dressed, well-spoken, and often come through referrals by family and friends. The migration of young women out of Benin City began in the nineteen-eighties, when Edo women—fed up with repression, domestic chores, and a lack of economic opportunities—travelled to Europe by airplane, with fake documents. Many ended up doing sex work on the streets of major cities—London, Paris, Madrid, Athens, Rome. The money wasn’t great, by European standards, but, before long, parents in Benin City were replacing ramshackle houses of mud and wood with walled-off properties. Remittances were used to buy luxury items and envious neighbours took note. Even pentecostal ministers, preaching a gospel of prosperity, extolled the benefits of migration. Women were sending back word of well-compensated employment as hairdressers, dressmakers, housekeepers, nannies, and maids, but the actual nature of their work in Italy remained hidden, and so parents urged their daughters to take out loans to travel to Europe and lift the family out of poverty.40 According the 2017 report by the International Organization for Migration (IOM), as of March 2017 the number of women and girls arriving in Italy from Nigeria has risen from 1,454 in 2014 to 11,009 in 2016. This is an increase of almost 600%. IOM estimate that around 80% of these women and girls are sex trafficking victims.41 And despite various legal, regulatory, and enforcement attempts at the federal and state levels in Nigeria and in the targeted recipient countries abroad (e.g. Germany and Italy), once the women and girls are put into prostitution, there are very few exit routes. Their documents are taken from them and they are in debt to their traffickers or ‘madams’ for huge sums, anything from €50,000 - €80,000.42 Human trafficking, leading to modern day slavery (MDS), has become a well-organised and pervasive sector, and is even changing people’s attitudes towards prostitution as an accepted means of generating income. Poverty, large families, the disconnect between education and work, and unemployment, especially in the rural areas, has led to this becoming a socially acceptable path for individual as well as family wealth creation. Organisations like the National Agency for the Prohibition of Trafficking in Persons (NAPTIP) are doing what they can to both prosecute those involved in this arena as well as rescue those who have been trafficked and rehabilitate and reintegrate returnees back into society. There is also a zonal office of NAPTIP, based in Benin City, covering Edo and Delta states but their human and financial resources are far too little to be effective across all of their

39 Niger Delta Youth Pathways Program, PIND/DAI, April 2018 (draft) 40 A Case Study on Modern Day Slavery, DAI MADE Project, December 2017, Julie Bindel 41 http://www.italy.iom.int/sites/default/files/news-documents/RAPPORTO_OIM_Vittime_di_tratta_0.pdf 42 Human Trafficking: the menace of our age, Sr. Patricia Ebegbulem

MADE II – ESIP Inception Study Report, Volume 1

23

mandates. There are other NGOs operating in Edo state focused on addressing trafficking and returnees but like NAPTIP, most of underfunded and are only able to provide shelter (temporarily), medical check-ups and service as needed upon their return, and counselling. Two of the areas of greatest need are 1) capacity building in marketable skills and 2) placement into either an attractive job or funding to establish a small enterprise. Given Edo state’s current economic situation, the only organisations focusing on the much larger “susceptible population”, comprised mainly of unemployed youth, are the Edo state government and a handful of small scale NGOs and donor-funded projects. While laws are in place to stop trafficking, and the respective bodies are doing their best at apprehending those involved, the faster, cheaper, and overall better route to take is to eliminate or at least reduce the reasons why people emigrate – locally available aspirational job opportunities that generate large enough earnings to convince people to stay. Be it a good job, a training opportunity leading to a good job, public service, or a start-up enterprise, what Edo’s vulnerable youth need most of all are attractive engagement alternatives to emigrating. Fortunately, the Edo state government is led by the Hon. Governor, Godwin Obesaki, who comes from a private sector background and is very aware of the challenges facing Edo. On numerous occasions, he has spoken out about the importance of an enabling environment, jobs for Edo’s women and youth, and need to combat human trafficking. He is also trying to set up partnerships with a wide array of public, private, and donor organisations from across the country to attract investment and in turn offer economic opportunities for Edo’s population (e.g. legal and regulatory reform, tax incentives, land allocation, environmental management, social welfare enhancements, job creation, and investments in education and infrastructure). To obtain a better grasp at the Governor’s level of focus and commitments, please see a list of excerpts from his presentation of the 2018 budget:

§ “The priority areas in the proposed 2018 capital expenditure framework are social and physical infrastructure for which we have earmarked N51 billion. We will take advantage of the Dry Season to reconstruct several bad roads and construct new ones across the state to boost socio-economic activities.”

§ “N9.7billion will be spent on economic growth and employment enablers. Part of

which will be targeted at the establishment of a Skills Development Agency responsible for coordinating all the State Government’s human capacity development initiatives targeted at youths, women and vulnerable groups. This will enhance the capacity of these individuals for direct employment and entrepreneurship. Our government will continue with the investment in the development of industrial parks across the state to turn around the fortunes of our economy as an industrial state, from the old narrative of a civil servants’ state.”

§ “We have set aside N6.3bn and N3.3bn respectively for the education and health

sectors to further strengthen the gains made in ongoing basic education and Technical and Vocational Education and Training (TVET) reforms.” Reviewing the achievements in the outgoing year, Obaseki said, “My administration introduced the Edo Jobs Initiative, where around 200,000 job seekers across the state were registered and the state succeeded in matching 30,000 of these people with local job opportunities in several areas of the economy.”

§ “We have established a strong Ease of Doing Business Committee to oversee our full

compliance with the National Ease of Doing Business Process anchored on truly global standards as well as a one-stop, shop Edo Investment and Business Bureau. This has eliminated bureaucracy from our business environment for faster results and compliance with established rules.”

MADE II – ESIP Inception Study Report, Volume 1

24

§ “Having identified power as a key factor in promoting growth and development, we are pleased that the Azura 450 MW power plant will be completed early next year. We continue to encourage other investors to participate in power generation and have signed a Power Purchase Agreement with Ossiomo Power and Infrastructure Company to provide 5MW to power Government buildings and street lights. We have also been having discussions with the Benin Electricity Distribution Company on the ways to improve electricity supply to the citizens of the State.”

§ “The Arts, Culture and Tourism sector is without contestation a heritage bequeathed

to us by our forefathers and a source of pride to every Edo man and woman. We are repackaging and rebranding the sector through Public Private Partnership to harness the job creating opportunities in the sector and raise the profile of our artists, entertainers, tour operators, destination managers and hotel owners in our overall desire to become the preferred tourist destination in Nigeria.”

For brief descriptions of some of Nigeria’s and Edo state’s employment generation agencies and business associations, see Annexes 5 and 6. While Edo state has abundant resources to support its economic development agenda, and the emphases stated above are all on target and have been well received by all stakeholders, the fact remains that there is much to be done within a limited amount of time in terms of providing a conducive business enabling environment, adjusting the educational and vocational training curriculums to align with the needs of the private sector, and changing the mindset and thus behavior of many of the most influential stakeholders, including but not limited to investors, employers, employees, government officials, youth and their parents.

MADE II – ESIP Inception Study Report, Volume 1

25

CHAPTER III ESIP Commissioned Studies Conducted alongside the sector assessments, a range of studies were commissioned to ensure the MADE team had an in-depth and comprehensive understanding of the cultural, political, and economic situation. Consultants reviewed secondary source literature and subsequently engaged with key stakeholders to gather informed opinions, validate findings and existing information, and establish the rationale and a market-led strategy for the ESIP component of the programme. The resulting findings and gathered data will be subjected to contextual and numerical analysis to extract detailed information and subsequently inform the intervention selection, design, and implementation phases. The MADE team gained its initial understanding of the context through direct engagement with key stakeholders. This was a process that could not be subcontracted as our objective was not only to learn and assess the situation but also to build rapport and develop institutional relationships with the key players. As such, pre-phase II activities started with our team’s engagement with relevant agencies and programmes working in the human trafficking and returnees’ reintegration space. Following this, additional studies and surveys were commissioned by MADE to generate primary data and thus address information gaps, obtain informed opinions, and triangulate findings in the literature review. These commissioned studies also utilised secondary source data and analysis related to specific issues of the target population and situations that MADE interventions will seek to address. The following studies were conducted:

• Support to Human Trafficking Prevention in the Niger Delta • Socio-Economic Survey of Potential Target Demographics for Human Trafficking and

Livelihood Opportunities in Edo State • Vulnerable Groups Assessment and Gender Analysis of Human Trafficking in Edo

State • Economic Outlook and Investment Scan in Edo State • Stakeholder Mapping and Capacity Assessment for Anti-Human Trafficking

Programmes in Edo State Methodologies employed ranged from in-depth interviews, key informant interviews (KII), observations, focus group interviews, and structured questionnaires (especially for socio-economic survey of potential target demographics, vulnerable groups assessment, and gender analysis). The team targeted stakeholders working in the human trafficking prevention, protection and societal reintegration arenas.

3.1 Summary of commissioned studies The study of the human trafficking market facilitated greater understanding of the behaviour of key actors in the Niger Delta involved in human trafficking for sexual exploitation. It identified the social norms and values, as well as the cultural and religious factors at play that encourage trade in girls/women from the Niger Delta. The study highlighted that a complex interplay of deep seated structural, institutional and agency factors in the political economy of Edo state has contributed to entrenching a conducive environment for human trafficking to thrive. It identified structural factors including the historical metamorphosis of legitimate trade by Edo women into the illegitimate trade in women and girls in Italy, on the one hand, and overdependence on crude oil to the neglect of promoting alternative income generating sectors in Edo, on the other. Institutional factors the study presented include informal institutions manifested in social norms in Edo culture that induce and justify the sale of girls and women into sexual slavery. Formal institutions are not exempted from insipid informal rules of the game that permit the passage of

MADE II – ESIP Inception Study Report, Volume 1

26

trafficked women and girls through check points and borders. Agency factors identified include the emergence and expansion of a network of actors taking advantage of the structural and institutional fractures to advance trade in women and girls. The political economy context outlined above made room for a well organised trade in girls and women. The human trafficking market is a well organised business process with all the attributes of business systems. There are clear demand and supply chains with different actors, pricing processes, negotiations, and cash transaction. The key actors who drive and sustain the market work around the clock. The market place straddles international territorial boundaries. The destination points cut across Europe. Channels of transportation are by land, sea, and air. Traffickers target vulnerable groups such as girls from polygamous families, school drop outs, the rural poor, urban women, aspirational migrants. Altogether, human trafficking has become a highly organized and lucrative business, attaining the status of organized crime. The study concluded that addressing human trafficking in Edo requires sustained political will and citizen engagement. Unfortunately, years of neglect to address the scourge exacerbated the situation. However, recent actions taken by the passage of a Bill on Edo State Trafficking in Persons Prohibition, Enforcement and Administration as well as setting up a Task Force Against Human Trafficking and initiating Town Hall meetings for stakeholders to agree strategies for tackling human trafficking are commended. Other preventive interventions include concerted efforts by civil society organisations to target vulnerable women and girls, and work towards reintegrating returnees into society. Finally, the study highlighted conditions that nurture vulnerability, and suggested prospects for engagement of vulnerable girls and returnees in alternative productive economic activities and underscored the need for fostering partnerships among anti-human trafficking actors to tackle modern day slavery in Edo state. The study of the potential target demographics was to determine the socio-economic dimensions of human trafficking and modern-day slavery and explore livelihood opportunities in Edo state. The study highlighted the socio-economic characteristics and dimensions of existing trafficked individuals and of their families; eliciting the perception of the target population and their families on participation in trafficking situation. Further the study investigated economic livelihood factors driving the victimization of women and girls; and analysed the costs/benefits to the families that are associated with the trade; and explore factors influencing integration and rehabilitation of trafficked persons and possible opportunities for alternative sources of livelihood. The study described the victims to include individuals (boys, girls, women and men) mostly at the prime of their ages. They may be individuals who set out on labour migration and become trapped/exploited along the way because they did not have legal documents to travel out of the country. They may also be individuals who are coerced to take decisions to travel abroad either for labour or prostitution. They also include individuals who willingly take decision to travel abroad (based on information available to them) and become victims of exploitation (emotional abuse, rape, loss of money etc). Discussions with respondents revealed that a few victims initiate the process of their being trafficked by seeking out recruiters and making enquiries on the processes and requirements. Large household sizes seem to be the trend across all categories of respondents, another common theme is that economic livelihood is the major driver of the victimization of women and girls. One informant summarised the economic livelihood challenges thus: “No jobs. No social welfare. There are no social services from the government. There is no connection between the government and the people.” The specifics of the economic challenges referenced by respondents ranged from lack of jobs to there being only very menial, low paying jobs which make it difficult to cater for self and family. Most of those surveyed

MADE II – ESIP Inception Study Report, Volume 1

27

earned between NGN 5,000- 20,000 per month, putting most of them below the World Bank (2015) defined poverty line of USD 1.90 a day. That situation seemed to push people to see illegal migration as the only survival option, regardless of its dangers. The highest ranking perceived benefit from partaking in trafficking was improved standard of living. The associated costs however outweighed the benefits for most respondents. The experience of the respondents did not match the ‘success stories’ that attracted them to engage in the trafficking situations. Both male and female migrants had horrific desert experiences. There was also remote victimisation from the home front in form of overwhelming pressure to measure up to their peers as well as expected material benefits. The vulnerable groups study focused on the vulnerability context (shocks, trends and seasonality of livelihood options), and assessed the livelihood assets (human, social, natural, physical and financial capital) available to these groups. The study further investigates the interaction of these assets with structures and processes that will lead to their livelihood adaptation and outcomes prior to any development interventions and provide estimates of the likely impacts of intervention efforts in Edo state. The assessment was to be carried out and reported along gender-disaggregated lines for girls/women, and boys/men in human trafficking high-risk communities of Edo state. The study findings are summarised below. Vulnerability context: Most of the communities faced various forms of shocks, trends and seasonality changes. Ilushi was submerged in floods in 2012. Afuda was also flooded. Irhue experienced soil erosion. Some faced insect and animal pest shocks such as monkey (Irhue, Aviele). A recent shock which is becoming a trend is destruction of crops and maiming and killing of farmers by Fulani herdsmen. Technology used in production activities were outdated – hoe and cutlass for farming. Government presence was invisible in all communities. Population had declined as a result of youth migration from the communities. Some of them have been replaced by influx of Hausa boys and men who were used as hired labour on the farms.

Livelihoods Assets: Of all the five livelihoods assets, natural capital was abundant in several of the communities, they had plenty of land, forests, rivers, but they were untapped. Amagba and Idogbo have depleted their land resources. All the communities were relatively weak on the other assets - human, social, physical and financial. This has implications for livelihoods security.

Transforming structures and processes: The traditional institutions were very well established and influential in all the communities. Each community has a King or Odionwere who administered the community with his Council of Chiefs, all males except in Ogwa where there were female Chiefs among the Council of Chiefs. Modern institutions who could help transform societies were weak on ground in nearly all the communities.

Livelihood strategies: The strategies adopted were: agricultural diversification, livelihood diversification and migration. In all communities, a wide range of crops were grown – cassava, rice, yams, etc., women were both farmers and traders. Youth migration was an option and many parents were in support of migration of their children because of lack of jobs after graduation. Migration of children had implications for farm output. Many parents had to hire labour to replace their children on the farm.

Livelihood outcomes: Livelihood goals mentioned revolved around the desire for adequate incomes to maintain their families, pay for children’s education, and achieve food security (not beg for food). The level of poverty was high as many said they were dependent on

MADE II – ESIP Inception Study Report, Volume 1

28

remittances from migrant children for survival. They were living from hand to mouth and migration was a saving grace for them. Many families were merely surviving. Their incomes were so low they could not save.

Gender Analysis: The results further show that there is gender division of labour in the household. Only women and children were involved in productive activities – childcare, cooking and cleaning, healthcare, etc., assisted mainly by daughters and sometimes by boys (to fetch water and clean). Men were only involved in agricultural activities. The analysis confirmed the double burden of women in the home – as farmers, traders, and in care of the home. The Influencing Factor Tool entrenched the lower status of women in the household and the community.

The economic outlook and invest study obtained information on some preferred/aspirational occupations. Men and some youth are interested in farming, but in large-scale mechanised farming. They want access to modern farming inputs and equipment. Women also want to continue trading but need information on better food preservation methods to reduce waste, they also want access to markets and credit. The youth are interested in skills acquisition in modern professions including ICT, dress-making, barbing saloons, bead-making, etc. They want industries to be established, especially food processing industries such as cassava flour mills, rice mills, etc.

MADE also commissioned the mapping of relevant stakeholders that can support the smooth implementation of the Edo State Investment Portfolio of the programme. This assignment focused on capacity assessment of stakeholders that work within the human trafficking space in Edo state. This included mapping of relevant stakeholders, their roles and responsibilities in relation to addressing the root causes of human trafficking. The assignment identified key technical and functional formal/informal stakeholders that ESIP could engage with in the course of addressing the issue of modern day slavery and human trafficking in Edo state. The stakeholders were classified along the different categories based on the impact of their role(s) and capacity in the potential sectors. The stakeholder matrix developed in the study report provided at a glance, an understanding of their mode of operation, the opportunities and barriers and the varying interests of all stakeholders. The stakeholder mapping will be updated regularly to track impact of interventions on stakeholder configurations with this set as a baseline. A simple power/interest matrix map will be developed to identify the key stakeholder groups that are relevant to the objectives of ESIP. The team will identify the organisations and groups that will affect or be affected by the proposed ESIP interventions in the sector aimed at creating jobs, increasing incomes and empowering women. The mapping technique will identify primary, secondary and tertiary stakeholders; map power vs. interest; classify stakeholders according to their potential for threat and potential for cooperation; and review their influence against involvement. The main reports of the commissioned studies will be submitted as standalone reports with the inception report.

MADE II – ESIP Inception Study Report, Volume 1

29

CHAPTER IV Sector Selection Criteria 4.1 Subsector Selection Criteria As mentioned above, the first step in developing proposed interventions for ESIP was to select a set of high potential sectors and subsectors that offer the greatest opportunity for investment and workforce development for Edo’s vulnerable youth. While completed prior to this consultancy, it is important to highlight the methodology used. Based on both primary and secondary research, a short-list of dynamic subsectors was developed. To evaluate these in terms of their potential for catalysing the expected impact on our target population, three core characteristics were deemed critical: Relevance, Growth Potential and Feasibility. By scoring and ranking each subsector on their comparative performance against these criteria, the subsector selection process reduced the level of subjectivity and allowed for a clearer and more objective process of selection. These three characteristics are defined and explained below:

1. Relevance: Subsectors that are relevant to our target beneficiaries will already have high numbers of poor or disadvantaged youth, especially women, working in the sector or have clear evidence to suggest that they will be able to attract more poor or disadvantaged men and women into the subsector. This also requires the subsectors, and more specifically the opportunities within them, to be seen as highly aspirational by our target audience.

2. Growth potential and competitiveness: A subsector must also be competitive with strong growth potential. If a subsector is growing, then it is more likely to be able to offer opportunities for increased income for current participants within the subsector as well as for employment opportunities for new participants.

3. Feasibility for quickly stimulating systemic change: ESIP only has two years to achieve its results. Therefore, each subsector must have the potential and momentum to feasibly adapt and adopt sustainable changes that benefit our target beneficiaries. Indicators include but are not limited to identifying lead firms, relevant government officials, and other intervention champions that are willing and have the capacity to drive the effort; low barriers to entry created by formal (e.g. legal and regulatory environment) and informal structures, rules and/or social norms; and partners with similar goals and objectives to minimize the time required and maximise the possibility for leverage.

See Figure 2 below for an illustration of the interconnectivity between these three criteria.

Figure 2. Sector Selection Parameters

MADE II – ESIP Inception Study Report, Volume 1

30

Sector of Business No of Entities in 2010

% No of Entities in

2015

% Net share of sector growth

1. Agriculture and Forestry

2. Manufacturing 3. Building and

Construction 4. Hotels, Restaurant,

Cafes and Tourism 5. Communications and

ICT 6. Real Estate, Renting

and Business Activities.

14 224

9

126

24 38

1.36 21.83 0.88

12.28

2.34 3.70

91 280 59

193

156 95

4.40 13.5 2.85

9.33

7.54 4.59

3.04 -8.33 1.97

-2.95

5.2

0.89

7. Electricity, Gas and Water

8. Whole sale and Retail Trade

9. Education Services 10. Health and Social

Work 11. Transport and Storage

18

125

17 138 49

1.75

12.18

1.66 13.55 4.77

117

312

43 242 122

5.65

15.8

2.08 11.7 5.9

3.9

3.62

0.42 -1.84 1.13

12. Fishing Industry 13. Mining and Quarry 14. Financial

Intermediaries 15. Public Admin and

Defence 16. Others

6 56

158 4

20

0.58 5.46 15.1 0.40

2.0

37 70

197 5

50

1.79 3.38 9.52 0.24

2.41

1.21 -2.08 -5.58 -0.16

0.41

TOTAL 1,126 100 2,069 100

A 2016 study of key sources for employment opportunities throughout Nigeria measured Nigeria’s economic sectors by job quality and timeframe for impact. Among the sectors recognized as being particularly important from a workforce development perspective were agribusiness and agro-allied industries and wholesale and retail trade sector as being mass employers with strong growth potential and low barriers to entry.43 The ICT/digital jobs and renewable energy sectors were identified as economic transformers that are also positioned for growth.44 Figure 3 below shows the number of entities in various industry sectors in Edo between 2010 and 2015. The fastest growing sector was Communications and ICT, followed by Energy, Wholesale and Retail Trade, and Agriculture.

Figure 3. Edo State Sector Growth in Terms of Number of Registered Entities

Source: Compiled and Analysed by Braced Commission

Figure 4 below (from the grant applications to the Tony Elumelu Foundation) corroborated these findings, adding energy/power generation and entertainment to the mix. As discussed more below, the entertainment industry is going through a boom right now with the demand for content across all types of media far exceeding supply. As Edo is well known for its creativity and cultural capacity, sector, and given its proximity to Asaba, this sector has strong potential for creating aspirational jobs.

43 Dalberg Advisors. “Strategic Framework and Implementation Plan for Job Creation and Youth Employment in Nigeria.” March 2016. https://www.dalberg.com/our-ideas/strategic-framework-and-implementation-plan-job-creation-and-youth-employment-nigeria. 44 Niger Delta Youth Pathways Program, PIND/DAI, April 2018 (draft)

MADE II – ESIP Inception Study Report, Volume 1

31

Figure 4. Grant Applications for the Tony Elumelu Foundation (2017)

Sector Selection Criteria Indicators

Relevance

• Number of vulnerable men and women currently active in the subsector (and their roles/working conditions as employees, outgrowers, owners of businesses, unpaid employees, potential employees);

• Potential for adding more or better work or business opportunity for vulnerable men and women in the subsector; and

• Nature of the work in terms of it being sufficiently aspirational to attract new entrants to the sector.

Growth potential and competitiveness

• Growth potential of the domestic market, including raw material sales to off-takers and value-added processors/manufacturers as well as to directly to the retail market;

• Potential to increase exports and/or competitively substitute for imports

• Opportunities to increase incomes for the target audience, including new employment creation and opportunities for improved employment.

Feasibility for stimulating systemic change that benefits the target group

• The degree and levels of barriers to entry created by formal (e.g. regulatory environment) and informal rules, and/or social norms that might affect the level of interest, willingness, and incentive to change;

• Capacity and willingness of key market players (aka Lead Firms) to take a leading role in driving systemic change;

• Existence of external factors, including Government’s strategy and commitment, that would support proposed system changes;

MADE II – ESIP Inception Study Report, Volume 1

32

• Likelihood of distortion or dilution within the market system that could “crowd out” ESIP’s efforts and impact feasibility for change (positively or negatively), for example government policies or other projects/actors in the same space taking a different approach;

• Available points of leverage within the sector/market that could be quickly accessed and utilised to create scale; for example, geographical concentrated sector clusters, large scale anchor firms in the sector, or a conducive enabling environment with sector specific incentives; and

• Political stability and support at the Federal and more importantly State level (e.g. how dependent is the intervention’s success on government’s assistance and is this likely to change during ESIP’s lifetime.)

4.2 Lead Firm Selection Criteria During MADE I, the team used a M4P approach to improve the efficiency of a number of agricultural value chains across the Niger Delta. The ESIP component of MADE II is designed to address market system strengths and weaknesses in a slightly different manner. ESIP is oriented to identify and pursue “Lead Firms” which already have an interest in, and the skills and resources required, to initiate or expand their investment in Edo state but are not yet at a point of being able to proceed. Through supporting these firms, ESIP will incentivise and speed their entry into Edo work to create business, employment, and other linkages with our target beneficiaries in Edo state and northern Delta state. Whether directly or indirectly, the assumption is that the Lead Firms in select high potential sectors will be able to generate increased income opportunities for thousands of rural and urban Edo and northern Delta state women and youth.

The selection criteria for Lead Firms was as follows:

• Must be a formally registered business in good standing with the GoN and other authorities related to their activity;

• Must be an established commercial company with sufficient operational and financial capacity to grow;

• Must be interested in developing a growth and/or expansion strategy relevant to Edo

state; • Has an interest in offering vocational training as part of a pre-employment scheme for

our target audience (preferred); • Must be willing to collaborate with MADE II in its efforts to support the provision of

aspiration economic opportunities for our target audience. (including some due diligence, sharing non-proprietary information and M&E data);

• Experience working with donor-funded programs (preferred); and • Existing backward and/or forward linkages to SMEs and other organisations in Edo

state (preferred).

MADE II – ESIP Inception Study Report, Volume 1

33

4.3 Target Audience

The target audiences for ESIP are populations within Edo state and northern Delta state that are susceptible to trafficking and other aspects of MDS. The most common perceptions of this group are young unemployed girls from large families, with little to no education or skills, and living in rural areas with a high incidence rate of trafficked persons. While certainly true, research shows that many types of people, some highly educated and with fulltime jobs, end up being trafficked. It is also true that more and more men are now illegally migrating. Be they male or female, the main driver is economic pressure; in other words, their own and their family’s desperate need for income. In most cases, neither those embarking on this path have any idea that they are about to be trafficked, and don’t realise this until it is too late. In most cases, the parent’s do not have any idea either, as the trolley (front line recruiter) comes across as very credible and often has a connection to a mutual friend or family member.

It has also been found that the route to illegal emigration typically flows through the cities, and especially Edo’s capital, Benin City. The cities are seen as more efficient ‘hunting grounds’ as many young people come to urban areas in search of a better life, with the primary objective being to find a job (any job) and generate enough income to live and help support their family in the village. When unable to find work or when hired under extremely poor working conditions and low pay, they often become desperate for any other opportunity to make money, rather than return to their homes as having failed.

The only substantive data for analysis comes from the returnees, a relatively small population when compared to those still overseas and those illegally migrating on a daily basis. However, the research on returnees does have some potentially important findings. For example, the vast majority of those that were trafficked left Nigeria on a voluntary basis; and were not kidnapped as many believe. Furthermore, the majority had jobs before they left. Over 80% of the returnees were between 20-40 years of age, which is older than what many think. Based on the team’s primary research at the shelters, we would refine this to between 20-30 years of age. Also unexpected was the high percentage of Bini people (64%). Geographically, the heat map analysis shows that the highest concentration of traffickers (e.g. sponsors), both in terms of their origin and residence, are Ikpoba Okha, Orhionmwon, Oredo, and Egor in the south, and Etsako West and Esan Central in the north. This corresponds very closely to the returnee’s areas of origin and latest local residences.45 However, most started their migration journey from Benin City.

45 Analysis on Victims of Trafficking, Edo State Government, January 10, 2018.

MADE II – ESIP Inception Study Report, Volume 1

34

CHAPTER V Sector Assessments

This chapter is comprised of summaries of the 6 sector/cluster-based studies conducted by the Inception Team. The set of complete studies can be found in Volume II: Inception Phase Studies.

5.1 Agriculture & Agribusiness This assignment was undertaken to chart a course for ESIP to identify and pursue investment and employment related initiatives in the agribusiness sector in Edo state that will serve as viable and aspirational alternatives to illegal emigration, and likely human trafficking.

The market systems analysis shows that the demand for off-take of cassava, oil palm, cocoa, rice, maize has and continues to increase in Nigeria. Several macro-economic factors and policies are contributing to this growth. On the forefront, the devaluation of Naira has made the importation of industrial raw materials like starch, palm oil, HQCF, rice, and ethanol costlier. This coupled with the fact the CBN is offering support through specialised financial schemes like the Anchor Borrower’s Programme (ABP), means that the large scale processors are increasingly interested to invest in developing or expanding their local off-take system. The processors are also investing in upgrading and expanding their processing capacity. Commodity Exchange companies are investing to develop the logistics and transportation systems for aggregation of the commodities. The favorable fiscal and financial policies of the government have also created demand for locally processed food products in Nigeria.

Despite the fact that the Edo State Government is trying to attract investors through trade incentives that includes cleared land, investment from the off-takers is yet to take off in Edo. For Edo to leverage on the growing and evolving market opportunity, it is essential that the support services system for off-takers is conducive. The farmer’s communities must be organised (either in groups, coops, or clusters) and should be trained on Good Agricultural Practices (GAP). They will need affordable access to quality inputs at the last mile. They will also need access to crop protection materials, machinery, and extension services to increase farm productivity and profitability to consistently meet the off-takers’ requirements.

The last mile input supply, extension system, and output aggregation systems in Edo state are weak because of limited engagement of the private sector in developing the system, thus far. Discussions with the private sector processors and aggregators revealed that the demand for inputs in Edo has been traditionally low and input supplier interests low in trying to develop that demand. Farmers employ low input-low output farming practices and primarily serve the local market. For the off-take system to become viable, the input supply systems and the extension services systems need to be improved by understanding the value proposition in the state.

In this context, partnership with off-takers could create the demand that would energise and align all of the relevant stakeholders, including input companies, harvest and aggregation service providers, and the local farming community. Given the demand identified, it will also likely result in more land being made available for new entrants – be they farmers, processors, input dealers, storage facilities, etc. Figure 5 illustrates the market opportunity, market failure, the associated root cause for market failure and prospective solution for ESIP to promote off-take of agricultural produce in Edo. Figure 6 illustrates the market opportunity, market failure, the associated root cause for market failure and prospective solution for ESIP to develop the input and the output aggregation systems for agriculture in Edo.

MADE II – ESIP Inception Study Report, Volume 1

35

1

2

3

4

1. OPPORTUNITY OPPORTUNITY

3. ROOT CAUSE(S) FOR MARKET FAILURE

2. MARKET FAILURE

4. POTENTIAL SOLUTION

Young men and women in Edo could become agri-entrepreneurs providing support services on inputs retailing, output aggregation, veterinary services, crop protection and such.

Agri-input companies, agro-processors, financial service providers, commodity exchange companies, and agro-chemical companies are yet to target Edo to expand their last mile input distribution and output aggregation systems.

The agro-input companies, agro-processors, financial service providers, commodity exchange companies, agro-chemical companies are not aware of the scale and investment prospect in Edo.

Demonstrate the prospect of last mile input retail and output aggregation markets in Edo by supporting prospective investors to undertake action research and pilot interventions.

Figure 5: Systemic Constraints and Prospective Solutions for the Promotion of Out-grower

schemes in selected value chains in Edo

Figure 6: Systemic Constraints and Prospective Solutions for the Development of last mile agro-

input retail and output aggregation systems in Edo

1

2

3

4

1. OPPORTUNITY

3. ROOT CAUSE(S) FOR MARKET FAILURE

2. MARKET FAILURE

4. POTENTIAL SOLUTION

Large number of industrial and agro –food processors in Nigeria are interested to invest in developing the offtake system for cassava, oil palm, poultry, cocoa, mushroom, vegetable, maize, rice and bee-keeping.

Offtake initiatives in Edo are still at the nascent stage when compared to the northern regions or the south-west regions of Nigeria. Edo is yet to become a preferred destination for the off-takers in the processed food and industrial agricultural raw materials value chains in Nigeria.

Investment in off take/ contract farming is complex as it involves multi-stakeholder partnerships. The off-takers generally rely on external support or public sector mediation for investment.

Crowd-in prospective off-takers in Edo by facilitating partnerships between farmers’ communities, meso level organisations and the off-takers to create on-farm engagement opportunities for the youth in Edo.

MADE II – ESIP Inception Study Report, Volume 1

36

The vision of ESIP in the agribusiness sector in Edo in this context would be to create a vibrant agribusiness investment climate characterised by an increasing number of off-takers investing in Edo and driving value chain growth by promoting good agricultural practices which would create more jobs for the young men and women in production, processing, input supply and the output aggregation system along-side machinery manufacturing and rental services, storage facilities, and transportation/logistics. In line with the market opportunities to achieve the vision, we recommend two broad-based intervention areas for ESIP:

(i) Provide support to early stage out-grower schemes being driven by experienced agro-processors who want to expand their sourcing strategy to take advantage of Edo’s agricultural advantages in select crops.

(ii) Provide support to input supply companies and existing input dealers to build their distribution systems to extend their services (and points of sale) to last mile farmers. Similarly, support the establishment of commercially viable last mile aggregators/agents to help link last mile farmers to the market. If and where possible, last mile services could also be expanded to include machinery rental services, crop insurance protection, extension services, and other material and service needs.

The interventions of ESIP in the out-growing market systems of selected value chains are expected to create more jobs for vulnerable young men and women in the backward (input supply, machineries rentals) and forward market linkage activities (processing, marketing). According to stakeholders, engagement in non-mechanised farming activities is not aspirational to today’s youth. However, some of the value chains, for instance, poultry, mushroom, and bee-keeping, are expected to crowd in a large number of new entrant youth in the production function. Youth are also expected to be engaged in the services sector related to spraying, harvesting, land preparation, and extension of agricultural information.

We expect that the interventions will influence the farmer’s communities, public sector agencies, NGOs, and relevant business membership organisations to adapt to supporting the off-takers and the agro-input suppliers and dealers in Edo. This will in turn create and sustain demand from the off-takers and stimulate the growth and development of a vibrant agro-input retail market in Edo State which will work as the foundation for jobs and income for young men and women in the food and industrial processing value chains. In our study, we identified 10 prospective ‘lead firm’ partnership opportunities for ESIP to stimulate the off-take of cassava, cocoa, rice, poultry, mushroom, bee-keeping and oil palm from Edo state. We have also identified three prospective ‘lead firm’ partnership opportunities to develop the input market system. In this respect, we anticipate the MADE II M4P team to work seamlessly with ESIP team in leveraging and scaling the interventions already taken and underway from MADE I. Combined, these interventions are expected to benefit at least 10,000 farm households (includes both existing and new farmers) and create many new jobs across backward and forward market activities in the selected value chains. Table 1 summarises the partnership opportunities for ESIP and the probable impacts of these partnerships.

MADE II – ESIP Inception Study Report, Volume 1

37

Table 1: Summary of Partnership Opportunities for ESIP in the Agribusiness Subsectors

Subsector Partnership Opportunity Probable Impact Cassava Partnership with Elephant

Group to develop cassava contract farming systems for HQCF

420 farm households are expected to directly benefit from the scheme. As each farm household will employ labour, this will generate employment for several additional agricultural labours in Edo. The company is expected to add another 300 hectares of land in the next production cycle. Furthermore, if the scheme proves to be successful, they plan to bring more farmers under out-grower’s schemes for HQCF production. The company also envisions to expand into rice outgrowing and processing in the next production cycle in 2019.

Partnership with Guinness to ensure offtake from 600 cassava outgrowers as pilot run to ensure the raw materials for their Ethanol Processing Plant in Edo

This intervention is expected to directly benefit 600 farmers immediately from improved production and income. This impact will trickle down to the farm labours.

Partnership with Greenland Trust as an Off-taker for Garri Processing

As many as 150 farmers are directly expected to be involved to supply cassava tubers to Greenland. These farmers will benefit from improved yield through adaption of GAP. Greenland is expected to engage 500 small scale garri processors in several phases. The scheme will demonstrate the prospect for improving cottage based garri processing system to serve high value consumer market across Nigeria.

Oil Palm Partnership with OKLAN to set-up offtake agreements with farmer’s cooperatives for crude oil palm

Oklan envisions to set-up 10 small scale processing plants to procure crude palm oil. The scheme is expected to reach about 300 small scale oil palm producers in Edo through the farmer’s cooperatives.

Partnership with MGG Wells for off-take of crude palm oil

The partnership will demonstrate the benefit of small scale processing equipment (SSPE) to serve the institutional market for Crude Palm Oil. It will on the process create further demand for SSPEs in Edo.

Mushroom Partnership with Akomz Farms and Foods for mushroom contract farming

The intervention is expected to create 500 mushroom producing enterprises in Edo. It will help establish the backward and forward market linkages for mushroom production and thus attract potentially more off-takers and mushroom producers in Edo.

MADE II – ESIP Inception Study Report, Volume 1

38

Cocoa Partnership with AFEX for cocoa off-take

The cocoa farmers in Edo state will benefit from AFEX’s engagement as they plan to support the farmers to get access to finance, invest in crop protection, and improve production quality, harvesting and processing methods. The intervention will incentivise farmers to adapt GAP. It is expected to directly benefit at least 500 farmers. It will indirectly benefit many labours in the collection centres, warehouses, and those involved in the coordination and transportation activities.

Apiculture Partnership with Sahel Foods to establish an apiculture off-take system in Edo

The intervention could demonstrate the possibility of large scale apiculture in Edo. It could also demonstrate the scope of partnership between apiculture off-takers, local NGOs and big estates and plantation companies like Okomu. The intervention is expected to facilitate creation of 400 apiculture enterprises in Edo State.

Poultry Partnership with Thrive Agric and Ofunirems Ltd. to establish a crowdfunded small scale poultry production system in Edo

The intervention will help create 160 small scale poultry farms in Edo. This will demonstrate the business model for crowdfunded small-scale poultry farms.

Input Supply Scale-up MADE 1 interventions on GAP, promotion of crop protection materials, equipment and improved quality seeds for cassava, cocoa, and oil palm

This intervention will help improve the productivity of the farmers through increased adaption of GAP, crop protection materials and equipment, improved quality seeds. ESIP is expected to leverage on the MADE -1 partnerships with Syngenta, SARO, Candel.

Partnership with Novus Agro and Notore Seeds to strengthen the last mile input distribution system

The intervention will facilitate development of the last mile input distribution system by strengthening the network between input companies, input distributors, last mile input retailers in Edo State. It will facilitate creation of last mile input shops that could also work as output aggregators and extension agents for the farmers.

5.2 Entertainment

The entertainment sector in Nigeria is on an upward trajectory with the Film and TV industry – also known as Nollywood -- leading the way in terms of its contribution to GDP and job growth. The Nigerian Export-Import Bank estimated that in 2014 Nollywood generated as much as $590M in annual revenue while the Ministry of Finance estimated the overall film/TV sector workforce at around 1.2m people.

There appears to be an insatiable demand for films and TV shows with African-themed content in Nigeria, throughout the African continent and among Nigeria’s large global diaspora population. Nollywood products can be viewed on multiple platforms – satellite TV, Internet, mobile devices and cinemas -- as the traditional DVD/CD market declines in significance due to unchecked piracy and Nigeria’s cross over from analogue to digital signals. In 2018, Africa Magic, alone, requires 70,000 hours of original media content for 15 TV series and 40 feature-length made for TV movies. This translates into an estimated N9.9B ($27.3) in wages paid to film crews.

MADE II – ESIP Inception Study Report, Volume 1

39

The classic B-format Nollywood film will continue to enjoy audience demand and because of their popularity the producer will be able to diversify markets from a sole reliance on the sale of DVD/CD to include purchase under license agreements satellite TV channels (e.g. Africa Magic) and multiple streaming platforms (e.g. iROKOtv). Yet, most producers -- in the Asaba cluster for example -- choose to expand their film business by further penetrating the direct to DVD/CD market with existing products. Their business model is to contain costs further and while they may still be able to make a profit from ever tightening margins, they are not going to be the Nollywood job creators ESIP seeks to support.

The job creators will be found among producers who are pursuing a market diversification strategy, a feasible strategy in today’s Nollywood. The satellite TV, digital download/streaming platforms and cinema buyers all seek original Africa-themed media content across a broad range of genres for broadcast to their subscribers and movie going audience. These distributors are willing to pay better prices for a premium film or TV show provided Nollywood producers can “up their game” and meet the test of better story-telling (scripts, directing, acting) told in a more cinematic way (picture, sound, editing). This will require them to change their business model from a large number (10-12 films/year) of low budget (N2-3M/film) films to a smaller number (5-7 films/year) of higher budget (N5-8M) films.

Producers who choose to transition from the “old” to the “new” Nollywood of few better films for a diverse market will face several market system constraints. There is a shortage of qualified crews with the skill sets to deliver on the creative process (e.g. “above-the-line” directors, actors and cinematographers) and make a quality product (e.g. “below-the-line” set designers, sound and lighting technicians, editors etc.). The market system functions of information on job opportunities and the re-skilling of existing crews, attracting and training job ready new entrants are inadequate: film schools and academies offer expensive, long format courses mainly targeting “above-the-line” skills at a time when more competency based short format courses for “below-the-line” skills are needed and missing; and the informal word-of-mouth apprenticeship type system for “below-the-line” crews can’t keep pace with producer requirements.

Producers will have to upgrade their (mostly outdated) equipment (camera) at a time when the costs of imported digital cameras have increased due to the devalued Naira. There is no purpose-built yet basic infrastructure for film production which could offer film producers a controlled and cost-effective filming location at a time of escalating costs especially in Lagos. Film finance is hard to come by and it will be a difficult nut to crack in the short term. However, if producers would make use specialised services – lawyers, financial planners, social media promoters – they could contain costs without sacrificing their vision or the marketability of their products.

Jobs in Nollywood are an ideal fit for ESIP’s target group of unemployed and underemployed youth in Edo state. There are few barriers to entry level jobs and there are many career options for those who persevere and prove themselves, making it a good aspirational sector. This report identifies several interventions ESIP could pursue in the short and longer term that are good for Nollywood and for Edo state and its youth.

On-Line Platform for Information, Education and Jobs: By strengthening the market functions of skills development and information, this intervention will result in, over a two-year period, a more formal pathway to jobs for Edo state residents who aspire to careers in Nollywood and/or other sectors such as advertising and music videos where the same skill sets are in demand. Subscribers of the platform will be able to choose from a broad range of on-line and/or face to face courses ranging from screenwriting to directing and from camera operation to animation. The courses will be taught by working Nollywood professionals and will combine practical competency-based learning with internships on a film set.

MADE II – ESIP Inception Study Report, Volume 1

40

Action: ESIP will select a Nollywood entrepreneur with existing plans to launch an on-line platform as a business opportunity. ESIP will enter into a cost share agreement with the “lead firm” to accelerate the site’s launch and share in first year operating costs in exchange for an initial and dedicated focus in Edo state. Revenues from fee paid subscriptions are expected to cover operations costs from year 2.

Justification: This proposed intervention would address these constraints: target audience sensitisation to create awareness, interest, and demand for Nollywood jobs from Edo’s vulnerable population; affordable skills training to create job ready Edo youth with the right mix of technical know-how and practical experience; and linkages between job seekers and employers.

Expected Results: A rough estimate of investment, capacity building and jobs created over the two-year period of ESIP are as follows:

• 25,000 subscribers pay a one-time subscription fee of N5,000, which equals N125M ($346k).

• 1,000 subscribers pay an additional N20,000 for bespoke training which equals N20M ($55k).

• 2,000 persons (< 10% of all subscribers) will leverage their learning and on-the-job training into 100 days of paid work on film sets at N8,000/day or N1.6B ($4.4M) over a period of two-years.

Mini Film Village: All producers seek ways to contain costs without sacrificing their vision or the marketability of their products. This is especially true for Lagos-based producers who have seen their costs escalate because of higher wages, the high cost of living and time wasted in Lagos traffic. There is an opportunity for Edo state to develop a convenient, versatile, production hub to leverage Edo’s creative community while offering Nollywood a time and money saving alternative by producers.

Action: ESIP will facilitate a public/private partnership to build and operate a mini film village for use by producers with these basic features: a variety of controlled filming locations, adaptable interior spaces for easy set-up, reliable power supply and cabling. The public sector would set-aside the land, tender and award a private company the license to build and operate the mini film village. ESIP’s first action will be to get expressions of interest from the Edo state government and private companies in partnering on the mini film village concept. It is imperative that the actual village be managed as a private business. Once interest is confirmed, then ESIP will assess the attractiveness of Benin City as a lower cost production alternative and the commercial viability of the mini film village.

Justification: As Nollywood continues to grow, the lack of suitable locations for film and TV production is becoming more and more apparent. If ESIP could facilitate the development of an affordable and acceptable location, there is little doubt that producers in and outside of Edo state would quickly utilise it, bringing both investment and jobs, along with the associated income multipliers to Edo state.

Expected Results: In the first full year of operation (4th qtr. 2019), facility’s target would be:

• 10 films at N12M totals N120M ($330K) spent in Edo State. • 50% of a production budget is paid in wages to below the line crews equals N60M

($165K) • 10 films with an average shooting schedule of 15 days each equals 150 days. • 15 below-the-line crew’s/film times 150 day equals 2,250 person days of paid work. • 50% of BTL crew new entrants from Edo State (1,125 person days) paid an average

wage of N8,000/day equal N9M ($25K).

MADE II – ESIP Inception Study Report, Volume 1

41

Producer Linkages to Specialised Services: Nollywood producers face a dilemma in how to contain costs while simultaneously upgrading their business model. Producers who are making the transition from producing many/low budget films direct to the DVD/CD market to producing fewer/higher budget films for distribution in the newer digital/streaming/cinema viewing markets listed their needs as follows: better trained crews, access to better equipment, negotiate better deals with A-list talent and distributors, target marketing using social media, and manage their limited capital to obtain better terms for film finance (e.g. equity or debt).

Action: ESIP’s role will be to facilitate business linkages between producers and qualified service providers by taking the following actions: assess producer demand and willingness to pay for services; survey relevant equipment suppliers and specialised service providers for their interests in targeting producers in Edo State and the Asaba cluster; assist producers individually or through their associations to attract the interest of specialised service providers; and finally assist specialised providers to frame attractive offers for producers.

Justification: Producers who choose to expand their film business by further penetrating the direct to DVD/CD market will find themselves fighting a losing battle against pirates. While they may still be able to make a profit by containing costs to preserve slender margins they are not going to be the job creators ESIP seeks to support. The job creators will be found among producers who are pursuing an expansion strategy by adopting a new business model. Expected Results: With ESIP taking the lead in facilitating business linkages this intervention could be launched at any time. An estimate of expected outcomes follows:

• 40 producers spend an additional N1M/film or N40M ($109.7K); • 40 producers make an average of 10 films over a two-year period or 400 films; • Total additional spend of N40M x 400 films = N1.6B ($4.4M); • 50% of additional spent of crew wages = N800M ($2.2M).

Longer Term Intervention Ideas: This research identified two intervention concepts that would be good for Nollywood and Edo state but would require longer lead times to study their feasibility, design, and then deliver. Tax-based film finance incentives offered to producers by the Edo state government could be a game changer in attracting more Nollywood investments and jobs in the state. Community cinemas targeting lower income consumers with ticket prices at no more than N500/ticket could create additional revenue streams for films first released in Nigeria’s big cities.

5.3 Information Communications Technology (ICT) The information communication technology (ICT) sector, which currently makes up 11.35% of Nigeria’s gross domestic product (GDP) and is quickly growing, can provide an attractive avenue for vulnerable youth employment in Edo state. Unlike other sectors that require high capital cost assets, the ICT sector allows products and services to be built from any location, with the sole prerequisites being sufficient power and internet connectivity. As the ICT sector becomes a larger part of the Nigerian economy, the supply of skilled ICT labour is unable to keep up with the growing demand. ESIP can facilitate investment and engage Edo’s youth to fill this gap in the ICT labour market, thereby boosting the growth of the sector both nationally and in Edo state. The Current State of Nigeria’s ICT Sector

MADE II – ESIP Inception Study Report, Volume 1

42

ICT products and services are in high demand in Nigeria for several reasons. First, Nigeria is becoming more digitally connected; it has more than 90 million mobile data subscribers and 92.3 million internet users.46 The growth in individual ICT users has resulted in an expansion of both the consumer ICT industry as well as the demand for ICT products and services within other industries. Across sectors, ICT tools and techniques are enabling greater efficiencies, improving operations, and allowing businesses to reach new markets. As multinational companies expand into Nigeria, the number of actors in the ICT sector is increasing, including those among the largest industry players. These companies, such as Google, Dell, and IBM, are looking to hire locally to address their ICT skills requirements. Large indigenous actors, such as Andela and iROKO, are sprouting up in response to the demand for ICT products and services as well. Finally, small and medium-sized businesses in Nigeria are embracing the use of ICT. These businesses are looking for local labour to fill their needs instead of looking abroad, where labour is typically more expensive and not in tune with the Nigerian context. Currently, the majority of skilled ICT labour is found in Lagos, the center of Nigeria’s ICT ecosystem. Nationally, research from the National Bureau of Statistics employment survey shows that job vacancies are growing more in the knowledge and technology intensive sectors, highlighting skill gaps between the private sector, the existing labor market, and educational and training institutions.47 Leading this gap is the ICT sector where demand for ICT products and services across almost all industries is increasing faster than the supply of skilled labour. A major reason for this market failure is that secondary and tertiary institutions teach outdated ICT curricula that focuses on computer science theory and programming skills that are not in demand by the market. To learn relevant and applicable skills, ICT professionals are trained through external coding schools or online trainings at an added cost. Once properly trained, they have little trouble finding job opportunities, whether through freelancing, part-time or full-time work.

The federal government has played an important role in both restricting and creating incentives for the ICT sector’s growth. The National Information Technology Development Agency (NITDA) is mandated to write and implement policies and guidelines that regulate the sector and facilitate its growth. For example, NITDA is hoping to enact a local content law requiring companies, both national and international, to produce ICT products and services in Nigeria using Nigerian labour. But, because ICT is a relatively new sector, core policies are still in development, and those that have been enacted into law are not yet fully or consistently enforced. Overall, the federal government recognises ICT’s contribution to the economy and plans to increase investment in the sector by more than $50 billion in the coming years.

Opportunities and Challenges in Edo State The ICT sector in Edo state, specifically in Benin City is small, fragmented, and lacks physical infrastructure. However, Edo state does provide incentives for ICT growth. The State Government has created an enabling environment for the sector with few regulatory restrictions. The state’s large youth population coming out of its five key universities produces graduates interested in careers in ICT. Finally, a lower cost of living and cheaper labour means that Edo state can offer a less expensive alternative to Lagos for companies in search of affordable labour. The challenge is that Edo state does not currently have a strong technology community, nor are there enough formally trained ICT professionals to fill current vacancies in the market. With respect to Edo’s most vulnerable population (e.g. rural households, school leavers, unemployed, returnees, etc.), there is very little awareness about the ICT sector and what it has to offer.

46 https://www.statista.com/statistics/183849/internet-users-nigeria/ 47 National Bureau of Statistics. “Unemployment and Under-Employment Report. Q4 2016.” http://www.nigerianstat.gov.ng/.

Formatted: French

MADE II – ESIP Inception Study Report, Volume 1

43

Recommendations

The recommendations below outline opportunities for ESIP to help Edo state become a go-to supplier of skilled ICT professionals. If successful, Edo state would grow to become a secondary technology community (to Lagos) that provides quality and affordable ICT products and services. This development would incentivise youth to stay in Edo state to pursue jobs in the growing and expanding ICT sector, a career path that connects individuals to opportunities worldwide. To achieve this vision, ESIP recommends three possible interventions that aim to train youth in necessary ICT skills, connect them to job opportunities, and improve the technology community in Edo state. All three of these recommendations leverage partnerships with local, national, and international technology companies. While we recommend three interventions, this section provides a deeper analysis of the first recommendation (a center for tech hub services), as this approach has the highest potential for impact and can be easily coupled with the other two interventions.

Recommendation 1: Facilitate the creation of a facility providing technology hub services in Benin City

ESIP should explore the creation of a platform to provide technology hub services in Benin City. This centre would consist of a physical space in a central location where various partners can conduct ICT trainings for youth, providing them skills that are in high demand in the market (e.g. frontend and backend web development and app development) and connecting these trained professionals to job opportunities. Sabihub, a Benin City-based organisation that currently manages a ‘virtual’ technology hub, is well-positioned to manage this space. With support from ESIP, tech hub services would leverage the existing technology ecosystem, consolidating disparate actors and attracting external partnerships to support its growth, including but not limited to Andela, Code Academy, Facebook, and Google. If implemented, this report predicts that such a centre would connect at least 2,200 youth to job opportunities during the MADE II project period.

Recommendation 2: Partner with the Andela Learning Community

ESIP has an opportunity to formalise a partnership with the Andela Learning Community (ALC), a programme that focuses on building the capacity of African technology leaders and developers. It is run by Andela, a leading international technology with a regional office in Lagos, Nigeria. ALC has offered to conduct trainings, provide online support, host ICT community events, and mentor new ICT professionals. Furthermore, ALC hold regular Career Fairs that connect technology firms looking for skilled ICT professionals with recently-trained ALC graduates. Andela has also offered to continue building partnerships with companies such as Google to enhance their offering to potential participants. This recommendation does not require that ESIP set up a physical space since Andela is able to provide most of its support virtually. A risk of this approach is that, without a physical presence, ESIP and ALC will have a harder time convening people and attracting the interest of the target audience.

Recommendation 3: Build the capacity of Sarutech’s Code Academy

ESIP has an opportunity to expand the reach of a local ICT training company in Benin City, Sarutech, through their Code Academy. Although the Code Academy is relatively new, they provide training on appropriate ICT skills and have at their disposal a roster of trained technology instructors. After training is complete, Sarutech works with recent graduates to get them on-the-job experience by creating small engineering teams that provide various freelance solutions to Nigerian start-ups. Graduates who are interested in being entrepreneurs will have access to mentors who have tackled similar challenges in the past.

MADE II – ESIP Inception Study Report, Volume 1

44

Sarutech also uses a speaker programme that brings in successful entrepreneurs, software developers, and investors into the classroom to talk about their career paths. Summary: This ICT sector offers great potential to leverage significant expansion across the private sector and a growing demand for youth with technology skills. In addition, this industry segment aligns very well with youth’s career interests and aspirations in entrepreneurial activities, along with the flexibility ICT affords in terms of working hours, location, and equipment required. A sector-focused awareness and promotional campaign will be needed to ensure optimal participation by Edo’s vulnerable women and youth.

5.4 Renewable Energy Lack of energy has long been linked to economic stagnation and other social problems including unemployment and youth unrest. Nigeria, the most populated country in Africa, has one of the worst energy crises in the world with about 96 million nationals lacking access to electricity. There are weak expectations that the energy crisis in the country will improve despite several attempts by the government to overhaul the entire industry- first in 2005 and then in 2013.

Across the energy generation to distribution spectrum, Nigeria’s power infrastructure performs dismally. The country only generates an average of 4,500MW which is dismally low compared on a per GDP basis; with an installed capacity to transmit 5,300MW (but much of this is lost due to weak capacity of the transmission grid which is badly in need of an upgrade); and loses about 46% of energy during the distribution of energy to end users. Despite these challenges, there are expectations that these power sector challenges will be solved soon. Therefore, advances in various types of alternative energy solutions, particularly from renewable energy sources such as solar, biomass, wind, hydro-electricity, have the potential to address the energy challenges that Nigerian states face.

The efforts in the renewable energy sector in Nigeria have been greatly impacted by international development organizations who have helped catalyse the industry in various ways. Notable amongst the efforts of international donors are the work by UK DFID’s Solar Nigeria Programme48, where in its social component, Solar Nigeria, has helped used solar to electrify 175 schools and 11 clinics in Lagos, 34 clinics in Kaduna and 3 general hospitals in the insurgency affected Borno State. DFID, through Solar Nigeria, has also influenced the private sector development of solar companies by offering grants to 24 solar organisations ranging from solar retailers (with prospective distribution plans to scale), wholesalers, manufacturers, MFBs and even a financial service support firm. These grants were issued to support the expanded distribution of solar products in Nigeria, increase stock capacity of these organisations and to enhance sales. The grants were not meant for operating expenses. From the organisations that received these grants, various positives have come out. Notable amongst them are: The grants came at the time when the recession was at its worst and the currency instability was at its worst. Most companies attested to the fact that if not for the DFID grants, they would have had to close down. Lastly, the Solar Nigeria Programme also supported commercial-type solar activities in the Commerce & Industrial space with a pilot project in Kano State of Nigeria. One notable project which was supported is the provision of partial grants to Rumbu Sacks Industries (makers of prayer mats) to install a 73KW solar PV system on their roof space to augment their energy needs and reduce dependence on refined fuel to power their generators in the day. This system has proven to be successful as the management of Rumbu Sacks is seeking to add an additional 300KW of solar PV to its roof space. The intervention is expected to, by year 2020, ensure improved

48 https://guardian.ng/energy/solar-nigeria-programme-to-provide-13m-pounds-in-support-of-solar-power-generation/

Formatted: French

Field Code Changed

Formatted: French

Formatted: French

MADE II – ESIP Inception Study Report, Volume 1

45

welfare outcomes for more than 2.8 million people using domestic solar photovoltaic (PV) systems, with 190,000 school pupils and 4.7 million clinic patients benefiting from public institutions with PV systems, create more than 3000 jobs and ensure greater effectiveness of DFID's other health and educational sector intervention in Nigeria.49

Another RE support project by international development partners is the work by Partnerships Initiative for the Niger Delta (PIND) working with ColdHubs to pilot a 15KW solar PV in containerised forms to power cold storage containers and help store farm and animal produce in Niger Delta communities of Nigeria. In the Niger Delta and most parts of Nigeria, 45% of food spoils mainly due to lack of cold storage. Perishable food especially fresh fruits and vegetables start to deteriorate as soon as they are harvested because they are cut off from their source of water and nutrition. They lose weight, texture, flavor, nutritional value and appeal. Cooling significantly slows down the rate of deterioration, thereby increasing the storage life of the produce.

ColdHubs50, is a “plug and play” modular, solar-powered walk-in cold room, for 24/7 off-grid storage and preservation of perishable foods, with the help of PIND and other partners like All-On, ColdHubs is able to expand rapidly across the Niger Delta, with Edo State being one of the Niger Delta states.

In Edo state, which is the focus of this study, the government of the state is committed to improving the business enabling environment to attract further investment into the state. Therefore, several initiatives are underway to boost the state’s economy across several sectors. However, to thrive, this economy boosting programme requires energy as one of the basic requirements.

The purpose of this report is to determine if there are suitable opportunities within the renewable energy sector of Edo state to facilitate investment, increase incomes, and/or generate new jobs for Edo State’s vulnerable population.

This report outlines the findings of the multi-sectoral inception studies phase of the Edo State Investment Portfolio and proposes interventions to address the opportunities and challenges identified. Findings The following are the key finding from the scoping exercise:

• Three renewable energy solutions hydro-electric, biomass and especially solar are the most viable in the short-term to medium term.

o Solar energy- harnesses radiant light and heat from the sun using semiconductor materials.

o Hydroelectric energy- derived from the movement of water which produces kinetic energy which can be harnessed into useful forms of energy.

o Biomass Energy- conversion of plant and animal waste into useable energy forms using an anaerobic digester.

• The Edo state government is invested in improving the economic environment in the state and is therefore committed to improving the state’s infrastructure, including power, to achieve that. Awareness about solar energy is high in the state. However, significant input will be required on both the supply and demand sides for the solar market to take off.

• Renewable energy by itself is not sufficient to drive economic activity in the state but will serve as a catalyst for the rapid growth of other industries such as the entertainment, fashion and agricultural industries.

49 https://devtracker.dfid.gov.uk/projects/GB-1-203674 50 http://www.coldhubs.com/

Formatted: French

Field Code Changed

Formatted: French

Formatted: French

Formatted: French

Field Code Changed

Formatted: French

Formatted: French

MADE II – ESIP Inception Study Report, Volume 1

46

Recommended Interventions

1. The most viable intervention identified is the electrification of local markets in Benin City through renewable energy sources. Five viable market cluster that have potential to be electrified either through energy generated from solar or biomass have been identified. The proposed intervention is such that the solar companies, using investor funding will make use of the roof space of the existing markets to install solar PV array. There will be an installed grid to all shops of the market and the meters will be provided to all shops with load optimized for efficiency.

For markets that have high food and animal waste content and with the availability of land within the market, anaerobic bio digesters can be constructed to also provide energy from biomass. Once set up in each market, Individual shop owners will have consistent electricity supply, pay for electricity consumed and will have no need for fossil fuel powered generators.

The electrification of these shops will allow owners to have consistent, reliable electricity supply and which can in turn generate more revenue for the owners in terms of longer trade hours, longer shelf lives due to refrigeration, less waste, and increased foot traffic.

2. Support the electrification of other economically viable sectors of Edo state such as agriculture, fashion, technology and entertainment. Renewable energy on its own will not help create a lot of permanent direct jobs, but it’s inclusion to meet the energy requirements in other sectors as listed above, will improve income, increase productivity and in turn create more jobs as those sectors improve. This report highlights the possible ways renewable energy can impact these sectors.

ESIP’s Role

While ESIP cannot be involved in the direct funding of renewable energy solutions, it still has a role to play in priming all stakeholders for easy collaboration to achieve the goal of electrifying market places. Additionally, ESIP will be involved in other stakeholder specific support as listed below:

• Cross cutting support o Facilitate the coordination and registration of a legal special purpose vehicle

binding all partners/ stakeholders together for the long haul. o Lead in the creation of a multi- stakeholder engagement forum for all

interested parties o Providing strategic insights to all players

• Government support o Provide technical assistance on ways to improve the business enabling

environment for investment o Build capacity of government officials to engage with developers and

financiers • Solar Developers

o Provide strategic insights to identify viable electrification opportunities within Edo state

o Provide linkages to capable financier interested in investing in the RE space or Edo state

o Support in the development of strong business plans o Supporting awareness creation efforts that increase government and

consumer knowledge on the benefits and availability of solar solutions. o Provide TA to support the marketing strategy

• Financiers

MADE II – ESIP Inception Study Report, Volume 1

47

o Create links to capable financial institutions that are interested in funding RE projects

o Provide required due diligence for RE projects to aid financial institutions understanding of project viability and profitability.

It is important to note that while renewable energy is increasingly being recognized as a critical ingredient to improving the local economy of Edo, there remain a myriad of national policies and regulation that must be addressed to create a conducive enabling environment for renewable energy investment in the state. These go beyond the influence of the Edo state government and thus, will require a broad-based nationwide marketing and advocacy campaign.

It is also important to highlight that from amongst the major renewable energy sector players in Nigeria interviewed in this study, when asked to place Edo state in their order of investment location priorities, it was never mentioned as one of their top 5 sites. Not surprisingly, the economic hubs of Lagos, Abuja, Port Harcourt, Kano, Kaduna and select South Eastern states came before Edo as their next target locations for expansion.

5.5 Fashion & Beauty

This section includes reviews of the Nigerian fashion and beauty sectors. While related, they operate as two distinct value chains, each with their own set of actors, drivers, trends, and opportunities. The objective of these inception studies is to identify opportunities for designing and implementing interventions that will contribute to the increased investment and income generating opportunities for Edo state’s vulnerable youth and women. 5.5.1 The Nigerian Fashion Sector The Nigerian fashion sector has evolved over the years to become a sector that can provide jobs, promote creativity, provide social security, and create a massive economic base of micro, small and medium scale enterprises that are able to lift a large number of the populace from poverty to wealth and global relevance. In the main, the team focused on various aspects of the garment subsector, including but not limited to designing, tailoring, manufacturing and sales. This can be further categorised into high end custom made products, the up and coming ready to wear segment, and the lower quality/large volume uniforms and t-shirt subsector. In addition to garments, the broader fashion sector also includes many ancillary industries such as hair making, hair styling, accessories, textile manufacturing, photography, costuming, modeling, and fashion schools/academies. While the largest consumers of such products and services are individuals and organisations, including government agencies (e.g. uniforms and themed T-shirts), Nigeria’s booming entertainment sector (e.g. music, television, and film) also plays an increasing influential role in the industry. The distribution channels for fashion products and services is equally vast, comprised of national brands with large shops, boutique brands focusing on specific customer segments, retail outlets, sole proprietorships, owner-operated micro-franchises, and more. Outside of Lagos, most of the sales are made in small shops, boutiques, and through independent tailors, often personally known by their clientele.

The fashion industry is well recognised as an important component of the Nigerian economy - creating jobs, promoting creativity, spawning entrepreneurship, and

MADE II – ESIP Inception Study Report, Volume 1

48

highlighting Nigeria’s unique designs and culture. According to News Agency of Nigeria (NAN), the Fashion, Garment, and Footwear industry contributed 0.47% (estimated at N380 billion) to Nigeria’s GDP in 2014. Having said that, and despite the existence of the Fashion Designers Association of Nigeria (FADAN), it remains an extremely fragmented sector, dominated by a relatively small number of fiercely independent and competitive brands. With very little coordination or collaboration between the main players, there is also a paucity of sector-wide data available. One of the key contributors to the growth and expansion of the sector is Style House Files (SHF). SHF is a creative development agency for fashion designers. SHF has been at the forefront of the fashion industry working with Nigerian brands on brand positioning for years. SHF, through the Lagos Fashion and Design Week, has been able to give young, talented Nigerian fashion designers a platform to showcase their work to their target audience, thereby positively impacting job creation and the generation of additional sources of income. Also contributing notably to the fashion industry in Nigeria is the support of public and private institutions like MTN Nigeria, Heineken, GTBank, Bank of Industry, Nigerian Export Promotion Council, Nigerian German Business Association, British Council, and Vlisco Nigeria. These and other firms help to build wider awareness, appreciation and acceptance of the sector and its components by subsidising forums, sponsoring competitions, and hosting award ceremonies. The Business Model: As mentioned above, within the garment sub-sector, there are different types of products and customers. One of the common denominators is that most of the textiles and other materials (e.g. buttons, zippers, thread, etc.) are imported. In many cases, orders are completely outsourced with the finished goods then imported (e.g. to and from China). In terms of higher end, custom tailored garments, most of the work is done in Nigeria by very talented and accomplished tailors. With no large factories, such orders are either filled by the designers themselves or outsourced to a small group of trusted tailoring shops. It is not uncommon for contractors to receive large orders from government, schools, and corporations (e.g. uniforms and themed T-shirts) who then, due to not having enough sewing machines, resources, and/or human capacity, subcontract portions of the order to smaller operators. In some cases, it has been reported that inexperienced subcontractors are used who lack the experience and charge less for the prime contractor to maximise their gains. The other more common option is to outsource the order to China and other known textile manufacturing hubs under a private label platform. Respondents in the footwear (e.g. leather) and accessories subsectors also reported that the cost of producing locally is high when compared to the cost of imported products. One of the most significant trends taking place in Nigeria’s garment subsector today is the growing demand for “ready-to-wear” (aka off the rack) products. This is a relatively new phenomenon which is causing designers to rethink their production and distribution strategy. The high end will likely stick with custom designed and tailored clothing for the uniqueness but the larger middle to lower end market is responding to the convenience and lower cost of the ready-to-wear option. The three main constraints in this regard are 1) designers do not have the capital to produce large quantities, especially when payment terms can be 60+ days, 2) there are very few if any factories currently available in Nigeria that can efficiently produce at scale, and 3) there are not enough large-scale department stores across the country that have the customer base to pre-purchase a range of product types in the sizes required.

MADE II – ESIP Inception Study Report, Volume 1

49

The Fashion Sector in Edo State

The fashion sector is clearly based in Lagos. Not only is Lagos where the textiles and other products are imported, but it is also the largest market in Nigeria. While there are an increasing number of aspiring designers coming from Edo, most move to Lagos to be closer to the main player sand pulse of the industry. Only than very small-scale tailoring, shoe manufacturing, make-up artistry, and the like, there are no manufacturing factories of note in Edo.

In terms of Edo state as an end consumer market, the perception of the industry leaders, most of whom already have some sort of retail presence in Edo, is that the low purchasing power of a dispersed market with poor infrastructure is simply not attractive enough to warrant further investment. Thus, in terms of market segmentation, Edo is relegated to the lower echelons of both price and volume.

5.5.2 The Nigerian Beauty Sector The Nigerian beauty sector, like the fashion sector above, is also growing and expanding to meet the ever-changing demands and preferences of the consumer markets. Also, like fashion, there are various levels of products in terms of price and quality and a plethora of subsectors. In this inception study, the team primarily focused on cosmetics and skin care products. Cosmetics and skin care products can be further classified into five sub-clusters; namely Body Creams, Beauty Care which will involve face creams, anti-ageing creams, eye and anti-wrinkle creams, Hair Products, Fragrances and, Personal Care products such as deodorants, anti-perspirants, hand and foot creams etc.

The main distribution channel for beauty products and services is the tens of thousands of independently owned beauty salons and makeup studios. While there are also branded and multi-brand retail shops, specialty stores, and supermarkets, the dynamism of the sector is through these largely informal sole proprietorship microenterprises offering products, services, or both. Also, as in fashion, while not the dominant end market, the fast-growing entertainment industry is an increasingly important driver and supplier of jobs in the sector. The Business Model: The dominant business model in terms of production is private label. While there are a few local manufacturers, the vast majority have their products manufactured overseas. It is estimated that imports from foreign countries account for approximately 70% of the domestic market.51 This is due for many reasons, such as availability of high quality raw materials (e.g. oils), production facilities with the right equipment, affordability, and the current but hopefully decreasing perception that Nigerian manufactured products are substandard to imported ones. Some respondents, especially those that have made their names in the industry, speak of the gradually improving reputation of, and appreciation for, local designs and fabrics. Previously, locally made products were primarily used for burial and marriage ceremonies. As in the fashion sector, the beauty industry is also dominated by a relatively small number of highly recognised and competitive players who rarely share information or collaborate. Consequently, finding current and accurate industry data, information or statistics is very difficult.

Some of the notable players in the Nigerian cosmetics and beauty care subsector include foreign firms such as Procter and Gamble, Unilever, and PZ Cussons. Other 51 https://www.boi.ng/cosmetics-and-beauty-care-products/ Formatted: French

MADE II – ESIP Inception Study Report, Volume 1

50

indigenous industry players include House of Tara International, Zaron Cosmetics, and Lise Beauty Range.

The Beauty Sector in Edo State

Across all of Nigeria, including Edo State, the beauty sector is one of the country’s most prominent, vibrant, and visible retail sectors. In many locations, it appeared that close to 50% of all retail shops had something to do with the beauty (and fashion) sector. For similar reasons as expressed above on the fashion industry, there is little to no cosmetic or skin care products manufactured in Edo. The emphasis is on retail product sales and services (product application), through thousands of small shops, salons, and household-based businesses. While potential to upgrade and expand the retail infrastructure, the brands met with do not at present consider Edo state a market priority. When asked what their geographic priorities were, most respondents listed their top 5 as Lagos (by far), Abuja, Port Harcourt, Kanu, and Kaduna.

Key Findings

• There are no leading brands or manufacturing centers in either the fashion or beauty sectors in Edo state.

• As in most industries, competition in the sectors is primarily based on price and

quality. For example, fashion designers differentiate themselves in the type of fabric used (e.g. adire, aso-oke, etc.) and make-up artists differentiate by the brands used and quality of their artistry.

• The majority (~58%) of the respondents in both sectors reported that they are

planning on expanding into new product lines, while others plan to open business outlets in new locations, offer training services, diversify into adjacency industries like the laundry business or develop an online sales platform to outreach to new prospective clients and more efficiently serve existing ones.

• Main players like Mai Atafo and Frank Osodi in the clothing segment, and House of Tara, in the beauty sector, the latter of which charges a minimum of N100,000 to train in their Make-Up Artist academies, are not willing to invest in Edo state. The main reasons are their main market is in Lagos, their raw materials are sourced in Lagos, and the size and purchasing power of Edo state simply doesn’t make it financially attractive to further expand their existing presence.

• One of the latest trends in the skin care subsector is an increasing appreciation for

natural products that present no side effects over the long term. While also catering to local production, we see the nutritional and organic sides of beauty products as a growing market.

• In many cases, large orders for garment manufacturing from leading public and private sector institutions are not accompanied with initial deposits or upfront payments (e.g. to purchase raw materials) which results in a very high barrier to entry for SME manufacturers.

• High import tariffs/duties and clearing fees at the port on imported fabric and other raw and finished materials constrain the profit and inhibit the growth of the sectors.

• In Edo state, many of the industry practitioners lack marketing and sales acumen to maximise their sales and service potential. Unlike entrepreneurs and more like

MADE II – ESIP Inception Study Report, Volume 1

51

being self-employed by necessity, there seems to be a comfort zone in building a proximate and personal clientele which once reached, is deemed sufficient.

• There remains a large amount of counterfeit health and beauty care products on the market that are dangerous and often sold for lower prices. This is a major problem across the industry that needs to be urgently and forcibly enforced.

Conclusions

1. Growth in both the fashion and beauty sectors has significantly increased in the last decade due to increases in population, a growing middle-class, urbanisation and employment in formal settings.

2. Federal and State Government involvement in the fashion and beauty sectors

have been peripheral at best with no substantial investments or milestone regulatory changes to facilitate sector development or growth. Opportunities that exist and should be capitalised on included but are not limited to legal and regulatory matters involving product standardisation, piracy, import duties and tariffs, vocational training, and more generally, the enabling environment for start-ups and SMEs.

3. The privatisation of comatose textile companies, such as Finetex Textile Limited

and African Textile Mill Plc, with sufficient investment, could re-emerge and foster dynamism and growth in the fashion sector. However, it remains highly unlikely that they will ever be able to profitably produce the high-quality fabrics demanded by top end consumers at a price point less than what can be imported from China, India and other countries.

4. Industry stakeholders need to create more public awareness on the dangers

posed by using locally made counterfeit health, skin, and beauty care products.

5. Stakeholder collaboration, which is missing to a great extent, is key to industry growth and development. This could be achieved through workshops, trainings, fairs and networking events to bridge existing value chain gaps and market failures in both the fashion and beauty sectors.

6. An improvement in the ability of local manufacturers to compete against imported

products will result in increased incomes, further investment, and employment generation. However, for this to be achieved, adequate and affordable infrastructure such as land, buildings, electricity, finance, and access to raw materials must be put in place.

7. Assuming enough support can be derived from the government and industry, there could be great value in establishing a fashion design and production cluster in Edo state to boost fashion designers’ activities, create jobs for women and youth, and improve access to market. A cluster would help contain costs, serve as a continuous learning platform, and improve Edo’s competitiveness in the sector.

8. Furthermore, owing to the peculiarity and broad scope of the fashion and beauty

sectors, unavailability of quantitative data, and the lack of market structures in these sectors, there is a need for more extensive research and analysis to develop a deeper understanding of the problems and opportunities within these sectors.

MADE II – ESIP Inception Study Report, Volume 1

52

Proposed Interventions

As stated above, no specific short-term interventions with identified lead firms were discovered that would contribute to ESIP’s goals and objectives in a material and timely manner. However, we have identified intermediate and longer-term initiatives that might be worth considering if ESIP could find the right partner(s) or project(s) to collaborate with. The following interventions are seen as pre-requisites for Edo state to fully realise the potential of the fashion and beauty sectors:

• Developing, marketing, and delivering market-based training courses that are attractive and affordable to Edo’s vulnerable population. The objective is to train aspiring artists and fashion designers with contemporary skills that will enable them to be competitive in the market. This would likely require partnering with other projects and programmes to leverage funds.

• Advocacy with relevant government bodies, such as the Nigerian Export Promotion Council and other relevant agencies, to facilitate easier import of raw materials as well as export of Nigerian designs, fabrics, and products.

• Awareness creation through broad-based traditional and social media campaigns

to change the perception of Nigerians that ‘Made in Nigeria’ clothes, shoes, cosmetics, hair care items, and other products are sub-standard. This could potentially include the patronage of ‘Made in Nigeria’ products by celebrities via ESIP’s involvement with the entertainment sector and other recognised public figures.

• Supporting more public forums, events, exhibitions, and celebrations to bring

industry leaders together and collectively showcase their designs and products (manufactured in Nigeria perhaps) in partnership with reputable boutiques, retail outlets, and other distribution pillars.

• Supporting the development of sector and subsector trade associations as well as developing a mentorship and apprentice system for young aspiring fashion and beauty entrepreneurs.

• Working with Edo state’s forthcoming industrial park and other land driven initiatives to make room for fashion and beauty manufacturing/production hubs that are safe, proximate, well-constructed, and have affordable and reliable sources of electricity.

• Development of a standardised training curriculum that includes but is not limited to make-up artistry, gele tying, and okuku making (which is unique to Benin). These training offerings should be easy to access, affordable, and offer some sort of credible and portable certification. Herein, partnering with existing organisations, such as vocational training schools, fashion academies, and NGO’s focused on enterprise development for youth and women, will be needed to ensure as broad a coverage as possible, with a focus on the zones known to be subject to the highest incidences of human trafficking.

MADE II – ESIP Inception Study Report, Volume 1

53

5.6 Wholesale/Retail Trade

The Wholesale Retail sector (WR) is a large and growing part of the Nigerian economy. According to data from the Nigerian Bureau of Statistics (NBS), the contribution of the wholesale and retail sectors to the Nigerian economy (here, in terms of GDP), has increased from its position in 2001 of less than 14%, to around 16 % in 2011, to 21.64% in 2017. It is important to note that the value added in the WR sector not include the economic activity in the agricultural and industrial sectors which generates a proportion of the goods that are sold in Nigerian retail outlets. The drivers for increasing WR spend as a proportion of the entire economy are likely to be different at alternate ends of the income spectrum. For low income groups, spending on food dominates their consumption basket. This is unsurprising when a little over 60% of the population struggle to access enough food to meet their calorific requirements. In addition, the price of basic food staples, which form the bulk of the consumption basket of low income groups, has increased significantly since 2007. The consumer price index (CPI) reflects the spending pattern of both the urban and rural population. It is clear from the change in the weights and composition of the basket that the spending pattern of an average Nigerian is changing. People in both the rural and urban centres are spending less and less on food and more on non-food items. Education, communication, clothing and footwear, and health are emerging areas of expenditure pattern that are markedly different from the previous composition. Situation in Edo State The first activity of the ESIP component of MADE II was to conduct inception phase studies across 6 pre-selected sectors. Once of this, and the purpose for this report, is the study and analysis of the Edo state Wholesale and Retail sectors. In addition to this, we also examined opportunities for franchising. The inception studies were meant to capture information and provide sound analysis leading to the development of a vision and a strategic approach in how the project could contribute to investment in Edo state and increased income opportunities for its vulnerable women and youth. A sector mapping exercise was conducted across key LGAs in Edo state. This was followed up by a market reconnaissance survey of the major markets in Benin City; namely Oba, Kara-Aduwawa, Santana, Oregbeni-Ramat park markets, Auchi, Irrua and the Ekpoma market. This was done to physically study and observe the flow of goods and cash to develop an on-the-ground assessment of the sector supply chain. Table 2 below shows the wholesale and retail sector activities that were dominant in the rural, semi-urban and urban areas. Table 2: Sector Emphasis by Area

Rural Clothing, Food, Fast Moving Consumer Goods (FMCG) Agriculture, Service

industry, Urban Entertainment, Electronics, Tourism, Education, Clothing, Food, FMCG,

Agriculture, Service industry,

Semi Urban Entertainment, Clothing, Food, FMCG, Agriculture, Service industry

The review of the sectors’ secondary literature and subsequent engagement with key stakeholders to gather informed opinions, validate findings and existing information, were helpful in establishing the rationale and focus for potential ESIP opportunities. The mapping

MADE II – ESIP Inception Study Report, Volume 1

54

of actors, influential stakeholders, and potential investors was a high point. The team met with the Benin Chamber of Commerce, Mines, Industry and Agriculture, (BECIMMA), Lift Above Poverty Organization (LAPO), and the AMENA Academy to engage on the potential roles they could play in the project. Other organisations engaged included the Edo State Ministry of Women Affairs, Quintessential Business Women Association (QBWA), and other women groups in the rural areas of Edo state. ESIP seeks to strengthen capacities and market linkages in the retail market system and to improve access to retail channels for Nigerian small and medium size enterprise (SMEs), farmers, marketers and manufacturers. After a rigorous process of research and analysis, the following key initial intervention areas have been identified to achieve the goals set out above:

1. Improving functionality and business capacities in the retail sector 2. Improving services for the actors in the retail sector through the use of technology 3. Supporting the development of the skills and capacity of WR sector actors 4. Encouraging economic empowerment initiatives among the poor and vulnerable

women These intervention areas have been carefully selected because they 1) address the key constraints identified; 2) are likely to have a measurable impact on Edo’s poor and women; 3) are scalable and replicable with sustainable impact; and 4) are achievable within the period left on MADE II to address market failures in the wholesale and retail market system. ESIP will address the systemic constraints to diagnose the problems and inefficiencies within the sector and design interventions that facilitate systemic change. The market structure and failure The evolution of the domestic market structure and how it strengthens the availability and distribution of basic consumer goods, food and non-food, to low income earners is commendable. Though the retail sector avails businesses the opportunities presented by the trade distribution chain to interact and transact within market systems, the optimum transformative growth opportunities of the sector and its contributions to poverty alleviation, employment creation, women empowerment, economic development, social integration and economic competitiveness are yet to be realised. Unexpectedly, not much has been done to support significant advances in the investigation of weak market participation, market inefficiencies and structural failures, with the poor as the end beneficiary in mind. Little to no research has been carried out on the primary role and impact of distribution channels on market evolution, market structure, income generation, employment creation and poverty reduction. There is no concerted effort to facilitate the improvements of the performance and efficiency of the wholesale and retail sector in Nigeria to generate income and employment for the poor, especially women. Nigeria’s wholesale and retail sector are growing rapidly but inefficiencies within the distribution chain have resulted in not-too-auspicious outcomes. The retail sector in Nigeria is considerably inefficient, resulting in a combination of lower prices to the producer, increased costs to market actors, and higher prices to the consumer. There are multiple market failures in the four main functions of the system: distribution, intelligence, exchange and merchandising. The underlying causes of the market failures There is a list of causes for the identified problems, which includes inadequate legal and regulatory environment, inadequate compliance with trade standards, limited market intelligence, limited warehouse and transport services, and business support services. The low level of awareness of best practices in handling, pricing, forecasting, marketing

MADE II – ESIP Inception Study Report, Volume 1

55

management implies that, there is no pursuit of standards in the sector. Likewise, there is a general absence of skills training providers in these areas. Compounding all of this is the poor state of infrastructure, including transport and power, which affects the entire system. The project will work to build upon the local capacities and to change market incentives so that the sector better meets the long-term needs of the poor, including women. In the interim, 3 value chains have been identified for further development. These are: 1. Fast Moving Consumer Goods Fast Moving Consumer Goods is a multi-fragmented distribution chain, which starts from the finished products warehouses of large importers and local manufacturers, and ends in the homes of consumers. At the bottom end is micro retailing. The challenge faced by the poor range from access to markets, access to finance, low investments in supply chain infrastructure like warehouses and logistics, and poor response to market opportunities because of inadequate utilisation of market intelligence. The distribution chain is more efficient in urban and semi urban Edo state, but it is weaker in the Edo’s 12 rural local governments, based on the market data. Action: ESIP will partner with Unilever Nigeria, and DUFIL, a prominent Nigerian food manufacturer, to scale out their micro distribution models in the 12 rural LGAs of Edo state. Unilever has started the Shakti program with a 50 women pilot based in Lanpese, Edo state, while DUFIL seeks micro distribution partnerships to aid market expansion, in rural Edo state. Justification: This solves the major supply side constraint of poor access to market, and poor utilisation of market intelligence, at the micro retail. ESIP can leverage on capable and willing partners, with proven concepts to reach scale within two years. The partners have shown commitment by investing in some supply chain infrastructure and partnering with the Growing Business Foundation (Unilever). DUFIL has also agreed in principle to extend trade discount incentives (3%-4% per transaction), to target cooperative members of the ESIP intervention. Expected results:

a. Create new jobs by growing the Shakti women base from 50 to 1,000 across 12 LGAs

b. Develop a micro retailing cooperative structure of 1,000 people across the 12 LGAs for DUFIL micro retail operations

c. Crowd in three other distributing companies, and by extension increase incomes for additional 1,000 micro retailers across Edo state.

2. Access to Markets for Rural Producers Agribusiness has a very wide community of practice. Access to markets for rural producers is a very important sub-set that derives its usefulness from the improvements and efficiencies in other parts of the agribusiness value chain. The target beneficiaries will be Edo-based smallholder producers of cassava, palm oil, cashew nuts, fruits and vegetables with potential for export, and other derivatives of same. The challenges they face are largely caused by the absence of reliable and credible off-takers for their remote harvests. Thus, they suffer a lot in post-harvest losses, and thus, do always plant for the next season. Action: ESIP partners with AMENA Academy, Roundtable on Sustainable Palm Oil, BECCIMA and the AMES Edo inland dry port to link cassava, cashew and palm oil smallholder actors, to prime markets. Justification: This solves the constraint faced by smallholder actors accessing guaranteed markets, and thus losing sales opportunities at harvest. It also solves supply side

MADE II – ESIP Inception Study Report, Volume 1

56

constraints of poor access to raw materials of the right quality and price, despite the existence of confirmed local purchase orders. The partners have all signified willingness and are open to attracting a combination of debt and equity capital to ensure the commodity exchange, and processing facilities of the AMES Edo inland dry port become operational as soon as possible. Expected results:

a. Improve incomes by 15%, through increased sales at more competitive prices, for the 12,000 smallholding actors across Palm Oil, cassava and the cashew value chain.

b. Create 50 jobs through the operations of the Benin Commodity exchange. c. Create 30 FTE supply chain jobs at the processing facility of the AMES Edo Inland

dry port. d. Build skills and capacity in 12,000 smallholder actors to meet the procurement

requirements of the local and international procurement agents. 3. Franchising Franchising opportunities in Edo state can be seen in the IT, fast foods, telecoms and hospitality sectors. It is a model that is relatively new, and the target is to borrow from the learnings of South Africa, where micro-franchising has succeeded in giving life to many small and micro businesses to grow and thrive under large successful brands. Franchising eases the barriers to market entry, because prospective customers extend the parent company’s brand loyalty and consumer service expectations to the franchisee companies. There are a few companies in Nigeria, working with franchise consulting companies, which are willing to expand their operations to Edo state. At this stage, the key constraint is a lack of information and understanding of the workings of a successful franchise. Franchising Business Development Services (FBDS) is a potential lead firm that is willing to partner with ESIP on the micro franchising model, through the utilisation of technology, in Edo state. Action: Partner with FBDS on the introduction of the micro franchising business model in Edo state. This will likely include boot camps; franchisor meets potential franchisee events, training in basic retail skills, sharing market intelligence and communications feedback, financial literacy and book keeping Justification: This solves the constraint of having poor access to the market for small players because they lack economies of scale and scope. It also solves the supply side constraint of large actors losing sales opportunities because of the non-competitiveness of directly serving rural areas. FBDS is a potential partner with the requisite experience and track record supporting major franchisors’ hubs in Nigeria. An ESIP partnership with FBDS could bridge the gap that exists between potential micro franchisees and franchisors about understanding the business model and benefiting from its opportunities. Expected results: a. 20 franchisors company start operations in Edo state within the first year and 50, by end

of year 2 creating 20, and 50 jobs FTE respectively. b. 1,000 micro franchises and 2,500 micro franchises start to earn increased incomes in

Edo state, respectively at the end of Year 1 and 2. c. Skills and capacity development for 10,000 people through the learning events across

the 17 LGAs in Edo state.

MADE II – ESIP Inception Study Report, Volume 1

57

CHAPTER VI Intervention design and implementation activities Our approach for the design and implementation of the ESIP draws upon MADE’s expertise of the market development approach for pro-poor growth and is tailored to address the context and realities of stimulating livelihood opportunities and investment into Edo state. Intervention design to demonstrate sustainability and exit plans. Leveraging on potential opportunity and investment discussions several private sector partners are already having with the Edo State Government, ESIP will focus on the development of intervention justifications and guidelines that align with both public and private sector interests. This will include intervention rationale, proposed targets, timeframes, and a clearly articulated exit strategy. The intervention analytical framework will follow a logical sequence with a view to making the interventions offer the most powerful combination of scale and pro-poor impact. The framework for analysis is described below and involves the following three main stages: Stage 1 – A sector/cluster overview analyses to identify key opportunities and constraints at the sector/cluster level. Stage 1 will include mapping the major players/actors, supply and distribution chains, business models, constraints and opportunities for change and the characterisation of existing private and public suppliers of business development and support services to the respective targeted sector. It will also include an analysis of the way the poor, particularly women, are engaged in the sector. Stage 2 – Conduct a market systems analysis for each of the target sectors/clusters to enable the team better to understand which interventions have the highest potential to create and sustain new jobs and generate improved incomes for Edo’s vulnerable population, especially women. These will be considered to inform the programme design for ESIP, to position the interventions to achieve scale by identifying market failures and issues impeding competitiveness; actors and institutions associated with institutional issues or failures to be changed; linkages and how interventions will support sustainable livelihoods; and partners and facilitators willing to support institutional change. Stage 3 –Identify the constraints and opportunities for pro-poor growth in the intervention design phase. Herein, the team will work to achieve four outcomes: • Build a vision: The MADE team will develop a vision of functions, rules and roles of

market players that are required to make the market system work better for the poor. The comparison with the current situation will then allow the team to formulate the intervention strategy.

• Establish partnerships: The team will build trust, respect, rapport, and confidence between MADE and potential business partners interested in investing and/or innovating new business models, technologies or providing new services to overcome the constraints to market development in Edo state.

• Finalise the intervention strategy and associated action plans: After articulating the future vision for the interventions and securing the required buy-in from the selected partners and stakeholders, the project will develop activities to achieve the desired results. The activities will be planned to follow the M4P intervention lifecycle.

• Draw up results chains for proposed interventions: The plausibility of each intervention will be tested through a rigorous theory of change process.

From the shortlist of ten (10) interventions selected, additional sector comparison was carried out to generate an intervention ranking based on the probability of the intervention occurring and delivering the anticipated impact with the project lifetime. The tables below present the outcomes of the sector comparison and intervention ranking.

MADE II – ESIP Inception Study Report, Volume 1

58

Table 3: Strategic Comparison of Potential Sectors

52 In the third quarter of 2017, Agriculture contributed 29.15% to overall GDP in real terms (National Bureau of Statistics, 2018) 53 1000 smallholder farmers (2000Ha) + 6,000 labour (3 labourers per Ha for land preparation, planting, spray service, harvesting), + 24,000 women (8000 women per senatorial district) would be involved in peeling, washing and preparation for grating + 6,000 youths (2000 youth per senatorial district) would be directly involved in the grating / hammer milling and pressing into cakes. – on-farm semi-processing services provision

Sectors Rough estimate of market value

Interventions and potential Lead firm

Rough estimate of business case for ESIP to get involved

Feasibility

(Chance of happening with project support – Readiness of partner & Funding)

Impact on Women

(High, Medium, Low)

Scalability and Replicability

(High, Medium, Low)

Sustainability

(High, Medium, Low)

Alignment with Government Priority

(High, Medium, Low)

Value for Money

(High, Medium, Low)

Direct Targeted Reach with potential Increased Incomes Opportunities (People)

Private Sector investment (£)

Agribusiness National: N9.1 Trn52

Edo State: not available in published literature

1. Elephant Group: Cassava Out grower & Offtake

37,00053 2.1 million 70% High High High High High

2. Guinness: Cassava Out grower & Offtake

7500 1 million 30% High High High High High

3. Thrive Agric: Poultry Out grower & Offtake

1000 80,000 60% High High High High High

4. MGG Wells: Oil Palm Offtake 570 828,000 30% High Medium Medium High Medium

5. AFEX Commodity Exchange: Cocoa Offtake

500 500,000 40% High Medium High High Medium

MADE II – ESIP Inception Study Report, Volume 1

59

54 In 2017, the ICT sector contributed 11.35% to Nigeria’s GDP, a huge jump from 1% of GDP in 2001. In the last decade, the tech industry in Nigeria has grown at a rate of 34% each year and has not shown signs of slowing down. The growth in individual ICT users has resulted in an expansion of both the consumer ICT industry as well as the demand for ICT products and services within other industries (https://www.statista.com/statistics/183849/internet-users-nigeria/). 55 The Nigerian Film Industry (Nollywood) is globally recognized as the second largest film producer in the world. The Industry is a significant part of the Arts, Entertainment and Recreation Sector which contributed 2.3% (NGN239biliion) to Nigeria’s Gross Domestic Product (GDP) in 2016. It is one of the priority sectors identified in the Economic Recovery and Growth plan of the Federal Government of Nigeria with a planned $1billion in export revenue by 2020. In 2018, Africa Magic, alone, requires 70,000 hours of original media content for 15 TV series and 40 feature-length made for TV movies. This translates into an estimated N9.9B ($27.3) in wages paid to film crews. PwC’s Global Entertainment & Media Outlook 2017 – 2021. 56 Wholesale and retail trade contribution to GDP in 2017 was 18.97% (National Bureau of Statistics, 2018). 57 The wholesale and retail trade in Edo State is dominated by women. Wholesale and retail trade baseline assessment of the 3 senatorial districts in Edo State, 2018 - MADE.

6. Akomz Farms: Mushroom Out grower & Offtake

750 75,000 40% High High High High High

ICT National: N3.5 Trn54

Edo State: not published

7. Facilitate establishment of an ICT Tech Hub Services

2,200 250,000 95% Medium High High High High

Entertainment/Nollywood

National: N239 billion55

Edo State: not published.

8. Entertainment on-line platform for training, linkages, jobs

28,000 32,000 50% High

High (Has huge scope outside Edo state)

Medium Low High

Wholesale/ Retail Trade

National: N6 trillion56

Edo State: not published.57

9. Unilever; Shakti Programme and Multi Pro last mile FMCG micro-retailing

1,500 500000 75% Highi High High High High

Oaklan Best and Edo Exporter Cluster: Market access for rural producers

5,000 Unknown 50% High High High High High

Renewable Energy Unknown

Facilitate power into rural markets using Renewable Energy

1000 Unknown 30% Medium High (outside Edo state

Medium High Medium

MADE II – ESIP Inception Study Report, Volume 1

60

Table 4: Ranking of Potential Interventions

Interventions and Lead Firms (where known)

Rough estimate of business case for ESIP to get involved

Feasibility

(Chance of happening with project support – Readiness of partner & Funding)

Probability of delivery within project lifetime

Intervention Ranking)

Direct Targeted Reach with potential Increased Incomes Opportunities (People)

Private Sector investment (£)

Facilitate establishment of an ICT Tech Hub Services at the Benin Tech Hub 2,200 250,000 95% 70% 1st

Unilever; Shakti Programme and Multi Pro last mile FMCG micro-retailing 1,500 500,000 75% 80% 2nd

Thrive Agric: Poultry Out grower & Offtake 1,000 80,000 60% 80% 3rd

Elephant Group: Cassava Out grower & Offtake 37,000 2.1 million 70% 60% 4th

Entertainment on-line platform for training, linkages, jobs 28,000 32,000 50% 50% 5th

Oaklan Best and Edo Exporter Cluster: Market access for rural producers 5,000 Unknown 50% 50% 6th

Akomz Farms: Mushroom Out grower & Offtake 750 75,000 40% 40% 7th

AFEX Commodity Exchange: Cocoa Offtake 500 500,000 40% 40% 8th

Facilitate power into rural markets using Renewable Energy 1,000 Unknown 30% 30% 9th

MGG Wells: Oil Palm Offtake 570 828,000 30% 30% 10th

Guinness: Cassava Out grower & Offtake 7,500 1 million 30% 30% 11th

62

The intervention design activities will be prioritised immediately after the inception phase. Firstly, potential private sector partners will be engaged to a) refine intervention concepts, b) clearly define roles, responsibilities, and expectations; and c) jointly conduct additional sector assessments to come up with a strong value proposition that is attractive to potential partners. Further, ESIP will hold stakeholders’ workshops to validate findings of some of the inception phase commissioned studies and presentation of potential select interventions from the sector studies. These engagements will be held in July and August 2018. An intervention guide to the selected interventions, showing high probability to deliver within the programme lifetime listed above, will be developed. ESIP will engage the support of international and domestic consultants experienced in market systems analysis to lead the process to build ESIP personnel capacity as well. At least 5 set of intervention business cases and guides will be ready in September 2018 for approval and possible implementation. Additionally, three to five interventions will be planned to commence by December 2018. Working with NGOs and CSOs. Following our engagement with NGOs and CSOs during the inception phase, several factors became evident. The CSOs are addressing their programmes from a human perspective, one individual at a time. Many have safe houses for the returnees to help get reintegrated into the system. All are involved in some sort of communications and prevention activities. Some of these seem quite effective but are limited in scale. There is no doubt they would greatly benefit from training in how to better develop their communications campaigns at scale. Nearly all the NGOs have reintegration programmes and economic activities of some kind. They typically take a very “support intensive” approach. The meetings held with CSOs validated our approach to focusing on the creation of more economic opportunities for those in the poorer areas as well as urban areas where they have migrated to. ESIP will engage with viable organisations to broaden their perspectives on how to get people reintegrated economically, but also on the need for better planning to gain the support needed. ESIP will hold a preliminary workshop with select organisations to introduce them to alternative approaches to sustainable economic development opportunities and to give them a more in-depth training on the market systems development approach and the role of a facilitator (adjusted version of our M4P Capability Training). This activity is planned to be held in August 2018. In addition, our team will support these organisations to develop a workable framework and jointly develop new approaches to deliver sustainable outputs. ESIP will facilitate mentoring opportunities and peer support with bigger business management organisations to reorient their emphases away from the social agenda and more towards the business approach (not a social business). It is expected that this will be in place before the commencement of intervention begins in September 2018. Furthermore, our engagement with the NGOs and CSOs will focus on strengthening their capacity to provide adequate and relevant content and communication messaging in order to make their outreach more impactful. This activity will be linked to the MADE II / PIND Media for Development (M4D) initiative. This initiative is presently exploring the various ways potential beneficiaries currently obtain and consume information. The NGOs with relevant capacity and experience, will be linked to media houses to jointly create content that nurtures sustainable working relationships. Emphasis of the communications campaign will be behaviour change to make people look more seriously at local economic opportunities first: This activity will commence in October 2018.

Deleted: PMD

MADE II – ESIP Inception Study Report, Volume 1

63

Support to Edo State - Ministries, Departments and Agencies (MDAs)

The meetings before and during the inception phase with Edo Jobs, the Human Trafficking Task Force, and other relevant ministries and department in the state were instructive and provided opportunities as well as concerns. Our approach to swim with the tide will lead us to focus on potential projects and ongoing discussions between the state and private sector partners. Such interventions of high importance to the state government will be pursued, engaging with the private sector concerns to facilitate the early implementation and project delivery. In following this lead, ESIP will focus on systemic approaches and will be careful not to get trapped or cornered into providing direct support to state ministries and agencies. The task force is primarily focused on the returnees and has a good database which can be exploited. ESIP will engage with the team to develop a strategy using economic growth as prevention plan. ESIP will leverage the Task Force most effectively on communications and media aspects – getting the message out as deeply and broadly as possible. ESIP is mindful of how much impact we can have on this much broader societal and economic problem. There are huge forces that are promoting the illegal migration, because they benefit from the trafficking. To change this societal perception, the messaging from agencies working on prevention must be intense and clear and promote the positive aspects of staying in Edo. This will include but not be limited to reinforcing the economic opportunities that are available to people in Edo state, and success stories that create confidence that people can stay and make a good living in Edo. ESIP will manage the Lead Firms and any other partners’ funding expectations appropriately, stating clearly where we have synergies and how ESIP can support. Engagement with the Task Force will commence in August 2018 to explore areas of aligned interest and collaboration. Commencement of actionable initiatives with the Task Force is expected to start in full implementation in October 2018. ESIP will partner with Edo Jobs to facilitate the delivery of interventions requiring institutional and technical support. Edo Jobs will be ESIP’s main contact in our interface with relevant State ministries (such as Wealth Creation and Women Affairs). The partnership with Edo Jobs will place great emphasis on economic growth, promoting expanded income generation opportunities in the rural areas to lessen the pressure for migration, especially from the family. Using aspirational employment opportunities alone to change the minds of people who want to migrate will be challenging, especially given the typically lower educational and skills levels of those individuals. Through partnerships with other institutions, agencies, and projects, such as Edo Jobs, ESIP will leverage all available resources to engage with the target population, share success stories, identify opportunities across a range of sectors and disciplines, and highlight training offerings where relevant. Opportunities in the information communications technology (ICT) sector, offering the potential to earning money in a hard currency will be explored. ESIP will further engage with Edo Jobs and other private technology hubs to promote attractive hub services to get more beneficiaries interested. This work scope aligns with identified ICT opportunity during the sector studies. This intervention is planned to commence in September 2018. Furthermore, ESIP will explore opportunities with Edo Jobs in the following areas:

• Mapping of opportunities (Sector/commodities and service market) in LGAs, • Strengthening and scaling skill acquisition models to peri-urban and rural areas, • Strengthening demand and supply linkages of skilled artisans in the informal sector,

and • Support to the upstart entrepreneur mentoring model through the National

Association of Small Scale Industries -NASSI State chapter

MADE II – ESIP Inception Study Report, Volume 1

64

There are other pipeline initiatives with strong potential that ESIP has discussed with Edo Jobs. The engagement with partners and further sector assessment will commence in August 2018. Due to the project’s short delivery period, ESIP will explore these initiatives concurrently. ESIP’s work with the private sector will usher new and increased investment into Edo state. As anticipated, successful interventions will trigger more investments and interest from other private sector concerns. ESIP will work with the Investment Promotion office, providing institutional and technical support, to ensure the state is investment ready. In collaboration with the UK-DIT, ESIP will also support the state’s Investment Promotion Office to facilitate scaling up some of the most successful economic development and/or trafficking prevention interventions in the state. This collaboration will also commence in August 2018.

MADE II – ESIP Inception Study Report, Volume 1

65

CHAPTER VII Summary

One of the key ingredients to ESIP’s success will be the ability to bring together the relevant stakeholders and develop the buy-in and support needed from each. Any of these initiatives will likely require the input and commitment from not only ESIP and the Lead Firm, but also the Edo state government, the financial community, the farmers, the input suppliers, machinery and equipment sellers/renters, the relevant associations and academies, other like-minded projects and NGOs, etc. Given resource constraints, it will be important to “swim with the tide” - identifying efforts that are i) already underway (or soon to be), and ii) in alignment with the Governor’s priorities. The best way to achieve this is from the top down. Granted, this is easier said than done, having the Governor’s support will help differentiate the effort as well as more effectively and efficiently create a highly visible win-win scenario. Working alongside the Edo State Government is also a top priority for DFID for a number of operational and political reasons. We have identified and defined 22 potential interventions, each at varying stages of development, commitment, and momentum. While not all can be pursued, all do have merit.

Another key success factor will be the lead firm’s commitment to both the intervention and to the relationship with ESIP. ESIP needs to be seen as a strategic partner rather than a sideline donor resource. Where possible, the project should leverage its Edo state network (including but not limited to the Edo State Government), and ability to arrange meetings and forums with key stakeholders, provide technical assistance in putting together final plans, design a monitoring and evaluation system, provide training, and assist in the marketing and promotion of the interventions within the targeted community and beyond.

In addition to designing the right intervention and delivering it well, there is another aspect that possibly remains outside the scope of ESIP and MADE II, and that is a comprehensive marketing and promotional campaign. For any of the efforts to be successful, a mind-set change (leading to behavioural change) is required. For example, in terms of trafficking, until the vulnerable population and their parents truly understand what and where it is, they will still embark on what sounds like a legitimate path to wealth creation. The level of ignorance and gullibility is palpable, driven further by their desperation (e.g. seeing an oasis in the dessert). The proposed interventions below are pilot projects at best, to demonstrate the potential Edo state has in creating home grown career paths for its residents. If successful, they will prove the concept and likely lead to replication and expansion. Hence, these successes must be heavily marketed, in close association with the State Government, to the vulnerable population.

Similarly, another highly recommended activity is to maximise leverage, strengthen the message, expand the team, and increase the pace of the intervention thorough reaching out to DFID and other donor funded projects as well as NGOs like PIND, GEM, GEMS, and the recently announced “Managing Migration for Development” project for Edo youth funded by the United Nations Development Programme (UNDP) in association with the Edo State government.

In conclusion, as all of the proposed interventions will require the collaboration and support of a cross section of public and private sector actors, it is recommended that each follow the five steps outlined below, as applicable:

Step 1: Continue discussing and developing the interventions with the potential lead firms until agreement is reached.

Step 2: Collectively, put together a comprehensive business plan that articulates the opportunity, approach, risks, milestones, intermediate and final results, and roles and responsibilities of all participating organisations. Where appropriate, sign a sub-

Commented [WG1]: Summary of what? We have an exec sum in the beginning. Is this the conclusion?

MADE II – ESIP Inception Study Report, Volume 1

66

contract or Memorandum of Understanding (MOU) with the lead firms. An example of an MOU is attached as Annex 6.

Step 3: Hold a forum with all stakeholders, public and private, to present the business plan, further explain the roles and responsibilities, including funding, of all the participants (public and private), answer any questions, and ultimately reach consensus on the plan, the approach, the timing, and the expected results.

Step 4: Develop and distribute marketing collateral about the intervention. This may include a 1-2 page overview, a 1-2 minute infographic, case studies, from elsewhere in Nigeria that prove the concept, a website or Facebook page, etc. Platforms could be in print, on radio, TV, and/or through social media. Target distribution channels might be through churches, markets, and other centers of activity. The purpose is to generate broad-based interest and understanding within the affected communities about what, why, when, where and how the initiative will take place to obtain a “social license” to operate and support from the general community and others as needed.

Step 5: Hold a celebratory launch event, on site, with the traditional chiefs, local leaders, local politicians, locals, industry partners, lead farmers, financial institutions, recruited BDS providers, academic institutes, vocational training centers, and anyone else with a stake in the effort.

Commented [WG2]: Is this different from our main MADE MOU format? I think that it will be confusing if we have different ones….

MADE II – ESIP Inception Study Report, Volume 1

67

CHAPTER VIII MRM, VfM, and Knowledge Management Implementation Plan 8.1 Monitoring and Results Measurement Framework Introduction This section describes MADE II’s Monitoring and Results Measurement (MRM) system and processes. Designed to be consistent with the Donor Committee on Enterprise Development (DCED) standards for measuring results in private sector development58, and building on the strength of MADE I’s MRM system, the strategy described here focuses on streamlining the existing MRM system for achieving the following objectives:

• Improving robustness and efficiency of the results measurement process; • Providing regular and timely data and feedback from beneficiaries in support of

informed decision making and continuous improvement in the programme delivery and;

• Promoting results-based reporting and documentation of the programme’s successes and lessons learned.

Stages of MADE II’s MRM System The programme’s results measurement system is summarised in Figure 7 below. The stages of the MRM process as outlined below is based on the understanding that monitoring and results measurement is a shared responsibility between the intervention team and the MRM Unit. Step 1: Development of Sector Strategies: The timely and accurate delivery of programme interventions is a prerequisite to results measurement. Hence, sector selection and intervention design are part of the initial steps in the MRM process. At this first stage, the type and kind of interventions required to bring about the desired change are identified. A key criterion in the selection of interventions relates to incentives for lead firms to continue to provide goods and services to poor or disadvantaged people. The intervention design also takes into account specific constraints to be resolved, the approach to resolving the constraints, what will be the systemic change due to the intervention, and the incentives key actors will derive from implementation of the planned interventions. The MRM team will be closely involved with the in the definition of the change that is expected. Step 2: Development of Intervention Guides: While the MADE team (implementation and MRM personnel) has updated Intervention Guides (IGs) for existing MADE market development interventions, IGs will be developed for each new intervention in both components of the programme. Each IG articulates a clear understanding and specification of how the planned intervention will lead to the desired output, outcomes, and ultimately impact on the poor. As programme realities can change during interventions, IGs will be reviewed and updated quarterly to ensure they continue to reflect the emerging realities and the results being achieved. The MRM staff will play a facilitative role in helping the IMs to define their results chains, which are the foundation of the IGs. 58 www.enterprise-development.org/page/measuring-and-reporting-results

Deleted: Proposal

MADE II – ESIP Inception Study Report, Volume 1

68

Figure 7: Results Measurement System Step 3: Monitoring: In each sector, the team will continue to assess the extent to which programme interventions are addressing the identified key constraints and opportunities that result in the desired overall changes in the sector to the benefit of the poor. Table 5 at the end of this section presents a summary of results that will be monitored throughout the programme lifetime. Results at the output level include outreach initiatives by ESIP partners’ implementation of market development interventions as well as those from others crowding in. These will lead to more exposure to best practices and innovations, improving everyone’s knowledge and skills. As programme delivery has started, the team is already beginning to track results at the output level. Results at the outcome level include the behavioural change (knowledge, attitudes, and practices) of lead firms and service providers as well as farmers and entrepreneurs at the intermediate outcome level. While behavioural change of lead firms and service providers is a precondition for their investment in target markets, farmers’ and entrepreneurs’ adoption of practices and innovations is a precondition for increased productivity/yield and sales. The programme will conduct adoption surveys on a quarterly basis, while assessments to determine the extent to which farmers’ and entrepreneurs’ behaviour change is leading to increase in productivity/yield and sales will be conducted twice a year. Results at the impact level relate to income increases. Intervention-specific impact studies will be conducted at least once a year59 to determine the programme’s impact. The impact 59 In the livestock sectors (e.g. poultry) with more than one production cycle per year, impact assessment can be more than once a year.

Monitoring Data collection and analysis

Results aggregation Aggregation of results from each intervention monitoring

Intervention Guide Intervention results chain and monitoring plan

Communications Success stories, case studies, Annual Work Plan, Progress Reports (quarterly and

Knowledge Manageme

MADE II – ESIP Inception Study Report, Volume 1

69

surveys will be conducted on a rolling basis, aligning with the seasonal calendars of the different farming or business cycles. In cases where the interventions in a market targets the same beneficiaries, the impact assessment studies will be conducted to measure the impact of the different interventions together. For example, interventions in cassava that result in use of better quality cassava planting material (cassava stems) will be assessed at the same time as interventions that promote good cassava agricultural practices, both of which can lead to increased cassava productivity and eventual additional income. Estimating Baselines serve both the purpose of estimating impact as well as providing valuable information that informs the design of each intervention strategy. As standard practice, baseline information is also required for all partners that MADE works with. During the inception phase, MADE conducted a baseline survey of service providers, sampling over 200 of the 518 service providers reported at end of February 2018. The programme has also conducted baseline surveys for two of the existing interventions, namely promoting improved fish processing and oil palm harvesting technologies. For each intervention/target beneficiary group, a baseline will be conducted after the partners and specific interventions have been decided (before the intervention starts) to ensure the baselines are representative of the populations that will be affected by the interventions. The programme will also continue to invest in rolling surveys. This is often the case in market development interventions, especially when programme approaches evolve, including changes in strategy, the addition of new market actors (lead firms and service providers), or other adjustments as deemed necessary. Sampling Technique A multi-level approach to sampling of beneficiaries will be adopted during monitoring. Firstly, clients reached by private sector partners will be sampled for behavioural change. Thereafter, those who adopt improved practices will respond to questions about productivity and yield. Lastly, those experiencing increased productivity will be sampled (interviews and surveys) to determine increased incomes. To ensure samples are representative of the target population, sampling will consider variability among the beneficiary groups. Variables to be considered during sampling include gender, geography, crop/commodity, and the time interval from initial participation in programme to when the surveys are undertaken. The programme will use a sample size calculator, available online, to determine a representative sample size for each intervention beneficiary group, using a 95% confidence level and a margin of error between 4 to 5%. Step 4: Results aggregation: Consistent with the programme wide results measurement system, MADE aggregates results at all three levels: output, outcome, and impact as outlined below. Aggregating Output Level Results Once outreach records from private sector partners are received, MRM will randomly select 30-45 individuals per record sheet for quick verification. The verification may be done through either phone calls or visits, and where respondents do not recall the event, the IMs are advised to give feedback to the partner. To avoid overlaps, beneficiary groups and their locations are cross-checked to spot interventions. Participants of interventions that can have effects on the same group of people (e.g. GAP demos and access to finance) are counted once and added to the pool of beneficiaries, while those involved in non-overlapping interventions are are automatically added up together to determine the total number of beneficiaries reached. Aggregating Outcome Level Results

MADE II – ESIP Inception Study Report, Volume 1

70

Three level of results aggregation at the outcome level will be adopted. These are at the intervention, sector and programme levels. At the first level, MADE will aggregate the number of smallholder farmers adopting practice changes or those experiencing increased productivity/yield and sales across the interventions. Secondly, farmers experiencing increased productivity as a consequence of the different practice changes as identified above will be aggregated at the intervention level. Lastly, the total number of farmers (both direct and indirect beneficiaries) adopting practice changes and those with increased productivity will be aggregated to get the consolidated record for the sector. Aggregating Income Change After the incomes from the different interventions and markets are calculated, based on the impact assessments, ESIP will add up the incomes from each source to get total income change or NAIC for the farmers. Step 5: Communications: The programme will communicate the results of the interventions at the end of each quarter and at the end of each year. The programme will also occasionally generate case studies and success stories for dissemination to stakeholders as opportunities arise. A separate communications and knowledge management strategy provides further clarifications of the programme’s approach in this regard.

MADE II – ESIP Inception Study Report, Volume 1

71

Table 5: Summary Intervention Results

DCED Results level

Logframe results statement Key performance indicators Illustrative monitoring and internal review questions

Impact level change

Impact: Increased growth and income, especially for poor men and women, in target markets in the Niger Delta of Nigeria

Impact Indicator 1: Beneficiaries with increased incomes Impact Indicator 2: Additional income change

-How many beneficiaries (direct and indirect) in each of the target markets are experiencing at least 15% increased income over their baseline level? -What is the total net additional income attributable to the programme interventions? What is the extent to which increased incomes lead to poverty reduction, including improved living standards?

Reduced incidence of human trafficking

-What is the extent of reduction in incidence of human trafficking in Edo and Delta States?

Enterprise level change (Outcomes)

Outcome 1: Better performing poor farmers and entrepreneurs

Outcome Indicator 1.1: Farmers and entrepreneurs with increased yields/productivity and sales Outcome Indicator 1.2: Behaviour change of farmers and entrepreneurs

-How many beneficiaries (direct and indirect) are experiencing increased productivity/yield or revenue, attributable to the interventions? -What proportion of participants reached change their farming or business practices adopted?

Outcome 2: Increased growth in ‘aspirational’ sectors

Outcome Indicator 2.1: Total investment in 'aspirational' sectors

-What is the total private sector investment supporting interventions in aspirational sectors?

Systems level change (Outputs)

Output 1: New and/or improved inputs, products, services and technologies introduced in target markets

Output Indicator 1.1: Outreach Output Indicator 1.2: Lead firms investing Output Indicator 1.3: Service providers investing

-How many lead firms and service providers have been influenced to adopt business models introduced by the programme? -How many farmers and entrepreneurs have been reached by partners, disaggregated by sex and poverty status? -What is the extent of change in target market systems (e.g. institutionalization of the business models the programme)? -What is the extent of improvement in access to inputs, products, services and technologies?

Output 2: Key actors influenced to change their approach to engaging with the poor in the Niger Delta region

Output Indicator 2.1: Investors adopting additional pro-poor market development approaches Output Indicator 2.2: Development agencies and NGOs influenced to implement additional market development interventions

-How many investors, development agencies and NGOs are adopting additional market development interventions? -To what extent does the systemic change benefit poor farmers and enterprises in target sectors? -How many local organisations have been influenced to change their communication approaches targeting the susceptible population?

Output 3: Improved economic opportunities for susceptible populations in Edo and Delta States

-Output Indicator 3.1: Number of lead firms investing in aspirational sectors -Output Indicator 3.2: Number of lead firms investing in MADE piloted innovations in Edo and Delta States

-How many lead firms and service providers have been influenced to adopt business models introduced by the programme in Delta and Edo States specifically? -How many farmers and entrepreneurs in aspirational sectors have been reached by partners, disaggregated by sex and poverty status? -What is the extent of improvement in awareness about the negative aspects of human trafficking improving in Edo and Delta States, attributable to the programme?

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

72

Attributing Programme Impact The changes that happen to actors in the different markets may be due to external factors (such as sudden price increases in market, unexpected changes in the weather, etc.). MADE will establish how much of the changes taking place are due to its interventions rather than external factors and/or the contribution of other programmes. This will be determined by finding out the extent to which changes can be linked back to the intervention (attribution) by collecting qualitative information on how, when, and why the changes are occurring. The second step of attribution is to isolate the external effects of the environment from the changes seen among the actors. The diagram below shows how attributable impact differs from changes that are observed in the markets. The programme can easily measure the situation before the intervention was launched and the changes after the intervention is completed. However, this only gives the total change (orange arrow) that occurred. To assess the attributable change, it is necessary to estimate what would have happened without the intervention – the counterfactual (red arrow). The attributable impact (green arrow) is thus the difference between the counterfactual and the total change observed/measured. Figure 8: Programme Impact Attribution

Implementation and Management of the Plan

The roles and responsibilities for implementing the strategy as presented herein are based on the understanding that MRM is a joint responsibility, and not the sole responsibility of the MRM staff. Fig. 1 below indicates key responsibilities of the Intervention Managers (IMs) and the MRM team with regards to implementing the strategy. IMs will focus on implementing interventions and assessing compliance with the work plan and set targets. The IMs will also identify data they would need to better steer the interventions. The MRM team will continue play a supporting role to the implementation team, guiding them in developing IGs and in carrying out complex analyses of data so that the implementation team has timely access to the analyses for making decisions and testing the assumptions underlying the intervention design. To ensure IMs receive continuous and timely support from the MRM team, each sector now has a dedicated MRM focal point. Each focal point is responsible for supporting the IMs to carry out MRM activities in line with the IGs. Furthermore, to ensure that the IMs carry out their MRM activities thoroughly, they will be expected to present updated evidence of the changes during quarterly reviews to the entire programme team. Lastly, part of the IMs performance assessment will be based on how up-to-date their IGs are and how well informed they are about their markets.

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

73

Figure 9 below shows the responsibilities of the IMs and the MRM teams, while the dotted arrows indicate where the two teams can expect support and input from each other to carry out their MRM tasks. Figure 9: IM and MRM Roles and Responsibilities

Supporting Programme Management of Grants MADE implements interventions through private sector partners. These partners adopt business models/innovations targeting new markets or clients with technical advice and cost sharing support from MADE. MADE has also supported private sector partners with tools to enable them to improve the collection and management of information about their businesses, some of which they are required to share with MADE. Hence, the private sector partners keep records of the activities they carry out as part of MADE interventions as well as the results ensuing from these activities. Through the cost-share arrangement, particularly the output-based payments, the partners are also required to ensure that these reports are thorough and sufficiently detailed to determine relative attribution to MADE. Activity reports from partners include but are not limited to records of dates, locations, attendance at various events, records of payments and delivery of promotional items, sales, and support received from service providers. The partners are also required to submit these records to MADE as part of their deliverables before any payments. The reports provided by grantees are validated for their completeness and accuracy and then corroborated or verified by the MRM team. Where the grant reports/deliverables do not provide the necessary information, the IMs and Senior Intervention Managers (SIMs) will ascertain why the grantee was unable to provide the required information or reports. The process of validating and verifying grant reports ensures that:

§ grantees provide information on the progress of all partnership activities, § in the information provided is complete, and validated through field notes, and § the information provided is verified for accuracy; ensuring the quality of information reported.

IM & MRM develops IG

Intervention starts

IM monitors activities and

Service Provider

IM monitors Farmers KAP

MRM assesses Farmer

Performance changes

MRM:• Advise data collection

system• Verifies info for Grant

payments• Analyses data for

reporting

IM:• Advises data

collection• Reviews findings

MRM aggregates data for reports

IM updates IG (RC, Support Calc, Field diary)

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

74

Figure 10 below, summarising the grants management process for MADE II, clarifies the roles and responsibilities of the intervention team and MRM. Figure 10: Grant Management Roles and Responsibilities

Supporting Internal Review of Programme interventions At the end of each quarter, MADE reviews the progress of its interventions to discuss how the interventions are contributing to the achievement of systemic change and overall progress towards achievement of the programme objectives. This strategic review covers aspects of what is working, what is not, why and what it means going forward for the programme. The review also includes a discussion of any unexpected changes that are occurring in the markets or results. The conclusions from the quarterly review meetings and the strategic decisions taken are then be used for quarterly reporting to the donor.

Grants Manager: checks if required grant reports have been submitted.

Sends to MRM

Intervention Manager: Validates the reports. Checks that the information is

complete, it is aligned with field reports.

Grants Manager arranges for payment

MRM Manager: Verifies Grant reports through field work. Checks that the

information is accurate.

Partner: submits grant reports to Intervention Manager (IM)

Grants approved/paid

Discuss with SIM/TTL/TL decide next steps

Reports are complete & consistent

Is information correct? Discuss with SIM/TTL/TL decide next steps

Y

Y

N

N

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

75

Programme reviews will be held every quarter with the full team – implementation, MRM, grants management team. For each intervention/sector, the IMs will discuss the following:

§ Suggestions from the previous quarterly review, § Updated intervention results chain along with aggregated results achieved till date, § Potential signs of systemic change observed in the sectors/due to the interventions based on

the Adopt-Adapt-Expand-Respond (AAER) framework, § Any unexpected changes taking place in the markets, and § Challenges related to the intervention delivery.

During team reflection, intervention managers will then collect suggestions from the teams to enlighten the way forward. The MRM manager will also use the quarterly reviews to update the programme team on overall progress towards programme, including an update on the different MRM activities that have been done to support the programme. The main topics for the MRM Manager will be:

§ Suggestions from the previous quarterly review, § Overall programme progress against the Theory of Change and programme targets/goals, § Introduce any upcoming major MRM activities, explaining scope and objectives, § Collect recommendations or requests from the team, and § Present any issues faced by the MRM team.

Internal quarterly reviews will be held on the 25th of each month before the Quarterly Progress Reports are submitted to DFID. Quarterly progress reports are submitted to DFID at the middle of the month following a quarter (i.e. by mid October for the September reporting period). The quarterly reviews will thus support programme management to get an overview of interventions and to outline plans for the next quarter based on suggestions from the programme team. Table 6 below summarises the schedule for MRM processes, including purpose, responsible person, and any studies that must be conducted. Table 6: Scheduling of MRM Processes

MRM process Purpose Frequency/timeline Responsibility Baseline studies Establish baseline

status of key performance indicators

Once prior to intervention delivery

MRM with support from IMs

Quarterly progress monitoring

Assessment of output level results and intermediate outcome

Quarterly (last month of each quarter)

Intervention managers with support from MRM

Internal quarterly review

Internal review of progress and achievements

Quarterly (mid-January, mid-April, mid-July, and mid-October

Technical team lead

Outcome assessment

Assessment of productivity gains

Minimum of twice a year and depending on length of farming or business cycle

MRM team

Impact assessment

Assessment of impact of each intervention

At least once a year and depending on length of farming or business cycle

MRM team

Evaluation of MADE I

Overall assessment of MADE I, including

Quarter 2 or 3 of Year 1 External consultant

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

76

impact Evaluation of MADE II

Overall assessment of MADE II, including impact

Last quarter of Year 2 External consultant

8.2 Value for Money Strategy Introduction MADE II’s value for money strategy builds on improvements in measuring and reporting value for money in MADE I. The Programme’s Value for Money (VFM) measurement approach relies on the metrics agreed with DFID, which assesses Economy, Efficiency, Effectiveness and Equity (the 4Es) as defined below: Economy refers to prudence with procurement of the right inputs for interventions at the best possible price, bearing in mind the quality of the anticipated results. Efficiency demands delivery of the maximum level of outputs at a given level of inputs. Effectiveness is how well the outputs from the interventions achieve both the desired outcomes and impacts on poverty reduction. Equity is the extent to which benefits flow are judged to be equitable, considering women and the poor are more vulnerable and require more attention. Definition of VFM Indicators and Projections Building on the strategies for improving VFM for MADE I, the following indicators have been defined to improve the tracking of programme costs and eventual estimation of VFM metrics for MADE II. Table 7 below presents both the definition of the VFM indicators and some projections of what the VFM values at end of each implementation year. Table 7: VFM Metrics Metrics Definition Year 1 Year 2 Economy Total operational costs (ODCs + 12% of fees as admin and

management cost – 50% year 1)/total costs (50% year 1 of £7,150,000)60

23.97% 23.97%

Efficiency Private Sector Investments will be based on: Cost-share (What private sector partners contributed, matching MADE’s cost-share) Cost incurred by service providers collaborating with lead firms Actuals cost incurred by lead firms and service providers in improving access to inputs, products, services and technologies Farmers cost (i.e. purchase of inputs and associated costs)

129% 168%

Cost per Farmer Cost per farmer or entrepreneur benefited (engaged with projects)

£30.98 £25.00

Effectiveness

Cost per farmer or small scale rural entrepreneur recording an increase in sales, productivity and/or quality

£50.96 £41.12

Beneficiary income gain per pound spent £0.91 £1.08 Cost per beneficiary under the MDS component (MDS) £32.50 £18.23 Cost per beneficiary with increased income gain (MDS) £0.40 £0.72

60 While the final MADE II contract is for £6.750 million, we are still using the original allocated budget, including the monies designated for the two month extension phase.

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

77

Metrics Definition Year 1 Year 2 Equity Cost per female farmer and entrepreneur benefitted (engaged

with project). Cost of reaching female farmers is not the same as reaching everyone. This approach suggests that it is costlier reaching female farmers

£30.98 £25.00

Cost per female farmer/small scale rural entrepreneur recording an increase in sales, productivity and/or quality

£50.96 £41.12

Cost per poor female farmer/small scale rural entrepreneur recording in income

£56.62 £45.80

MADE II expects an improved VFM over MADE I, following the natural curve of increasing results. For example, while the programme achieved a VFM ratio of £1 spent to £1.02 earned by beneficiaries over the 4.5-year programme lifetime, it is projected that the VFM ratio from the two year programme will be £1 spent to gain at least £1.08 within a period that is less than half of the MADE I duration. In addition, building on the gains of MADE I, the cost of reaching a beneficiary will improve from an average of £42.58 to £32.50 by the end of March 2019 and a further improvement to £18.23 by the end of February 2020. The overall benefits are reduced by the emphasis on the new, and much more difficult MDS component targeting aspirational sectors. Strategies for Improving VFM The programme’s strategies for ensuring the improved VFM as projected above include the following: Monitoring identified key cost drivers: Key cost drivers identified will be monitored. The key cost drivers are labour, grants and activities and, to a lesser extent, project expenses. Adopting the DCED standards for results measurement: The DCED results measurement standard will be swiftly adopted in line with clear intervention logic and results chains indicating required activities to deliver the expected impact. Investment leverage: The programme will work closely with facilitating partners to maximise results at the outcome level; emphasising sustainability through leverage of private sector funding to maintain pro-poor private sector work. Grant activities will stipulate the necessity of the private sector partners co-investing with their own money or resources, for both sustainability and improvement of VFM. Close supervision of partners’ financial management system: To ensure partners’ financial management and procurement systems are robust enough to deliver the expected results, the MADE II programme will closely supervise grantees’ financial management and accountability system during implementation to avoid misuse and ensure compliance and careful negotiation of the details of grant budgets, including through the use of benchmarks for unit costs. Continuous improvement in poverty and gender targeting: The MADE II programme will ensure a strong poverty and gender focus as there has been significant increase in the proportion of women reached year on year in MADE I while considering the proportion women who are poor. 8.3 Knowledge Management and Communication Strategy Introduction and Background This section outlines how the knowledge management (KM) and communications support functions of MADE II are being streamlined for better coherence and more efficient information dissemination and lesson-learning that will drive continuous improvement in programme delivery throughout the programme lifetime (March 2018 – February 2020).

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

78

Development of this strategy takes into consideration the inextricable link between M&E, knowledge management, and communications. While KM can only be effective when there is high quality, broad-based flow of data and information from M&E processes (e.g. surveys), feedback from M&E processes, in turn, informs knowledge application, including adaptive management based on lesson learned. Thus, M&E is recognised as the process that generates a contextualised body of evidence for knowledge application. Communications, however, will remain an important means of disseminating findings from M&Eand the entire body of knowledge (tacit and explicit) that the programme will generate. A robust and well-focused communications strategy can contribute to improvement in programme delivery and achievement of direct and indirect results. For instance, periodic monitoring of changes in markets might reveal persistent lack of target beneficiaries’ awareness of the benefits of adopting innovations or best practices introduced through the programme. In this case, review and/or improvement of the programme’s strategy addressing such a constraint (for example, producing short video clips, flyers, posters, leaflets, abridged and simpler versions of demo protocols) can contribute to achievement of direct and indirect results. Increasing awareness is a precondition for behaviour change of farmers and entrepreneurs, leading to productivity gains and eventual increase in incomes. Production of case studies, success stories and short films can also trigger crowding in of lead firms and service providers and increasing the pool of support providers available to target beneficiaries. Case studies can also be used to target donors and government agencies on appropriate interventions that deliver optimal results (addressing Output 2 in MADE II’s logframe). By reason of this, the programme is fostering building a strong relationship between the M&E and knowledge management/communications support functions. As presented below, the KM and communications strategies are being streamlined to ensure a more integrated approach addressing specific programme issues as a means of contributing to achievement of the overall programme objectives. While a separate M&E strategy has been developed, this section outlines the strategies that are more specific to knowledge management and communications functions. Improving the communications function MADE II’s communications function will focus on three key objectives as outlined below:

1) Increasing the visibility of the MADE programme; 2) Reinforcing programme interventions with key messages through appropriate strategies; and 3) Supporting local organisations in Edo and Delta States to disseminate messages to change

the perception of the target population (women and youth) that are susceptible to irregular migration that exposes them to human trafficking.

Improving visibility of the MADE Programme: MADE II will continue to use print and electronic media, including social media platforms, to increase the visibility of its interventions. Building on the successes of MADE I, the programme will continue to develop a wide range of communication materials and use appropriate media to disseminate key messages to stakeholders. Appropriate media that the programme will invest in include newsletters, radio and TV programmes and social media platforms (Facebook, twitter, Instagram, etc). The programme will also continue to use newsletters to keep key stakeholders (e.g. government officials and other donors) fully informed of the MADE programme and achievements. In addition to the existing print version of the newsletters, the programme will invest in production of monthly e-newsletters with hyperlinks to the programme’s social media platforms. Reinforcing the programme’s interventions: The communications function will also reinforce key messages delivered through programme interventions. Media remains a powerful tool to improve the flow of information to the benefit of the smallholder farmers and entrepreneurs. These media platforms can also provide cooperatives and BMOs with a common and stronger voice for

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

79

advocacy. Within the inception period, MADE facilitated a creative workshop aimed at producing innovative and creative IEC materials to drive and deepen awareness and adoption of good agronomic practices (GAP) and agricultural inputs amongst farmers. The programme is commissioning production of the IEC materials with specification that the materials should be practical, visual and user friendly as a way of being sensitive to the circumstances of poor farmers being targeted. Table 8 below presents an outline of the approaches to be adopted that will contribute to achievement of the programme results. Table 8: Communications Approaches for MADE II Results level

Generic results expected Approach to be adopted

Impact level change

Higher margins and reduced incidence of poverty

-Producing documentaries (e.g. short videos) highlighting the programme’s impact on beneficiaries’ incomes and livelihoods

Enterprise level change (Outcome)

Improved enterprise productivity and/or competitiveness

-Driving indirect results by dissemination through radio and TV evidence of increased yield experienced by farmers and entrepreneurs that have changed behaviour change due to the programme intervention. The programme will also use electronic media such as CDs/DVD, YouTube and blogs to reach the growing online audience.

New and/or improved farming or business practices adopted

-Dissemination of information about the range of services and service providers available to smallholder farmers and entrepreneurs in their locality -Simplifying key messages of demo protocols and other training events that drive demand

System level change (Output)

Market systems change leading to improved access to inputs, products, services and technologies

-Supporting private sector partners produce advertorials (e.g. flyers and other IEC materials) with contact of suppliers and service providers

Local organisations in Edo and Delta States change their approach to dissemination of messages

-Using radio, TV and other media to raise awareness about the negative effects of human trafficking

Activities Catalytic activities (e.g. brokering relationships between players)

-Supporting service providers to disseminate agricultural information to smallholder farmers and entrepreneurs

Strategic and behavioural change communications addressing modern day slavery in Edo and Delta: Using the evidence from key scoping studies conducted in Edo and Delta States during the inception phase, the programme will support local organisations to design appropriate strategies for disseminating messages that can change the perception of the susceptible population about illegal migration that exposes women and youth to human trafficking. In addition, using the evidence from the scoping studies, the programme will also develop a communications brief covering barriers identified and appropriate communications channels local organisations can adopt to address the constraints. Demonstration media activities (e.g. radio and TV programmes) will be undertaken with some of the local organisations that are expected to adopt the approach and drive system level change beyond the programme duration. Streamlining knowledge management function The effective management of knowledge has been recognised as a vehicle through which organisations can address their need for innovation and improve business performance. Figure 10,

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

80

showing the adapted scholarly work of Alvari and Leidner61 (published in 2001) suggests that knowledge management systems be a continuum beginning from knowledge creation and progressing through knowledge creation, storage, transfer and application. Figure 11: Spiral View of Knowledge Management Process

Source: Adapted from Alavi and Leidner (2001) A brief description of MADE II’s strategy following this progression is presented below: Knowledge Creation The knowledge of an organization can be divided into (a) explicit knowledge which is already expressed and codified in documentary forms, and (b) tacit, implicit or diffuse knowledge that includes unwritten knowledge and know-how transmitted by words and embedded in the officers’ mind. Thus, the process of knowledge creation involves developing new content within the organisation’s tacit and explicit knowledge. There is already a wide range of opportunities for creating explicit knowledge such as relevant documentation (for example, reports), stories of change and guidelines ('how to' guides), which are supported by a range of peer learning activities. A few examples of such processes for generating explicit knowledge include research/studies, results measurement processes and collaborative processes such as team meetings, participation in workshops and conferences and interaction with partners and beneficiaries, and so on. Tacit knowledge is mainly created in informal meetings, conversations, formal work meetings, emails and interaction with colleagues. The programme will continue to explore ways to translate tacit knowledge to explicit knowledge (for instance, through WhatsApp platform) so these can be broadly shared. The results, evidence and lessons generated from M&E processes and studies will be used to produce knowledge products ranging from briefs, leaflets, booklets, periodic reports, video documentaries, facts sheets, newsletters, press releases, tool kits, etc. Knowledge Storage

61 Alavi, M. and Leidner, D.E. (2001) “Review: Knowledge Management and Knowledge Management Systems: Conceptual Foundations and Research Issues”, MIS Quarterly, 25 (1): 107-136.

KNOWLEDGE STORAGE

KNOWLEDGE TRANSFER KNOWLEDGE APPLICATION

KNOWLEDGE CREATION Individual and collective explicit knowledge

Collective practices and culture Summation of the individual and group knowledge process

Meetings, training, groupware and communication technologies

Individual tacit knowledge

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

81

Once the information is created and codified into artefacts (e.g., reports), it is time to embed it into the knowledge repository that forms the basis of organisational memory (OM). To ensure continuous creation and retention of the programme’s memory, there are dedicated databases for storing the knowledge the programme continues to generate. These include the server, Technical Assistance Management Information System (TAMIS), email databases, Slack and WhatsApp platforms. In addition, the IT Unit supports all staff to comply with the routine of backing-up the files on their laptop on both the server and pocket drives. This ensures security of the knowledge created and stored. Knowledge Transfer Knowledge transfer is the methodical replication of the expertise, wisdom, and tacit knowledge of key participants into the heads and hands of their co-workers and other members of the community of practice. MADE staff engage in many diverse learning and capacity development activities, hosted both internally and externally. Sharing the knowledge gained from these engagements with other employees in MADE (through learning lunches, dissemination of presentation materials and ad-hoc information sharing sessions), will continue to provide invaluable benefits in updating collective knowledge and ensuring that new practices and procedures are quickly adopted. The programme will also share best practices, knowledge products and tools among partners and other stakeholders. In the absence of website, the programme will continue to explore other means of sharing knowledge generated (e.g. through social media using Facebook, Instagram, WhatsApp, Slack and dedicated blogs). In addition, the sharing of lessons learned and other KM products will continue to take place though Community of Practice platforms such as KM Network comprising DFID Programmes. The CoP holds KM meetings every quarter as lunch hour meetings and includes brief experience sharing sessions. For example, during the inception phase, MADE MRM manager shared experience with other KM Network members on designing and implementing results measurement for media interventions. Within the next quarter (July – September 2018), MADE will be delivering another brief session on managing partnerships with lead firms and service providers using a milestone-based payment approach. The programme will also continue to take part in local and international events (including workshops and conferences). At the end of MADE I (precisely February 2018), MADE attended the BEAM Exchange/DCED Seminar in Nairobi and shared its experience on enhancing the functionality of MRM systems through integration of a geographical information system (GIS). . Furthermore, periodic reports (quarterly and annual) to DFID as well as traditional media and online platforms the programme continue to represent other ways knowledge is being transferred with other members of the development community. Knowledge application The aim of the KM process is the application of the knowledge rather than just obtaining the knowledge itself. The programme will improve the use of lessons learned and evidence from the body of knowledge to improve programme delivery from time to time. On the basis of the evidence, the programme will improve the decision making process about interventions and whether to scale down, scale up interventions or even replicate promising interventions in other locations. Illustrative Activities Table 9 below provides a list of indicative activities, organised under each stage of the knowledge management system that will be implemented during the programme lifetime. The programme will continue to review the activities to ensure the most effective strategies are upheld for maximum results.

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

82

Table 9: Illustrative Activities

Stage in the knowledge management process

Illustrative activities

Creation Review human resource management and policy instruments to support a knowledge creation and learning culture throughout the organisation. Ensuring lessons learning becomes an integral part of results measurement and every field visit by the programme team. Development of templates for capturing observations during field visits as this supports codification of tacit knowledge. Mitigating knowledge flight, by capturing tacit knowledge during exit interviews, using tools, such as videos or toolkits.

Storage Record processes and procedures and keep them up to date as systems and processes change. They will work with the knowledge champions and managers on knowledge management activities and participate in knowledge sharing and learning. Learning from the programmes beneficiaries MADE's performance, through the intervention manager's reviews, events and feedback on studies, and DFID's liaison where this can be shared with MADE.

Transfer Staff capacity building focusing on the importance of communication skills and knowledge management. Continuing to harness expert knowledge of intervention managers and consultants through: (a) formal reporting; (b) weekly updates to the entire technical team c) exit interviews – about their achievements and experiences while working for MADE. Use of appropriate KM tools particularly those that support collaboration both within MADE (e.g. WhatsApp, Slack) and with stakeholders (KM Network and social media platforms).

Application Using quarterly review meetings for experience sharing about challenges, lessons being learned and adaptations that are required to ensure the programme stays on track and achieve the desired objectives.

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

83

CHAPTER IX Programme Management and Staffing

9.1 Management Team MADE II will commit the following resources working on and available to the programme during the implementation phase:

Role Name Purpose Location Project Director

John Sanchez

Provides strategic direction of the project and provides oversight to its delivery.

UK based with regular visits to Nigeria.

Technical Director William Grant

Facilitates and drives the strategic review of the interventions - advising on technical direction. Provides guidance and mentoring to the in-country team

US based with frequent visits to Nigeria.

Team Leader Olatunde Oderinde

Provides leadership on all aspects of MADE programme and drives the overall delivery of the programme.

Based full time in Abuja.

Interim Operations Manager

Alan Griffiths

Provides leadership and management of programme operations team – driving delivery of operations, finance and admin activities

Based full time in Abuja.

M4P Technical Team Manager

Olayemi Oluwakuyide

Provides leadership and management of programme technical team – driving delivery of the work plan

Based full time in Port Harcourt

ESIP Portfolio Manager

Snow Ogunjimi

Provides leadership and management of ESIP technical team – driving delivery of the work plan

Based full time in Benin

Monitoring and Result Measurement Manager

Sylvanus Abua

Provides leadership and management of monitoring, evaluation and learning

Based full time in Port Harcourt

Project Manager

Naomi Somerville-Large

Delivery of operational support to ensure integration and adequate support across outputs and activities

UK based with regular visits to Nigeria.

Project Accountant Carol Archer

Provide support on all financial aspects of the project - forecasting, financial reporting, accounting and cost control

UK based

During this phase of MADE II, it will improve the financial forecasting, human resource management and work planning through the introduction of simple tracking tools to improve MADE’s operational effectiveness. We will ensure the involvement of technical and support staff in programme management and introduction of results focussed management style. TEAM STRUCTURE The staffing plan for MADE II will be very similar to MADE I, except for a reduction of staff in the core value chains and the addition of a new team focused on Edo State Investment. The organisation chart (see Figure 11) below captures the new structure with the following elements: Finance and Administration, Market Development, Edo State Investment Portfolio (ESIP), and Monitoring and Results Management (MRM), and Communications and Advocacy.

Commented [WG3]: James Naughton?

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

84

Figure 12: MADE II Organisation Chart 9.2 Resource Allocation The overall budget for the programme is £6,750,000. MADE II is a milestone-based payment schedule, which will be triggered with the achievement of deliverables. The total milestone budget line for MADE II is £3,875,232. The overall reimbursable expense limit is £1,093,900 and available funds for programme activities and grants is £1,780,868. The programme budget has been scheduled to achieve the 90-10 rule (utilise 90% of the budget by December and the remaining 10% in the last quarter of the financial year) for the next two years.

The key costs during this phase will broadly include MADE programme activities, grants, operations, and security and travel expenses. For example: Fixed and on-going project operating costs: Fixed and on-going project operating costs will account for most of the use of expenses yearly. Major expenses will include: long term office rent, utilities, office supplies, stationary and consumables, generator, fuel, and communications costs. Short and long-term accommodation: MADE II has in-country based long term international personnel in yearly rented accommodation. Short term consultants will be accommodated at pre-approved and negotiated hotels offering the programme competitive rate thus delivering value for money. Programme activity and grants expenditure: General costs will be incurred through initiative activities, facilitation and cost shared grants with private sector partners to buy down risks. Travel costs: Travels costs will be incurred keeping with budgets and plans. Costs will include flights and transfers for mobilisation for international consultants, as well as per diems for international consultants’ time in-country. It will also include domestic/inter-office travel to be undertaken by use of project vehicles and domestic flights, and DSA per diem for staff.

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

85

USE OF GRANTS AND ACTIVITIES FUNDS MADE II will continue to use the grants and activity fund approaches developed under MADE I. There will be a conscious effort to reduce the amount of grants going to market actors, especially in the more mature interventions; and focus more on addressing specific market failures, with a clear case for sustainability and stimulating private sector partner investments in the frontlines states. Output based grants Under MADE I, DAI used an output based matching grant approach to encourage investors to try new initiatives in new target areas of the Niger Delta. The Niger Delta is usually not the highest and best place for many Nigerian input supply companies to invest. The perception of the Niger Delta as a difficult and dangerous place to work had kept many investors away. The difficulty of reaching the target client base had reduced the initial assessments of return on investment. MADE’s co-investments through matching grants has succeeded in bringing new investors into the Niger Delta. MADE’s approach has been to get them first into the states in the Niger Delta where business opportunities were greatest, and then gradually move into the more dangerous frontline states. During implementation, grant support to these partners will address market failures preventing the firms from investing in the frontline states Niger Delta, including:

• information asymmetries of where to work; • building the models for distribution networks; • learning about the specific market needs of the target consumers; • building relationships with local market actors to drive future business.

We are presently reengaging with some existing partners that are now willing to invest in the frontline states and our negotiations will ensure that the set targets create a viable business base for them in the future, allowing for exit from MADE support. Therefore, achieving the outputs makes their businesses viable. This has succeeded thus far in some target markets and is leading to more crowding-in in specific states where the firms are broadening and deepening their work. We will stimulate wider interests with proper exploration and articulation of the value proposition, with the availability of a small cost share incentive, and the introduction of co-facilitators or other local community organisations which can reduce risks for companies willing to expand their operations. Technology Adoption Grants - TAG During MADE I, several sectors did not have dominant lead firms to demonstrate and promote the adoption of specific technologies required to address the underlying root causes of stagnation. In particular, small-scale processing equipment (SSPE) and mechanical adjustable harvesters (MAH) for palm oil sector and smoking kilns for the fisheries sectors were restricting growth of the sectors. With only local small fabricators driving the production and marketing of the equipment, a mechanism for stimulating interest in the technologies through driving the demonstration effect was required. At the end of year one, it became evident that the benefits from large scale adoption of new technologies would be good, but that the environment for driving adoption (high visibility and awareness of the technologies) in dispersed rural areas was weak. MADE introduced the Technology Adoption Grants (TAGs) to stimulate adoption for demonstration purposes. TAGs were made available to fabricators to help them subsidise the sale of the new equipment on the condition that the new equipment also be used for demonstration in the communities around the location. By incentivising the fabricators to promote the new technology, it has both led to a more widespread promotion and adoption (purchase) of the technologies in year 3 than in year 2. For example, now that more than 160 SSPE are present in the field and people are able to actually see them at work, the fabricators are reporting that direct demand for the machines is increasing. Direct sales of SSPE have increased, especially for the larger and more expensive pieces of equipment.

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

86

In MADE II, TAGs will be used to stimulate adoption of these technologies in the frontline states and also be used to stimulate adoption by women investors. Furthermore, other innovations and support mechanisms to innovative business models will be considered to generate desired numbers of investors to trigger wider adoption. As an example, TAGs can be used for private nursery owners to adopt improved palm seedling varieties for sale to build their market and uptake. We will phase the use of TAGs out at the end of year one of the implementation phase. In order to continue to drive adoption in the areas where an adequate number of SSPE, MAH, or smoking kilns are in use, we have planned other types of activities to support the supply and demand sides. Activity budgets Use of co-facilitators MADE II’s technical approach will place an emphasis on using local co-facilitators, especially in the more dangerous frontline states, for building awareness about successes in driving commercial interventions and engagement by financial institutions. These will be contracted services coming from MADE II’s activities budget. From the pool of trained co-facilitators established during MADE I, MADE II will competitively select those which are best positioned to support the various interventions. We will then agree a realistic price for their services and hire them using performance-based contracts. Awareness raising workshops and support to expansion An important part of any crowding in and scaling up strategy is making the information public, to maximise awareness and stimulate uptake. At the demonstration level, this has been effective through the use of TAGs to make the equipment visible in the deeper rural areas, but this needs to be expanded to larger companies as well. Workshops on the models in use for the agro-vet, agricultural input supply, application of ICT platforms to stimulate sales and transmission of GAP information, as well as others, will be thoroughly explored to increase the number of lead firms and scale our outreach. Access to Finance Access to finance remains an important challenge in the uptake of improved (GAP) practices. One of the impacts of the devaluation of the naira between 2016 and 2017 was the reduction in working capital of many of the lead firms, while also making the purchase of inputs more expensive. This was even more challenging for the smallholder farmers without access to outside capital. MADE II will continue to facilitate access to finance to all of the key sectors as a cross-cutting initiative. In expanding access to finance solutions, we will consider the use of asset-based guarantees as well as value chain finance mechanisms in conjunction with relevant partners. MADE, in partnership with PIND, is establishing a special purpose vehicle (SPV) that will address some of the financial constraints and demands in the selected value chains. The SPV is being set up and is in the final stage of approval. To operationalise the SPV, MADE II will renegotiate the use of existing deposits with the Bank of Agriculture (BoA) and Sterling Bank to be able to guarantee or indemnify loans from financial institutions, making access to capital easier to smallholder farmers. In the interim, we will continue to promote the use of deposits with the BoA and support the bank on the recovery. The programme will seek DFID’s approval to utilise the balance of the TAG deposit with Sterling Bank to support uptake in the frontline states and innovative models in our selected value chains. The TAG balance, at the close of MADE I, stands at N43m. With due consultation with DFID and in alignment with the smart rule, MADE II will consolidate bank deposits from the BOA and Sterling Bank and transfer the management authorisation to the management of the SPV. MADE II will work with financial institutions through the SPV to develop appropriate products to try to shift the emphasis from the use of the TAG as a stimulus to demonstrate new technologies, to adoption through loans to finance the capital purchases.

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

87

ANNEX 1 REFERENCES “A Report on the Effect of the Naira’s Devaluation on the Agricultural Value Chains in the Niger Delta”, The PIND Foundation and the MADE Programme, June 2017

Accenture. “Private Sector Landscape Analysis of Nigeria: Empowering Women and Girls Through Partnerships.” https://giwps.georgetown.edu/sites/giwps/files/nigiera_private_sector_initiatives_landscape_analysis.pdf. Adetula, David. “Will Agriculture Better Distribute Wealth in the Niger Delta?” October 26, 2016. http://venturesafrica.com/will-agriculture-better-distribute-wealth-in-the-niger-delta/. Alakaiye, Olu, Alaba Olufunke, and Jerome Afeikhena, and David Nabena. Understanding the Relationship Between Growth and Employment in Nigeria. Africa Growth Institute at Brookings. Washington, DC. May 2016. https://www.brookings.edu/wp-content/uploads/2016/07/growth-employment-nigeria-ajakaiye-jerome-nabena-alaba.pdf. Alemu, Zerihun. “The Challenge of Job Creation in Nigeria”. African Development Bank Group. Chief Economist Complex. Vol 6, Issue 8, 2015. https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/AEB_Vol_6_Issue_8__2015_The_Challenge_of_Job_Creation_in_Nigeria.pdf BBC. “Nigeria Becomes Africa’s Biggest Economy.” April 6, 2014. http://www.bbc.com/news/business-26913497. Chukwuemeka, Emma and V. N. O. Aghara. Niger Delta Youth Restiveness and Socio-Economic Development of Nigeria. Educational Research and Reviews Vol. 5(7), pp. 400-407, July 2010. Dalberg. “Strategic Framework and Implementation Plan for Job Creation and Youth Employment in Nigeria.” Eboh, Michael. “Unemployment: Oil Sector Employs 0.01% of Nigerian Workforce.” Vanguard. June 4, 2014. http://www.vanguardngr.com/2014/06/unemployment-oil-sector-employs-0-01-nigerian-workforce/. Federal Ministry of Budget and National Planning. “Nigeria’s oil sector contribution to GDP lowest in OPEC – Blueprint.” http://www.nationalplanning.gov.ng/index.php/news-media/news/news-summary/333-nigeria-s-oil-sector-contribution-to-gdp-lowest-in-opec-blueprint. Food and Agriculture Organization of the United Nations. “Nigeria at a Glance.” http://www.fao.org/nigeria/fao-in-nigeria/nigeria-at-a-glance/en/. https://www.vanguardngr.com/2017/11/governor-obaseki-presents-146bn-2018-budget-estimate-to-edo-assembly/ (2018 budget speech)

http://www.ndpifoundation.org/images/researchreports/reports/Youth-Assessment-Report.pdf

IFPRI. “Youth Employment, Agricultural Transformation, and Labor Dynamics in Nigeria. December 2016. http://www.ifpri.org/publication/youth-employment-agricultural-transformation-and-rural-labor-dynamics-nigeria.

The Lawyers Chronicle, “Youth Migration: Causes, Challenges and Opportunities”, September 16, 2017 www.thelawyerschronicle.com/youth-migration-causes-challenges-and-opportunities/

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

88

McKenzie, David. Identifying and Spurring High-Growth Entrepreneurship: Experimental Evidence from a Business Plan Competition. World Bank Group. August 2015. http://documents.worldbank.org/curated/en/210491468178154286/pdf/WPS7391.pdf. McKinsey Global Institute. Nigeria’s Renewal: Delivering Inclusive Growth in Africa’s Largest Economy. July 2014. http://www.mckinsey.com/global-themes/middle-east-and-africa/nigerias-renewal-delivering-inclusive-growth. MIT. Observatory of Economic Complexity. “Nigeria.” 2017. http://atlas.media.mit.edu. National Board for Technical Education. http://www.nbte.gov.ng/ National Bureau of Statistics. “Nigerian Gross Domestic Product Report (Q3 2017). http://nigerianstat.gov.ng/elibrary National Bureau of Statistics. Selected Basic Public Education Statistics in Nigeria. Education Data 2013-2014. http://nigerianstat.gov.ng National Bureau of Statistics. Unemployment/Underemployment Report Q4 2016. Abuja, Nigeria. http://www.nigerianstat.gov.ng/report/564. Nwabuikwu, Odiche; Eustace Uzor. “Skills mismatch in Nigeria’s labour market: What are the drivers and how can government bridge the gap?” http://www.cseaafrica.org/index.php?option=com_content&view=article&id=177:skills-mismatch-in-nigeria-s-labour-market-what-are-the-drivers-and-how-can-government-bridge-the-gap&catid=14&Itemid=435. PIND. “A Report on Niger Delta Region Youth Assessment”, June 2011. http://www.ndpifoundation.org/images/researchreports/reports/Youth-Assessment-Report.pdf. PIND. “Technical Vocational Education and Training – TVET in Niger Delta”. A Situational Report with Suggestions for Possible Further Action by the PIND Foundation. 2011. Santander. “Nigeria Economic Outline.” June 2016. https://en.portal.santandertrade.com/analyse-markets/nigeria/economic-outline. Support to Human Trafficking Prevention in the Niger Delta, Market Development in the Niger Delta Programme (MADE), James Zasha and Timothy Effiong, November 2017

USAID. Workforce Development and Youth Employment in Nigeria: Desk Review. March 2016. Washington, DC. https://static.globalinnovationexchange.org/s3fs-public/asset/document/Workforce%20Development%20and%20Youth%20Employment%20in%20Nigeria%20Desk%20Review%20Final%20Draft-Public%20Version%20(4).pdf?bjOwIqelAVJ9jWukmDOh.GcrIQV.oFSm.

World Bank. More, and More Productive, Jobs for Nigeria: A Profile of Work and Workers. Washington, DC. 2016. http://documents.worldbank.org/curated/en/650371467987906739/pdf/103937-WP-P146872-PUBLIC-Nigeria-Jobs-Report.pdf. World Economic Forum. “2015 Human Capital Report.” http://reports.weforum.org/human-capital-report-2015/the-human-capital-index/.

Formatted: Italian

Formatted: Italian

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

89

World Education News and Reviews. Education System Profiles: Education in Nigeria. March 7, 2017. http://wenr.wes.org/2017/03/education-in-nigeria. Youth Employment in the Niger Delta, Draft Desk Research, DAI, November 29, 2017

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

90

S/N Date Where Contact Name Name of Firm Type of Firm Title Sector/VC Email Cell # Cell #1 11-Apr-18 Abjua Arnold Jackson Nigerian Export Promotion Council Public Parastatal Assistant Director Creative [email protected] 0803 308 04812 11-Apr-18 Abjua Aik Odiase Individual Film Production Actor/Producer Creative [email protected] 0806 683 46863 12-Apr-18 Benin Peddie Okao Prolens Movies Film Production CEO, Producer/Director Creative [email protected] 0703 086 0003 0805 776 43774 13-Apr-18 Benin Lancelot Imasuen Benin Film Academy Production Training Producer/Director, CEO Creative/Educational [email protected] 0805 381 8141 0802 303 25055 14-Apr-18 Onitsha Emeka Amakeze Individual Film Production Actor/Director/Producer Creative [email protected] 0803 746 86826 17-Apr-18 Lagos Terfa Tilley-Gyado Temple Management Company Arts Mgt. Company Director, Communications Creative [email protected] 0703 416 46827 17-Apr-18 Lagos Bright Obi Script to Screen Production/Training CEO, Producer/Director Creative [email protected] 0803 576 53578 17-Apr-18 Lagos Onyiye Okoroji Feemo Film Production Production Manager Creative [email protected] 0809 047 72349 17-Apr-18 Lagos Jemila Akinwale Feemo Film Production Production Manager Creative [email protected] 0807 606 9626

10 18-Apr-18 Lagos James Omokwe Feemo Film Production CEO, Producer/Director Creative [email protected] 0803 853 920611 19-Apr-18 Lagos Uzoma Onwuchekwa Ebony Life TV Broadcaster E.D, Commercial Media [email protected] 0803 600 640012 20-Apr-18 Lagos Busola Tejumola Africa Magic Broadcaster G.M, Production Media [email protected] 0803 525 424513 20-Apr-18 Lagos Caroline Oghuma Multichoice Nigeria Broadcaster Manager, Public Relations Media [email protected] 0814 137 550014 20-Apr-18 Lagos Dayo Obisan Greenwich Asset Management Private Investment Managing Director Finance [email protected] 0802 265 316315 20-Apr-18 Lagos Niyi Akinmolayan Anthill Studios Film, Animation,Training Owner, Manager Creative/Educational [email protected] 0803-960 598717 23-Apr-18 Asaba Christopher Ozoemena DeKross Films Production/Distribution CEO, Producer Creative/Marketing [email protected] 0803 324 6060 0708 370 449718 23-Apr-18 Asaba Sonny McDonn Individual Film Production Actor/Producer Creative 0803 334 269119 24-Apr-18 Benin Tony Agbogah Benin Film Academy Production Training Trainer Creative/Educational [email protected] 0805 401 373520 24-Apr-18 Benin Ossa Earliece Benin Film Academy Film Academy Manager Educational [email protected] 0813 477 3130

Entertainment Meeting Schedule

ANNEX 2 LIST OF MEETINGS HELD

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

91

S/N Date Where Contact Name Name of Firm Type of Firm Title Sector/VC Email Cell # Cell #1 10-Apr Abjua Olatokunbo Kotoye (by telephone) Techpreneurs Academy Private Company CEO ICT

2 11-Apr Abuja Ms. Julie Okah-Donli Esq NAPTIK Federal Government Director General MDS

3 11-Apr Abuja Arinze Orakwe NAPTIK Federal Government Director, Public Enlightenment MDS [email protected]

4 11-Apr Abuja Godwin Morka NAPTIK Federal Government

Director, Research and Program

Development MDS [email protected] 0813 894 4479

5 11-Apr Abuja Ms. Patricia Odukwu NAPTIK Federal Government Director, Counselling and Rehabilitation MDS [email protected] 0803 329 9202

6 11-Apr Abuja Ms. Ijeoma Amugo NAPTIK Federal Government

Representing the Director, Legal and

Prosecution MDS [email protected]

7 11-Apr Abuja Josiah Emerole NAPTIK Federal Government Head Press and Public Relations units MDS [email protected]

8 11-Apr Abuja Dandison Efeosa Okunbo DEROACO Intl. Ltd. Private Company CEO [email protected] 0803 087 3579

9 11-Apr Abuja Richard Sandall (by telephone) DFID Nigeria Bilateral Donor MADE SRO [email protected] 0812 810 8687

10 11-Apr Abuja Ms. Kelly Stiebel (by telephone) DFID Nigeria Bilateral Donor Livelihoods Advisor [email protected] 0703 833 8071

11 11-Apr Abuja Ms. Feyi Boroffice World Bank Multilateral Senior Private Sector Development Specialist [email protected] 0818 620 5650

12 11-Apr Abuja Ms. Esther Eghobamien-Mshelia Ministry of Women Affairs & Social Development Federal Government Special Assistant to the Minister Women [email protected] 0803 822 3997

13 11-Apr Abuja Ms. Farwah Qasim World Bank Multilateral Social Development Consultant [email protected] 1 301 820 5832

14 12-Apr Benin City Kelvin Uwaibi Governor's Office State Government Senior Special Asst, Investment Promotion [email protected] 0805 535 4490

15 12-Apr Benin City Chris Ogbomon Anti-trafficking Task Force State Government Accountant [email protected] 0813 894 4479

16 12-Apr Benin City Emmanuel Sule Governor's Office State Government Senior Special Asst, Donor Coordination [email protected] 0905 301 7937

17 12-Apr Benin City Ms. Abrieyuwa Oyemwense Anti-trafficking Task Force State Government Secretary to the Task Force MDS [email protected] 0807 337 8061

18 13-Apr Benin City Nduka Nwawwenne NAPTIP Federal Government Zonal Commander MDS [email protected] 0802 294 0088 0801 613 1713

19 13-Apr Benin City Ms. Nosa Mamman-Odey NAPTIP Federal Government Head of Administrative Unit MDS [email protected] 0706 198 6387

20 13-Apr Benin City Ms. Deborah Ogunmolati DebbyWales Collections Private Retail CEO Fashion - Retail Shoes [email protected] 0803 422 1232 0809 181 0203

21 13-Apr Benin City Roland Nwoha Idia Rennaissance NGO CEO [email protected]; [email protected] 0806 293 2409 0808 077 7067

22 13-Apr Benin City Pastor Nosa Erhunmwunsee NAME Foundation NGO President/Executive Director [email protected] 08031863552 0908 399 9927

23 13-Apr Benin City Ms. Theodora Eghomwan

International Reproductive Rights Research Action

Group (IRRAG) NGO Executive Director [email protected]; [email protected] 07032269957

24 13-Apr Benin City Sister Anthonia Iyade

Committee for the Support of the Dignity of

Women (COSUDOW) NGO [email protected] 08032451398

25 14-Apr Benin City Lancelot Oduwa Imasuen Lancelot Films Private Company CEO Nollywood [email protected] 0805 381 8141 0802 303 2505

26 16-Apr Benin City Imalingmhe John Yesufu Benin Chamber of Commerce NGO Director General [email protected]; [email protected] 0803 711 2191 0805 114 6600

27 16-Apr Benin City Ms. Aina A. Omo-Ojeonu Benin Chamber of Commerce NGO Vice President [email protected] 0803 719 0090 0818 228 5581

28 16-Apr Benin City Johnson Igbinosa LAPO Microfinance Bank Ltd. Private Bank Head, Agricultural and Rural Finance Unit Finance [email protected] 0803 963 1967 0705 109 3742

29 16-Apr Benin City Chiaka Ikechukwu LAPO Microfinance Bank Ltd. Private Bank Agriculture and Rural Finance Finance [email protected] 0705 148 3208 0806 018 3332

30 16-Apr Benin City Oyeniyi Ayodeji LAPO Microfinance Bank Ltd. Private Bank Agriculture and Rural Finance Finance [email protected] 0703 398 3073

31 16-Apr Benin City Azieuren Courage LAPO Microfinance Bank Ltd. Private Bank Small Business Loan Officer Finance [email protected] 0811 629 0199

32 16-Apr Benin City Dr. Osita Aniemeka H2A Foods Nigeria Ltd. Private Company Country Director Agribusiness [email protected] 0806 381 5296

33 16-Apr Benin City Akin Ogunbiyi Elephant Group Private Company Group Executive Director Agribusiness [email protected] 0803 305 2604

34 18-Apr Lagos Chimdindu Aneke Andela Tech Consulting Firm Talent Partnerships Manager ICT [email protected] 0812 264 7127

35 18-Apr Lagos Babajide Duroshola Andela Tech Consulting Firm Community Manager, Technical Talent ICT [email protected] 0706 587 3363

36 18-Apr Lagos Mayowa Olunuga Andela Tech Consulting Firm Talent Partnerships Development CoordinatorICT [email protected] 0813 677 5417

37 18-Apr Lagos Obo Henshaw Co-Creation Hub Nigeria Private Company ? ICT [email protected] 0803 710 6396

38 18-Apr Lagos Ms. Femi Longe Co-Creation Hub Nigeria Private Company Co-founder ICT [email protected] 0817 068 6383

39 18-Apr Lagos Uzoma Onwuchekwa EbonyLifeTV Private Company Executive Director Entertainment [email protected] 0803 600 6400

40 19-Apr Lagos Ms. Feyisayo Fatona-Ajayi Nigerian Economic Summit Group NGO Acting Executive Director, Lagos NGO [email protected] 0803 453 6329

41 19-Apr Lagos Ms. Rabi Isma 9 Mobile (ex-Etisalat) Private Company Director, HR, Business Partnering Telecom [email protected] 0809 944 3088

42 20-Apr Lagos Caroline Oghuma Multichoice, Magic TV Private Company Public Relations Manager Entertainment [email protected] 0814 137 5500

43 20-Apr Lagos Busola Tejumola Multichoice, Magic TV Private Company General Manager Production Entertainment [email protected] 0803 525 4245

44 20-Apr Lagos Femi Taiwo LEAP Africa NGO Director of Programmes Youth [email protected] 0706 129 4238

45 20-Apr Lagos Temitope Richard-Banji LEAP Africa NGO Manager, Biz LEAP Youth [email protected] 0818 187 8956

46 20-Apr Lagos Chiamaka Oguonu LEAP Africa NGO Senior Programme Coordinator Youth [email protected] 0703 763 2189

47 21-Apr Lagos Keniebe Okoo KDI Group Private Company CEO energy (oil & gas) [email protected] 0818 000 0297

48 23-Apr Lagos Norbert Chukwumah Nigeria Machine Tools Private Company Managing Director Manufacturing [email protected] 0802 313 2865 0812 993 0659

49 23-Apr Lagos Smart Idahosa Nigeria Machine Tools Private Company Finance Director Manufacturing [email protected] 0803 960 1197

50 23-Apr Lagos Adedotun Sulaiman Secure ID; Interswitch; Barclays; Lagos Angels Private Company Chairman Venture Capital [email protected] 0802 778 2632 0803 778 2632

51 23-Apr Lagos Simi Nwogugu Junior Achievement Nigeria (JAN) NGO Executive Director Youth Empowerment [email protected] 0803 706 4749

52 24-Apr Lagos Chiagozie Nwizu FBDS Private Company Managing Consultant ITC [email protected] 0908 569 2424

53 25-Apr Abuja Ayodeji Balogun AFEX Commodities Exchange Private Company Country Manager Commodities [email protected] 0813 933 9000

54 25-Apr Abuja Bello Abba Yakasai Growth and Employment (GEM) Project Donor Project Cluster Manager [email protected] 0803 939 7766 0802 772 3034

55 25-Apr Abuja Ndubuisi Kanu Growth and Employment (GEM) Project Donor Project Deputy Cluster Manager [email protected] 0802 322 6115

56 26-Apr Abuja Dara Akala PIND NGO Executive Director [email protected] 0817 206 4597 0808 217 0454

57 1-May Lagos Bello Abba Yakasai Growth and Employment (GEM) Project Donor Project Cluster Manager [email protected] 0803 939 7766 0802 772 3034

58 2-May Lagos Soromidayo George Unilever Private Company Corporate Affairs Director FMCG [email protected] 0802 223 8659 0803 906 6000

59 2-May Lagos Thomas Mwanza Unilever Private Company Cluster Procurement Director FMCG [email protected] 0812 990 1660 0803 906 6000

60 2-May Lagos Siddarth Ramaswamy Unilever Private Company Vice President, Supply Chain FMCG [email protected] 0803 906 6000

61 2-May Lagos Mezuo Nwuneli Sahel Capital Private Company Managing Partner PE [email protected] 0806 981 1410

62 3-May Lagos Muda Yusuf Lagos Chamber of Commerce NGO Director General [email protected] 0803 300 8523

63 3-May Lagos Dick Kramer Allied Capital Associates Private Company Chairman Private Equity [email protected] 0803 402 1882

64 4-May Lagos Oluyemisi Iranloye Psaltry International Company Private Company CEO Agribusiness [email protected] 0802 891 1415 0807 751 1938

65 7-May Lagos Richard Sandall DFID Nigeria Donor MADE SRO [email protected] 0812 810 8687

66 7-May Lagos Joyce Akpata Nigerian-American Chamber of Commerce NGO Director General [email protected] 0803 322 0898 0805 230 3836

67 10-May Benin City Nduka Nwawwenne NAPTIP Federal Government Zonal Commander MDS [email protected] 0802 294 0088 0801 613 1713

68 10-May Benin City Edosa Eghobamien Amena Academy Private Company Director Training [email protected] 0807 070 0000 0706 800 7722

69 10-May Benin City Dr. Naeto Orazulike Genesis Group Private Company Group Managing Director Hospitality [email protected] 0803 304 0051

70 11-May Abuja Henry Onwuemene NPC or NBS Government

71 28-May Lagos Mrs. Toki Mabogunje TMC Private Company Principle Parter BDS [email protected] 0803 313 4159 1 342 4511

72 28-May Lagos Ade Laja TMC Private Company Manging Partner BDS [email protected] 0809 520 4829 1 342 4511

73 29-May Lagos Dick Kramer ACA Private Company Chairman Private Equity [email protected] 0803 402 1882

74 29-May Lagos Landell Robbins ACA Private Company FMCG and Agribusiness Director Private Equity [email protected] 0803 402 1882

75 30-May Lagos Godwin Green Esien Godwin Green Couture Private Company Creative Director Fashion and Beauty 0802 323 9446

76 30-May Lagos Princess Juliet Aboh Just Jules Stores Private Company General Manager Retail 0813 990 5959

Team Leader Meetings

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

92

S/N Date Where Contact Name Name of Firm Type of Firm Title Sector/VC Email Cell # Cell #1 13-Apr Abuja Iffat Mahmud FIDEM Entrprises Ltd. Service Provider CEO/Director Agribusiness [email protected] 81756274982 16-Apr Benin Peter Aikhuomobhogbe Agricultural Development Programme (ADP) Government Programme Manager

Government/Agric Extension [email protected] 8055357503 8036263943

3 16-Apr Benin Johnson Igbinosa LAPO Microfinance Bank Ltd. Private Bank Head, Agriculture & Rural Finance Unit Finance [email protected] 8039631967 70510937424 16-Apr Benin Chiaka Ikechukwu LAPO Microfinance Bank Ltd. Private Bank Agriculture and Rural Finance Finance [email protected] 7071483208 80601833325 16-Apr Benin Oyeniyi Ayodeji LAPO Microfinance Bank Ltd. Private Bank Agriculture and Rural Finance Finance [email protected] 70339830736 16-Apr Benin Azieuren Courage LAPO Microfinance Bank Ltd. Private Bank Small Business Loan Officer Finance [email protected] 81162901997 16-Apr Benin Dr. Osita Aniemeka H2A Foods Nigeria Ltd. Agribusiness/Training Country Director Agribusiness [email protected] 8063815296 151632425978 16-Apr Benin Akin Ogunbiyi Elephant Group Aggregator/Export/Import Group Executive Director Agribusiness [email protected] 8033052604 9 17-Apr Benin Ehon Philip Greenland Trust Ltd. Agribusiness/Processing CEO/Director Agribusiness [email protected] 8033245583

10 17-Apr Benin Asiriuwa Godfrey Agricultural Development Programme (ADP) Government Chief Seed OfficerAgribusiness/Extention Services [email protected] 8075270905

11 17-Apr Benin Wilson Eselebor Farmers Shopping Complex Ltd. Private Agric Input Dealer MD/Key Agro Partner Agribusiness/Inputs [email protected] 8056054684 802897441812 17-Apr Benin Kelvin Evbuarhue Farmers Smallholder Farmer Member Cassava Farming/Garri 8075955025 13 17-Apr Benin Emmanuel Igo Market Smallholder Farmer Member Cassava Farming 814754116014 17-Apr Benin Julius Igo Market Smallholder Farmer Member Cassava Farming 907609969315 18-Apr Benin Adeniyi Oguntuyi

NIRSAL (Nigeria Incentive-Based Risk Sharing System for Agricultural Lending) Agricultural Bank Head, PMRO (Edo) Agribusiness [email protected] 8032005414 9070001390

16 18-Apr Benin Patrick AkorNIRSAL (Nigeria Incentive-Based Risk Sharing System for Agricultural Lending) Agricultural Bank Programme Officer Agribusiness [email protected] 8038565724

17 18-Apr Benin Mrs. Aina Omo-OjeonuBenin Chamber of Commerce for Industry, Mines and Agriculture (BENCCIMA) Chamber of Commerce Vice President

Chamber of Commerce/Youth Group [email protected] 8037190090

18 18-Apr Benin Ms. Blessing IraborBenin Chamber of Commerce for Industry, Mines and Agriculture (BENCCIMA) Chamber of Commerce

Chairman Agric Committee/Youth Coordinator

Chamber of Commerce/Women Group [email protected] 8037400000 8058512096

19 18-Apr Benin Mr. John Yesufu ImalingwheBenin Chamber of Commerce for Industry, Mines and Agriculture (BENCCIMA) Chamber of Commerce Director General Chamber of Commerce [email protected] 8037112191

20 19-Apr Lagos Mr. Chike Nwagwu Novus Agro Agribusiness CEO Abribusiness/Aggregator [email protected] 803301219221 19-Apr Lagos Chisom Adigo Novus Agro Agribusiness Executive Agribusiness/Aggregator [email protected] 805353810322 20-Apr Lagos Akin Ogunbiyi Elephant Group Aggregator/Export/Import Group Executive Director Agribusiness [email protected] 803305260423 20-Apr Lagos Dr. Rotimi Fashola Elephant Group Aggregator/Export/Import General Manager Project Agribusiness [email protected] 804549326 818573918824 22-Apr Lagos Mr. Godson Nkeokelonye MGG WELLS Agribusiness CEO

Agribusiness/Palm Oil Aggregator [email protected] 8058743727

25 22-Apr Lagos Mrs. Elizabeth Nwankwo Oklan Best Aggregator/Export CEO/Director Aggregator/Exporter [email protected] 705550063626 22-Apr Lagos Mr. James PIND Development Organization27 23-Apr Lagos Mrs. Jacqulyn Yawa Guinness Nigeria Plc. Brewery Head, Agribusiness Brewery/Cassava Offtaker [email protected] 701382000728 23-Apr Lagos Mr. Tete Mbuk Temcore Group

Private Investment Company CEO Cassava Offtaker [email protected] 8053853996

29 23-Apr Lagos Mr. Donatus Imagbohor Lentus Foods and Agro Ltd. Foods & Agro Company MD/CEO Cassava Offtaker [email protected] 8023014988 816984379930 24-Apr Lagos Ayodeji Akomolafe Akomz Farms & Foods Ltd. Foods Processing Managing Partner Mushroom Processing [email protected] 8056355889 802312278531 24-Apr Lagos Tukur Olubunmi Amo Byng Nigeria Ltd. Poultry Processing AGM Executive Assistant

Poultry Processing/Offtaker [email protected] 7033345516 8058707667

32 25-Apr Abuja Mr. Ayodeji Balogun AFEX Agribusiness Country Manager Ag. Commodities Exchange [email protected] 813933900033 25-Apr Abuja Ramesh Ghadge Fiyah Global Ltd. Agribusiness Managing Director Ag. Inputs/Tech [email protected] 8050300600 708929999634 25-Apr Abuja Mr. Tijjani St.James Notore Agribusiness Group Head, Commercial Services Ag. Inputs [email protected] 816000061835 25-Apr Abuja Mohammed Murtala Notore Agribusiness Head, Agricultural Services Ag. Inputs [email protected] 805669631136 25-Apr Abuja Emmanuel Ojo-Odiase Notore Agribusiness Manager, Marketing & Business Devt. Ag. Inputs [email protected] 805669634837 26-Apr Benin Omoregie Godwin Eki Omoregie Farms Agribusiness CEO

Cassava Production and Processing [email protected] 8169602067 8097034652

38 26-Apr Benin Taiye AgbontaenTalented Women Entrepreneur Farmers Association Agribusiness President Agric Cooperative [email protected] 8055148711 8099141266

39 26-Apr Benin Fatai Afolabi Plantation Owners Forum of Nigeria Agribusiness Executive Secretary Agric Cooperative [email protected] 803331480040 26-Apr Benin Abdulkareem Babatunde Muhat Nigeria Limited Agribusiness Director

Agric Machineries Fabrication [email protected] 8060292230 7037531112

41 26-Apr Benin Edosa Egbobamien Amena Academy Agribusiness MD/CEO Training/Skills Acquisition [email protected] 8070700000 803302627542 26-Apr Benin Fatai A. Afolabi Foremost Development Services Ltd. Agric. Consulting Managing Consultant/CEO Agric Consulting [email protected] 8033314800 802223622843 2-May Abuja Ani Bassey Sehai Foods Agribusiness MD/CEO Apiculture [email protected] 807577491144 2-May Abuja Olukayode A. Ashaolu

The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Agric Bank TA to MD/CEO Agric De-Risking [email protected] 8136036988 8080967451

45 3-May Abuja Bello Abba Yakasai Growth and Employment (GEM) Project Government Cluster Manager Growth & Employment [email protected] 8039397766 802772303446 3-May Abuja Mohammed Salasi Idris International Fertilizer Development Center (IFDC)

International Development Organization Country Representative Fertilizer [email protected] 8170199333

47 18-May Abuja Funke F. Adepoju Omonide Farms Ltd. Agribusiness CEO Processing and Export [email protected] 8033236087 818111123448 18-May Abuja Olumide Adepoju Omonide Farms Ltd. Agribusiness MD Processing and Export [email protected] 8187060001

Agriculture/Agribusiness Meeting Schedule

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

93

S/N Date Where Contact Name Name of Firm Type of Firm Title Sector/VC Email Cell # Cell #1 11-Apr Abuja Doyin Balogun Baldon Clothiers Fashion & Design CEO Fashion [email protected] 8033066950 09-87034152 13-Apr Benin Nduka Nwanwenne NAPTIP Government Agency Commander MDS [email protected] 70806018023 13-Apr Benin Deborah Ogunmolati Debbywales Footwear Maker CEO Fashion [email protected] 80342212324 13-Apr Benin Purity Tamesere Faces of Wini Make Up Artistry CEO Beauty 8131979672 80753453255 13-Apr Benin Isimeme Ejodame-Whtye Genius Hub Training Institute Co-ordinator Fashion & Beauty 8183109822 80223039506 13-Apr Benin Lovette Dioru Adressingyou Fashion & Design CEO Fashion [email protected] 80771296047 14-Apr Benin Smart S.M.T Fashion Fashion & Design CEO Fashion 9021007553 90343544098 14-Apr Benin Otuya Uche Kevin Deizy Clothing Fashion & Design CEO Fashion 8036171738 80941795669 15-Apr Lagos Segun Abiona Nicole & Giovanni Socks Making CEO Fashion 8127931244 8103402235

10 16-Apr Lagos Uche Nnaji Ouch! Fashion & Design CEO Fashion 809310299911 16-Apr Lagos Kehinde Okunoren Okunoren Twins Fashion & Design Co-CEO Fashion 9099348205

12 17-Apr Lagos Zainob FasholaIyaoloja EnterprisesKuddy Cosmetics

Make Up Production & Sales

CEODirector Beauty [email protected] 8055519369

13 17-Apr Lagos Funmi Ajila-Ladipo Regalia by FALFashion Association of Nigeria (FADAN) Fashion & Design

CEOPresident Fashion 8033054955

14 18-Apr Lagos Omozo Ehigie O’ Naturals Beauty LimitedNatural Hair Professionals and Locticians (NAPHAL)

Hair Salon CEOPresident

Beauty 8158024444

15 18-Apr Lagos Abiola Ologunro Haute Beauty World Make Up Production & Sales CEO Beauty 7031518240 9097975587

16 18-Apr Lagos Udoka Mbadugha Dokadots Clothing Limited Garment Manufacturing CEO Fashion 706095158417 19-Apr Lagos Bosun Awaye Sam & Sara Garment Manufacturing AGM Fashion 810284968718 20-Apr Lagos Enobong Emah Oneandko Hair Extensions Producer CEO Beauty [email protected] 808349989319 20-Apr Lagos Nkeiruka Akunwa Penuel Concepts Make Up Artistry CEO Beauty [email protected] 8033212849 809478756820 20-Apr Lagos Mimi Okereke Mecoso Handcrafted Bag Making CEO Fashion [email protected] 9072255575

21 20-Apr Lagos Ivana Osagie Notore SeedsAgricultureFashion Enthusiast MD Agriculture, Fashion [email protected] 8023763776

22 20-Apr Lagos Mai Atafo Mai Atafo Fashion & Design CEO Fashion [email protected] 7006242823623 21-Apr Lagos Adenike Ogunlesi Ruff 'n' Tumble Garment Manufacturing CEO Fashion 8023571700

24 22-Apr Benin Lola FaleyePOPS ConceptMake Up Guild Nigeria

Make Up Artistry, Production & Sales

CEOCo-Founder Beauty 8037862333

25 23-Apr Benin Emmanuel Chidiebere Ugochukwu Black Passionate Art Gallery Art Gallery CEO Arts & Craft [email protected] 8061312605 812433974526 23-Apr Benin Precious Ibizube Precious Richy (Pee'se Touch) Make Up Artistry CEO Beauty 807309108927 23-Apr Benin Sonia Maduako Fabulous Mi Make Up Artistry CEO Beauty [email protected] 8166861486 807325225828 23-Apr Benin Sunday Ogbo Sundking Clothing Fashion & Design CEO Fashion 815433081629 24-Apr Benin Gloria Ogbeiwi Beautycliniq Make Up Artistry CEO Beauty 8081417197 813082524230 24-Apr Benin Eruse Ochuko Usiohen Benjamin Gold School of Fashion School of Fashion CEO Fashion 815260852231 24-Apr Benin Jennifer Igbinijesu Jennyfingers Makeover Make Up Artistry CEO Beauty [email protected] 803501627332 24-Apr Benin Onyeka Esther Okwuidegbe Onyekaz Beauty Rain Make Up Artistry CEO Beauty 806555760933 24-Apr Benin Osamu Ogbowon Beauty Matters Make Up Artistry CEO Beauty 807631828534 26-Apr Asaba Christabel Ike Kristabel Makeovers Make Up Artistry CEO Beauty [email protected] 803703575935 27-Apr Benin Sandra Aguebor Lady Mechanic Initiative Mechanical Engineering Founder Automobile 8093936253

36 27-Apr Benin Ayo EdegbaiNational Directorate of Employment (NDE)Edo State Government Agency State Co-ordinator Employment Creation [email protected] 8023304530

37 2-May Lagos Toyosi Kolawole Audeo Clothing Garment Manufacturing CEO Fashion [email protected] 01-735963738 2-May Lagos Frank Osodi House of Bunor Fashion & Design CEO Fashion [email protected] 8033257711 8055170366

3-May Lagos Teju Abisoye Lagos State Employment Trust Fund (LSETF) Government Agency Director, Programs and Coordination Employment Creation [email protected] 802337848839 3-May Lagos Idong Umor Idong Harrie Accessories Maker CEO Fashion [email protected] 809517755740 4-May Lagos Yemisi Oni Jakar Bags Bag Making Co-CEO Fashion [email protected] 8072689027 817829997441 10-May Benin Nduka Nwanwenne NAPTIP Government Agency Commander MDS [email protected] 7080601802

42 10-May Benin Edosa Eghobamien Amena Academy Training Institute - Hospitality Management CEO Hospitality [email protected] 8070700000 8033026275

Fashion/Beauty Meeting Schedule

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

94

Wholesale/Retail TradeS/N Date Where Contact Name Name of Firm Type of Firm Title Sector/VC Email Cell # Cell #

1 11-AprAsaba, Delta state Shimte Bello Quintessential Business Womens Association NGO/CSO President

Wholesale Retail, A2MRP, Coops and Franchising [email protected] 8131179845

2 17-Apr Lagos Akin Oshobukola Starlink Global Limited Agro produce exporters Buying agent Edo stateCommodity exporters, A2MRP 8171023342

3 20-Apr Lagos Chiagozie Nwizu FBDS Limited Franchise Consulting Managing Director Franchising [email protected] 90856924244 21-Apr Edo Andy Udah LAPO NGO NGO/CSO Business Manager Financial Services 80573758365 22-Apr Edo Magdalene Ohenhen Edo state Government Government Commissioner for Women Affairs Public Sector 8036833936

6 23-Apr Edo Kartikeya Sharma Multipro Nigeria LimitedFast Moving Consumer Goods Head of Operations

Wholesale Retail and Franchising [email protected] 9087367435

7 25-Apr Edo Imalingmhe John Yesufu Benin Chamber of Commerce and Industry BMO Director General Private Sector [email protected] 80511466008 22-Apr Edo Johnson Igbinosa LAPO MFB Financial institution Head of Agric and Rural finance Financial Services 80396319679 22-Apr Edo Mrs Aina A Omo-Ojeonu Benin Chamber of Commerce and Industry BMO Vice President South South Private Sector [email protected] 8037190090

10 24-Apr Edo Isiah Ndukwe Fidelity Bank PLC Financial institution Divisional Head, Export and Agriculture Financial Services [email protected] 809387265411 23-Apr Edo Edosa Eghobamien AMENA Academy NGO/CSO Managing Director Private Sector 807070000012 26-Apr Edo Engr Charles Akhigbe AMES Edo inland dry port agro produce exporters Managing Director Private Sector [email protected] 803667705713 24-Apr Edo Blessing Irabor Benin Chamber of Commerce and Industry BMO Head of Agric and Cooperatives Private Sector [email protected] 803744864214 24-Apr Ogun state Seyi Atinaro JB Farms Palm oil offtakers Agro produce exporters Business development Manager Private Sector [email protected] 803357940115 16-May Lagos Nonny Meronu Unilever Nigeria FMCG Project Manager Private Sector [email protected]

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

95

S/N Date Where Contact Name Name of Firm Type of Firm Title Sector/VC Email Cell # Cell #1 9- April Abuja Ized DigiClan Digital Marketing Founder ICT [email protected] 81860527662 10- April Abuja Joe Abah DAI Intl. Dev. Country Director ICT [email protected] 30177151803 10- April Abuja Dr. Amina Sambo Magaji NITDA - OIIE Government Agency National Coordinator ICT [email protected] 80335120194 10 - April Abuja Bankole Enspire Incubator Tech Incubator Founder ICT [email protected] 70304063505 10 - April Abuja Kenechukwu Osakwe AfriLabs NGO Member Services Coordinator ICT [email protected] 70628689766 10 - April Abuja Kelechi Nwankwo Nigerian Communications Commission Government Agency Strategy and Corporate Performace MonitoringICT [email protected] 81026728027 12 - April Benin Samuel Ukhueleigbe Mobicure/ Freelancer Mobile Health Tech Startup Web Developer ICT [email protected] 81727321928 12 - April Benin Dr. Charles Akhimien Mobicure Mobile Health Tech Startup Co-Founder ICT [email protected] 70310277399 12-April Benin Ehiaghe Aigiomawu CubeHub Tech Hub Co-founder ICT [email protected] 7034719896

10 12-April Benin Benjamin Obi Unixstar Production Ltd SME, YOUWiN Beneficiary Founder ICT [email protected] 816526807511 12 - April Benin John Osawe Sabi Hub Tech Hub Founder ICT [email protected] 705791117712 12- April Benin Toju Onaiwu Edo Seefor Project Government Agency/ World Bank ProjectProject Coordinator ICT [email protected] 806447094813 12- April Benin Agbonaye Osaru Code Academy/ Sarutech Coding School Managing Director ICT [email protected] 706824291814 13- April Benin Osahon Sahihib Enterprise Space Tech Hub (NGO) Hub Manager ICT [email protected] 803676425715 13- April Benin Dennis Errikson Tmesis Graphic Design, Animations, Digital MarketingBusiness Owner ICT 909149785516 13-April Benin Dr. Imiavan University of Benin University - Federal Head of Department, Computer Science ICT 706974255217 13 - April Benin Niyi Omole Edo Jobs, Edo State Government Government Agency Director ICT [email protected] 808493098418 13 - April Benin Samuel Omomoh Edo Jobs, Edo State Government Government Agency Director ICT [email protected] 706053210419 14 - April Abuja/ Call Jennifer Chizua Startpreneurs Tech Company Founder ICT [email protected] 909915649520 15 - April Call (Egypt) Magued Mahmoud Dell, Centre of Excellence Cairo Multinational Company General Manager ICT [email protected] 16 - April Lagos Edward Esene Kinetics Associates Digital Marketing Founder ICT [email protected] 806636300022 16 - April Lagos Taiwo Oyewole The Zone Tech Park Tech Hub Park Director ICT [email protected] 802784199323 17 - April Lagos Mark Essien Hotels.ng Hotel Booking Platform Founder ICT [email protected] 809162222424 17 - April Lagos Yemi Johnson Hotels.ng Hotel Booking Platform Chief Operating Officer ICT [email protected] 17 - April Lagos Nkechi Okwuone Code for Nigeria/ Sabi Hub Coding School Country Lead ICT [email protected]' 806343310126 18 - April Lagos Chimdindu Aneke Andela Tech Consulting Firm Talent Partnerships Manager ICT [email protected] 812264712727 18 - April Lagos Babajide Duroshola Andela Tech Consulting Firm Community Manager, Technical Talent ICT [email protected] 706587336328 18 - April Lagos Mayowa Olunuga Andela Tech Consulting Firm Talent Partnerships Development CoordinatorICT [email protected] 813677541729 18 - April Lagos Aniedi Udo-Obong Google Technology Programs Manager ICT [email protected] 806708414230 18 - April Lagos Femi Longe CCHub Tech Hub Co-founder and Director for Innovation ICT [email protected] 817068638331 18 - April Lagos/Abba Daniel Chinagozi Network of Niger Delta Innovators and AcceleratorsNGO/Tech Hub Vice Chairman ICT [email protected] 803090794932 19 - April Lagos Kendra Nnachi Facebook Multinational Company Startup & Developer Programs Manager ICT [email protected] 33 19 - April Lagos John TTLM Investment Firm Office Manager Investment/ICT [email protected] 803873754934 19 - April Lagos Onyeka Adibeli Oradian Tech and Microfinance Program Director, Africa ICT [email protected] 803 4653 814

S/N Date Where Contact Name Name of Firm Type of Firm Title Sector/VC Email Cell # Cell #1 11-Apr Abuja Samuel Ahanor Magnus Energy Solar Installation Tech Director RE [email protected] 080335225422 12-Apr Benin City With Adam SA investment promotion Government3 13-Apr Benin City Omo Aigbekaen Director Ministry of Energy Government 08067145175

4 12-Apr Benin City With Adam SA donor coordination Government

5 13-Apr Benin City Atiode Solar Installation6 Alex Omorogbe Satlex Nigeria Ltd Solar Installation CEO RE [email protected] 08023080409 0805 616 68187 13-Apr Benin City Osas Fonoson electrical enterprises Solar Installation Engineer 070346267878 De Compass Solar Installation9 13-Apr Benin City Ifueko Alufohai Edo State SDG Government Head Government [email protected]

10 13-Apr Benin City Idia renaisance Traficking groups NGO

11 14-Apr Benin City Chief Ojimai Ojimai farms Pig farm/ livestock market Farm/ Market 12 14-Apr Benin City Retail markets Fruit market cluster Fruit market cluster Farm/ Market

13 16-AprAbuja (Skype) Reda Bouij NEoT Capital Investment firm Manager Finance

14 17-Apr Lagos Robo Igbu IFC International Donor Finance and Tech RE Specialists [email protected]

15 17-Apr Lagos Bola Ogidan Rensource Solar Installation CEO RE [email protected] 16 17-Apr Lagos Kunle and Femi Arnergy Solar Installation CEO and COO (Partners) RE [email protected] 17-Apr Lagos Ifeanyi Orajaka GVE Limited Solar Installation CEO RE18 17-Apr Lagos Femi Oye SME Biofuels Solar/ Biofuels MD/ CEO RE

19 18-Apr Lagos Anichie Eon Gratis Biofuels Tech Director RE [email protected] 18-Apr Lagos Wiebe Boer All-On Development Finance CEO RE - Finance [email protected] 20-Apr Abuja Osaze Ize-Iyamu Rubycom Tech Solar Installation CEO RE [email protected] 0805524495522 23-Apr Abuja Hannah Kabir Creeds Energy Solar Installation CEO RE23 24-Apr Abuja Chioma Nwabu-Nwosu First City Monument Bank Commercial bank Manager Finance [email protected] 25-Apr Abuja Ifunanya Nwandu World Bank International Development Energy specialist Development [email protected]

ICT Meeting Schedule

Renewable Energy Meeting Schedule

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

96

ANNEX 3 PUBLIC SECTOR EMPLOYMENT GENERATION AGENCIES

National Directorate of Employment - NDE

The National Directorate of Employment (NDE) is the foremost agency in charge of job creation in Nigeria. It was established in 1989 to design and implement programmes to combat mass unemployment; to articulate policies aimed at developing work programmes with labour intensive potentials; and to obtain and maintain a databank on employment and vacancies, in collaboration with other government agencies.

Essentially, the NDE implements four (4) programmes. They include:

1) Vocational Skills Development Programme (Consists of 80 marketable skills) 2) Rural Employment Development Programme 3) Special Public Works Programme (A stop gap between employments). 4) Small Scale Enterprise Programme (Basic Business Trainings, etc.)

Over 100,000 persons have been impacted in Edo state through these programmes, with a multiplier effect on about 400,000 people. Many of which are either employed or business owners. Aside from the above stated programmes, in January 2018, NDE commenced training for at least 2,000 persons on skills acquisition as part of the Basic National Open Apprenticeship Scheme (B-NOAS) in Edo state. In addition, the NDE signed a Memorandum of Understanding (MOU) with NAPTIP in 2017 to collaborate on the promotion of self-employment and poverty reduction among victims of human trafficking through trainings of 4-6 months accompanied by monthly stipends and loans of N100,000 – N500,000 with single digit interest rate over a period of 3 years and a moratorium period of 3 months.

Key Findings: The funds received from the Federal Government are usually not sufficient and are only obtained after the Federal Budget is passed. Hence, the NDE collaborates with both local and international organisations for the implementation of its programmes.

There are NDE centres in each of the three senatorial regions of the state. Trainings in those centres are monitored and run in shifts to accommodate as many trainees as possible in the various programmes. NDE issues certificates after trainings while a second certificate is issued by the National Business and Technical Examination Board (NABTEB) subsequent to the successful completion of an examination set by the Board. Aside from technical or specialised trainings, returnees undergo counselling and attend value reorientation and life skill classes.

The trainees are given stipends to cater for their feeding and transportation during the course of the programmes. However, there is usually not enough funds to empower them with starter packs at the end of their trainings. This has negatively impacted the success rate of participants, post-graduation. Only about 20% of them eventually become fully employed or employers of labour. The availability of starter packs and accessibility to loan packages is crucial to their staying out of the unemployed population.

Those given loans are expected to commence repayment when their businesses are in full operation. Names and details of guarantors (civil servants only) are provided by loan recipients and certificates are retained till the loans are paid back. Nevertheless, the default rates are high.

Conclusion: Edo is a civil service state in need of inflow of investments that will generate job opportunities. The governor, Governor Godwin Obaseki, has embarked on a number of initiatives that will promote industrialisation and enhance job creation within the state (e.g. the inland container dry port, upgrade of the local airport to an international one and the Benin industrial park).

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

97

Edo Jobs and Edo Startups

Edo Jobs and Edo Startups (jointly known as Edo Jobs 2.0) are initiatives of the Edo Government to improve the welfare and economic wellbeing residents within the state. The Edo State Government is of the view that skills development is one of the fastest way of attracting investments and boosting economic growth. The objective of the programme is to create jobs for over 200,000 youths registered on its portal from across the 18 local government areas of the state.

The Edo Jobs portal offers interested youths to apply for upcoming training programmes in ICT, Mobile Phone and Laptop Repairs, Automobile Engineering, Soap Making, Entrepreneurship and Soft Skills amongst others. The training programmes are also open to physically advantaged persons. For those interested in acquiring jobs with private firms, the portal affords them the opportunity to apply for vacancies in at least 16 professions. These professions include Civil Engineering, Architecture, Public Relations, Electrical Engineering, Quantity Surveying, Data Collection, Graphic Designing, Accounting, Regional Management, Quality Assurance, Learning and Development, Executive Administration, IT Engineering, Software Development, Marketing, and Project Coordination.

The first phase of the programme which started in 2016 recorded 30,000 direct and indirect jobs across the 18 local government areas of the state. The second phase of the programme was launched in March 2018 and has begun with the training of 155 youths on employability skills and automobile engineering in partnership with Oxfam and Leanna Garage. Approximately 4,000 candidates have applied to NDE for skill acquisition. The training programmes include stipend packages, start-up packs or business support packages for trainees.

Institute of Export Operations and Management (IEOM)

The Institute of Export Operations and Management (IEOM) came into being in 2014 with the purpose of improving export practices within the country. It achieves this aim through trainings, advisory and consulting services, market access support and information services to both clients and members. The institute collaborates with certain organisations such as the International Trade Centre (ITC), International Institute of Tropical Agriculture (IITA), the Centre for International Food Security and Agriculture, the European High Commission, Ministry of Labour and Productivity, Nigerian Export Promotion Council (NEPC) and Nigerian Export Import Bank (NEXIM), and forms strategic partnerships with them. There are 4 major training programmes organised by the institute. They include: • The Easy Export Programme: This connects Small Medium Enterprises (SMEs) and small producers

to international markets using the established infrastructural networks of the Nigerian Postal service (NIPOST). It is one day workshop that provides participants with pertinent knowledge on postal export, its processes and procedures.

• The Zero to Export Programme: This introduces participants to the intricacies of export logistics and enables them to take informed decisions on products for export. The programme takes place within a minimum period of 4 weeks and at the end of which trainees are assisted in building their business plans and establishing their own export companies.

• The Export Master Class: This is a 4-day intensive course aimed at equipping participants with

knowledge on principles of export, export procedures and strategies, export processes and support services available to exporters. The programme consists of in-class training, online learning and field tours.

• Agribusiness Master Class: This furnishes trainees with information on consumer demands abroad, market structures and competitors in the agricultural value chain. Participants are supported in the business of agricultural production. The master class focus areas comprise trainings in Crop Production,

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

98

Contract Farming, Distribution and Marketing, Farm Auditing and Preparation for Certification, Farm/Agribusiness Management, Aquaculture Production and Fish Processing.

In April 2018, the IEOM concluded plans to partner with key financial institutions like the Bank of Industry (BOI) and the Nigerian Export-Import (NEXIM) Bank to train and financially support Edo youths on processing and packaging of agricultural products, mineral resources, art and craft products to meet international standards for export purpose. It is expected that the ongoing initiatives of the state government such as Benin Industrial park, Gelegele Seaport and Edo Inland Dry Port would boost exportation and enhance the success of the programme. The IEOM in Edo state is headed by the Executive Secretary, Mr. Ofon Udofia. National Agency for the Prohibition of Trafficking Persons (NAPTIP)

The National Agency for the Prohibition of Trafficking in Persons (NAPTIP) was created to prevent all forms of human degradation and exploitation through the coordinated use of crime prevention and law enforcement resources. The agency is mandated to stamp out human trafficking and to liberate and uplift the vulnerable (especially women and children) from dehumanising and exploitative use and employment. The agency also tries to ensure the rehabilitation of victims and their effective reintegration into society, but like most government agencies, suffers from a lack of resources. NAPTIP came into being on the 14th of July 2003 through the Trafficking in Persons Prohibition Enforcement and Administration Act, 2003.

Counselling and rehabilitation is a vital role that NAPTIP plays in facilitating the reintegration of victims of human trafficking into the society. The counselling and rehabilitation department empowers trafficked victims to return to school or acquire vocational training. They are trained on vocational skills such as knitting, weaving, fashion design, hair dressing, catering, hat making, beads making and photography. Thereafter, they are supported in establishing their own businesses through the donations of trade equipment and provision of resettlement allowance to cater for their initial needs.

The department collaborates with relevant government ministries, agencies, Non-Governmental Agencies (NGOs) and development partners in fulfilling its role. As at the end of 2017, over 3,500 Edo state indigenes have been rescued and received by the Benin Zonal Command. The Command which has accommodation space for only 40 victims plans to empower them in additional skills such as catering and hotel management, cosmetology, shoe-making, fashion and design. In May 2018, in Abuja, an Edo state law was passed, mirroring the federal law, which will give Edo’s NAPTIP office more power and authority with respect to identify, apprehend, and prosecute those involved in trafficking.

Office of the Focal Person on Sustainable Development Goals (SDGs), Edo State

Edo state is one of the four states in Nigeria that has domesticated the Sustainable Development Goals (SDGs). The other states are Lagos, Nasarawa and Benue states. The aim of this action is to promote an inclusive development within the state. The sustainable development goals (which are a continuation of the Millennium Development Goals whose implementation ended in 2015) are expected to be executed within 15 years (i.e. 2016 – 2030). The goals are as follows:

1) No Poverty 2) Zero Hunger 3) Good Health and Well Being 4) Quality Education 5) Gender Equality 6) Clean Water and Sanitation 7) Affordable and Clean Energy 8) Decent Work and Economic Growth 9) Industry, Innovation and Infrastructure

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

99

10) Reduced Inequality 11) Sustainable Cities and Communities 12) Responsible Consumption and Communities 13) Climate Action 14) Life Below Water 15) Life on Land 16) Peace and Justice Strong Institutions 17) Partnerships to achieve the Goals Since the beginning of 2018, several initiatives in line with the SDGs have been introduced and implemented. Those that may have generated employment opportunities are as follows:

• Signing of Memorandum of Agreement between Edo State Government and the China Harbour Engineering Company Limited (CHEC), for the development of the Gelegele Seaport and other transport infrastructure in the state (SDGs: Industry, Innovation and Infrastructure, Decent Work and Economic Growth, No Poverty)

• Targeting of 55,000 youths who have indicated interest in agriculture through the Edo Jobs Scheme as part of the full implementation of the state’s Agripreneur Programme in 2018. Each participant is to receive 5 hectares of land, and in 1-2 planting seasons developed capacity to cultivate, manage farms and harvest produce. After which, they will be expected to manage their own farms on a sustainable basis. (SDGs: No Poverty, Zero Hunger, Decent Work and Economic Growth, Responsible Consumption and Production)

• Edo State Government to partner with UNDP on Hydro-Power Project to dam Ikpoba and Ovia rivers.

(SDG: Affordable and Clean Energy)

• Upgrade of 450 health centres. (SDG: Good Health and Well Being)

• Construction of the 5,500 barrels-per-day-(bpd)-capacity Edo Modular Refinery expected to take place within three months with first phase of oil delivery anticipated in October, 2018. (SDGs: Industry, Innovation and Infrastructure, Decent Work and Economic Growth)

• Implementation of the EU-NDSP Water, Sanitation projects. (SDG: Clean Water and Sanitation)

• 150,000 hectares of land earmarked for oil palm plantation (SDGs: No Poverty, Zero Hunger)

• Edo state Governor, Gov. Obaseki took delivery of motor bikes donated by WHO for disease

surveillance across the 18 Local Government Areas in the state. (Good Health and Well Being)

• Request for Architects input in New Cities Development. (SDG: Sustainable Cities and Communities)

• Edo State Government and the Nigerian Navy strengthen ties to deliver Gelegele Seaport project. (SDGs: Industry, Innovation and Infrastructure, Decent Work and Economic Growth)

• The First Lady of Edo state, Mrs. Betsy Obaseki, presented cheques of N50,000 to 2,000 female

entrepreneurs who are into small and medium scale enterprises in the state. The soft loan cheques were presented during the 2018 International Women's Day celebration organised by the state’s

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

100

Ministry of Women Affairs and Social Development in collaboration with the Office of the Edo State First Lady in Benin city. (SDGs: Decent Work and Economic Growth, Gender Equality)

• The state government’s reforms yield results as Okomu Oil Palm Company in Edo state commissioned

11,400 hectares and created 2000 jobs. (SDGs: Decent Work and Economic Growth, Industry, Innovation and Infrastructure, No Poverty, Zero Hunger)

• The Nigerian Export-Import (NEXIM) Bank offered Edo State Government N553bn funding window for

the Benin Industrial Park. (SDGs: Industry, Innovation and Infrastructure, Decent Work and Economic Growth, No Poverty)

• Edo State Government to construct 500 Health Centres. (SDG: Good Health and Well Being)

• Edo State Government to build 3 Super General Hospitals and assures enhanced working conditions

for medical personnel. (SDGs: Good Health and Well Being, Decent Work and Economic Growth)

• Edo State Government fertilizer plant ready for business as products are now available for sale. (SDGs: No Poverty, Zero Hunger, Decent Work and Economic Growth)

• Edo State Government trained 253 teachers to teach Benin culture, language and history. (SDG:

Quality Education)

• Edo State Government commenced reconstruction of 230 public schools. (SDG: Quality Education)

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

101

ANNEX 4 BUSINESS, PROFESSIONAL, AND TRADE ASSOCIATIONS

Benin Chamber of Commerce and Industry, Mines and Agriculture (BENCCIMA) The Benin Chamber of Commerce, Industry, Mines and Agriculture is a local organization of businesses whose goal is to further the interests of businesses in the state and beyond. Business owners which consist of cooperatives, private sector players and SMMEs in Edo state form these local societies to advocate on behalf of the business community. The chamber acts as a spokesperson for the business and professional community and translates the group thinking of its members into action; secondly, it renders a specific product or services type that can be most effectively be beneficial by a community organization and to its members as a whole. A member of the council, Ms. Blessing Irabor provided the needed information about the chambers’ activities in Edo state as it relates to the MADE mandate. The chamber is partnering with GroFin, an SME development financier helping entrepreneurs and business owners at the bottom of the SME pyramid to access tailored finance and experienced business support. This in turn helps them to start and grow successful businesses, creating jobs and driving socio-economic development. GroFin focuses on Small and Growing Businesses (SGBs) that are grossly underserved by other funds or financiers. It also delivers a unique integrated solution for patient risk capital and end-to-end business support to start-up and growing businesses at the SME base. Objectives of GroFin:

Ø 80-100 investments per year at an average deal size of USD $100,000- USD $1.5 million in local currency. The fund typically provides finance in forms of medium term loans.

Ø Over 10 years the growing SGB portfolio will sustain 32,000 employees as part of its impact. Ø A specialist fund manager with a proven track record and local capacity in 9 countries in Africa.

GroFin’s 600+ high impact investments support employment of 18,000 people. Investors: Shell Foundation, KfW, Dutch Good Growth Fund, Norfund, GroFin, Anthos. Locations: Nigeria- Lagos, Ghana, Zambia, Egypt, South Africa, Kenya, Tanzania, Rwanda, Uganda GroFin is one of the firms that give funds and support Small Businesses to grow. Website: www.GroFin.com NAWORG- Edo State It is the NACCIMA Women’s Group which was constituted by the Executive Committee of NACCIMA in 2005 as one of the trade groups of the association. The group has the mandate to coordinate the activities of women not only within the chambers movement but also of women across the West African region. It carries out the following functions:

(a) Facilitates women participation in commerce and governance (b) Identifies profitable business and market opportunities for members (c) Access loans and business information for members (d) Facilitate trade among women chamber movement and within ECOWAS Region and the world in

general (e) Sensitise and raise awareness among local business women within the chamber movement and

other business groups in West Africa Sub region who show keen interest in trade matters. The NACCIMA Youth Group was established in line with NACCIMA’s cardinal objective of investment in the youth and economic future of Nigeria. The NACCIMA Youth Council is a vibrant and empowered council that enhances “youth empowerment for self-actualisation”. The Council educates and trains youths with the knowledge and skills of business and entrepreneurship, to equip them for effective participation in sustainable national development. The objectives of the Council include the following:

(a) Educate and train youths in business, vocational training, entrepreneurial knowledge and skills; (b) Facilitate youth employment for active participation in national development;

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

102

(c) Support and encourage active youth participation in the process of development of policies and programmers’ pertaining to doing business in Nigeria;

(d) Facilitate the socio-economic and cultural development of youths in the country and; (e) Facilitate youth networking and exchange at national and international levels (f) Promote networking with other national youth bodies and youth organizations abroad with similar

objective

Ms. Irabor is the liaison for GroFin in Edo state. She also handles the selection process for final approval in the Port Harcourt office.

GroFin Nigeria Ms. Blessing Irabor Port Harcourt office Coordinator, Edo State Youth Entrepreneurship Prog. Friday Essienenkak (General Manager) Deputy Coordinator, NAWORG- Edo State 77 Stadium Road, Port Harcourt, Liaison, Fed Min of Agric and Rural Dev for BENCCIMA, Rivers State-Nigeria [email protected] +234 705 295 1455 +234 806 554 9089 +234 803 744 8642 [email protected]

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

103

ANNEX 5 EXAMPLE MADE II MEMORANDUM OF UNDERSTANDING

MADE II NIGERIA COLLABORATION AGREEMENT

between

THE DFID-FUNDED MARKET DEVELOPMENT FOR THE NIGER DELTA PROGAM (MADE)

and

ABC NIGERIA PTY LTD

1. PURPOSE The DFID-funded Market Development for the Niger Delta Program (hereinafter “MADE II”), implemented by Development Alternatives Incorporated (DAI), proposes to enter into a Collaboration Agreement with ABC Nigeria Pty Ltd (hereinafter “ABC”).

The main purpose of this Collaboration Agreement is to provide support to ABC’s linkages to and investment in Edo State that result in the creation of training and/or employment opportunities for unemployed or under-employed women and youth. MADE II’s strategic objective is prove the concept through real time pilot projects that there are attractive local alternatives to emigration for Edo State’s vulnerable population.

This Collaboration Agreement is non-binding and is entered into with the objective to facilitate more efficient and effective collaboration between MADE and ABC. Collectively, “MADE” and “ABC” are hereinafter referred to as the “Parties”.

2. CONTEXT The Department for International Development (DFID) in the United Kingdom, under its strategic partnership with the Government of Nigeria has awarded a two-year follow-on contract to Development Alternatives Incorporated (DAI) to implement the Market development for the Niger Delta Program (MADE) from 1st March 2018 to 28th February 2020. As part of this project, MADE wishes to collaborate with select Nigerian private companies, associations, and government offices by providing training, technical assistance, and other inputs to private-sector driven initiatives that create aspirational opportunities for at least 30,000 women and youth in Edo State.

To implement this effort, MADE wishes to partner with organizations like ABC, that are committed to efficiently and effectively expanding their level of interaction with and/or physical presence in Edo State.

For this Collaboration Agreement, the Parties generally agree to collaborate in identifying and facilitating the delivery of technical assistance, training, infrastructure, marketing, and other enabling services to ultimately create job and entrepreneurial opportunities in Edo State.

3. MADE ILLUSTRATIVE RESPONSIBILITIES UNDER THIS COLLABORATION AGREEMENT

MADE support to ABC will include the following:

• Identify domestic and/or international expertise to support ABC’s business interests in Edo State; • Work with ABC in conducting a needs assessment and developing and implementing capacity

building programs for potential and existing employees as well as for small entrepreneurial business owners in ABC’s value chain; and

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

104

• Liaise with Edo State government authorities to garner their support and/or endorsement of ABC’s initiatives. Liaise with other donor-funded programs to identify and capitalizes on opportunities to collaborate and leverage resources.

4. ABC ILLUSTRATIVE RESPONSIBILITIES UNDER THE COLLABORATION AGREEMENT

ABC agrees to:

• Coordinate with MADE staff in identifying and introducing MADE to any other key stakeholders associated with any of the proposed interventions;

• Work collaboratively in identifying other areas where MADE might be of assistance to ABC and/or other actors within their value chain;

• Provide a primary contact person to work closely with MADE staff and consultants in implementing the agreed-upon activities; and

• Provide non-proprietary data and information related to the results of MADE’s partnership to allow MADE to complete its own monitoring and evaluation (M&E) requirements, as required by DFID (e.g. jobs created, people trained, the level of investment made in Edo State, etc.).

5. RESOLUTION OF DISAGREEMENTS

Any disagreement that may occur concerning the terms of this Collaboration Agreement is to be resolved through direct and open communication between MADE and ABC.

6. AMENDMENT AND MODIFICATION This Collaboration Agreement may be amended or modified by the written agreement of both Parties.

7. ENTRY INTO FORCE AND TERMINATION This Collaboration Agreement will enter into force on the date it is signed by all parties and will remain in effect until 28th of February 2020, ending on that date. Any Party may terminate this Collaboration Agreement by giving the other Party thirty (30) days written notice.

8. THIRD PARTY INSTRUMENTS AND OBLIGATION OF FUNDS As deemed necessary to achieve the objectives of the project, MADE may elect to provide direct assistance to ABC’s value chain partners or hire a third Party to provide the assistance. Every effort will be made to ensure the selection of a third Party is based on mutual agreement between MADE and ABC.

This Collaboration Agreement does not obligate either Party to obligate funds. The purpose of this Collaboration Agreement is to establish and document the mutual interest of each Party to discuss and potentially pursue areas of mutual interest and opportunity.

9. AUTHORIZED REPRESENTATIVES The Parties shall be represented by persons holding or acting in the offices held by the signatories of this Collaboration Agreement. Each Party may, by written notice to the other, identify additional representatives authorized to represent that Party for all purposes other than executing formal amendments to this Collaboration Agreement. Each Party shall notify the other, in writing, of changes in its authorized representatives.

For the purposes of this Collaboration Agreement the authorized representatives are:

For the Market Development for the Niger Delta Program (MADE)

Name: Olatunde Oderinde

Title: Team Leader

Contact: 0802 896 0560

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

105

ABC Nigeria Limited

Name: ???????

Title: ???????

Contact: ???????

ACCEPTANCE

The undersigned Parties hereby accept the contents of this Collaboration Agreement and agree to comply with its contents in good faith.

Concluded in _______________on the _________ day of the month ______ of the year _______, in two (2) copies, each of which is equally authentic.

For ABC Nigeria Limited

_________________________

Name: ?????????

Title: ??????????

For the Market Development for the Niger Delta Program (MADE)

_________________________

Name: Olatunde Oderinde

Title: Team Leader

Market Development for the Niger Delta (MADE II) – Edo State Investment Portfolio: Inception Study Main Report

106

ANNEX 6 ESIP COMMISSIONED STUDIES MAIN REPORTS The main reports of the commissioned studies will be submitted as standalone reports with the inception report

• Support to Human Trafficking Prevention in the Niger Delta • Socio-Economic Survey of Potential Target Demographics for Human Trafficking and Livelihood

Opportunities in Edo State • Vulnerable Groups Assessment and Gender Analysis of Human Trafficking in Edo State • Economic Outlook and Investment Scan in Edo State • Stakeholder Mapping and Capacity Assessment for Anti-Human Trafficking Programmes in Edo

State