Project proposal enters list of published projects pipeline
Project Proposal was published by ICRC
Ekiti , Akwa Ibom , Bauchi , Gombe , Kaduna , Niger , Ondo , Oyo , Plateau , Sokoto , Federal Capital Territory , Anambra , Ebonyi , Kano , Ogun , Zamfara , Cross River , Kwara , Benue , Edo , Imo , Jigawa , Kebbi , Taraba
Federal Ministry of Agriculture and Rural Development
Nigeria is the largest market in Sub-Saharan Africa, in economic output and demand. However, historic strong and consistent GDP growth is now under pressure from external and internal market forces. The supply of grain in Nigeria is far in excess of 25 million MT demand per year. The silo complexes will be better utilized for efficient post-harvest grain reserve services. Diversification of the economy is critical if Nigeria is to sustain a strong balance of payments position. The agriculture sector is considered an engine of growth capable of generating the broad-based development outcomes needed for rapid economic transformation. The agriculture sector has been central to Nigeria’s poverty reduction and employment generation efforts. The major grain crops that contribute to total crop production are maize, sorghum, millet, and rice.
The 24 silo complexes to be concessioned are Ado-Ekiti-Ekiti, Akure Ondo, Bauchi-Bauchi, Bulasa-Kebbi, Ezillo-Ebonyi, Gaya-Kano, Gombe-Gombe, Ibadan-Oyo, Igbariam-Anambra, Ikene-Ogun, Ilorin-Kwara, Irrua-Edo, Jahun-Jigawa, Jalingo-Taraba, Jos-Plateau, Kaduna-Kaduna, Kwali-FCT, Lafiagi-Kwara, Makurdi-Benue, Minna-Niger, Ogoja-Cross River, Okigwe-Imo, Sokoto-Sokoto, and Uyo-Akwa-Ibom. Irrespective of their storage capacity, the silo complexes have the following features: a) concrete block fence, b) silo bins (flat bottom), c) weigh bridge, d) grain dryer, e) grain cleaner, f) administrative office, g) workshop building, h) grain bagging plant, i) drivers’ lodge (in some of the new silos), j) generators/generator house, k) electric power transformer, l) borehole/elevated water tanks, m) drainage system, n) truck parking area, o) access to public utilities (power and water supply), and p) expanse of land for future expansion.
The silos will serve to increase storage utilization and the efficiency of grain trading and post-harvest services. As a service provider, the silo operator could allow smallholder and commercial farmers, traders, and processors to use the handling and storage facilities in the silo complex for a fee. This operating model is described as “post-harvest handling and storage services.”
The rationale for adopting a PPP model in the operations and maintenance of the silo facilities is to overcome the following challenges that have adversely affected the operations and installed capacity utilization. Some of the challenges include • Inadequate budgetary allocations for facility maintenance • Erratic power supply and non-maintenance of generator sets • Most of the silos in operation require repairs and maintenance • Absence of an environmental management plan to guide the mitigation of environmental impact, for example, waste disposal at the silos, the health of workers who work with chemicals for preserving grains, and the non-planting of trees around the silo areas, especially in the Northeast region, to prevent the effects of cyclone on the facilities • Absence of a competitive market in grain storage in Nigeria, resulting in non-market determined tariffs for storage.
Stakeholder consultations with silos concession project were held in the following locations: Sokoto (NW), Bauchi (NE), Minna (NC), Ibadan (SW), Enugu (SE), and Calabar (SS). The objectives of the stakeholder consultations were to: sensitize the host zone/ state/ town/ community on the need for the concession program and accrued benefits; get inputs from participants for possible inclusion in the request for proposals for the silo concession; synthesize ideas/ opinions as to how to integrate local/farming communities into the concession program; and review the adaptability of various models/best practices into local situations for the transfer of “ownership” of government assets located within a specific catchment area. The key stakeholders for the silo complex offering these services include grain producers, intermediaries, and off-takers seeking to improve the consistency of the supply chain and reduce post-harvest losses. Stakeholder engagement sessions as well as round table discussions have been conducted to ensure that stakeholders' needs and expectations are and will be meet.
In October 2014, Expression of Interest (EOI) was advertised for the concession exercise and evaluations were carried out leading to a shortlist of 28 investors who were issued with Request for Proposals (RFP). The Federal Ministry of Agriculture and Rural Development (FMARD) proceeded to procure concessionaires in January 2016.
Project Proposal was published by ICRC
EOI Advertised for concessionaires
Presidential Approval Granted
Full Business Case (FBC) compliance certificate for the concession of 20 silo projects
The Federal Executive Council (FEC) approved the Full Business Case (FBC)
The Federal government has carried out the financial bid opening, evaluation and announcement of preferred bidder and reserved bidder for the various silos.
The Federal Ministry of Agriculture and Rural Development (FMARD) received the Full Business Case (FBC) compliance certificate for the concession of 20 silo projects on Thursday in Abuja.
The acting Director General, Infrastructure Concession Regulatory Commission (ICRC), Chidi Izuwah, while presenting the certificate to the Minister of Agriculture and Rural Development, Audu Ogbeh, commended the Ministry for a truly transparent procurement process which complied with the ICRC Act and the National Policy on PPPs.
According to him, “The vision of His Excellency, President Muhammadu Buhari is to put agro industrialization at the center of our economy and successful implementation of the silos, including farm mechanization will fulfil this”.
Receiving the certificate on behalf of the Ministry, the Minister, Audu Ogbeh, noted that the project was inherited, but they decided not to interfere with the process having seen how competently it was handled.
According to him, “Public Private Partnership is the most effective way of putting these silos to use… there are several silos scattered all over the nation and managing it will place a burden on the government’s resources”.