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The World Bank

FOR OFFICIAL USE ONLY

Report No. 15769

IMPLEMENTATION COMPLETION REPORT

FEDERAL REPUBLIC OF NIGERIA

SECOND LIVESTOCK DEVELOPMENT PROJECT(LOAN 2737-UNI)

June 21, 1996

Agriculture and Environment DivisionWest Central Africa DepartmentAfrica Region

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS(March 1996)

Currency Unit = NairaExchange Rate at:

appraisal US$1.00 = Naira 1.001987 US$1.00 = Naira 3.321988 US$1.00 = Naira 4.281989 US$1.00 = Naira 7.381990 US$1.00 Naira 7.951991 US$1.00 = Naira 9.821992 US$1.00 = Naira 18.841993 US$1.00 = Naira 22.001994 US$1.00 = Naira 22.001995 US$1.00 = Naira 82.00

WVEIGHTS AND MEASURES

1 millimeter (mm) = 0.039 inches1 meter (m) = 3.28 feet1 square meter = 10.76 square feet1 cubic meter = 1.31 cubic yards1 kilometer (km) = 0.62 inches1 square kilometer = 0.386 square miles1 hectare (ha) = 2.47 acres (ac)1 kilogram (kg) = 2.205 pounds (lb)1 metric ton (ton) = 2,205 pounds

FISCAL YEAR

January 1 to December 31

ABBREVIATIONS AND ACRONYMIS

ADP Agricultural Development ProjectFACU Federal Agricultural Coordinating UnitFDL&PCS Federal Department of Livestock and Pest Control ServicesLIMECU Livestock Planning, Monitoring and Evaluation UnitNACB Nigerian Agricultural and Cooperative Bank LtdNAPRI National Animal Production Research InstituteNLPD National Livestock Development DivisionNVRI Nigerian Veterinary Research InstitutePPR Peste des Petits Ruminants (Small Ruminants Disease)WLC Western Livestock Company

FOR OFFICIAL USE ONLY

Table Qf Content

PrefaceEvaluation Summary ......................... ............................

Project Implementation Experience and Results .................................................. iiSummary of Findings, Future Operations and Lessons Learned ............ ................. iii

PART I: PROJECT IMPLEMENTATION ASSESSMENT

Project Objectives, Covenants and Financing ................................................... 1Implementation Experience and Results ................................................... 3Major Factors Affecting Project Performance ................................................... 7Project Sustainability .................................................... 8Bank Performance ................................................... 9Borrower Performance .................................................... 9Future Operations and Key Lessons Learned ......................... ......... 10

PART II - STATISTICAL ANNEXES

Table 1: Summary of Assessment .......................................... 12Table 2: Related Bank Loans/Credits ....................... ............................ 13Table 3: Project Timetable ................................................... 14Table 4: Loan Disbursement: Cumulative Estimated and Actual .............. ..................... 14Table 5: Key Indicators for Project Implementation .................................................. 15Table 6: Key Indicators for Project Operation ................................................... 17Table 7: Studies Included in Project ......................................... 18Table 8A: Project Costs ................................................... 19Table 8B: Project Financing ................................................... 19Table 9: Economic Costs and Benefits ....................................... 20Table 10: Status of Legal Covenants ....................... ............................ 21Table 11: Compliance with Operational Manual Statements ........................................ 24Table 12: Bank Resources: Staff Inputs ....................................... 24Table 13: Bank Resources: Missions ........................................ 25

APPENDIXES

Appendix A: Implementation Completion Mission - Aide MemoireAppendix B: Borrower's Evaluation SummaryAppendix C: Miscellaneous TablesAppendix D: Map (IBRD19816R1)

This document has a restricted distribution and may be used by recipients only in the performance of theirofficial duties. Its contents may not otherwise be disclosed wiLhout World Bank authorization.

IMPLEMENTATION COMPLETION REPORTFEDERAL REPUBLIC OF NIGERIA

SECOND LIVESTOCK DEVELOPMENT PROJECTLoan No. 2737-UNI

Preface

This is the Implementation Completion Report (ICR) for the Second LivestockDevelopment Project in Nigeria, for which Loan No. 2737-UNI in the amount of US$81million equivalent was approved on June 8, 1986.

The loan closed on June 30, 1995, after 3 annual extensions beyond the originalclosing date of June 30, 1992. Final disbursement was on November 28, 1995 and $6.05million which remained undisbursed was canceled.

The ICR was prepared by Solomon Bekure, Agriculture and Environment Division,West Central Africa Department, and was reviewed by Surjit Singh (AF4AE), Cynthia C.Cook, Division Chief, AF4AE and Franz Kaps, Operations Advisor, AF4DR.

Preparation of this ICR was begun during the Bank's final supervision/completionmission on May 9, 1995 and the Aide Memoire of that mission can be found in Appendix A.It is based on material in the project file, field visits and interviews with government officials,officers of the Nigeria Agricultural and Cooperative Bank Ltd. and project beneficiaries. TheBorrower contributed to preparation of the ICR by preparing its own evaluation of theproject's execution and initial preparation and commenting on the draft ICR. The Borrower'ssummary of its own evaluation of the project is attached unedited as Appendix B to the ICR.



Evaluation Summary

1. Introduction. This project is a successor of the First Livestock Development Project(Ln. 1091-UNI, US$21 million) which the Bank financed during 1974-1983. The first projectattempted to improve beef cattle production by nomadic and semi-nomadic graziers,smallholders, large commercial farmers and parastatals. Overall, the project was rated afailure. The main component, large scale private and parastatal ranching, was not successfuland the research, training and marketing components were eliminated when there appeared tobe little prospect of them taking off. However, the smallholder stock fattening component,and the introduction of trypanotolerant N'Dama cattle were both considered successful. TheSecond Livestock Project was designed on the basis of the experience thus gained.

2. Project Objectives. The objective of the Second Livestock Development Project wasto increase livestock production and consequently farmers' income. It was also to encourage avariety of sectoral reforms, in particular through: (a) shifting emphasis towards support ofsmall traditional producers; (b) utilizing the private sector as instruments of production andinput supply; (c) introducing full cost recovery of farm inputs and veterinary supplies; and (d)establishing a livestock sectoral planning capacity. To achieve these objectives, the projectconsisted of five components: (a) smallholder credit for the purchase of farm inputs, (b)settling of pastoralists in grazing reserves; (c) livestock systems research; (d) animal healthand other production support programs; and (e) project management and support services.The project was redesigned at its mid-term review in 1989. While the objectives of the projectdid not change, the redesign expanded some components, added a pilot dairy developmentscheme, and adjusted implementation arrangements in order to attain the original objectivesmore effectively (para. 4).

3. Specific Covenants to Achieve Project Objectives. Specific covenants for loaneffectiveness were: (a) gazetting 5 grazing reserves; (b) appointing 7 key management staff,including the financial controller; (c) depositing N4 mn into the project account; (d) signing asubsidiary loan agreement between the Borrower and the Nigerian Agricultural andCooperative Bank (NACB). Other covenants related to NACB lending policies and projectimplementation. The covenants were largely met with the exception of progressivelyincreasing the interest rate for agricultural loans to bring them in line with inflation and ratespertaining to other sectors of the economy. The Bank's attempts to increase NACB's lendingrates were strongly resisted by the Borrower, fearing that this would discourage investment inthe agricultural sector (paras. 5-7).

4. Evaluation of Project Objectives. The project objectives, as stated in the SAR werewell thought out and consistent with promoting Nigeria's agricultural development in general,and that of the livestock sub-sector in particular. The shift of emphasis to support smallholderlivestock producers was timely and drew upon the lessons from the preceding project andworld-wide evidence that successful rural development is contingent on supporting smallholderproducers (para. 8).

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Project Implementation Experience and Results

5. Achievement of Objectives and Project Sustainability. As planned, the project gaveemphasis to small traditional producers by providing producer credit, technical advice andanimal health services. It organized, on a pilot basis, processing and marketing of milk ofsmall pastoralists through cooperative arrangements but was unsuccessful in transferringdistribution of inputs to the private sector. It made progress in cost recovery for inputs andveterinary but full cost recovery was still way off. It made significant impact in capacitybuilding for sectoral planning and management but its effect on the research system wasminimal. In terms of global production, its selective interventions were restricted but positiveand resulted in increased production and higher farmer incomes. The Borrower has prepared apost-project operational plan which it is committed to fund. It requires an annual funding ofN55 million, about the same level of counterpart funding of the project as in the last two yearsof implementation. Given the commitment of the implementing institutions and participatingfarmers and pastoralists and the built-up capacity of the implementing agencies, maintenanceand continuation of the activities initiated under the main components of the project is likelyfor those activities less dependent on government funding. Beneficiaries of grazing reserveswould be required to pay user fees to finance the cost of maintaining the facilities in thegrazing reserves, and this may not materialize as the pastoralists are accustomed to gettingsuch services free (para. 33). Under the current country economic circumstances, thesustainability of government funding at the required level is uncertain.

6. Project Costs and financing. At appraisal, the total project cost was estimated atUS$128 million. The financing plan was: Bank loan (US$81 million); Federal Government(US$31.6 million); NACB (US$4 million) and beneficiaries (US$11.4 million). As atDecember 14, 1995, a total of US$60.95 million was disbursed and the remaining US$20.05million was canceled (US$14 million during implementation and US$6.05 million after loanclosing). This was 81 percent of project cost excluding beneficieries' inputs. The actualcontribution of the Borrower was $10.21 million (or 14 percent). NACB contribution was asper the original estimate, accounting for 5 percent. The substantial shortfall in governmentcounterpart funding and the untimely release of the such funds slowed down the rate ofproject implementation significantly. The project's closing date was successively extendedthree times from June 30, 1992 to June 30, 1995 with cancellation of Bank loan funds ofUS$10 million and US$4 million in 1992 and 1993 (para. 25).

7. Factors Affecting Achievement of Major Objectives. The project was implementedduring a difficult period of major structural adjustment of the economy during its first sixyears followed by political instability in the last two years. Key factors affecting the projectwere: (a) massive devaluation and hyper-inflation, substantially increasing the counterpartfunding requirements of the Borrower in Naira terms; (b) frequent changes in projectmanagers, directors, ministers and state administrators, delaying critical decisions in projectimplementation; and (c) structural rigidities and excessive centralization of Borrower'sagencies, preventing effective collaboration of federal and state agencies thus slowing downproject implementation and hampering widespread dissemination of livestock extension (paras.26-30).

8. Bank Performance. The Bank's performance in the identification, appraisal andsupervision of the project was satisfactory. When it became apparent that the project wasgetting into difficulties during the first two years of implementation, the Bank reacted quickly

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and collaborated with the Borrower in redesigning the project. It rendered technical assistanceto the project by providing various livestock experts during supervision (para. 37).

9. Borrower Performance. On the whole, the Borrower's performance in implementingthe project was satisfactory, but this was largely attributed to the commitment and the qualityof staff at the implementation level who worked under difficult circumstances. Inadequate anduntimely releases of counterpart funds, frequent change of project managers, low spendingthresholds of the Project Manager and the Federal Director DL&PCS and cumbersomeapproval procedures contributed to the slow rate of project implementation (paras. 38-39).

10. Project Outcomes. The overall performance of the project can be regardedsatisfactory as the project managed to increase livestock production and the income of over60,000 smallholder livestock producers directly, thus shifting the emphasis of public support tosmall traditional producers and contributing to poverty reduction in rural Nigeria. Theeconomic rate of return is 17 percent compared with the SAR estimate of 19 percent (Table 9).Beneficiaries of the project were trained intensively in new technologies, i.e. in stockfattening, poultry and milk production, animal health care and growing leguminous pastureand shrubs as livestock feed. Average net income increase per beneficiary ranged fromN3,265 for cattle fattening to N68,950 for egg production, with an incremental production of6,990 tons of meat and 881,880 dozen eggs. The rate of credit repayment was satisfactory. InJanuary 1995, the rate of credit recovery stood at 82.5 percent (paras. 10-1 1).

11. Implementation of the grazing reserve component was unsatisfactory. Out of arevised target of 20 grazing reserves, only 12 were gazetted and 10 fully equipped with waterfacilities, access roads and perimeter fire breaks. A further 6 were partially developed. Only715 out of the 2,500 pastoralist families envisaged were settled. However, the number oflivestock these settlers possessed (49,956 head) was greater than that estimated (46,250 head)for the 2,500 at appraisal. The pilot dairy development program showed satisfactoryperformance, reaching about 1,190 farmers in Kaduna State and organizing them into 10registered cooperative societies with one apex federation (para. 12).

12. Implementation of the capacity building component of the project was highlysatisfactory. A unit for sub-sector planning, monitoring and evaluation was established. Itplayed a critical role in the livestock sub-sector review and the preparation of a possiblesuccessor project. A Livestock Credit Unit was established at NACB and was maderesponsible for field supervision of the smallholder credit component. The special studiesundertaken enabled a broader understanding of the livestock sub-sector and provided avaluable data base for planning and implementation of further development of the sub-sector.On the other hand the research program implemented was unsatisfactory mainly due to lack ofcounterpart funding and its impact was thus modest. A program of progressive recovery ofcosts of drugs and feed was introduced. However, the objective of transferring the distributionof livestock inputs to beneficiaries of the credit to the private sector was not achieved (paras.13-24).

Summary of Findings, Future Operations and Lessons Learned

13. Key Findings of Implementation Experience. Decentralizing implementation of somecomponents to state livestock and veterinary services of 6 selected states proved that the rate ofimplementation could be increased several-fold. Gazetting of grazing reserves is a major land

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reform exercise that takes a long time and requires more expertise than in the livestock field,i.e. economics, sociology, law and public administration. In addition, it emerged that therewas insufficient consultation with beneficiaries in designing, developing and managing grazingreserves. Pastoralists resisted settling in grazing reserves despite the project's best efforts toachieve this objective.

14. Plans for Future Operations. The Borrower is implementing a post-project operationalplan that continues the key programs initiated under the project: smallholder livestock credit,livestock extension, dairy development, grazing reserve development, vaccination of smallruminants against PPR (Peste des Petits Ruminants - Small Ruminants Disease), and the open-nucleus N'Dama cattle multiplication program. The Borrower is strongly committed and keento further development of the livestock sub-sector. A livestock sub-sector review wasconducted in 1992 and a successor project prepared with the assistance of the FAO/CP in1994. At project pre-appraisal the Bank considered the project too large and complex. It was,therefore, split into two projects, i.e. Animal Health Services and Livestock ProductionServices. Further processing of these projects is currently in abeyance (para. 41).

15. Key Lessons Learned are: (a) decentralizing project management to involve statelivestock and veterinary services increased the rate of implementing the livestock extensionand animal health components of the project several fold; (b) smallholder credit for livestockfattening is successful and NACB would need to reform its lending policy and procedures toreduce the time and cost of loan processing and loan recovery; (c) considerable demand forfeed and other livestock inputs need to be created by livestock extension before the privatesector can supply these in rural areas; (d) gazetting grazing reserves is a major land tenurereform program, which is time consuming and requires the involvement of economists,sociologists and lawyers in addition to range and livestock management specialists; (e)pastoralists are not necessarily interested in settling in grazing reserves situated in arid andsemi-arid regions; they would rather maximize access to dry season grazing by moving theiranimals to more humid regions; and (f) small quantities of surplus milk produced by settledpastoralists in Nigeria could be tapped for marketing in the urban areas, and more importantly,organized milk collection in villages liberates women from the arduous task of walking longdistances and spending a lot of time in hawking their milk. The associations organized underthe scheme are also helping to empower farmers in accessing development resources (para.42).



PART I: PROJECT IMPLEMENTATION ASSESSMENT

1. Introduction. This project is a successor of the First Livestock Development Project(Ln.1091-UNI, US$21 million) which the Bank financed from 1974 to 1983. The first projectattempted to improve beef cattle production by nomadic and semi-nomadic graziers,smallholders, large commercial farmers and parastatals. Overall, the project was rated afailure. The main component, large scale private and parastatal ranching, was not successfuland the research, training and marketing components were eliminated when there appeared tobe little prospect of them taking off. However, the smallholder stock fattening component,and the introduction of trypanotolerant N'Dama cattle were both considered successful. TheSecond Livestock Project was designed on the basis of the experience thus gained.

Project Objectives, Covenants and Financing

2. Project Objectives and Components. The objective of the Second LivestockDevelopment Project was to increase the production of animal products and consequentlyfarmers' income. In addition, it was to encourage a variety of sectoral reforms alreadyendorsed by the Federal Government, in particular through: (a) shifting emphasis towardssupport of small traditional producers; (b) utilizing the private sector as instruments ofproduction and input supply; (c) introducing full cost recovery of farm inputs and veterinarysupplies; and (d) establishing a livestock sectoral planning capacity.

3. To achieve these objectives, the project consisted of the following components: (a)smallholder credit for the purchase of farm inputs (32 percent); (b) settling of pastoralists ingrazing reserves (1 percent); (c) livestock system's research (5 percent); (d) non-creditlivestock production program, including the operation of N'Dama cattle ranches (4 percent);and (e) project management and support services (58 percent), including: (i) manpowerdevelopment; (ii) vehicles and equipment for participating institutions; (iii) establishing alivestock sectoral planning capacity for the Federal Government; (iv) technical assistance and(vi) special studies including a review of the existing veterinary services.

4. The project was redesigned at its mid-term review in 1989. The redesign did notchange the objectives of the project. It expanded a few components (animal health services,livestock breeding, grazing reserves, and credit models to cater for animal traction, poultryand pig production), added a new pilot dairy development scheme, and restructured the waythe project was to be implemented in order to attain the original objectives more effectively,given the changed economic framework and the initial difficulties encountered in projectimplementation. This resulted in a major reallocation of the proceeds of the loan among thecomponents. Two notable changes introduced during the redesign of the project were: (a)gradual transfer of some project activities, i.e. grazing reserve management, livestockextension and animal health services, to state ministries of agriculture and their agriculturaldevelopment projects (ADPs), with the Federal Department of Livestock and Pest ControlServices (FDL&PCS) focusing on policy formulation, program planning and coordination, and

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monitoring and evaluation of program implementation by the States; and (b) reduced relianceof the project on technical assistance. At the time of redesign, there were 15 expatriate TAstaff from a foreign management firm contracted to provide 45 man years of such assistance.

5. Covenants to Achieve Project objectives. The legal covenants of the project and theirstatus are summarized in Table 8. Specific covenants for loan effectiveness were:(a) gazettingfive grazing reserves; (b) appointing 7 key management staff, including the financialcontroller; (c) depositing N4 mn into a commercial bank project account; (d) signing asubsidiary loan agreement between the Borrower and the Nigerian Agricultural andCooperative Bank (NACB). These covenants were met by the Borrower with a delay of 3months.

6. Covenants specific to NACB lending policies and project implementation required theBorrower to: (a) exchange views with the Bank on the results of the national agricultural creditstudy being carried out by the Central Bank of Nigeria; (b) review interest for agricultureannually with a view to: eventually bringing it more into line with inflation and reducing thedifferential in interest rates for loans between the agriculture sector and the other sectors; andensuring adequate margins for lending institutions and reducing subsidies on loans by theBorrower for on-lending ; (c) lend to smallholder livestock producers a minimum of N4 mnout of NACB's own resources; (d) establish and operate a livestock credit unit at NACB; (e)establish a revolving credit fund from the proceeds of principal repayments to NACB; (f)establish a credit committee in each of the States to assist in preparing and monitoring creditoperations; and (g) make contractual arrangements with livestock research institutions forcarrying out applied livestock systems research in support of the project's developmentprogram. Other covenants related to preparation of annual work program and budgets,accounting and reporting.

7. These covenants were largely met, except those relating to annual reviews of interestrates for the agricultural sector. In 1987, the 13 percent p.a. NACB rate was 5 percent belowcommercial rates. It was raised to 16 percent in 1988 and reduced to 15 percent in 1989 whencommercial rates were still 18 percent p.a. Commercial rates escalated to 25 percent in 1990and to 32.5 percent in 1992. NACB rates increased only to 17 percent in 1990. The CentralBank pegged commercial rates at 21 percent during 1993-95, while the NACB rate fluctuatedbetween 15-17 percent. The Bank's attempts to increase the NACB lending rate was stronglyresisted by the Borrower, fearing that it would discourage investment in the agricultural sector.

8. Evaluation of Project Objectives. The project objectives, as stated in the SAR werewell thought out and consistent with promoting Nigeria's agricultural development in general,and that of the livestock sub-sector in particular. The shift of emphasis to support smallholderlivestock producers was timely and drew upon the lessons from the predecessor project andworld-wide evidence that successful rural development is contingent on supporting smallholderproducers. The livestock systems research, the special studies, manpower development, andinstitutional development components were essential elements of support to livestockdevelopment in Nigeria.

9. Achievement of Project Objectives. The project, as planned, emphasized governmentsupport to small traditional producers by providing to them production credit, animal healthservices and technical advice; organizing processing and marketing of milk of pastoralists; andimproving the health of small ruminants mainly owned by small farmers. The project was notable to achieve its objective of transferring input supply activities to the private sector but wasable, to a limited extent, to shift dairy production to a farmers' cooperative. Full cost

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recovery for veterinary supplies and feed was not achieved but recovery was progesssivelyincreased to about 50 percent. However, it made strong gains in building institutional capacityin sectoral planning, management of the sector and the decentralization of technical andveterinary functions to state goverrnments. It also had very limited impact on improving theresearch system. In terms of global production increases, its intervensions were selective andthus impact was restricted but positive in terms of increased farmer incomes from higherproduction.

Implementation Experience and Results

10. The Smallholder Livestock Credit and Livestock Extension Services Component, themajor vehicle for reaching smallholder livestock producers, was very successful. About23,000 farmers, who were beneficiaries of the livestock credit, were trained intensively innew technologies for supplementary feeding of livestock for fattening, poultry and milkproduction, disease prevention and animal health care, and growing leguminous pasture andshrubs as livestock feed. The project was on target in terms of the numbers of beneficiariesreached and in increasing their income. As at June 30, 1995, a total of N169.14 million,representing 22,907 loans (compared with redesign target of 30,055) was disbursed.However, repeat loans were only about 30 percent of the total number of loans. Most of theloans (N1 17.68 million or 70 percent) were for cattle fattening (Table 9).

11. Daily weight gains averaged 365 grams/day/head of cattle (or about 60 kg./headfattened), compared with the SAR estimate of 600 grams/day/head. This was mainly due toirregular supply of cottonseed cake, though farmers' reluctance to feed the recommendedamount also contributed to lower weight gains. Through the livestock credit component, theproject stimulated directly the incremental production of about 6,995 tons of meat and881,880 dozen eggs, thus increasing the income of participating farmers. Beneficiariesobtained an estimated average net income of: N3,265 for cattle fattening, N6,292 for sheepfattening; N3,890 for pig fattening; N16,230 for broiler and N68,950 for egg production. Therate of credit repayment was satisfactory. As at January 1995, the recovery rate stood at 82.5percent (compared with SAR target of 85 percent) with N124.3 million repaid out of theN133.9 million due.

12. The Grazing Reserve Component was partially successful. Out of a revised target of20 grazing reserves only 12 were gazetted and 10 fully developed with water facilities, accessroads and perimeter fire breaks. A further 6 were partially developed. Only 715 out of the2,500 pastoralist families envisaged were settled. However, the number of livestock thesesettlers possessed (49,956 head) was greater than that estimated (46,250 head) for the 2,500 inthe SAR. Implementation experience revealed that many pastoralists preferred to move theircattle between dry and wet season grazing areas to secure adequate forage for their livestock.They were, therefore, interested in utilizing the grazing reserves during certain periods of theyear as opposed to settling and using them year-round. The objective of the grazing reservedevelopment was subsequently modified to accommodate the wishes of the pastoralists.Identification, surveying, demarcation and gazetting of stock routes linking the drier SudanSavannah grazing areas in the north to the wetter sub-humid grazing areas in the middle beltwas made a prominent feature in order to facilitate the use of grazing reserve resources as wellas to resolve the oft-occurring conflicts between pastoralists and crop farmers.

13. Livestock Systems Research. A much smaller livestock systems research programthan that envisaged in the SAR was implemented due to shortage of counterpart funding. Theimpact of the research component was, therefore, modest. Nearly half of the research

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protocols started were not completed at project closing. However, the component succeededin effecting attitudinal change in the researchers and demonstrated the need for collaborationamongst the scientists from the various institutions. They now appreciate the importance of:livestock systems research, consideration of socio-economic issues in research design andapplicability of research results to farmers' situations. A lot of data were generated in theforage production and utilization experiments and 13 results have been selected fordevelopment of extension packages. In the veterinary field, the Nigerian Veterinary ResearchInstitute (NVRI) made substantial progress in developing a vaccine for goat and sheep Pox.Progress was also made in developing a vaccine against ticks and is being tested in the grazingreserves and breeding farms by a scientist from Ahmadu Bello University. The project alsofinanced the hosting of the Second International Symposium on Dermatophilosis Research atVom in 1992. The redesign of the project provided funds for the National Animal ProductionResearch Institute (NAPRI) to introduce a computer based information system for livestocksystems research. This was not implemented and thus it continues to be very difficult to linkNigerian scientists efforts with the international body of knowledge on livestock systemsresearch.

14. The Animal Health and Production Component comprised: (a) animal health program,including vaccination against Peste des Petites Ruminants (PPR), treatment of mange anddeworming of goats in the humid belt, and distribution of veterinary drugs in collaborationwith state veterinary services; (b) the pilot dairy development scheme added at redesign; and(c) N'Dama cattle importation, breeding and distribution.

15. The Animal Health Program. About 186,000 small ruminants belonging to 38,356farmers were vaccinated, dewormed and treated against mange. The operation was highlysuccessful in reducing mortality rates from over 50 percent down to 16-20 percent. Theintemal rate of return for this component alone was about 32 percent compared with 17.1percent for the whole project.

16. The project supported the rehabilitation of three state veterinary clinics and threediagnostic laboratories and procured veterinary drugs worth N15.4 million for sales tolivestock producers through state veterinary services. This operation was not implementedsatisfactorily. The states' replenishment rate of the drug revolving fund stood at 47 percent asof March 31, 1995. This was partly due to the inability of the states to sell the drugs ascheaper brands were available in the market, although some of these were of dubious quality.The project collaborated with the manufacturers of "Pour-on" in testing it on pastoralists'cattle in two grazing reserves as an effective means of controlling economically importantvectors such as the tsetse fly and ticks. The project also assisted in field-testing a chemicalsolution formulated by NVRI to control Dermatophilosis. Although the tests wereinconclusive on curing the disease, the solution was found to be useful in treating the lesionscaused by the disease.

17. The Pilot Dairy Development Program was successful, reaching about 1,190 farmersin Kaduna State and organizing them into 10 registered cooperative societies with one apexfederation. Although the volume of milk (340,000 liters in 4 years) the pilot schemecollected and marketed for the farmers fell short of expectations, it demonstrated thatsmallholder agro-pastoralists in Nigeria could supply milk to urban centers, and that dairydevelopment takes a considerable amount of skilled manpower in milk handling, processing,marketing and organizing farmers' associations and training them on how to manage theseassociations. Daily collection of milk increased from the initial 174 liters in 1991 to 1068 litersin 1994. The federation has now acquired majority ownership of the Kaduna dairy plant. It is

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expected that milk collection, processing and marketing will pick up momentum. Thevaluable lessons learnt from the pilot scheme and the trained and experienced manpower wouldbe very useful in expanding the program in Kaduna State and for initiating similar programs inPlateau, Kano and Kwara States, where the potential for similar development exists.

18. The beneficiaries of this component are mainly women, who look after the calves,milk the cows, process and sell the milk, the revenue of which they control. By collectingmilk from their villages, the scheme saved the women a substantial amount of time they wouldhave spent walking to markets and spending half a day, 2-3 days per week, to sell their milk.The farners' associations organized under the scheme are empowering farmers by providingvaluable fora for the discussion of other community problems which they face. Leaders of theassociation are now voicing the concerns and problems of their members, to which the stateand local governments are beginning to listen and respond.

19. The N'Dama Cattle Multiplication and Distribution Program suffered a serious setbackdue to severe shortage in the supply of this breed of cattle in Nigeria. It was assumed atappraisal that the Western Livestock Company (WLC) would make available 2,849 femaleN'Dama cattle for the project and an additional 1,250 would be imported. However, WLCwas able to deliver only 91. The planned imports were thus increased by this shortfall.Unfortunately, it took some time to sort out the logistics of importation, and in the meantimethe Naira had been devalued substantially. In 1990 the landed cost came to about N7,000 perhead , which was more than double the price of Zebu cattle at that time. As selling at a priceaffordable by farmers would require a heavy subsidy, it was decided to import only 1000 headfrom Senegal for forming two nuclei herds at Adada and Fashola for breeding and distributingthe progenies. Initially, there was high mortality in the imported herd associated withacclimatization. So far, only 681 head of N'Dama, mostly in-calf heifers, were distributed to116 farmers with a total of 539 head remaining in the nuclei herds. The beneficiaries havesigned an agreement to participate in the open-nucleus breeding program, involving them asoutbreeders to supply breeding N'Dama cattle to other farmers.

20. Project Management and Support Services Component. The maower develop=aspects of this project were highly successful. A total of 2,937 staff of the Federal and statelivestock and veterinary services as well as staff of NACB received in-house and in-countrytraining while 133 staff received overseas training. Induction courses were conducted for 860staff and 278 staff attended technical workshops and conferences. The use of tehnira1assistance and the efforts at sectoral capacity building were highly satisfactory. The projectredesign reduced the level and cost of technical assistance substantially (para. 4). Nigerianstaff were assigned to work with their 15 expatriate counterparts at the zonal offices and at theKaduna headquarters. A vigorous and well structured training program was instrumental inthe Nigerians taking over the expatriate positions, except those of the heavy equipmentengineer and the Financial Controller, within the first four years of project implementation.The two posts were taken over by Nigerians one year later in 1994.

21. The Livestock Planning, Monitoring and Evaluation Unit (LIMECU) was establishedunder the project to strengthen the capacity of the FDL&PCS. The unit is responsible for:policy formulation, planning of livestock development programs and their monitoring andevaluation in collaboration with the states. LIMECU also maintains and manages the nationallivestock data base and information system. LIMECU played a critical role in the livestocksub-sector review and the preparation of a successor project with the assistance of theFAO/CP. A Livestock Credit Unit was established at NACB and was made responsible forthe field supervision of the smallholder credit component through the branches of the bank

- 6 -

nation-wide. Training, vehicles and office equipment were provided to the manager and staffof the unit which proved to be effective.

22. In 1994, project implementation was partially decentralized by transferring theresponsibility for implementing project activities to state livestock and veterinary services. Sixpilot states (Bauchi, Imo, Kwara, Plateau, Sokoto and Yobe) were chosen to test the concept.Implementation was accelerated, particularly in vaccination and treatment of animals, and indelivery of livestock extension messages. In these states, vaccinations of livestock increaseddramatically from 4.6 million to 10 million and treatment from 2.2 million head to 6.5 millioncompared with the previous year prior to decentralization. A similar transfer of projectimplementation to the remaining 25 states, based on the lessons learnt from the six pilot states,were to be implemented under a successor project.

23. The special studies undertaken enabled a broader understanding of the livestock sub-sector and provided a valuable data base for planning and implementation of furtherdevelopment of the sub-sector. The studies originally included were a livestock census,evaluation of animal health services in Nigeria and monitoring and evaluation (M&E) programfor the project, which were all completed. For the first time in Nigeria, the national livestockcensus produced reliable estimates of livestock population by species, breeds, states and agro-ecological zones and other valuable data on vegetation and on distribution of livestock duringthe dry and wet seasons. These data are invaluable for future planning and policy decisions indeveloping the livestock sub-sector. Some of the recommendations of the animal health studywere used to improve animal health services during implementation of the project. However,the major reform needed at the state level did not occur and was to be incorporated in asuccessor Animal Health Services project. The recommendations of the M&E study wereimplemented during the project time-frame.

24. Further studies included at project redesign were on: (a) the demand and supply ofdairy products; (b) a review of the poultry sub-sector; (c) livestock marketing; (d) hides andskins production and marketing; and (e) transhumance of livestock. Results of the dairy studywere used to design the pilot dairy development scheme under the project. The transhumancestudy was still ongoing at project closing. The poultry sub-sector study was dropped as it wassubstantially covered by a study undertaken at the University of Ibadan. Planning for thelivestock marketing and hides and skins study was started too late. It was planned to includethem in the studies to be conducted under a successor project.

25. Project Costs and financing. At appraisal, the total project cost was estimated atUS$128 million. The financing plan was: Bank loan (US$81 million); Federal Government(US$31.6 million); NACB (US$4 million) and beneficiaries (US$11.4 million). As atDecember 14, 1995, a total of US$60.95 million was disbursed and the remaining US$20.05million was canceled (US$14 million during implementation and US$6.05 million after loanclosing). This was 81 percent of project cost excluding beneficieries' inputs. The actualcontribution of the Borrower was N10.21 million (or 14 percent). NACB contribution was asper the original estimate, accounting for 5 percent. The substantial shortfall in governmentcounterpart funding and the untimely release of the such funds slowed down the rate ofproject implementation significantly. The project's closing date was successively extendedthree times from June 30, 1992 to June 30, 1995 with cancellation of Bank loan funds ofUS$10 million and US$4 million in 1992 and 1993.

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Major Factors Affecting Project Performance

26. Overview. The project was being implemented during a difficult period when majorstructural adjustment of the economy was taking place in the first six years and when politicalinstability set in during the last two years.

27. Devaluation and Inflation. The Naira lost 70 percent of its value against the US Dollarin the first year of project implementation from parity to N3.32 per dollar. It continued totumble down in successive years until 1993 when the Federal government pegged it to N22 toone US Dollar (Table 14). This caused immense inflationary pressure in the economy,substantially increasing the recurrent costs of the project much beyond the estimates atappraisal. Although counterpart funding provided by the Borrower increased in absoluteterns, it was not commensurate with the inflationary trend. As the Naira spending authoritylimits of the Project Manager and the Federal Director of Livestock remained stagnant in theface of galloping inflation, approvals for minor procurement of goods and services had to bereferred to higher authorities (the Director-General and the Minister) who were usually busyand did not attend to these matters urgently. This slowed down the rate of projectimplementation. The components that particularly suffered were the grazing reserve, animalhealth services, animal breeding, research and special studies components expanded during the1989 redesign. In a situation of tight counterpart funding, the tendency of project managerswas to use available funds for financing programs already underway and to defer newinitiatives.

28. Frequent changes in administration also had marked negative effects on projectimplementation. During the life of the project, there were 8 Ministers of Agriculture, threeDirectors of FDL&PCS and three Project Managers. The change from military to civilian andthen to military rule delayed the acquisition of the Kaduna dairy plant for expanding the dairydevelopment component for about 2.5 years. The creation of new states, industrial actionsresulting in shortage of fuel, and civil strife during project implementation also took their tollin slowing down project implementation.

29. Structural rigidities within the Federal Ministry of Agriculture did not fostercooperation and collaboration between Federal Departments responsible for Agriculture andLivestock. Consequently, livestock extension has been plagued by limited understanding andimplementation in the field. While the ADPs were designed to deal with both crops andlivestock under the unified agricultural extension system, the Federal AgriculturalCoordinating Unit (FACU) that was coordinating the ADPs nation wide was under theDepartment of Agriculture. This arrangement oriented most of the ADPs towards cropextension to the exclusion or marginalization of livestock extension. Some ADPs lackedlivestock expertise but did not utilize the expertise within their state livestock and veterinaryservices to promote livestock extension. Others ran their own mobile veterinary services.FACU recognized this and created a Livestock Section within its own organization withoutdiscussing the matter with the FDL&PCS. It also fought unsuccessfully to prevent theFDL&PCS from establishing its own Livestock Monitoring, Evaluation and Coordination Unit(LIMECU). This state of affairs did not augur well for livestock extension in Nigeria.

30. Livestock extension to mixed crop/livestock farmers has remained weak as a result oflimited collaboration between the project and the ADPs. Livestock extension to projectbeneficiaries under the livestock fattening, small ruminant, poultry and pig rearing creditprograms were all performed by the National Livestock Development Division (NLPD)

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without the involvement of the ADPs, though most of these were mixed crop/livestockfarmers. Although the project had sourced for extension packages and printed extensionpamphlets and bulletins which were made available to the ADPs, these often were not put togood use as livestock extension was marginalized in topics chosen for coverage in the monthlytechnology review meetings. A national committee was established by FACU in 1994 todevelop a methodology for extension of livestock packages, but the FDL&PCS did notparticipate actively. Lack of collaboration between FDL&PCS and FACU reduces the benefitsfarmers could derive from livestock extension.

Project Sustainabiity

31. Given the commitment of implementing institutions and participating farmers andpastoralists, sustainability of the activities initiated under the main components of the project islikely for activities less dependent on government funding. The grazing reserves will requirefunds for maintenance and high degree of collaboration between pastoralists and the federaland state agencies. The project had already started handing over implementationresponsibilities to state livestock and veterinary services. They would continue the operationof livestock extension services in collaboration with the ADPs. NACB is committed tocontinue with livestock credit as part of its normal agricultural portfolio. It has already builtunder the project a livestock revolving fund which would be used exclusively for livestockcredit and NACB is willing to contribute additional amounts as and when its liquidity positionpermits. The technical support required for credit for cattle fattening in extension and inputsupply would be provided by State extension services and NLPD.

32. The Kaduna State Government has sold a 55 percent share of the Kaduna dairy plant tothe Kaduna Milk Federation. The commercial aspects of the pilot dairy component appearsustainable. The development aspects of training staff and the management of the Federationand the cooperatives will be continued by Kaduna State and the Federal Government. Theexperience gained in Kaduna could be used to replicate dairy development initiatives in otherstates.

33. The operation and management of grazing reserves would be the responsibility of theStates. The manpower trained to operate the heavy equipment units for maintenance anddevelopment of infrastructure in grazing reserves would be operated by FDL&PCS.Beneficiaries of grazing reserves would be required to pay user fees to finance the cost ofmaintaining the facilities in the grazing reserves. This may not materialize as the pastoralistsare accustomed to getting such services without charge.

34. The open-nucleus breeding scheme started with farmers rearing N'Dama cattle wouldbe supported by the nucleus herds at Adada and Fashola, which would be operated by NLPD.After 1998, the bulk of the breeding work would be done by farmers themselves with thenucleus ranches providing recording and performance testing.

35. The drug revolving fund would continue to be operated by state veterinary servicesunder a more strict supervision of FDL&PCS. A scheme of assisting private veterinarians inthe provision of motorbikes, veterinary kits and drug supplies with credit in kind is beingconsidered for funding by the Borrower. The PPR vaccination and deworming of smallruminants in the humid belt would be continued by state veterinary services on a full costrecovery basis. The unfinished research protocols conducted under the project by NAPRI,NVRI and the universities would be continued under the National Agricultural ResearchProject.

36. The post-project operational plan for the period 1995-2000 would cost an average of N53 million per year to implement the above activities which would be necessary to continueproject initiatives. This is about the level at which the Federal Govermnent was supporting theproject in the last two years of its implementation. It is important that the FederalGovernment continues to fund the project at this level in order to ensure its sustainability.Although the Government appears committed to fund the post-project operational plan, itwould be important to view this within the full historical context of its support to the projectand current economic circumstances of the country. For components that are dependent ongovernment funding, sustainability is uncertain.

Bank Performance

37. The Bank's performance in the identification, appraisal and supervision of the projectwas satisfactory. When the prevailing economic environment was changing and it becameapparent that the project was getting into difficulties during the first two years ofimplementation, the Bank reacted quickly and collaborated with the Borrower in redesigningthe project. The Bank rendered technical assistance to the project through the involvement ofvarious livestock experts during supervision. The Bank was responsive to constraints identifiedduring implementation. Bank financing ratios were amended to facilitate procurement ofvarious categories under the loan.

Borrower Performance

38. The Borrower's performance in implementing the project has ranged from deficient tosatisfactory. A real plus for the project has been the quality of staff and their enthusiasm forthe project initiatives which made it possible for the project to achieve substantial results.Inadequate and untimely releases of counterpart funds, frequent change of project managers,low spending thresholds of the Project Manager and the Federal Director DLP&CS andcumbersome approval procedures for amounts in excess of these thresholds contributed to theslow rate of project implementation. The opportunity of significantly improving animal healthservices nationwide and developing the activities of the other divisions of the FDL&PCS, aswell as making a significant advance in livestock research was lost due to lack of counterpartfunding. The limited amount of counterpart funds available had to be devoted to the priorityprograms started earlier.

39. Failure of state lending agencies to meet NACB's eligibility criteria slowed downcommencement of provision of credit to smallholders, a main component of the project. Onceit was agreed that NACB would directly lend to smallholders using its branch offices in theStates, setting up the guidelines and procedures for administering the credit and training stafftook some time. Some of these procedures were too cumbersome, e.g. repeat loans weretreated exactly as new ones and had to go through the same procedures of screening,verification and personal guarantees. It took almost two years to streamline the lendingprocess before the credit component finally took off in 1990.

40. Assessment of Outcome. The overall outcome of the project can be regarded assatisfactory since the project managed to increase livestock production and the income of over62,000 smallholder livestock producers directly, thus shifting the emphasis of public support tosmall traditional producers and contributing to poverty reduction in rural Nigeria. Theeconomic rate of return is 17 percent compared with the SAR estimate of 19 percent (Table 9).The assumptions made in the economic analysis are similar to those made in the original SAR

- 10-

with beef as the only internationally traded commodity and distortions in local prices adjustedusing the standard conversion factor of 0.85. Benefits were calculated only for incrementalproduction of livestock enterprises (cattle, sheep and pig fattening and broiler and eggproduction) and the incremental production accruing to control of PPR disease. Training andresearch benefits were treated as non-quantifiable. On the cost side, as in the original SAR,costs of livestock research and sectoral planning were not included. Only 50% of grazingreserve and civil works were included.

41. The capacity building components of the project were highly successful. A largenumber of staff received in-service training both in-country and overseas. Planning capacityfor the livestock sub-sector was established at the Federal level. The special studies conductedunder the project have enabled a broader understanding of the livestock sub-sector andprovided a valuable data base for planning and implementation of development activities in thesub-sector. The research component was only partially implemented due largely to lack ofcounterpart funding and its impact was modest. A program of progressive recovery of costs ofdrugs and feed was introduced. However, the objective of transferring the distribution oflivestock inputs to beneficiaries of the credit and pilot dairy components of the project to theprivate sector was not achieved.

Future Operation and Key Lessons Learned

42. Future Operation. The Federal Government of Nigeria is committed to furtherdevelopment of the livestock sub-sector. As mentioned earlier, it has prepared a post-operational plan for the project's future operation. This plan was prepared in August 1995 andits translation into Summary Expenditures over the period 1995-2000 is given in Table 1 inAppendix 'C'. It sets out, amongst others, input and output indicators for a smallholder creditscheme, grazing reserves and stock routes, vaccinations of small ruminants, N'dama cattleranches, livestock extension activities and expansion of dairy activities. A livestock sub-sectorreview was conducted in 1992 and a successor project prepared with the assistance of theFAO/CP in 1994. At project pre-appraisal the Bank considered the project too large andcomplex. It was, therefore, split into two projects, i.e. Animal Health Services and LivestockProduction Services. Further processing of these projects is currently in abeyance.

43. Key Lessons Learned

(a) Project implementation, vested in a single Division FDL&PCS in Kaduna, wasexcessively centralized. Participation of the states both in funding and implementation wassidelined. The project co-opted state livestock officers and created a parallel federal office inthe states to implement the project. The states' contribution was only the continued paymentof salaries of the co-opted state officers. They had no say in the implementation of theproject. Thus an opportunity to build the capacity of state livestock and veterinary services andto mobilize their manpower and financial resources was lost. This also slowed down the rateof implementing activities of a nation-wide project in a large country. Decentralization wasmade a reform objective of the project redesign in 1989. Although it took the project threeyears to start decentralization in six pilot States, the experience proved to be rewarding (para.24). Future livestock development initiatives in Nigeria should take this into account.

(b) The project has demonstrated that smallholder livestock enterprises are financiallyviable and that the livestock portfolio of NACB performed far better than its crop portfolio.Although the Bank encouraged NACB to start group lending to reduce lending costs and

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increase loan repayment rates, NACB's management remained conservative and failed toinitiate it.

(c) It was assumed at appraisal that the private sector would distribute livestock inputsto smallholder livestock producers. A combination of factors made this objective unattainable.In the case of feed, the problem was that of insufficient demand to warrant stocking by ruralretailers. Lack of access to foreign exchange to import the drugs, introduction of fake andexpired drugs into the market induced by the massive devaluation of the Naira and subsidy onthe price of veterinary drugs by many states militated against the distribution of veterinarydrugs by the private sector. Furthermore, the Veterinary Act does not allow privateveterinarians to stock and dispense veterinary drugs. It would need to be amended to allow thisand to enable federal and state veterinary services to regulate trade in veterinary drugs.

(d) Adequate consultation was not made with the beneficiaries and State personnel indesigning the grazing reserve development component of the project. It was assumed thatpastoralists are always on the move in search of water during the dry season. If water wereprovided they would settle and some of them would be induced to cultivate leguminouspasture. This assumption proved to be wrong. Water was provided but few pastoralists choseto settle. Even those that settled were sending part of their herd away from the grazingreserves during the dry season. The consultations and socio-economic studies carried outduring the implementation showed that pastoralists are maximizing access of their herds tomore nutritious pastures in the sub-humid middle belt of the country during dry seasons.Belatedly, NLPD initiated the demarcation and legislation of stock routes that would facilitatethe movement of herds between pastures in the northern Sudan savannah and the sub-humidmiddle belt. This underscores the importance of appropriate and adequate client consultationin designing project components.

(e) The process of identification, surveying and gazetting of grazing reserves throughthe state bureaucracies proved to be a time consuming and an arduous task. Although theproject documents do not refer to land reform, excising huge chunks of land and adjudicatingthem for a particular end use is a significant land reform exercise, which takes a long time andparticular skills in law, administration and diplomacy apart from technical skills in surveying.In addition, entrusting this component only to range management specialists and surveyorscontributed to slow progress of this component. The unit implementing the grazing componentwould have benefited immensely from a mix of professionals in law, sociology, publicadministration and economics.

(f) The Dairy scheme showed that small quantities of surplus milk produced bysettled pastoralists in Nigeria could be tapped for marketing in the urban areas, and moreimportantly, the associations organized under the scheme are also helping to empower farmersin accessing development resources.

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Part II: STATISTICAL TABLES

Table 1: Summary of Assessments

A. Achievement of Objectives Substanil Parial Neeligible Not applicable

Macro Policies E ElSector Policies

Financial Objectives E3Institutional Development El []Physical Objectives El E EPoverty Reduction El I]Gender Issues El l3 E Other Social Objectives El ElEnvironmental Objectives E E ElPublic Sector Management 1= 1 ElPrivate Sector Development E El ElOther (specify) E E El

B. project Sustainability Likel Unlikely Uncertain

C. Bank Performnance satisiofa Satisfactorv DeficientIdentification l E lPreparation Assistance El ElAppraisal El ElSupervision El El

D. Borrowr Performance satisfactory Satisfacto DeficientPreparation E ElImplementation E l ECovenant Compliance E ElOperation (if applicable) E E E

HigU. AfagchE. AsssmentofOutcome satisfactQn Satisfactory UnaisaA unsatifact=n

El1 El El

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Table 2: Related Bank Loans/Credits

Year of

Loan/Credit Title Purp Apprval Status

Preceeding Operations

1. 1091 -UNI Livestock I Livestock Dev. 1974 Completed |

2. 1092-UNI Funtua ADP Integrated Rural Dev. 1975 Completed

3. 1099-UNI Gusau ADP 1975 Completed

4. 1 164-UNI Gombe ADP 1975 Completed

5. 1454-UNI Lafia ADP 1977 Completed

6. 1455-UNI Ayangba ADP 1977 Completed

7. 1667-UNI Bida ADP " 1977 Completed

8. 1668-UTNI Ilorin ADP 1979 Completed

9. 1719-UTNI ARMTI Agric./Mgt.Trng. 1979 Completed

10. 1838-UNI Oyo North Integrated Rural 1980 Completed

13. 1 982-UNI Kano ADP Development

11. 1854-UNI Ekiti/Akoko g 1980 Completed

ADP

I 12 98 1-UNI Bauchi ADP "1981 Completed

13. 1982-UNI Kano ADP "1981 Completed

14. 2029-UNI ATAP Agric.Tech.Assist. 1981 Completed

15. 2185-UNI Sokoto ADP Integrated Tech.Asst. 1981 Completed

16. 2436-UNI Kaduna/ Agricultural Dev. 1986 Completed

g ~~~~~~Katsina

117. 2741 -UNI South Borno "4 1986 Completed |18. 2988-UNI MSADP II It 1989 Completed

019. 3126-UNI Tree Crops Oilpalm 1989 Completed

Following Operations

1. 2035-UNI MSADP III " 1989 Ongoing

2. 2261-UNI Agric.Resrch. Improved basic Res. 1991 Ongoing

3. 3483-UNI NATSP Exten/Adapt. Res. 1992 Ongoing4. 3451-UNI Nat. Fadama Small Scale Irrigation 1992 Ongoing5. 3183-UNI Nat. Seed Improved Seed Supply 1990 Ongoing6. 2353-UNI Env. Mgmt. Environmental Mgmt. 1992 Ongoing6. 3483-UNI Agric.Tech. Technical Support 1992 Ongoing

- 14 -

Table 3: Project Timetable

Steps in Project Cycle Date Planned Date Actual/Latest Estimate

Identification (Executive Project Summary) November 1982

Preparation March 1983

Appraisal February 1985

Negotiations December 13, 1985

Board Presentation June 24, 1986 July 8, 1986

Signing October 31, 1986

Effectiveness Jan. 29, 1987 April 10, 1987

Mid-term Review (if applicable) Oct./Nov., 1989

Project Completion Dec. 31, 1991 December 1994

Loan Closing June 30, 1992 June 30, 1995

Table 4: Loan Disbursements: cumulative Estimated and Actual(US$ million)

FY87 FY88 FY89 FY90 FY91 FY92 FY93 FY94 FY95 FY96

Appraisal 4.90 18.60 35.60 51.00 61.60 72.90 78.60 81.00 81.00 81.00Estimate _

Actual 5.90 9. 11 15.33 27. 10 31.80 36.46 51.19 55.85 59.23 60.95Actual as % 120 49 43 53 52 50 65 69 73 75of Estimate

Date of Final Disbursement: November 28, 1995

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Table 5: Key Indicators for Project Implementation

.___________________________ A ctual as %SAR Revised Revised

Key Indicators Unit Estimate Estimate Actual Estimate*

1. Smallholder Credit Scheme:Summary

a. Loans disbursed: Nos. no. 14,020 30055 22,907 163b. Loans disbursed: Value N '000 133861 169140 126c. Loan repayment: Value N '000 133900 124300d. Loan repayment: % % 85 85 82.5 97

1.1 Beef faftening

a. Loans beneficiaries no. 11400 24560 16890 69b. Loans disbursed: Value N '000 103880 117686 113

1.2 Work oxen

a. Loans beneficiaries no. 0 150 919 613b. Loans disbursed: Value N '000 0 1715 15983 932

1.3 Poultry layers


1.4 Poultry Broilers

a. Loans beneficiaries no. 0 1365b. Loans disbursed: Value N '000 0 10984

1.5 Pig fattening


1.6 GoaVSheep breeding


1.7 Agropastoralist/Mixed Farmer


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Table 5: Key Indicators for Project Implementation (cont.)

1.8 N'Dama Cattle


1.9 Dairy

a. Loans beneficiaries no. 525 326b. Loans disbursed: Value N '000 3710 104 3

Sub total: no no. 22846value N '001 169142

1.10 Livestock extension

a. Bulletins distributed no. 80000 6633 8b. Posters distributed no. 60000 35650 59c. Films produced no. 14 109 779d. Films distributed no. 350 125 36e. Radio broadcast no. 10 0 0f. Livestock newspaper no. I I 10 1 I1

Note: * It is difficult to compare values as the exchange rate of the Naira was changingdrastically during the course of project implementation. A better comparator is comparisonof the number of activities achieved versus the targets set at redesign. These are highlightedfor easy identification.

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Table 6: Key Indicators for Project Operation

I |___________________________ I SAR/Revised-J SAR/RevisedKey Indicatorsm Unit |Estimate |Actual Estimate

1. Smaliholder Credit Scheme

1.1 Beef faKteningI cattle purchased no. 96800 94805 98daily weight gain gram 600 376 6.mean faKtening period days 120 118 98incremental beef produced ton 3795 3130 82mean net income/cattle fattened Naira n.a. 1633mean net income/beneficiary p.a. Naira n.a. 3267

1.2 Sheep Fattening

sheep fattened no n.a. 56000meat produced ton 120 330 275mean net income/sheep fattened Naira n.a. 787mean net income/beneficiary p.a. Naira n.a. 6292

1.3 Pig Fattening

pigs faKtened no n.a. 38280meat produced ton n.a. 1840mean net income/pig faKtened Naira n.a. 649mean net income/beneficiary p.a. Naira n.a. 3892

1.4 Poultry layers

eggs produced dozen 300000 881880 294meat produced ton 25 175 700mean net income/layer Naira n.a. 192mean net income/beneficiary p.a. Naira n.a. 68951

1.5 Poultry Broilers

birds produced no n.a. 1383620meat produced ton n.a. 1520mean net income/broiler Naira n.a. 54mean net income/beneficiary p.a. Naira n.a. 16231

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Table 7: Studies Included in Project

No. Study Status Impact of Study1. Evaluation and the proposal for Completed The information was useful in the

improvement of animal health identification and preparation of anservices Animal Health Services Project

2. Demand and Supply of Dairy Completed The information was used for designProducts and implementation of the pilot

dairy development schemecomponent that was added at mid-term review of the project

3. Livestock Census Study Completed The data is providing valuable basisfor planning and monitoring ofdevelopment programs in thelivestock sub-sector

4. Monitoring & Evaluation Study Completed It assisted in improving themonitoring and evaluation data baseand is provided information forevaluating impact of the project

5. Identification and Protection of the Completed is providing information forNorth West transhumance route. demarcation, surveying and

gazetting of stock route6. Identification and Protection of the On-going will provide information for

Central and North East demarcation, surveying andTranshumance route. gazetting of stock route

7. Review of Veterinary Legislation On-going will provide basis for amending theVeterinary Act in order to facilitateprivatization of animal healthservices

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Table 8A: Project Costs

Appraisal Estimate Actual/Latest Estimate(US$ million) (US$ million)

Local Foreign Local ForeignCategory Item costs Costs Total Cost Costs Total1 Civil Works 1.90 7.70 9.60 0.70 0.37 1.072 Plant, vehicle and

equipment, furniture 1.00 18.20 19.20 3.89 20.53 24.42& spares

3 Farm inputs(CreditN'Dama cattle and 15.60 32.40 48.00 14.89 2.07 16.96other farm inputs) .-

4 International staffservices and training 14.40 14.40 1.08 16.00 17.08

I eSta ii a _ _i .zii_iniAW6 Plant and vehicle

operating (excluding 6.10 8.90 15.00 7.61 0.62 8.23spare and generalservices and DairyDevelopment)

6___Refund of PPF 1.15 1.15Total 47.00 81.00 128.00 34.42 40.74 75.16

Table 8B: Project Financing

Appraisal Estimate Actual/Latest Estimate(US$ million) (US$ million)

Local Foreign Total Local ForeignNo. Source costs Costs Cost Costs Total

1. IBRD 11.3 69.7 81.0 20.21 40.74 60.95

2. DomesticContribution(FGN) 31.6 - 31.6 10.21 - 10.21NACB 4.0 4.0 4.0 4.0Farmers 11.4 - 11.4 n.a. - n.a.Total 58.3 69.7 I 128.0 34.42 40.74 75.16

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Table 9: Economic Costs and Benefits

Project Project Net Net Benefit Net Net Net Net Benefit Net NetBenefit Benefit Benefit Benefit Benefit Project

Year Cost Beef Fat. Sheep Fat. Pig Fat. layers broilers PPR Total Benefitsr_______ ________ ________ _________ (in thousands of Naira)

1987 9678.03 - - - -9678

1988 30024 1487 104 11 51 -14 1639 -283851989 23789 3969 168 1003 1164 -8 6296 -174931990 29446 9345 787 2395 -99 7979 -6 20401 -90451991 24083 11167 281 2239 -315 8270 -11 21631 -24521992 37614 20529 263 3277 405 7564 8 32047 -55671993 37642 26957 949 7668 1007 6195 37 42812 51701994 41923 28430 1156 8651 1229 6742 47 46255 43321995 41923 56860 1156 8651 1229 6742 47 74685 327621996 41923 56860 1156 8651 1229 6742 47 74685 327621997 41923 56860 1156 8651 1229 6742 47 74685 327621998 41923 56860 1156 8651 1229 6742 47 74685 327621999 41923 56860 1156 8651 1229 6742 47 74685 327622000 41923 56860 1156 8651 1229 6742 47 74685 327622001 41923 56860 1156 8651 1229 6742 47 74685 327622002 41923 56860 1156 8651 1229 6742 47 74685 327622003 41923 56860 1156 8651 1229 6742 47 74685 327622004 41923 56860 1156 8651 1229 6742 47 74685 327622005 41923 56860 1156 j 8651 1229 6742 47 74685 327622006 41923 T 56860 1156 8651 T 1229 6742 47 74685 32762

Net Present Worth @ 17% = Naira 1,453,100Economic Rate of Return = 17%

Note: Tables providing details on individual costs and benefits are provided in AppendixC (Tables 2- 9).

Table 10: Status of Legal Covenants

Agrmnt/ Covenant Present fulfillment dateSection type status Original Description ofeovenant Comments

Revised

2.01 4 C NACB shall: (a) out of its own resources make loans to smallholders under Part A (2) of NACB contribution of N4,000,000 made asthe Project in an aggregate amount of not less than four million Naira (N4,000,000); 30th April, 1989.

CD 6/30/86 (b) no later than June 30, 1986 establish and operate a livestock credit unit on the basis of The unit was established as at July, 1987.terms of reference satisfactory to the Bank;

2.06 3 NC NACB shal relend the proceeds of the Loan withdrawn under Category (3) (a) in Schedule Identified SLAs were unable to complyI to the Loan Agreement to State lending agencies under Financing Agreement satisfactory with the eligibility criteria. This conditionto the Bank which shall include the terms and conditions set forth in Schedule I to this was waived and the Bank agreed thatAgreement. Said State lending agencies shall be selected by NACB in accordance with NACB would lend directly to farmers.eligibility criteria Jan/Feb 1988 satisfactory to the Bank.

2.07 2 C NACB shall establish a revolving credit fund from the proceeds of repayments of principal SLDP Revolving Credit Fund establi-shedunder the Financing Agreements. by NACB as at November 1990.

2.08 3 C NACB shaDl establish a credit committee, in each of the States in order to prepare and State implementation committees weremonitor credit operations under the Project at State level. Each such committee shall established in al states as at February,include a representative of NLPD. 1987. M

2.09 3 C Provision of credit and the distribution of farm and veterinary inputs under the Project The Livestock Credit Committeeshal be coordinated by the joint NACBINLPD credit committee which shaU operate in (NACB/NLPD) operated the creditaccordance with terms of reference satisfactory to the Bank. program and input requlrements on an

annual basis.(a) NACB shall maintain records and accounts adequate to reflect in accordance with soundaccountin practices its operations and financial condition, including separate records andaccounts for loans made under the Financing Agreements.

3.01 (c) 3 CD 1/29/87 2/27/87 Borrower shall relend part of the proceeds of the Loan to NACB under a subsidiary loanagreement approved by the Bank.

3.04 (b) 5 CD 1/29/87 2/27/87 Borrower shal cause the grazing reserves referred to in Part I to be gazetted by the States All 5 grazing reserves gazetted before loanconcerned in accordance with the Borrower's Grazing Reserves Law and cause the effectiveness. Five more reserves woredevelopment of pastoralists, to be carried out in accordance with the guidelines agreed by gazetted since effectiveness. Guidelines inthe Borrower and the Bank as set out in Workin Paper 4 of the Project. Working Paper 9 were largely folowed

during implementation.3.05 4 CD 1/29/87 2/27/87 Borrowers shal make adequate budgetary provisions for the Project, and: (i) shall open at

a commercial bank and thereafter maintain with adequate flmds a Project Account to beoperated by NLPD and to be used exclusively for payment for goods and services required

CD 1/29/87 2/27/87 for the Project; (ii) shaDl pay into the Project Account an initial amount of N4,000,000;and

CP Continuous (iii) shal thereafter pay into the Project Account quarterly in advance such amounts as Funds were released, but not in adequateshaDl be required to pay the Borrower's contribution to the costs of the Project and the non- amounts and in a timely manner.

- - - incremental expenditures of NLPD

Table 10: Status of Legal Covenants (cont'd.)

Agrmnt/ Covenant Present fulfihlment dateSection type status Original Description ofcovenant Comments

Revised3.06 3,9 Borrower shall cause NLPD to:

C Continuous (a) limit its administration of agricultural credit by commercial banks to an aggregateamount of loans outstanding at any one time to N2,000,000;

CD 2/27/88 (b) take all necessary measures to accomplish orderly transfer to NACB within one yearafter the Effective date of the revolving credit fund administered by it under Loan 1091

CD 8/31 each UNI;year (c) submit to FMAWRRD for approval, and to the Bank for information by August 31 of

CD quarterly each year its annual budget, work plan and procurement program for the next fiscal year;each year and

(d) prepare and submit quarterly management reports on the progress of the Project toFMAWRRD, FLD and the Bank.

3.07 12 NC 6/30/86 The borrower shall: (a) Exchange views with the Bank on the results of the National Credit line to NACB was not extendedAgricultural Credit Study being carried out by the Central Bank of Nigeria; beyond June 30, 1994

NC 12/31/86 (b) by December 31, 1986 formulate an implementation program on the basis of theconclusions and recommendations of said study as they would affect the Project and asagreed upon by the Borrower anW the Bank; and

NC continuous (c) thereafter carry out such program in accordance widh its terms.

3.08 10 C Borrower shall cause NLPD to enter into appropriate contractual arrangements for thecarrying out by the National Animal Production Research Institute, the InternationalLivestock Center for Africa and any other institutions acceptable to the Borrower and theBank of Part A (7) of the Project on behalf of and under the supervision of NLPD.

4.01 1 C continuous (a) Borrower shall maintain or cause to be maintained separate records and accountsadequate to reflect in accordance with sound accounting practices the operations, resourcesand expenditures in respect of the project of the departments or agencies of the Borrowerresponsible for carrying out the Project or any part thereof.

CD 6/30 (b) The Borrower shaD: i. have the accounts referred to in paragraph (a) of this Section,each year including the Special Account, for each fiscal year audited in accordance with appropriate

auditing principles consistently applied, by independent auditors acceptable to the Bank;ii. furnish to the Bank not later than six months after the end of each fiscal year, acertified copy of the external audit report ; and

C iii. such other information concerning said accounts and the audit thereof and said recordsas the Bank shall from time to time reasonably request; (c) For all eligible expendituresunder the Loan, maintain separate records and accounts; ii. retain, until one year after theClosing Date, all records evidencing such expenditures; iii. enable the Bank's represen-tatives to examine such records; and iv. ensure that such separate accounts are included inthe annual audit and that the report thereof contains, in respect of such separate accounts, aseparate opinion by the said auditors as to the proceeds of the Loan withdrawn in respectof such expenditures have been used for the purpose for which they were provided.

- 23 -

Table 10: Status of Legal Covenants (cont'd.)

Agrmnt/ Covenant Present fulfillment dateSection type status Orginal Descrption ofeovenant Comments

Revised4.01 1 C continuous (b) NACB shatl: (i) have its accounts and fmancial statements (balance sheets, statements NACB did not submit audited accounts

of income and expenses and related statements) for each fiscal year audited, in accordance within the stipulated time. These werewith appropriate auditing principles consistendy applied, by independent auditors usually delayed for over one year. The

CP each year acceptable to the Bank; (ii) furnish to the Bank not later than six months after the end of audits were for the whole operation ofeach such year: (A) certified copies of its financial statements for such year as so audited, NACB and did not include a separateand (B) the report of such audit by the said auditors, of such scope and in such detail as the statement for the project as required.Bank shall have reasonably requested; and NACB' attention was called to this

CP each year (iu) furnish to the Bank such other information concerning said accounts and the audit requirement on several occasions.thereof and said records as the bank shaD from time to time reasonably request.

C (c) For aDl expenditures with respect to which withdrawals are requested from the LoanAccount on the basis of statements of expenditure, the NACB shall: (i) maintain, inaccordance with paragraph (a) of this Section, separate records and accounts reflecting

C such expenditures; (ii) retain, until one year after the Closing Date, atl records (contracts,orders, invoices, bills, receipts and other documentation) evidencing such expenditures;

C (iu) enable the Bank's representatives to examine such records; andCP (iv) ensure that such separate accounts are included in the annual audit referred to in para

(b) of this Section and that the report dhereof contains,in respect of such separate accounts,a separate opinion by the said auditors as to the proceeds of the Loan withdrawn in respect N

of such expenditures have been used for the purpose for which they were provided.4.02 12 NC NC (a) Borrower shall annually review interest rates for with a view to eventually (i) bringing Credit line to NACB was not extended

the cost of borrowing more into line with inflation: (ii) reducing the differential in interest beyond June 30, 1994rates for loans between agriculture sector and the other sectors; (iii) ensuring adequatemargins for lending institutions; and (iv) reducing subsidies on loans by the Borrower toNACB for on-lending. Borrower shall exchange views annually with the Bank in thisregard;(b) Borrower shall take all necessary measures to ensure that the difference in interest rates

NC 1/1/88 for loans in the agriculture sector and those for commercial loans shall: (i) be not moreNC 1/1/89 than three percentage points by January 1. 1988; (ii) be not more than two percentageNC 1/1/92 points by January 1, 1989; and (iii) be further reduced substantialy by January 1, 1992.

Covenant types:

I. = Accounts/audits 8. = Indigenous people 8. Present Status:2. = Financial performance/revenue generation from 9. = Monitoring, review, and reporting

beneficiaries 10. = Project implementation not covered by categories 1-9 C = covenant complied with3. = Flow and utilization of project funds 11. = Sectoral or cross-sectoral budgetary or other resource allocation CD = complied with after delay4. = Counterpart funding 12. = Sectoral or cross-sectoral policy/ regulatory/institutional action CP = complied with partially5. = Management aspects of the project or executing 13. = Other NC = not complied with

agency6. = Environmental covenants7. = Involuntary resettlement

- 24 -

Table 11: Compliance with Operational Manual Statements

No non-compliance with Bank OMS was observed.

Table 12: Bank Resources: Staff Inputs

Stage of ActualProject Cycle l

Weeks US$('000)

Through Appraisal 54.4 84.2

Appraisal-Board 118.8 241.0

Board-Effectiveness 21.4 50.5

Supervision 249.9 517.1

Completion 4.3 0.9

TOTAL 448.8 893.7

- 25 -

Table 13: Bank Resources: Missions

Performance Rating

Number Days Specialized Implemen Develop-Stage of Month/ of m Staff Skills tation ment Typcs of

Project Cycle Year Persons Field Represented Status Objective Problems

Through Appraisal 4/82-8/84 11 95 AE,EC,CS,LS

Appraisal through 1/85-10/86 14 53 AE,EC,CS,LS, FA, _ _ Cattle breeding & poorBoard Approval AR finan. perform. of WLC

Board Approval 9-28-10/86 3 28 AC,AE,EC _ _thru Effectiveness

Supervision 1 6121-7/10/87 2 19 AC,OP NA NA NA

Supervision 2 1128-2/6/88 2 9 AE.,LS 2 2 Credit Component

Supervision 3 10/15-31/88 5 17 EC,AE,LS,FA 2 2 Overstaffing

Supervision 4 5/16-31/89 2 16 EC,AE 2 2 Overstafing, Credit, andExtension - Redesign

Supervision 5 10/16- 3 18 AE,EC,CON NA NA Madara Plant - capital for11/4/89 dairy farmers

Supervision 6 521-6/8/90 2 18 AE,EC 2 2 Counterpat fund., staffing,procurement

Supervison 7 3/10-19/91 2 10 LS,AE NA NA Counterpart fmd, proj mgtdisbursement, & grazing

Supervision 8 10/24-26/91 2 14 LS,AE NA NA Counterpart fund., credit,11/8-18/91 grazing, and studies

Supervision 9 5121-6/1/92 3 12 LS,AE,FA 2 2 Project Accounts

Supervision 10 10/21-23/92 1 3 AE NA NA NA

Supervision II 1/9-20/93 3 16 AE,LS,DS 2 2 Feedstuff& NACB funds.1/25-28/93 Prep Lvstk m & Sec. Rev.

Supervision 12 10/6-28/93 3 23 AE,LS,VT 2 2 Pilot Milk Scheme andVeterinary Drugs.

Supervision 13 5/8-23/94 3 16 AE,LS,PR 2 2 NA

Supervision 14 12/6-17/94 3 12 LS,AE NA NA Pilot Milk Scheme, breed-ing ranches & extension

Completion 5/9-26/95 1 18 AE NA

Key: AC= Agric. Credit, AG=Agriculturist, AE=Agric. Economist, EC=Economist, A=Finan.Analyst,AR=Research Spist., LS=Livestock Splst., DS=Dairy Splst., VT=Veterinarian, PR=Proc. Analyst.



SECOND LIVESTOCK DEVELOPMENT PROJECT

Implementation Completion Mission - Aide Memoire(Appendix A)

FEDERAL REPUBLIC OF NIGERIASECOND LIVESTOCK DEVELOPMENT PROJECT

Aide Memoireof

THE WORLD BANK IMPLEMENTATION ASSISTANCE MISSION OFDecember 1994

Introduction

1. A World Bank mission, comprising Messrs 0. Nduaka (AF4NG, Mission Leader), S.Bekure (AF4GA, Livestock Economist), and Dele Ilebani (AF4NG, Agricultural Economist)supervised the Project during December 6-17, 1994. The mission visited field activities of theProject, particularly: farmers participating in the smallholder credit and the open-nucleusN'Dama cattle multiplication and distribution schemes, and the pilot state livestockdevelopment programs in Imo state, the inclusion of livestock packages in the unifiedextension system (UES) in Abia and Imo states and the applied research program fundedunder the project in Benue state. The mission held discussions with the senior managementand implementing officers of the National Livestock Projects Division (NLPD); the heads ofLIMECU, and the Divisions of Livestock Development, Pastoral Resources Development,Animal Health and Veterinary Public Health of the Federal Department of Livestock and PestControl Services (FDL&PCS), the Director of the Animal Production Research Institute;officials of the Federal Agricultural Coordinating Unit (FACU); and H.E. the MilitaryAdministrator of Kaduna State.

2. The findings of the mission and the agreements reached, which are summarized in thisaide memoire and are subject to confirmation by Bank management, were discussed onDecember 16, 1994 at a wrap-up meeting chaired by the Director, FDL&PCS in Abuja.Annex 1 gives a matrix of the actions agreed upon, the deadline for their execution and theofficers responsible. The mission is grateful to the Director of FDL&PCS and his senior staffand the Project Manager, NLPD and his staff for the excellent arrangements made for its visitand the useful discussions it held with all parties involved in the implementation of the Project.

Summary and General Remarks

3. Over all, the Project is progressing satisfactorily. However the political crisis and thegeneral scarcity of fuel in the last six months had adversely affected project implementation.Shortage of foreign exchange and the attendant instability of the Naira in parallel markets hasinstigated sustained inflationary pressure on the economy. The high rate of inflationexperienced during 1994 subjected the project to high operating costs, particularly thosepertaining to the operation of heavy equipment in the grazing reserves.

4. The 1994 Fiscal Year (FY) counterpart funding release was about 95% of thatallocated and timely. The standard of accounting and financial control is satisfactory. Theintemal audit unit is being strengthened and control of operation of stores tightened.Satisfactory progress was made in procurement. Goods ordered under ICB 3 are beingreceived. Contracts under ICB4 have been signed and the equipment is expected to bedelivered before June 1995.

5. Both disbursement and loan recovery have proceeded well. The recovery rate nowstands at 70%, making livestock the portfolio with the best repayment record in NACB.

2~~~~~~~~~~~~~~~~~~

Consultations were made with iocal government councils, traditional rulers and state officialsof Sokoto, Kebbi, Niger and Kwara States for surveying, demarcating and legislating the1,265 km. long Northwest-Southwest stock route. Socio-economic surveys were conductedin eight grazing reserves.

6. Processing capacity of the Kaduna dairy plant at 2,000 litters per day is stillconstraining the expansion of milk collection from farmners. The transfer of shares from theKaduna State Government to the milk Federation has not been concluded because ofcomplications arising from Katsina State's demand for revaluation of the assets of the dairyplant. This is now resolved and the transfer of shares is likely to be concluded by February1995 (Para.21-22). The Productivity of the N'Dama herds at the two multiplication stationshas improved. The number of farmers participating in the open nucleus N'Dama multiplicationscheme is increasing. Progress in the development of the other stations for breeding theindigenous stock remains unsatisfactory (para. 26-27) .

7. Applied research and studies financed under the project are progressing well. Theproject is preparing an extension training manual using the results of research projectscompleted thus far. The treatment and selection of livestock topics in the monthly technologyreview meetings (MTRMs) of the unified extension system has been problematic as theorientation of most of the ADPs is crop based. The mission held discussions with ADP,FACU and FDL&PCS officials to resolve the outstanding issues (para. 38-39).

8. Collection of outstanding balances in the drug revolving fund have improveddramatically from 9% during the last supervision mission to 64%. However much remains tobe collected from the participating State Veterinary Services, whose outstanding balancestands at 60% (para. 28). The pilot state livestock development program initiated under theproject in six states has shown that this approach is cost effective and should be the model tofollow in future livestock development initiatives (para. 41-42). Finally, the project is makingadequate preparations to prepare the Borrower's implementation completion report.

Review of Proiect Implementation

9. Proiect Manazement and Staffin2. The heavy equipment specialist, who was thelast expatriate in the project left in June 1994. The Nigerian Chief Mechanical Engineer(CME) who has been understudying him is directing the projects' workshop and the programof the heavy duty machinery and other engineering duties of the project. He has taken a Banksponsored international procurement course in Ghana together with the project's procurementofficer. The project should utilize his skills in all stages of procurement, requiring thepreparation of bidding documents. The functions of organizing milk producing farmers underthe Kaduna Federation and the collection, processing and marketing of milk are completelyseparated. The Head of Commercial Operations is now fully responsible for the latter.

Proiect Financin! and AccountinE.

10. For the first time in the project's history, counterpart funding of the project was bothtimely and adequate during fiscal year (FY) 1994 . The Federal Government released Naira52 million out of the Naira 54.7 million it allocated to the project. The allocations for thesecond and third quarters were released together at the beginning of the second quarter. Theproject has requested an allocation of Naira 52.7 million for FY 1995, which is expected to bereleased during the first half of 1995.

3

11. The operation of the Special Account were examined and found to be satisfactory andin compliance with the covenants of the loan agreement and Bank guidelines. The project hasresponded to the 1994 management letter of the external auditors. The internal audit sectionis being strengthened and the stores control system being tightened. The in-service trainingprogram for accounts and stores staff has been intensified, registering 578 man days oftraining in 1994. The project's bankers are regularly submitting returns from the Central Bankof Nigeria on conversion of US Dollars in the Special Account into Naira. The software forcomputerizing the project's accounts has been installed and training of staff on operating thesystem has commenced. The mission recommends that the manual system be operatedconcurrently for six months in order to allow sufficient time for detecting and rectifying anybugs that may occur in the system.

12. The project's expenditures to-date and management's proposal for reallocation of fundsin the remaining six and half months ot the project's life were reviewed. The mission'srecommendations for reallocation of funds is given in Annex 2. Subsequent to the Bank'smanagement approval of this reallocat ion, the Development Loan Agreement between theBank and the Borrower would need to be amended to reflect the approved reallocation.

13. Procurement. Items ordered under ICB-3 have arrived and are being cleared at theports. ICB-4 contracts for the supply of rigs and spare parts have been signed and areexpected to be delivered by xx, 1995 The livestock service center at Udubo grazing reserve(GR) has been completed and the one at Bobi GR is underway. Plans for the completion ofthe Kachia pastoralist training center, and the civil works for the border post and quarantineat Illela and Gamburu were reviewed by the mission.

14. The contract for constructing the Kachia Pastoralist Training Center has been formallyrevoked as the contractor had abandoned the site. Due to the short time remaining before theclosing date of the project, the Bank had earlier proposed that the project float the bid on theunderstanding that the winrning contractor is paid the contract price as a lumpsum at thecompletion of the buildings. The project's consulting architects have advised that the contractbe awarded on the basis of price quotation from pre-qualified reputable and competentcontractors, in view of the need to complete the construction before June 30, 1995, and therelatively few contractors that would be willing to finance such a large sum (approximatelyUS$ 727,000) on their own. Project management has requested for a waiver for suchprocurement as the threshold of the project for price quotations is under US$60,000.

15. Considering that: (a) abandonment of the half completed buildings would lead to theirdestruction by the elements and pilferage; and (b) the non-completion of the buildings wouldnecessitate the indefinite postponement of the training program envisaged for pastoralists andmedium level cadre of staff employed in the management of grazing reserves and stock routesdeveloped under the project; and after consulting with the Bank management, the missionconfirms the willingness of the Bank to consider, under exceptional circumstance, to waivethe LCB requirement provided that the Project: (a) uses the same architects to be paid atGovernment rates for the supervision of the completion works; and (b) solicits pricequotations from at least five contractors, who would be willing to be paid a lump sum of thecontract price upon completion of the works, save a mobilization fee for which they wouldprovide a performance bond. The complete documentation of the analysis of the pricequotations and the recommendations of the consulting architects and the CVs of all thebidders would have to be submitted to the Bank for no objection.

4

16. Except for minor civil works in the grazing reserves, the project's proposal forrehabilitation and construction of other civil works, particularly those at the border controlposts would cost more than US60,000, requiringe LCB. which would take some time toproces, leaving very little time for the completion of the works before June 30, 1995, theclosing date of the project. The mission strongly advises Project Management not toproceed with the processing of these civil works.

Smaliholder Credit

17. Reimbursement to NACB under this component stopped as of July 1, 1994 due to theexhaustion of the allocated sum of US$10.50 and due to non compliance of NACB, over theyears, to gradually increase interest rates of its loans to parity with commercial lending rates.NACB is now charging the mandatory 21% imposed by the Federal Government on all loans.NACB is using the repayment of outstanding livestock loans to finance new loans and has infact added Naira 13 million of its ows n funds to this revolving livestock credit fund. Noting theincreased demand for smallholder liv estock credit and the 70% repayment rate this portfolio isachieving, the NACB management intormed the mission that the Bank's unilateral reduction ofthe credit fund under the loan from the original US$24.2 million to US$10.5 million was notwarranted and pleaded for additional allocation of funds to the credit component, followingwhich Project Management requested a reallocation of US$500,000. The mission informedProject Management that this request would not be granted by the Bank.

GrazinE Reserve (GR) Develonment.

18. The mission reviewed the draft report, articulating the Federal Government's policy ongrazing reserve and stock route development and gave its comments. The document stillrequires some work. It was agreed that the Head of Pastoral Resources Division and theDeputy Director of Livestock Development Division would collaborate in rewriting thedocument, incorporating the mission's comments.

19. The project held consultations with 23 local government councils, traditional rulersand state officials of Sokoto, Kebbi, Niger and Kwara states in developing a workablemethodology and procedure for surveying, demarcating and legislating the proposedNorthwest - Southwest Stock Route, traversing about 1,265 km, from the Illela, along theSokoto/Niger border to the Gidan-Magajiya GR in Kwara State. Surveying and demarcatingthe entire route is scheduled to commence shortly.

20. Socio-economic and resource surveys were conducted in eight GRs and boundarydemarcation was completed for the 35,000 ha. Mayo Kam GR in Taraba State. Constructionof the Udubo livestock service center is completed and is being handed over to the BauchiState Government. Similar construction has started in the Bobi grazing reserve in Niger State

Pilot Dairy Development Scheme

21. . Limited pasteurizing capacity at 2,000 liters per day is constraining expansion of themilk collection and marketing and the membership of the associations and the Federation.Fuel scarcity and the frequent breakdown of the old boiler, coupled with lack of cold storagefacilities contributed to the reduction of milk procurement from members of the Federation. Itis clear from the statement of accounts that the operation would not be commercially viable

5

unless the volume of milk collected is increased substantially. The acquisition of majofityshare in the Kaduna dairy plant by the Kaduna Milk Producers Federation would have to becompleted before renovating the plant and equipment. However the process of thisacquisition became complicated and delayed by Katsina State's demand that the assets andliabilities of the plant be revalued to determine its share of the plant for determining itscompensation.

22. This revaluation has now been completed and the Military Administrator assured themission that the Kaduna State Government has the funds and is arranging to pay for thiscompensation. He revealed his full understanding of the value of the pilot dairy developmentscheme for the social and economic development of smallholders in Kaduna State by citing theusefulness of the scheme, not only in generating revenue for the households but also inliberating the womenfolk from the burden of walking daily long distances to markets to hawktheir milk, thus affording them to spend more time attending to their responsibilities at homeand on the farm. He reiterated his support for the Federation's proposal and stated that thematter should be settled by the end of January 1995. The mission recommends that theProject Manager follow-up this development closely to finalize the share purchase before theclosing date of the project.

23. The mission is pleased to note that its earlier recommendation of using plastic sachetsin marketing yogurt as well as instituting a system of cost accounting and determination ofmonthly profit and loss positions of the milk collection, processing and marketing operationshave been implemented.

N'dama Cattle Multiplication and Distribution'.

24. As at the end of September 1994, there were a total of 825 animals, 549 at Adada and276 at Fashola. Mortality rate of young stock at Adada declined from 7.5% in 1993 to 3.87%in 1994, while that of adult stock remained about the same at 4.6%. It would seem that therouging of poisonous plants and the planting of snake repellent legume are partiallyresponsible for the decline in overall mortality in Adada. The mortality rate of adult stock inFashola declined from 3.2% in 1993 to 1 38% in 1994, while that of young stock increasedfrom 4.9% in 1993 to 7.3% in 1994.

25. In 1994, 58 animals were sold, bringing the total number to 651. During the periodunder review, 20 farmers purchased animals out of which eight have registered to participatein the open nucleus breeding scheme. To date, 116 farmers have benefited in the N'Damabreeding scheme through credit and direct sales and 61 have registered to participate in theopen nucleus breeding scheme. The mission recommends increased effort to register manymore farmers.

Other Breeding Pro2rams

26. The foundation stock of 60 pigs at the Pig Breeding and Testing Center at Okpuje,Enugu State, has multiplied to 177 in about three years. A majority are Large White (83)followed by Land Race (53) and 38 crosses of these two breeds. Production of feed on thestation has commenced with cassava planted on a 4 ha. plot. This would be expanded toinclude maize in the next cropping season.

I Adada and Fashola ranches started withi 1 144 N'Daxna cattle of wtich 1,050 were imported from Senepa in 1990

6

27. The mission expresses its disappointment at the very slow development of the otherlivestock breeding stations. Not much has been accomplished at the Funafuna cattle breedingstation, apart from the establishment of improved pasture of 10 ha. and the preparation ofsilage for dry season feeding of the 171 White Fulani cattle. No development work has takenplace at the Oshire Muturu cattle breeding station and the Zugu goat breeding station.FDL&PCS should staff these stations with competent and responsible managers andtechnical officers and cut down on the red tape for the release and utilization of funds,including allowing the stations to utilize income generated from the sale of livestock tofarmers for financing operating costs.

Distribution of Veterinary drugs

28. Efforts of the Animal Health Division in collecting the outstanding balances of thedrug revolving fund have yielded an impressive result. Collection of outstanding balances hasdramatically improved from 9 percent in May 1994 to 64 percent in November 1994.However, the outstanding balance of State vi :-inary services stands at 60%, compared with2% for private veterinarians, veterinary teaching hospitals and other institutions. The Divisionis intensifying its efforts in recovering outstanding balances from the States and is planning todistribute drugs on a cash and carry basis and sanction defaulting states, instituting deductionat source, where necessay.

29. Shortage of foreign exchange and the instability of the Naira in parallel markets hasforced major-veterinary drug suppliers such as Pfizer have altogether stopped importation.Noting that the shortage of veterinary drugs on the market and the escalating price hasencouraged the proliferation of drug adulteration and counterfeiting, which is detrimental tothe livestock industry, the project requested the mission to lift its earlier restriction on directimportation of veterinary drugs by the project. The mission is still of the opinion that theproject should refrain from direct importation and recommends that the required drugs beprocured through LCB, in which international firms are allowed to participate. Majorsuppliers would participate in the bid if it is made clear to them that the project, would pay theforeign exchange cost in convertible currency. However, it should be noted that the LCB hasto be prepared immediately so that the drugs could be received before June 30, 1995, theclosing date of the project.

Research

30. The project has rationalized the 20 completed research projects out of the original 32.It has selected eleven and produced an extension manual on transferable technologies forsmallholder livestock producers in Nigeria. The mission reviewed the manual and is of theview that its contents are not extension packages but a useful reference material for resourcepersons in the MTRMs and subject matter specialists. The mission reiterates its earlierrecomnmendation of involvement of extension specialists and agricultural economists informulating extension packages and quantifying input/output relationships and their economicimplications. The formulation of livestock extension packages should not be restricted tocompleted sponsored research but should be extended to the packages used in the presentlivestock production models as well as relevant research in the research institutes anduniversities. The mission encouraged the publication of the manuscript after revision andediting.

7

31. Regarding the uncompleted research projects started under the project, the missionrecommends that application be made to the National Agricultural Research Project (NARP)for their continuation. The research on the performance of West African Dwarf Sheep at theUniversity of Ibadan has not taken off. Consequently its funding has been discontinued. Theproject should recover the vehicle and funds allocated to the scientist.

32. Fetal calf serum and new-born calf serum have been ordered for the development ofvaccine against Sheep and Goat Pox at NVRI, Vom. The mission was informed of the highrate of breakdown of experimental cattle that had been treated for Dermatophilosis with theethno-pharmacological preparation Lamstreptocide A&B at NVRI during the last heavy rains.even though the returns from the other trial locations have not been received, for overallevaluation, it would seem that the active ingredients in the preparation cleared the lesions, butwere not effective against the bacteria which are lodged in the dermis. Caution must beexercised in recommending the preparation for farmers' use.

33. The research on integrated pest management (1PM) had been approved an itsexecution had commenced in ABU, Zaria. The chief investigator has been offered anattachment for four weeks in UF/USAID/SADC Heartwater Research Laboratory in Harare tostudy cowdria culture technique as a means of enhancing the development of a vaccine againstcowdriosis and ticks. 1PM has been instituted into the N'Dama ranches at Adada and Fasholabreeding stations on his advice.

Studies.

34. Important gaps have been identified in the monitoring and evaluation data base forproviding a reliable estimate of the project's impact on beneficiaries and the livestock sub-sector. These were identified by a consultant, using a logical framework matrix, linkingobjectively verifiable indicators of the project's impacts, and their means of verification.Arrangements are being made to conduct rapid appraisal surveys to fill these data gaps

3 5. The North West transhumance study has been completed. The hides and skinsproduction and marketing and the North East Transhumance study would be launched shortly.These need to be completed and accepted by the project before June 30, 1995. The consultantconducting the Central Transhumance study has failed to complete his assignment. A systemsanalyst was engaged to analyze the raw data collected by the consultant. This points out theneed for a more rigorous scrutiny of the competence and reliability of consultants-engaged bythe project. -

36. The acceptance of the design and costing of an epidemiology and livestockinfornation system study has been delayed unduly as a result of the failure of LIMECU tosend her comments on time. The project is urged to expedite action in accepting the reportand to pay the consultant accordingly.

37. The compilation of veterinary pharmaceutical laws would be resubmitted to the Bankafter amending the terms of reference to reflect the revised scope of the task.

Livestock in the Unified Extension System

38. Durng the field visit, there were reports, by both staff of the NLPD and Imo PilotLivestck Development Program, of discrimination against the inclusion of livestock topics in

8

the MTRMs. Few livestock topics featured inthe MTRMs. The earlier report ofconcentration of efforts on promotion of rabbit rearing to the exclusion of other livestock inthe MTRMs was also made. The mission held separate discussions with the Project Manager,Imo ADP and the Coordinator of the South-East Zonal Workshop at the National Root CropInstitute, Umudike, to resolve these issues.

39. The Project Manager of IMO ADP assured the mission of his desire to collaboratewith the Pilot Livestock Development Program. The South-East Zonal Workshop was insession at the time of the visit. The Coordinator agreed to feature more livestock topics in theMTRMs and to ensure that all livestodck species were featured. He agreed on theappointment of more livestock resource personnel to deal with the different species oflivestock. He would show flexibility in the selection of livestock resource persons and wouldinvolve the State Livestock Department and NLPD in the selection. It is expected that theattitudinal change of the Coordinator and his colleagues over livestock would spill over toAbia, Cross River, Rivers, Akwa Iboni. Enugu and Anambra states.

40. The mission witnessed large number of young male cattle on sale at the livestockcontrol post and market in Katsina- Ala in Benue state. The traders described the increasingdemand for weaners inrecent years Fhis development is most likely to be a spin off from thecattle fattening enterprise popularized by the project.

Trainin.

Pilot States Livestock Development Pro2ram.

41. The Pilot State Livestock Development Program initiated in the six pilot states ofBauchi, Imo, Kwara, Plateau, Sokoto and Yobe is progressing very well. The mission visitedthe execution of the program in Imo state and reviewed its progress and evaluation report aswell as those of the remaining five states. The number of animals vaccinated and clinicallytreated shows a dramatic increase compared with preceding years. For instance, in Imo Statethe vaccination figures increased 300 fold. Similarly, treatment of animals increased to 3.2million animals. Credit recovery rate alsoincreased significantly. Such increased rates ofperformance were also recorded in the other states to varying degrees.

42. These programs had each conducted a livestock resource and diagnostic survey andidentified farmers' needs and constraints. Program implementation was subsequently focussed.The programs are-6perating as originally conceived under the State Director of VeterinaryServices and with the staff of the Department. They are thereefore able to achieve so muchwith little financial and material resources. This vindicates the idea of decentralisation ofimplementatio in which States are the implementors of livestock development programs andthe Federal Department, rendering technical and fiancancial support, formulating livestockpolicies and playing regulatory and supervisory roles. The mission recommends theinstallation of key indicators of program impact on beneficiaries in the managementinformation system and train State staff charged with data colection and monitoring.

Implementation Completion Report

As a follow-up to the letter to the Project Manager by the former Task Manger, onDecember xx, 1994, the mission continued sensitizing the Project on the objectives of the

9

project's implementation completion report (ICR), its preparation, including completingquestionnaires and tables. Preparation of the post-project operational plan for sustaining theactivities started under the project and the need for the Project to request the agencies thatparticipated in implementing the components of the project, such as NACB and NAPRI, tocontribute to the ICR was also discussed. It was agreed that the Project would submit to theBank its draft ICR on or before April 30, 1995 and that the last supervision mission of theBank which would commence the preparation of the Bank's ICR would be fielded, beginningthe first week of May 1995. The Bank would prepare the final ICR within two months of thecompletion of this mission, i.e. by July 31, 1995. The Borrower would finalize its ICR andsubmit it to the Bank on or Before September 30, 1995.

aidm1294

l0

NIGERIASECOND LIVESTOCK DEVELOPMENT PROJECT

WORLD BANK SUPERVISION MISSION OF December 1994

Table 1. Schedule of Actions Agreed upon

Fulfill-Actions to be Taken Responsible Ofricer Deadline meet

____________________ date1. the manual accounting system be operated concurrently with the Kifasi begin

computerized system for a period six months in order to allow sufficient 01/01/95time for detecting and rectifying any bugs that may occur in the latter end

30/06/952. In completing construction of the Kachia Training Center, the Project: Mina, Yahuza, Idris, 01/31/95

(a) uses the same architects to be paid at Government rates for the Procurement Officersupervision of the completion works: and (b) solicits price quotationsfrom at least five contractors, who would be willing to be paid a lumpsum of the contract price upon completion of the works, save amobilization fee for which they would provide a performance bond. Thecomplete documentation of the invitation to bid, and CVs of all thebidders would be submitted to the Bank for no objection. Once theBank's no objection is obtained, the analysis of the bid by theconsulting architects, the award recommendation and the three bestranking bidders would be submitted to the Bank for no objection of theaward

3. Except for the completion of the Kaclia Training Center and minor Maina, Kifasi begincivil works in the grazing reserves and breeding stations that would cost 17/12J94less than USS60,000, Project Management should not proceed withprocessing other civil works, costing more than USS 60,000

4. Follow-up of sale of shares of Kaduna dairy planit to the milk Maina, Yahuza 28/02/951Federation before the closing date of the project.

5. increase effort to register many more fanners in the open-nucleus Uza, Okpeke beginN'Dama multiplication Scheme 20/12l94

6. FDL&PCS should staff its livestock breeding stations with competent Director FDL&PCS, beginand responsible managers and technical officers and cut down on the Amogu, Maina, 02/02/95red tape for the release and utilization of funds, including allowing thestations to utilize income generated from the sale of livestock to farmersfor financing operating costs

7. Veterinary drugs be procured through LCB, in which international firms Abegunde, Maina, 31/01/95are allowed to participate and are informed that the project would pay Procurement Officerthe foreign exchange cost in convertible currency; and the LCB to beprepared immediately so that the drugs could be received before June30. 1995, the closing date of the project.

8. extension specialists and agricultural economists to be involved in Uza beginformulating extension packages and quantfying input/outputrelationships and their economic implications. The formulation of 01101/95livestock extension packages should not be restricted to completedsponsored research but should be extended to the packages used in thepresent livestock production models as well as relevant research in theresearch institutes and universities.

11

Fulritl-Actions to be Taken Responsible Ofricer Deadline ment

9. application be made to the National Agricultural Research Project Uza, Maina 28/02/95____ (NARP) for the continuation of the uncompleted research projects

10. Caution must be exercised in recommending the preparation Uza,Okpeke beginLamstreptocide A&B for farmers' use. 17/12/94

I the installation of key indicators of program impacts on beneficiaries in Alli, Abegunde, 31/01/95the management information system of the pilot states livestock Yahuza, Rikindevelopment program and train State staff charged with data collectionand monitoring

12. Head of Pastoral Resources Division and the Deputy Director of Samu, Amugu 28/02/95Livestock Development Division would collaborate in rewriting draftreport, articulating the Federal Government's policy on grazing reserveand stock route development, incorporating the mission's comments.

13. Regardinz the ICR:(a) Project to request the agencies that participated in implementing the Maina, Yahuza 24/12/94

components of the project, such as NACB and NAPRI, to contributeto the ICR;

(b) Project would submit to the Bank its draft ICR on or before April Maina, Yahuza 30/04/9530, 1995;

(c) arranging last supervision mission of the Bank which would Nduaka, Bekure 15/04/95commence the preparation of the Bank's ICR would be fielded,beginning the first week of May 1995:

(d) the Bank would prepare the final ICR withlinl two months of the Nduaka, Bekure 31/07/95completion of this mission, i.e. by July 31, 1995; and

(c) the Borrower would finalize its ICR and submit it to the Bank on or Maina 30/09/95before September 30, 1995.




Borrower's Evaluation Summary(Appendix B)

2


NIGERIA


(Loan 2737 - UNI)

EVALUATION SUMMARY

Obiectives I

1. The objective of the project is to increase the production of livestock products andconsequently farmers income. The strategy employed was to shift emphasis towards supportof the small traditional producers while ensuring full cost recovery of farm inputs andveterinary supplies. Settlement of transhumance families would be encouraged through theestablishment and development of grazing reserves. A livestock sectoral planning capacitywould also be developed by the project. These objectives were reiterated at project redesignwith the additionof a pilot dairy program, a national breed development program, anexpanded animal health program, and the encouragement of the unification of extension tosettled smallholders.

2. The Staff Appraisal Redesign Report (SARR) indicates that around 30,000 families(approx. 200,000 people) would benefit directly from the project. At full development (10years from commencement), the expected incremental annual production would be about11,000 tons of meat, 3.4 million litres of milk, and 1.4 million dozen eggs. It was alsoexpected that a total of some 2500 transhumant families and their cattle would be settled in20 grazing reserves by the project at full development.

Implementation Experience

3. Project implementation was generally satisfactory. Delays were experienced initiallydue to mainly counterpart funding problems, the inability of State on Lending Agencies(SLA) to satisfy the conditions laid down by the Nigerian Agricultural Cooperative Bank(NACB) due mainly to their indebtedness to the latter in other operations. Delays infinalising the redesign document and obtaining approval for procurement from the Ministryalso to a certain extent contributed to the initial setback in project implementation.

4. Loan draw down was very slow at the beginning. Although recurrent expendituresfar exceeded SAR estimates, the low level of drawdown was caused primnarily by shortfalls incapital expenditures. Much as insufficient counterpart funding from the Federal Governmentof Nigeria (FGN) has contributed to this low levels of loan draw down, the initial insistenceof the Bank to place all civil works under Local Competitive Bidding (LCB) also contributedtot he initial delay in the utilisation of the loan.

5. The project has performed well in the implementation of the credit component inspiteof the initial delays mentioned above. Physical targets for the credit and non-creditdevelopment/production models both exceeded SARR estimnates. However, there wereregional variations. Loan disbursements have at times been constrained by the inability ofNACB to disburse fund to branches in some cases due to delays in reimbursing to NACBfrom project finances. The re-imbursements have at times been fraustrated by constantchanges in the foreign exchange policies of the Federal Goverrnent.

6. On grazing reserve development, 12 reserves have been gazetted against a StaffAppraisal Report (SAR) estimate of 20. Similarly, 10 reserves were planned out of the 12gazetted against an SAR estimate of 20. This represents 60% and 50% achievementsrespectively. On infrastructural development inside the grazing reserves, 951 lan of fire

3

tracing were constructed and over 304 boreholes dug. However, settlement on the reserveshas been slow, with settlement taking place in only 7 reserves and about 715 out of the SARtarget of 2500 transhumance families (29%) realised. To facilitate the utilisation of thegrazing reserves, stock route were made a major component of the former.

7. The N'dama multiplication and distribution programn encountered a number ofproblems locally and internationally and this necessitated the limiting of the importation tothe first lot of 1000 animals. Only 91 animals were provided by the Western LivestockCompany (WLC) against the 2849 planned. Included during the redesign of the project issupport to the National Livestock Breed Development Program for a range of livestockbreeds. Much of this is related to infrastructural development and pasture establishment.The achievement recorded under this component was unsatisfactory. Lack of management atthe ranches, limited supervision, chronic under funding and lack of clear objective allcontributed to this discouraging result.

8. Final reports have been received for 20 of the 32 research programs contracted tovarious research institutes and universities. These were at various stages of completion. Byclose of the loan, 4 of the research programs were still on-station while 7 were on-farm andan extension manual containing packages and messages for 13 technologies were developedfrom the 20 research programs.

9. The Anand pattern pilot dairy development program has achieved some considerablesuccess. A dairy development unit has been established and has become the nucleus of theKaduna Federation of Village Milk Producers Association Ltd. (KFVMPA). Thirty Oneprimary milk cooperative associations have been established of which 11 were registered ascooperative societies. Total membership is 1189. The project has assisted the federation tomaintain and operate the Kaduna dairy plant for the production of yoghurt and fresh milk.The federation has since its establishment collected 375,204.5 litres of milk from itsmembers.

10. The project participated and actively assisted in the implementation of the unifiedextension system through mainly the provision of support to Agricultural DevelopmentProjects (ADPs) and collaboration with coordinating research institutes for selection oflivestock topics and their inclusion in the calendar of activities.

11. Various studies have been undertaken under the project. A national livestockresource survey was completed. A study for the evaluation and proposal for therehabilitation of the national animal health services was also completed. A national dairystudy for the estimation of the supply and demand for dairy products was also undertaken, aswell as some socio-economic studies in some grazing reserves. However, the hides and skinstudy, the livestock and meat marketing study and the poultry study remain uncompleted byproject completion. While, the survey of the central and North East transhumance routeswere on-going. similarly, the study on the veterinary and pharmaceutical legislation wasalso on-going.

12. The project has provided training for a total of 133 persons overseas and for 2937persons at local venues including in-house training. Some 860 staff have received inductiontraining, while another 278 have attended technical workshops/conferences.

13. As part of the strategy of strengthening policy formulation, program planning, andmonitoring and evaluation roles within the Federal Department of Livestock and Pest ControlServices (FDL & PCS), the project has helped set up a Livestock Planning MonitoringEvaluation and Coordinating Unit (LIMECU). Similarly, Livestock Credit Unit (LCU) wasset up in the NACB which together with the revolving fund created out of the loan recoveriesis expected to provide a basis for sustaining livestock credit in Nigeria.

4

14. The transfer of project implementation through the establishment of state pilotprograms was found to accelerate project implementation. In addition the experiment was tohave aroused the interest of the states in livestock development as evidenced by the increasedfunding.

Results

15. Project objectives have been achieved to a large extent. Under the smallholder creditscheme a total of 24,044 loans valued at N164.9mmn were disbursed, most of which werelivestock fattening. Under cattle fattening (including secondary fattening) a total of 16,225loans valued at Ni 10.3 mn were disbursed and an equivalent of 52,512 cattle purchased.With an average weight gain per cattle fattened at 60kg, the total incremental beef producedis 10,160 tons. In addition to this, the project has by promoting cattle fattening madeavailable to the market substantial quantity and high quality beef that would normally havebeen slaughtered as culled animals. Similarly, 1713 loans valued at N8.9 mn were disbursedto sheep farmers, with an average weight gain per sheep fattened of 27kg, mutton producedis 1,415 tons. In the case of pig fattening 1050 loans value at N5.6mn were disbursedproducing 593 tons of pork. The total amount of eggs produced is 881,884 dozens, while723,846kg of broiler meat were also produced. However renewal of loans fell far below theexpected target of 80%. Out of the total loans disbursed only 7,246 were renewalsrepresenting 30%.

16. Implementation of the infrastructural development component of the grazing reserveswere initially hampered as a result of difficulties in gazetting of the reserves and issuance ofland titles. The project however did well in constructing a total of 951km of roads instead ofthe 1,200km planned. Also, the project constructed 74 dams from 120 planned andrenovated 34 from 60 planned. A total of 2,623 ha of land were cleared and 304 boreholesdrilled by the project. Seven hundred and fifteen (715) pastoralists were settled with 49,956cattle. Fourty nine (49) land titles were also issued.

17. Mortality of small ruminants has been reduced from 50% to 16% as a result of thePestes Des Petit Ruminants (PPR) vaccinations program. The reduction in the mortality ratehas increased output in meat, kidding and survival rates and hides and skin.

18. Institutional and internal capacity building efforts have resulted in the establishmentof LIMECU and the LCU. In addition the State Pilot Livestock Development Program(LDPs) were established in the states thereby increasing the impact of the project in thesestates. Linkages were also established with ADPs and the states Department of Livestockand Veterinary Services. All the technical assistance position were successfully taken overby Nigerians.

19. Sustainability: The sustainability of the project would largely depend on thecontinued government funding of the operational cost of the NLPD/LCU as provided in theoperational plan attached. In addition the success or otherwise of the transfer of projectimplementation and the ability of NACB to continue funding livestock credit as proposed inthe operational plan will also to a large extent determine the sustainability of the project.

20. The SAR had established the overall Economic Rate (ERR) to be 20%, while thecalculated ERR at project completion is 17.12%.

Findings and Key Lessons Learnt

21. Some findings and lessons that can be derived from the project experience aresunmmarised below:

a) vesting overall project implementation on a federal institution without takingcognisance of the states involvement reduces project impact and slows the rate at whichproject objectives could be achieved.

5

b) although the supply of farm inputs is best left to the private sector, there must besome exceptions mainly because of the nature of livestock operations and the lack ofincentives for retailers to market some specific livestock feeds.

c) farmer involvement at an early stage in designing of project is essential, otherwise aswe saw with the grazing reserve development component, putting infrastructure alone doesnot necessarily result in automatic settlement.

d) making the project credit driven has at times caused the project to slow downbecause of delay in disbursing funds to the NACB branches in the field.

e) experience with the agropastoralist model has re-iterated the fact that newtechnologies particularly with regards to livestock production must be tested overtime andsocio-economic parameters established before they are presented for adoption by farmers.




Miscellaneous Tables(Appendix C)

Table 1: POST SLDP OPERATIONAL PLAN CONSOLIDATED COST TABLE(Naira)

Categoiy 1995 1996 1997 1998 1999 2000 T.i

Management (recurrent) 27,595,069 25,144,646 25,144,646 25,144,646 25,144,646 21,955,646 1~~221Credit 48,625,000 95,975,000 95,975,000 95,975,000 95,975,000 48,625,000 4...... ^.-.^ .1.2W.ODairy 14,538,250 153,331,460 87,824,060 96,651,820 105,607,580 114,726,340 ~?2....... 7.5 1 2 QGrazing Reserve & Stock Route 19,686,000 25,440,000 21,530,000 22,032,000 13,242,000 9,242,000. .It-5.14 17SZ.00Small Ruminants (non-credit) 350,000 350,000 350,000 350,00 350,000 350,000.- 2~O~N'dama Ranches 70,000 70,000 70,000 __70,000 __70,000 70,000 -.'"''".'Unified Extension Systems with ADPs 245,000 245,000 245,000 245,000 245,000 245,000 "'' ''' ' B

Commercial & Pastoral Extension System 276,800 276,800 276,800 276,800 276,800 276,800 .... ... B2 -B.0BBBHeavy Equipment Commercialisation* 550,000 550,000 250,000 250,000 250,000 250,000 - : :- 0,0

. ....... ~~~~~~ . .10 ~~~~1~~~~Z90B 2~~~~1~~B0~~08 240 9~~~~~~2~0 241 ~~~~~1~~1 ±02~~~~ 195~~~74D~~~788 1±~~~~2Z681~.......2; B B B -: -B B B BB B :: : ....................................... ........~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~...............

Note: Cost does not include the cost of full commercialisation, as this is still being worked out

Aug. 1995

Table 2: Estimation of Incremental Production

Table: Estmation of Incremental Meat Production

1. Bef Fattening 19a 1939 1990 19S1 1SS2 1993 1994 TotalCatlle purtiaaed 4372 5185 12814 8s50 e207 5484 3364 48176

1443 1443 1443 1443 1443 1443 6s571711 1711 1711 1711 1711 8555

4163 4183 4163 4163 16650

2954 2954 2954 68612048 2048 4097

1 81a 1S10

Sub-total no. cate 4372 6623 15768 16266 16477 17802 17482 940sSub-total tone of be 14 219 520 537 54 587 577 3129

2. Sheep Fattening 1983 1969 1990 1991 1992 1993 1994 TotalSheep Purchaad 1535 2744 11182 3793 2273 3954 Ie33 27114

507 507 507 507 507 507 3039908 908 906 906 906 4526

3890 3690 3690 3890 14760

1252 1252 1252 3756750 750 150

1305 1305

Sub-total no. sheep 1535 3251 12594 s891 8627 11056 10042 55001

Sub-total tone of mutton 9 19 74 52 51 65 59 329

3. Plg Fattening 1968 1989 1990 1991 1992 1993 1994 TotalPigs purchased 22 2864 4729 3236 4007 3447 1978 20263

7 7 7 7 7 7 44945 945 945 945 945 4726

____________________ _______ ____ 1561 1561 1561 1561 6242_ 1068 1068 1068 3204

1322 1322 2645

___________________ _______ _______ r______ _______ ______ 1138 1138Sub-total no. pigs 22 2871 6581 574S 7586 8360 6019 38260

Sub-total tons of pork 1 136 273 277 36 402 3ss 1841

4. Poultry -Layer. 1968 1989 1990 1991 1992 1993 199 TotalCulled layen 2990 8655 29718 18443 20164 76190

987 987 987 967 3947

2922 2922 2922 67669807 9607 19614

5428 8426

Sub-total no. layers culled 2990 9842 33627 30159 39326 115943

Sub-total tons of meat 4 1S So 46 69 174

Incremental dox Eggs 157548 202599 248061 122680 153996 3a1684

5. Poultry - BroIleb 1968 1969 1990 191 1992 1993 199 TotalNo. produced 1998 80795 266064 110349 103161 110148 61950 714485

859 659 859 659 859 659 3956

20082 20062 20062 20062 20082 100312

87801 87801 87801 87801 351204

30415 36415 36415 10924834043 34043 680s8

38349 36349

Sub-total no. broilers 1998 81454 286786 218872 248099 289129 277280 1383618Sub-total tons of meat 2 68 315 241 273 316 308 1522

total poultry mea produced 2 68 320 256 323 383 364 1696

Total Incremental

meat produced 157 444 1166 1121 1263 1417 1 138 6

Note:About 67% of the loans given out each year are for repeater borrowers. f Is assumed that each yerthe 33% who are not repeater. will continue their oparetlon by plowing back theIr equIty and someof their profit Some borrowers were not repaying the principal In order to avoid the lngthy proceduraof NACS for loan renewal

Table 3: Estimation of Economic Benefits and Costs

Enterprise Unit 1988 1989 1990 1991 1992 1993 19941

1. Beef fattening1.1 Incr. beef produced ton 144 219 520 537 544 587 5771.2 Economic price Naira '000 12.40 20.20 20.30 25.20 41.90 52.80 56.001.3 Benefit Naira '000 1789 4418 10563 13527 22783 31019 323251.4 Cost Naira '000 302 449 1218 2360 2253 4062 3895

Incremental net benefit Naira '000 1487 3969 9345 11167 20529 26957 28430

2. Sheep fattening Unit 1988 1989 1990 1991 1992 1993 1994

2.1 Incr. mutton produced ton 9 19 74 52 51 65 592.2 Economic price Naira'000 14.00 10.92 13.04 9.92 9.48 21.72 26.502.3 Benefit Naira'000 126 209 966 519 481 1412 15652.4 Cost Naira '000 23 40 179 238 217 464 409


3. Pig fattening Unit 1988 1989 1990 1991 1992 1993 1994

3.1 Incr.pork produced ton 1| 138 273 277 365 402 3863.2 Economic price Naira'000 11.76 8.48 10.16 10.72 11.44 23.20 26.453.3 Benefit Naira '000 12 1171 2776 2964 4175 9318 102023.4 Cost Naira '000 1 168 381 725 898 1650 1551

Incremental net benefit Naira '000 11 1003 2395 2239 3277 7668 86512 68 320 256 323 363 364

4. Layers Unit 1988 1989 1990 1991 1992 1993 1994

4.1 lncr. meat produced ton 4 15 50 45 594.2 Economic price meat Naira '000 29.46 22.89 30.69 39.59 32.68 33.86 45.53

4.3 Incr. doz eggs produced - - 157548 202599 245061 122680 1539964.4 Economic price doz.eggs Naira 8.5 6.3 9.9 11.9 11.6 14.4 194.5 Benefit meat Naira'000 - - 138 584 1648 1532 26864.6 Benefit eggs naira '000 - - 1560 2411 2843 1767 2926

Sub -total benefit naira '000 - - 1697 2995 4491 3298 56124.7 Cost - - 1796 3310 4086 2291 4383

Incremental net benefit - - -99 -315 405 1007 1229

5. Broilers Unit 1988 1989 1990 1991 1992 1993 1994

5.1 Incr. meat produced ton 2 68 315 241 273 318 3055.2 Economic price Naira '000 29.46 22.89 30.69 39.59 32.68 33.86 45.535.3 Benefit Naira '000 65 1547 9682 9532 8919 10769 138875.4 Cost Naira '000 14 383 1702 1261 1355 4573 7145


U

Table 4: Import Parity Price, Beef

Item 1988 1989 1990 1991 1992 1993 1994

Current Dollars (c/kg) 252 257 256 266 244 253 256

World CPI Deflator 1 0.94 0.86 0.84 0.8 0.83 0.87

1986 Constant Prices 252 242 220 223 195 210 223

$/tonne 2520 2416 2202 2234 1952 2100 2227

Naira Exchange rates 4.284 7.38 7.95 9.82 18.8 21.996 21.99

Naira Equivalent (N/Tonne) 10796 17829 17503 21942 36698 46189 48976

Add Handling Charges/tonne 85 128 170 213 255 298 425

Add Transport to Reference Market 383 383 765 765 1148 1530 1530

Total 11263 18339 18438 22919 38100 48017 50931

Add Marketing Costs (10% of Overhead) 1126 1834 1844 2292 3810 4802 5093

Reference Market Price (NJTon) 12389 20172 20281 25211 41910 52819 56024

Table 5: Economic Prices of Non-Traded Animal Products (1986 Constant Prices), 1988-94

j 1988 1989 1990 1991 1992 1993 1994Domestic CPI Deflators 1.96 2.99 3.1 3.44 4.99 5.45 5.9

Mutton (N/Tonne) 14002 10925 13043 9898 9477 21718 26499

Pork (N/Tonne) 11749 8460 10150 10730 11438 232101 40613

Egg (Dozen) 8.5 6.3 9.9 11.9 11.6 14.4 19

Chicken (N/Tonne) 29460 22890 30690 39592 32679 33863 45527

Table 6: Parameters for Establishing Economic Costs

Foreign Exchange Components

Civil Works 0.8

Plant & Equipment 1

Vehicles 1

Inputs 0.85

Technical Assistance 1

Local Salaries 0

Plant, Vehicle and EquipmentOperation 1.45

Standard Conversion Factor 0.85

Discount Factor 0.12

Table 7: Economic Costs (N 000)

1987 1988 1989 1990 1991 1992 1993 1994

MUV Deflators 1.1 1.15 1.17 1.23 1.26 1.32 1.36 1.39

Dom. CPI Deflator 1.9 1.962 2.99 3.102 3.435 4.994 5.448 6.902

Exchange Rates 3.37 4.28 7.38 7.95 9.82 18.84 22 21.99

Civil Works (costed at 50%) 85 274 0 a 282 574 442 704

Plant, Vehicle and Equipment 346 16202 10755 12331 9382 16471 16147 33599

Technical Assistance 8393 7229 11344 18930 147391 18993 196211 4504

less 50% Trading Costs 51 268 773 218 33 898 3729 14

less Sectoral Planning 57 276 2903 8001 6383 4357 3829 2555

less System research 27 99 612 2692 2689 1063 3244 1799

Net Technical Assistance 8259 6587 7056 8019 5634 12675 8819 136

Local Salaries 1092 1723 1631 1679 1866 1769 2667 2639

Plant Vehicle and EquipmentOperations o 5363 4419 7530 7019 6176 9626 4895

Total project Costs 9781 30149 23862 29559 24183 37665 37701 41972

Less 50% Grazing ReserveCost 103 124 73 113 100 51 59 47

Grant Total 9678 30025 23789 2944 24083 37614 37642 41928

Table 8: Prevailing Exchange Rates, Cost of Living Index and Interest Rates

Interest Rates % p.a.

Year Exchang-e Rate CPI Commercial NACB

1986 USS1.00 =N 1.00 100

1987 USS.00 = N 3.32 18 13

1988 USS1.00 = N 4.28 196 18 16

1989 US$1.00 = N 7.38 299 18 15

1990 USSL.00 = N 7.95 310 25 17

1991 USSI.00 = N 9.82 3.44 25 15

1992 USSI.00=N 18.84 4.99 32.5 15

1993 US$1.00 = N 21.99 5.45 21 17

1994 USS.00 = N 21.99 5.90 21 15

1995 USS 1.00 = N 82.00 21 16

Table 9: Financial Analysis of Livestock Enterprise Models

1. Cattle FatteningUnit Cost Value

CASH INFLOW Unit Quantity Naira Nairaa. Cattle Sales no. T 2 130001 26000b. Loan Naira 10000 10000c. Equity Naira 11383 11383

Total Inflow Naira 47383

CASH OUTFLOWa. Stock Purchase no. 2 9000 18000b Operating Costs

- Supplementary Feeds Naira 1071 1071-Medication Naira 1 926 1926

- Salt Lick Naira 440 440c. Loan Repayment Naira oo 1000 1000Cd. Interest Payment (18%, 4mnts) Naira 600 600

Total Outflow Naira 32037

Net Cash Balance Naira 15346Net Cash Balance to Equity Naira 3963Opportunity Cost of Own Capital Naira 696Net Return to Owners Labor & Mgmt. | Naira 3267Net Return to Manday (124 Days) Naira t 26Net return per animal fattened Naira , _ 1633

2. Sheep Fattening | =

______________________ _Unit Cost ValueCASH INFLOW: Unit Quantity Naira Naira

a. Sheep Sales { no. 8 3800 30400b. Loan Naira 10000 10000c. Equity Naira | 11800 11800

Total Inflow _ F 52200

CASH OUTFLOW: _ _____

CASH OUTFLOW|ja. Stock Purchase no. 8 2600 20800b Operating Costs _ ___

- Supplementary Feeds Naira | 1100 1100- Medication Naira _ 400 400- Salt Lick Naira 200 200

- Molasses Naira | 300 300c. Loan Repayment Naira 10000 10000d. Interest Payment (18%, 4mnts) Naira ___ ________ 600

Total Outflow Naira 1 _ 33400

Net Cash Balance Naira I 18800Net Cash Balance to Equity Naira I_ I_I_7000

Opportunity Cost of Own Capital Naira ______708

Net Retum to Owners Labor & Mgmt. Naira I_____6292Net Return to Manday (122 Days) Naira __| 52Net return per animal fattened Naira ______ 787

Table 9 (cont'd): Financial Analysis of Livestock Enterprise Models

3. Pig FatteningUnit Cost Value

CASH INFLOW: Unit Quantity Nalra Nairaa. Pig Sales no. 6 1675 10050b. Loan Naira 4000 4000c. Equity Naira 1680 1680

Total Inflow Naira 15730

CASH OUTFLOW_a. Stock Purchase no. 6 638 3828b Operating Costs

- Supplementary Feeds Naira 1550 1550- Medication Naira 300 300

c. Loan Repayment Naira 4000 4000d. Interest Payment (18%, 4mnts) Naira 240 240


Net Cash Balance Naira 5812Net Cash Balance to Equity Naira 4132

Opportunity Cost of Own Capital Naira 240Net Retum to Owners Labor & Mgmt. Naira 3892

Net return per animal fattened Naira 69

4. Broiler ProductionUnit Cost Value

CASH INFLOW: Unit Quantity Naira Nairaa. Broiler Sales no. 285 200 57000b. Loan Naira 24000 24000c. Equity Naira 9650 9650

Total Inflow 90650

CASH OUTFLOW: L LCASH OUFLO __a. Day Old Chicks no. 300 30 9000b. Investment Costs Amortized

- pen construction Naira 500 500-feeders Naira 50 50- drinkers Naira 50 50- lantem Naira 50 50

b Operating Costs- Feed Naira 21000 21000- Medication Naira 3000 3000- labor Naira 4800 4800

- transport Naira . 300 300c. Loan Repayment Naira 24000 24000d. Interest Payment (18%, 4mnts) Naira 1440


Net Cash Balance _Naira .284CNet Cash Balance to Equity Naira 16810

Opportunity Cost of Own Capital Naira 579Net Retum to Owner's Labor & Mgmt. Naira 16231

Net return per bird Naira _64

Table 9 (cont'd): Financial Analysis of Livestock Enterprise Models

S. Poultry Layer Production

Unit Cost Value.CASHINELQW. Unit Quantity Naira Naira

a. Culled Layers Sales no. 300 117 35100b. Egg Sales doaen 2000 65 130000b. Loan Naira 24000 24000c. Equity Naira 60150 60150

Total Inflow 249250

CASH OUTFLOW: .CASH OUTFLOWa. Day Old Chicks no. 360 30 10800b. Investment Costs Amortized

- pen cponstruction Naira 500 500-feeders Naira 50 50- drinkers Naira 50 50- lantern Naira 50 50

b Operating Costs- Feed Naira 70000 70000- Medication Naira 4500 4500- labor Naira 4800 4800

- transport Naira 350 350c. Loan Repayment Naira 24000 24000d. Interest Payment (18%, 4mnts) Naira 1440 1440


Net Cash Balance Naira 132710Net Cash Balance to Equity Naira 72560

Opportunity Cost of Own Capital Naira 3609Net Retum to Owners Labor & Mgmt. Naira 68951

Net return per bird Naira 192


FrEDERAL REPUBLIC OF NIGERIA


Map (IBRD19816R1)(Appendix D)

IBRD 19816R1

NIGERIA

IBRDASSISTED

L ka AGRICULTURALG, y fx : 7 X PROJECTS

SOK ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~COMPLETED

SOKOR ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1Cocoa I (Loan 764-UNI)

61 t \ G v 4 i < >AF^ff:5Rl $( .DUGU | 2 Cocoa 11 (Loon, 1045-UNI)* LivetoCkI (Loana 1091 -UNI)

4 Funtua (Loan 1 092-UNI)

5 Gusau (Loa,n 1 099-UNI)

0 6 Rice (Loan 1 1 03 -UNi(

> ffi > Gr>cermg4 # GcZ-ng P KA170tN;;x 2 \ 0 > a 7 Gon,be7 Lon 1 164UNI)8 Im Oil Palm (Loan 1I 92-UNI)

9 Lakfa (Loon 1454-UNI)

R-servo, W NlF; B sNA < wy 8AUCHI 1 0 Aya,gba (Loan 1455-UNI)

11 Riners Odl Palm (Loan 1591 -UNI)r .KVLA,@ | / Cb MINNA q JO5 g 9 12 Bida (Loan 1667-UNI)

1 3 Ekiti-Akobo (Loan 1 854-UNI)LJ 1|2 ..ATE.4fJ i / - \ _-= CANCELLED

/ ltng A t / ) -1- 5 J v / YOLAe/ O^Oda Oil Palm (Loan 11 97-UNI)SBendel Odi Palm (Loan 1183-UNI)

t C w X ILORIN t 9 9 , _ < Rese-ze /EXISTING

R )1.,,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ltn (Loon 1668-UNI(

A A - z \ t2t)Nf7(/fts- ,8J j I B Forestry (Loon 1679-UNI)

CO K U T.>1 R-(ch/ 1 0 MAKURDI ) L / C Ag9sir& IR-.(o M -&o nagement

r O~~~~~NDO /gRnh Jl~)D Oyo Noth (Leonl 1838-UNI)E Bo-chi St. (Loan 1981-UNII

LAG- -r<(3 Jb B i) F Kano St (Loan 1982-UNI)ANAAPk 4 rD Agr Tech Assist. Project

-ph,bee p,eyprd by (Loan 2D29-UNI(W eniew n s

tB e-uek - *-l G Sokolo St (Locn 21 85-UNI)

y The W. Ho >J*l(.)l /zuFl r ueetoi hrYord 8nnk H Kacdul- St (Loan 2436-UNI)

ed the booed-ries sheii (J Stoic Copitois i MSADP I (Loait 2733 UNI)

,dWS,ERRI J one y,udeemeeTnt W-1d e l9- og _ SiotSue8rdat,es K Borno St. Loan 2741 UN)

Gsif of Guinea \ ll _t t_ CALABAR e t.t- olselaenl oroceptoreu t-nternpilo ulBo indarieL MSADP II

Gti/f of Guineo B.-oM[r[kq " "' 50 1'1 2n,d Lovestock ILoan 2737-UNI)

N f AgVvt l MILrc D 2r 41> ̂ ,, 50 100 Ti iW APPRAISED MSADP IIl

ItJ2( }tKii 6 8 Logos, Ondo, Oyo, & Rivers States

tdoveniaLe 1989 '

IMAG INGA

Report N:- 157 69Type: ICR

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