GROWTH ENHANCEMENT SUPPORT

Growth Enhancement Support Scheme (GESS)

Growth Enhancement Support Scheme (GESS) represents a policy and pragmatic shift within the existing Fertilizer Market Stabilization Programme and it puts the resource constrained farmer at its center through the provision of series of incentives to encourage the critical actors in the fertilizer value chain to work together to improve productivity, household food security and income of the farmer.

Goals of GESS:-

• Target 5 million farmers in each year for 4 years that will receive GESS in their mobile phone directly totaling 20 million at the end of 4 years.
• To provide support directly to farmers to enable them procure agricultural inputs at affordable prices, at the right time and place.
• To increase productivity of farmers across the length and breadth of the country through increased use of fertilizer i.e. 50kg/ha from 13kg/ha.
• Change the role of Government from direct procurement and distribution of fertilizer to a facilitator of procurement, regulator of fertilizer quality and catalyst of active private sector participation in the fertilizer value chain

Achievements to date

Series of meetings have been held with the fertilizer suppliers to inform and generate their interest in the scheme.  Attached herewith is the report of the last minute with the suppliers held on the 15th December, 2011 in Abuja.

17 fertilizer suppliers have been identified and have shown commitment to participate in the scheme.  They will feed about 2,500 agro-dealers (certified by IFDC) and spread across the country.  The suppliers will feed another 1,780 agro-dealers that are yet to be certified.

List of verified agro-dealers have been compiled and forwarded to all participating banks and Cellulant

Data entry of farmers (census) is on-going and to date, about 600,000 farmers have been captured at the data center.

15 States have written to commit their respective States to respect the terms and conditions in participating in the GESS

The draft bill on Fertilizer Quality Control is presently with the Ministry of Justice for vetting prior to its being forwarded to the National Assembly for consideration

Certificate for No Objection from BPP has also been obtained for the award of contract to Cellulant Nigeria Limited

Anticipatory approval for award of contract to Cellulant Nigeria Limited for the provision of technology platform has been sought and obtained from Mr. President

Federal Ministry of Finance has signed MOU with banks and Federal Ministry of Agriculture and Rural Development for the provision of guarantee on 70% of the credit provided by banks participating in the scheme

Interest drawback escrow account has been created in the CBN

Workshop on financing Agricultural Input Supply Scheme – 2012 farming season held on 8th December, 2011 with the banks in Eko Le’Meridien Hotel Victoria Island, Lagos to fine tune implementation strategies viz-a-viz the roles of stakeholders in the scheme

Site and Crop Specific Fertilizer Formulation have been developed for the 36 States and FCT to ensure that crops express their maximum genetic potential in an enabling soil environment

Next Steps

Pilot demonstration of the implementation of the e-wallet will be carried out by mid-January, 2012 to test the technology platform

Stock verification of the fertilizer suppliers would be undertaken by mid-January, 2012 to determine the total stock of fertilizer available in the country for the scheme

Meeting of all stakeholders to agree on structure and modality of implementation of the scheme by end of January/early February, 2012