Poverty remains entrenched in Nigeria, where 70 percent of the rural population lives below the poverty line. In rural areas, poverty is highest among households who work in agriculture. Nigeria’s Fadama areas are irrigable low-lying floodplains along rivers, where poverty is concentrated. The land is fertile and water is easily accessible, but the Fadamas have also been the scene of conflict among farmers, fishers, and pastoralists who are vying for land, water, and grazing resources.
In 2004, the Nigerian government launched the Second National Fadama Development Project to increase the incomes of farmers, fishers, and other poor people in Fadama areas. The IDA-supported Fadama II sought to empower local communities and improve the government’s capacity to reach out specifically to the poor and vulnerable groups, such as women, unemployed youth, widows, and people living with HIV/AIDS. Importantly, the strategy represented a shift from public sector domination to a community-driven development approach, which is built around community-defined priorities. The participatory component of the project was based on Fadama user groups with common economic interests, such as farmers, fishers, pastoralists (people who raise livestock), women, the disabled, and students. The project encouraged these groups to develop plans, and then each group requested money to pay for income-generating “community-level assets,” such as fishing nets, fertilizer, water-pumps, or generators. When the local Fadama Development Committee approved a plan, the community put the contract out to bid and the winning bidder was paid directly from the project accounts. Fadama II also supported off-farm activities such as agro-processing, business training, and rural marketing. Moreover, it provided demand-driven extension services, worked to resolve conflicts over natural resources, and developed rural infrastructure such as roads.
Fadama II has boosted incomes for 2.3 million farm families in 12 Nigerian states. Household incomes increased by an average of 60 percent between 2005 and 2007. This result far surpasses the initial goal of a 20 percent increase.
Highlights:
- Small business boosted. The project increased the capacity of beneficiaries to manage economic activities.
- Community assets multiplied. The project led to a 590 percent increase in the value of group-owned productive assets, which was partly due to the cash transfers to Fadama user groups that covered a large share of the costs of group-asset acquisition.
- Individual assets increased. The project led to a 49 percent increase in privately owned productive assets of the beneficiaries.
- The poorest gained the most. The poorest third experienced by far the largest increase in productive assets. The average value of their productive assets increased from US$ 90 to about US$ 3,990.
- Better rural transport saved time. Various measurements of rural transport infrastructure—distance to the nearest all-weather road, the distance to town, and the time it took to travel to the nearest road by motor vehicle—was reduced.
- Agricultural assistance was valuable. Agricultural advisory services led to improved livestock management, improved financial management, and better agricultural marketing techniques. Furthermore, demand for fee-based post-harvest advisory services increased.
The total project cost of Fadama II was US$125.4 million, with IDA contributing US$100 million to support Fadama II operations in 12 states. IDA support has helped Nigeria implement its broad national strategy for raising rural productivity and incomes through a focus on rural infrastructure, rural finance, agricultural research and advisory services, and improved mechanisms for conflict resolution. Furthermore, IDA supported agricultural development in Nigeria through an active program including analytical work, technical assistance, and investment lending. Analytical works produced in collaboration with the Government of Nigeria include: Getting Agriculture Growing in Nigeria (sector strategy, 2006); Nigeria Agriculture Public Expenditure Review; and Nigeria Rural Finance: Assessment of Current Programs and Options. In 2006, when Avian Flu emerged in Nigeria, the Fadama Credit was reallocated to help provide the first early response. This provided the Government a platform to request a credit of US$50 million to minimize the threat posed by the Avian Flu virus to humans and the poultry industry. Currently, IDA is providing technical assistance to the Government to develop a national Agricultural Development strategy. As a result of the various analytical works conducted, IDA has been invited to support the government agricultural team drafting the development of the 2020 Vision for Nigeria.
The project inspired the African Development Bank to implement similar projects in six states, raising the total number of Nigerian states benefiting from Fadama from 12 to 18. These additional projects incorporate funds from the Global Environment Fund to support sustainable land use and water management. The project also inspired the Government of Japan to develop social infrastructure (such as schools and dispensaries) around Fadama communities to enhance the welfare of the rural people.
Following the success of Fadama II, the Government is strongly committed to the community-driven development approach and has requested national coverage in the form of Fadama III. The project launched in August 2009 in Zamfara State (Northern Nigeria). Like its predecessor, the new project is relying on demand-driven investments and empowerment of local communities with the aim of improving productivity and land and water quality. It is being implemented in Nigeria’s 36 states and the Federal Capital Territory, with IDA support in the amount of US$250 million.
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