CHAPTER ONE

INTRODUCTION

The agricultural sector has been a prominent and integral part of national development,
improving human livelihoods and living standards, as well as the economic sector, through the
production of livestock and crops. According to the Food and Agricultural Organization (2014),
agriculture employs the vast majority of the population and provides a means for valuable
foreign exchange to be earned through the export of agricultural products and produce. However,
Bjornlund, Bjornlund and Van Roogen (2020) posited that, Nigeria agricultural systems, being
the largest in Sub-Saharan Africa is stagnated and has become disconnected from the priorities of
Nigerian farmers’ livelihood. This is due to poor funding by the Federal and States Governments,
which catapulted to development and implementation of programmes to promote livestock and
crop production. Such programmes include; the Anchor Borrowers, Sassakawa Global2000,
National Fadamas Programme, Agricultural Development Programme, National Poverty
Eradication Programme, and International Fund for Agricultural Development. IFAD was
established in 1977 in response to the food crisis of the 1970s, with the mission to transform
rural economies and food systems by making them more inclusive, productive, reduce rural
poverty, set up and strengthens farmers organizations and support empowerment of the poor
rural people, hinging majorly on women, youth and the vulnerable groups in order to improve
their livelihood(IFAD website). Livelihood simply refers to the entire life of an individual
including his state of wealth, comfort, material goods, and necessities available to a certain
socio-economic class in a certain geographic area, usually a country (Organization for Economic
Co-operation and Development, OECD 2019). Livelihood consists of physical assets such as
equipment and machinery, household jewelry and sustainable goods, accommodation, livestock
and infrastructure (Ayana, Megento and Kussa 2021), also the aspect of human assets include
skills, knowledge, availability of workforce and capacity to labour, good health and physical
capability of individuals or members of households (Singh and Chudasama 2020).

Despite the importance of the agricultural industry, due to its low productivity, it has performed
quite poorly over the past few decades. But if the nation is to feed its people, end extreme
poverty, and achieve a suitable rate of sustained economic growth, the agriculture sector’s dismal
performance must be rectified. In Nigeria, agriculture continues to be the mainstay of the rural
economy since it employs 70% of the labor force.

However, due to the fact that small-holder farmers frequently grow the majority of the land using
subpar production practices, fewer than 50% of the nation’s arable land is under cultivation.
(Awotideet al., 2015). Because of this, there has been a sharp rise in life insecurity in Nigeria,
which is partly attributable to the declining performance of the agricultural sector, which
employs the vast majority of the poor. Additionally, poverty in Nigeria has expanded to include a
larger range of issues, such as home, income, and food insecurity, as well as inadequate access to
public services and infrastructure, an unhygienic environment, illiteracy and ignorance, a lack of
protection for one’s life and possessions, and bad governance. In light of this context, the
purpose of this work is to examine how the performance of international fund for the
agricultural sector is impacted for food export and import

Over the years, a number of agricultural programs have been implemented to lessen the extreme
poverty experienced by rural residents, mostly farmers, in sub-Saharan Africa (SSA). A few of
these initiatives are the National Economic Empowerment and Development (NEED),
Agricultural Development Programs (ADP), Food and Agricultural Organization (FAO),
International Fund for Agricultural Development (IFAD), National Orientation Agency (NOA),
National Accelerated Food Production Program (NAFPP), Green Revolution (GR), and
Operation Feed the Nation.etc. (IFAD, 2010: Hashmi and Sial 2017). But according to the
literature (Afolayan, 2017), it appears that these initiatives had little to no effect on the rural
population. As a result, the percentage of people living in poverty in rural regions is rising
(Diamond, 2009; Handley et al., 2009; Gate 2014). This study, however, restricts its focus to
Agricultural Development Programmes (ADP), which aims to raise the income level of small-
scale farmers and increase the value chain of economic welfare of rural cooperative farmers by
making provisions for improved seeds, fertilizer, pesticides, credit facilities, and infrastructure
facilities. (Akpobo, 2007; Ajayi and Ajala, 2017).

The term “value chain” describes the flow of actors and value-added stages from the point of
production to the point at which a product is delivered to the market (Abah, 2019). Agriculture is
the main source of income in rural areas. As a result, raising the productivity and efficiency of
agricultural value chains can promote the expansion of rural economies as well as an increase in
the incomes of rural residents. As a result, the value chain method is being used in development
interventions in the agricultural sector (Laven et al., 2012). However, where manufacturing scale
economies are crucial or there are stringent requirements for products and procedures, value
chain participation can also pose a danger to smallholders and small companies (Abah, 2019).

According to Tardi (2022), a value chain is a sequence of related actions that lead to the
development of a finished good, from its conception through its delivery to a client. The supply
chain outlines every stage of production, including the sourcing, manufacturing, and marketing
phases, where value is added. Additionally, in order to maintain their competitive edge,
businesses must constantly assess the value they generate in order to compete for unmatched
pricing, excellent goods, and client loyalty. A value chain may assist a firm in identifying
inefficient aspects of its operations and in implementing methods to streamline those operations
for optimal effectiveness and profitability.

Value chain analysis (VCA) examines how resources are used effectively to build competitive
advantage, reduced costs, and higher profit margins. The efficiency, price, and returns received
by each participant at each level of the value chain are determined by the quantity and behavior
of the participants (Global Value Chain Initiative (GVCI), 2007). Terdi (2022) said that value-
chain analysis is carried out by assessing the specific steps involved in each stage of its operation.
A value-chain analysis’ goal is to boost production efficiency so that a business can provide the
most value for the least amount of money. According to the value chain model, private and
public organizations (including development organizations) can identify points of intervention to
boost efficiency and total value added, thereby enhancing the skills of the intended actors and
their share of the total revenue generated. As a result, institutional changes are required to
increase producers’ responsiveness to end-user needs and their emphasis on milling, cleaning,
sorting, and grading. (Roduner, 2007).

Statement of the Problem

According to estimates from FAO and the International Fund for Agricultural Development
(IFAD) published in 2013, Nigeria’s average daily protein consumption is 64 grams per person
and its daily calorie intake is 1730 kcal, both of which are well below the minimum 2500 – 3400
kcal recommended daily intake. This demonstrates that Nigeria’s imbalanced diet, which causes
a variety of deficiency symptoms, is a problem. Additionally, Metu, Okeyika, and Maduka (2016)
stated that Nigeria ranks 91st out of 109 nations in the Global Food Security Index (GFSI) (2015)
based on criteria of cost, availability, quality, and safety with a score of 37.1.

Furthermore, Metu, Okeyika, and Maduka (2016) noted that one of Nigeria’s agricultural
development policies aims is to guarantee that there is adequate food stockpile at the household,
state, and federal government levels to fend off any danger to the level of food security. In order
to feed her thronging population, the government had to spend money on imports because
domestic agricultural output was unable to keep up with the rising demand for food. For instance,
whereas food export accounts for just 5.3% of all goods exported, food imports surged from
19.9% in 2000 to 30.6% and 22.7% in 2011 and 2012, respectively (Metu, Okeyika & Maduka,
2016).Ojeka et al. (2016) noted that the issue on academics’ minds is why agricultural
productivity is so low despite the significant spending made possible by the many programs put
into place in Nigeria. Additionally, poverty in Nigeria has expanded to encompass a larger range
of issues, such as household, income, and food insecurity, as well as inadequate access to public
services and infrastructure, an unhygienic environment, illiteracy and ignorance, a lack of
protection for one’s life and possessions, and bad governance. Given this context, the purpose of
this article is to offer practical advice on how to use cooperatives to create an effective value
chain that will benefit rural farmers economically.

The International Fund for Agricultural Development (IFAD) has played a significant role in
enhancing agricultural development and economic growth in Nigeria through various programs
and initiatives. One notable intervention is the Value Chain Development Programme (VCDP),
implemented between 2013 and 2019, which aimed to strengthen smallholder participation in
rice and cassava value chains. The program focused on promoting self-sufficiency in key staples,
increasing incomes, and improving food security. Key features included technical assistance,
provision of inputs, access to credit, and infrastructure development to empower cooperatives
and overcome market participation barriers. Innovative practices such as public-private
partnerships with off-takers, the creation of Commodity Alliance Forums (CAF) to enhance
market information and contract opportunities, training youth as seed agripreneurs, and
introducing new processing techniques like "false-bottom" parboilers were also embraced. An
impact assessment of VCDP indicated significant positive outcomes, including increased
production value for rice and cassava, reduced food insecurity, improved productivity, and
higher adoption of improved seeds and fertilizers.

In a study assessing the impact of IFAD's interventions on economic development in Nigeria

from 1985 to 2015, Akatugba, Oniore, and Akekere (2017) found that IFAD-funded projects
positively influenced key indicators such as life expectancy and per capita income. The study
recommended increased funding for agricultural activities and rural savings mobilization to
further promote development through enhanced human capital productivity.

Further research by Tyagher, Doki, and Akighir examined the impact of IFAD programs on the
livelihoods of smallholder rice farmers in Benue State, Nigeria. The findings revealed that IFAD
interventions led to improvements in income levels, access to credit, and adoption of modern
farming techniques among the beneficiaries.

According to Tasie (2012) evaluated the effects of IFAD credit supply on rural farmers in Rivers
State, Nigeria. The study concluded that access to IFAD credit facilities significantly enhanced
agricultural productivity and income among rural farmers, thereby contributing to poverty
reduction in the region. These studies underscore the positive impact of IFAD's interventions on
agricultural development and economic growth in Nigeria, highlighting the importance of
continued support and investment in the agricultural sector to sustain and further these gains.

Therefore, in the light of the various issues faced by the agricultural sector, this study seeks to
examine the influence of International Fund Agricultural Development Programme (IFAD) on
value chain on farmer’s cooperative members has actually stepped in to mediate these issues.

Objectives of this Study

The broad objective of this study is to assess the influence of International Fund Agricultural
Development (IFAD) in Nigeria. The specific objectives of this study are;

1. Examine the influence of IFAD on the production patterns of farm crops in the study areas.
2. Assess the influence of IFAD on the processing techniques for farm crops in the study areas.

Examine the influence of IFAD on the marketing systems for farm crops in the study areas.

Research questions

What is the influence of IFAD on the production patterns of crops in area?

What is the influence of IFAD on the processing techniques for crops in area?

What is the influence of IFAD on the marketing systems?

Functions of the International Fund for Agricultural Development (IFAD)

1. Financial Assistance

One of the core functions of IFAD is to provide loans and grants to developing countries to fund
agricultural and rural development projects. These funds are typically directed toward
smallholder farmers and rural communities, enabling them to access resources necessary for
improving agricultural productivity and livelihoods. IFAD ensures that financial support reaches
those most in need, particularly in remote and marginalized areas.

2. Capacity Building

IFAD plays a vital role in building the capacity of rural farmers and agricultural stakeholders.
Through training programs and workshops, it empowers farmers with modern agricultural
knowledge and techniques to enhance productivity and resource management. This function also
includes strengthening cooperatives and farmer associations to improve collaboration and
bargaining power within value chains.

3. Policy Advocacy

As an advocate for rural development, IFAD works with national governments to shape and
implement policies that benefit smallholder farmers and rural communities. By supporting the
creation of pro-farmer policies, IFAD encourages governments to prioritize rural areas in their
national development strategies, fostering inclusive and sustainable agricultural growth.
4. Innovation and Research

Innovation is central to IFAD’s work. The organization funds research and supports the adoption
of innovative agricultural practices that improve farm yields and sustainability. By promoting
climate-resilient farming methods, such as drought-tolerant crops and precision farming
technologies, IFAD helps farmers adapt to changing environmental conditions and market
demands.

5. Rural Infrastructure Development

To facilitate agricultural growth, IFAD invests in the development of rural infrastructure.

Projects funded by IFAD include the construction of irrigation systems, rural roads, market
centers, and storage facilities. These investments improve farmers' access to markets, reduce
post-harvest losses, and ensure the efficient transportation of agricultural products to consumers.

6. Gender and Youth Empowerment

IFAD recognizes the importance of involving women and youth in agricultural development. It
supports initiatives that empower women by providing them with access to land, credit, and
training. For youth, IFAD promotes programs that make agriculture more attractive and
profitable, offering them viable employment opportunities in rural areas.

7. Climate Adaptation

Climate change poses significant challenges to agriculture, particularly for smallholder farmers.
IFAD assists farmers in adopting climate-smart agricultural practices, such as conservation
agriculture and agroforestry. These measures help farmers mitigate the impact of extreme
weather events and maintain sustainable production levels.

8. Partnership Building

IFAD collaborates with a wide range of stakeholders, including national governments, non-
governmental organizations (NGOs), and private sector partners. These partnerships help
mobilize additional resources, share expertise, and foster innovation to achieve rural
development goals more effectively.

9. Monitoring and Evaluation

To ensure the effectiveness and accountability of its projects, IFAD conducts regular monitoring
and evaluation activities. By assessing the outcomes and impacts of its initiatives, IFAD
identifies best practices and lessons learned, which inform future projects and enhance overall
project sustainability.

International Fund for Agricultural Development (IFAD)

An international financial organization and specialized UN agency, the International Fund for
Agricultural Development works to end hunger and poverty in rural areas of emerging nations.
As one of the main consequences of the 1974 World Food Conference, it was formed as an
international financial organization in 1977 by United Nations General Assembly Resolution
32/107 (15 December 1977). It is a part of the UN Development Group and has its headquarters
in Rome, Italy. (European Commission, 2023).

In order to end poverty and hunger in developing nations, the United Nations has created the
International Fund for Agricultural Development (IFAD). It works in isolated rural parts of the
world to assist nations in achieving the Millennium Development Goals. IFAD creates and funds
initiatives that enable rural poor people to end their own poverty through low-interest loans and
grants. IFAD fights poverty not just as a lender but also as an advocate for the small farmers,
herders, fishermen, landless labourers, craftsmen, and indigenous peoples that reside in rural
regions and make up 75% of the world’s 1.2 billion extremely poor people. To address the root
causes of rural poverty, IFAD collaborates with many different partners, including governments,
funders, non-governmental organizations, local communities, and many more. It serves as a
catalyst, bringing together partners, resources, expertise, and policies that foster the development
of rural poor people’s capacity to boost agricultural output and look for alternative forms of
income. Access to financial services, markets, technology, land, and other natural resources is
improved for rural poor people through IFAD-supported programs and initiatives. (FIDAction,
2005).
The International Fund for Agricultural Development (IFAD) is a global organization whose
mission is to enhance the lives and agricultural development of underdeveloped nations. The
least developed nations and tiny island developing states are only two of the places where its
initiatives and programs are implemented.

By providing, among other things, access to weather information, disaster preparedness, social
learning, and technology transfer that enables farmers to feed growing populations and increase
the climate resilience of rural farming systems, the IFAD helps vulnerable groups, including
smallholder farmers, pastoralists, foresters, fishers, and small-scale entrepreneurs in rural areas.
(Green Climate Fund (GCF, 2016).
 CHAPTER TWO

LITERATURE REVIEW

International Fund for Agricultural Development (IFAD)

An international financial organization and specialized UN agency, the International Fund for
Agricultural Development works to end hunger and poverty in rural areas of emerging nations.
As one of the main consequences of the 1974 World Food Conference, it was formed as an
international financial organization in 1977 by United Nations General Assembly Resolution
32/107 (15 December 1977). It is a part of the UN Development Group and has its headquarters
in Rome, Italy. (European Commission, 2023).

In order to end poverty and hunger in developing nations, the United Nations has created the
International Fund for Agricultural Development (IFAD). It works in isolated rural parts of the
world to assist nations in achieving the Millennium Development Goals. IFAD creates and funds
initiatives that enable rural poor people to end their own poverty through low-interest loans and
grants. IFAD fights poverty not just as a lender but also as an advocate for the small farmers,
herders, fishermen, landless labourers, craftsmen, and indigenous peoples that reside in rural
regions and make up 75% of the world’s 1.2 billion extremely poor people.To address the root
causes of rural poverty, IFAD collaborates with many different partners, including governments,
funders, non-governmental organizations, local communities, and many more. It serves as a
catalyst, bringing together partners, resources, expertise, and policies that foster the development
of rural poor people’s capacity to boost agricultural output and look for alternative forms of
income. Access to financial services, markets, technology, land, and other natural resources is
improved for rural poor people through IFAD-supported programs and initiatives. (FIDAction,
2005).

The International Fund for Agricultural Development (IFAD) is a global organization whose
mission is to enhance the lives and agricultural development of underdeveloped nations. The
least developed nations and tiny island developing states are only two of the places where its
initiatives and programs are implemented.
By providing, among other things, access to weather information, disaster preparedness, social
learning, and technology transfer that enables farmers to feed growing populations and increase
the climate resilience of rural farming systems, the IFAD helps vulnerable groups, including
smallholder farmers, pastoralists, foresters, fishers, and small-scale entrepreneurs in rural areas.
(Green Climate Fund (GCF, 2016).

IFAD in Nigeria

Nigeria, with 182 million people and a 3% annual growth rate, is the most populous nation in
Africa. 105 million Nigerians, or 59% of the population, are under the age of 35. Nigeria, which
has 92.4 million hectares of land and has the largest economy in Africa, with 53% of its
population living in rural regions. Nigeria’s GDP increased by 3.8% annually on average from
2009 to 2014 as it moved into the medium income category. Growth then abruptly stalled due to
dropping oil prices, security threats, and ambiguous policies. The government now seeks to
diversify growth and lessen reliance on oil. At 44.9%, poverty is particularly acute in rural
regions. Young people don’t have access to jobs, and intermittent civil instability makes poverty
and hunger worse. Agriculture is a source of livelihood for poor rural women and men: 90% of
Nigeria’s food is grown on unirrigated plots across the country, by subsistence smallholder
farmers who make up 70% of the rural population. Even though it contributed 21% of the GDP
in 2015, agriculture is still undeveloped due to several barriers. Only 46% of land that is arable is
under cultivation. 95% of agricultural land is untitled, making it difficult for farmers to get
financing or make improvements. Poor rural roads make it more difficult to reach markets, inputs,
equipment, and new technologies, which reduces farm profitability. The availability of potable
water, healthcare, and schools in rural areas is poor.

Overcultivation, overgrazing, and deforestation are all contributing to increased erosion and land
degradation, and in the north, droughts are now frequent (IFAD, 2023).

IFAD’s Objectives and Global Functions

The International Fund for Agricultural Development (IFAD) was established in 1977 as a
specialized agency of the United Nations with a core mission to combat poverty and hunger in
rural areas of developing countries. The organization focuses on empowering rural communities
through financial investment, innovation, and policy advocacy aimed at enhancing agricultural
productivity and rural livelihoods.

One of IFAD’s primary objectives is to support smallholder farmers and rural enterprises by
improving their access to financial services, technology, and markets. According to IFAD (2021),
its interventions are structured around promoting sustainable agricultural practices, enhancing
value chain development, and increasing resilience to climate change. These objectives are
pursued through partnerships with governments, local communities, and the private sector.

Akatugba, Oniore, and Akekere (2017) noted that IFAD’s global strategy emphasizes inclusive
rural transformation by integrating smallholder farmers into productive market systems and
encouraging gender equality and youth engagement. This approach aligns with the United
Nations Sustainable Development Goals (SDGs), particularly SDG 1 (No Poverty) and SDG 2
(Zero Hunger).

IFAD’s Interventions in Nigeria

In Nigeria, IFAD has implemented various programs aimed at transforming the agricultural
sector and improving rural livelihoods. The Value Chain Development Programme (VCDP),
launched in 2013, focuses on enhancing the production and marketability of rice and cassava.
This program has provided infrastructure support, market access, and capacity-building
initiatives for farmers in key agricultural zones.

Tyagher, Doki, and Akighir found that IFAD-funded projects significantly improved smallholder
farmers' income levels, facilitated credit access, and promoted the adoption of modern
agricultural techniques. Tasie (2012) highlighted the positive impact of IFAD’s Rural Finance
Institution Building Programme (RUFIN) in Rivers State, which empowered rural farmers by
enhancing access to microfinance services and technical training.

Challenges and Gaps in IFAD Projects

Despite its numerous successes, IFAD’s operations in Nigeria face several challenges. Limited
local capacity, inadequate infrastructure, and policy inconsistencies have hindered the full
realization of project objectives. Akatugba et al. (2017) emphasized the need for stronger
government collaboration and sustained funding to ensure long-term project sustainability.
Climate change and security concerns, particularly in rural areas, have also posed significant
obstacles to the implementation of agricultural projects.

Importance of Agriculture in Nigeria's Economy

Agriculture plays a pivotal role in the Nigerian economy, contributing significantly to

employment, food security, and national revenue generation. Below are key points highlighting
its importance:

1. Contribution to GDP: Agriculture contributes about 25% to Nigeria's Gross Domestic

Product (GDP). It remains one of the largest sectors in the country's economy, second
only to crude oil.
2. Employment Generation: Approximately 70% of Nigeria's labor force is engaged in
agricultural activities, including crop farming, livestock production, forestry, and
fisheries. This sector provides livelihoods for millions, especially in rural areas.
3. Food Security: Agriculture ensures the availability of staple food crops such as cassava,
maize, rice, and yams. By fostering food production, the sector helps reduce Nigeria's
dependency on food imports.
4. Export Revenue: Before the oil boom, agricultural exports such as cocoa, rubber,
groundnuts, and palm oil were major foreign exchange earners for the country. Although
oil dominates exports today, there is a renewed effort to diversify exports through
agricultural products.
5. Raw Materials for Industries: The agro-industrial sector depends heavily on agriculture
for raw materials. Industries involved in food processing, textiles, and pharmaceuticals
rely on agricultural produce for their operations.
6. Poverty Alleviation: Through rural employment and increased food production,
agriculture plays a key role in reducing poverty and improving the standard of living in
rural areas.
7. Economic Diversification: With fluctuating oil prices, agriculture is seen as a critical
sector for diversifying Nigeria's economy. Government initiatives aim to strengthen the
sector to achieve sustainable economic growth.
8. Environmental and Ecological Benefits: Proper agricultural practices contribute to
sustainable land use and biodiversity conservation. Livestock and crop farming help
maintain balanced ecosystems when managed well.
 CHAPTER THREE

RESEARCH METHODOLOGY

Research Design

This study adopts a qualitative research approach to assess the impact of the International Fund
for Agricultural Development (IFAD) in Nigeria. The approach focuses on reviewing existing
literature, analyzing case studies, and synthesizing data from reports published by relevant
stakeholders, including IFAD, government agencies, and independent researchers.

Data Collection

The data for this study were collected from multiple secondary sources, including: Scholarly
articles and journals, official IFAD reports and publications, government documents and project
evaluations conducted by development experts. These sources provided valuable insights into the
economic, social, and environmental impacts of IFAD’s interventions.

3.3 Sampling Technique

This study Purposive sampling was used to select relevant literature and reports that directly
address IFAD’s projects and their outcomes in Nigeria. This technique ensured the inclusion of
data that are most pertinent to the research objectives.

3.4 Data Analysis

Thematic analysis was employed to identify key themes and patterns within the collected data.

3.5 Validity and Reliability

Efforts were made to ensure the validity and reliability of the findings by cross-referencing data
from multiple credible sources and triangulating information to confirm consistency. The use of
diverse data sources minimized biases and enhanced the robustness of the analysis.
3.6 Ethical Considerations

Since this study relied solely on secondary data, there were no direct interactions with
participants. Nevertheless, all sources were duly acknowledged, and data were used in
compliance with academic integrity and ethical research standards.

This methodology chapter provides the framework for understanding the comprehensive analysis
presented in subsequent chapters, which evaluate the impact of IFAD on Nigeria’s agricultural
development.
 CHAPTER FOUR

FINDINGS AND DISCUSSION

Impact of the International Fund for Agricultural Development (IFAD)

Economic Impact

The International Fund for Agricultural Development (IFAD) has significantly contributed to
economic growth in Nigeria by improving agricultural productivity and enhancing rural
livelihoods. Akatugba, Oniore, and Akekere (2017) observed that IFAD-funded projects
positively influenced economic indicators such as income levels and employment rates among
smallholder farmers. The Value Chain Development Programme (VCDP), which supports rice
and cassava production, has boosted farmers’ income by providing better access to markets and
agricultural infrastructure.

Social Impact

IFAD’s interventions have improved the living standards of rural communities by fostering
social inclusion and empowering marginalized groups. Gender-focused initiatives have enabled
rural women to access land, credit, and training programs, promoting their active participation in
agricultural activities. Tyagher, Doki, and Akighir noted that IFAD projects have enhanced
community cohesion by strengthening farmer cooperatives and associations, creating a platform
for shared learning and resource management.

Technological Impact

Through capacity-building programs, IFAD has facilitated the adoption of modern agricultural
practices and technologies. Farmers have been trained in climate-smart agriculture, pest
management, and efficient farming techniques. Tasie (2012) highlighted the positive impact of
IFAD’s knowledge transfer initiatives, which have increased crop yields and reduced post-
harvest losses in Rivers State.
Environmental Impact

IFAD’s promotion of sustainable agricultural practices has contributed to environmental

conservation and climate resilience. The organization encourages the use of environmentally
friendly farming methods such as agroforestry, conservation agriculture, and integrated pest
management. These practices help mitigate soil degradation, preserve biodiversity, and improve
water resource management.

Policy and Institutional Impact

IFAD’s collaboration with the Nigerian government has influenced agricultural policy
formulation and institutional development. The organization’s advocacy efforts have supported
the creation of policies that prioritize smallholder farmers and rural development. IFAD’s
involvement in capacity building for local agricultural institutions has also strengthened their
ability to deliver essential services to farmers.

Challenges and Areas for Improvement

Despite its successes, IFAD’s operations in Nigeria face challenges such as limited local capacity,
inadequate infrastructure, and sustainability concerns. Akatugba et al. (2017) emphasized the
need for stronger government collaboration and post-project support to ensure long-term success.
Climate change and insecurity in rural areas further complicate project implementation.

Concept of Value Chain

According to Wiesner (2020) increase in initiatives aimed at implementing value chain methods
has been seen over the past several decades. These strategies are able to combat poverty, boost
incomes and productivity, ensure food security, engage marginalized groups, and have a smaller
negative impact on the environment. The value chain method was first developed as a tool for
businesses to produce more effective and competitive results along the enterprise influence, but
non-governmental organizations and international development agencies have instrumentalized
this technique to achieve development goals.Additionally, a value chain, according to Wisner
(2020), “represents the full range of activities and services required to bring a product or service
through the different phases of production and delivery, to the final consumer.”
By combining knowledge and resources, the phrase “value chain” also refers to the significance
of adding value to products from one link to the next in the chain. The formal and informal
structures that provide coordination and cooperation linkages between players and at various
stages along the chain can be examined as a value chain from an organizational and institutional
point of view.

The value chain interventions often also include an inclusive or pro-poor strategy because of its
capacity to “link farms and businesses in remote regions to growing and emerging market
opportunities.” According to this strategy, “market liberalization and economic development
represent necessary but insufficient conditions for poverty reduction and that poor people need
support so that they can participate in this value chain and derive a benefit in a way that creates
growing prosperity in their (poor) communities and promotes equitable economic growth.”

Chai noted that value chain is a notion that describes the whole chain of a business’s operations
in the development of a good or service, from receipt of first supplies to its delivery to market,
and everything in between. Inbound operations, outbound logistics, marketing and sales, service,
and operations make up the value chain framework’s five core activities. The other four
subsidiary activities are procurement and buying, human resource management, technology
development, and firm infrastructure. Two fundamental ideas are involved in the study of value
chains: value and chain. According to Hawkes and Ruel (2011), the term “value” is equivalent to
“value added” in the Value Chain Analysis (VCA) since it describes the additional value of a
product that is created after it has been processed. The differentiation of a product based on food
safety and food functioning may also result in value addition for agricultural goods. The costof
the final product demonstrates the added value. Value addition at the level of agricultural
produce production refers to improvements or additions to a product that increase the profits for
the commodities seller, who is frequently the farmer. For instance, technical advances, labor-
saving techniques, or any other innovation that enables the producer to supply more of a
commodity are examples of “input value-added” advancements that lower production costs and
so give farmers more money. The production of specialty crops, strategic commodity marketing,
or premium product sales, on the other hand, are examples of “output value-added”
improvements made by the farmer. When you hear the word “chain,” you probably think of a
supply chain, which describes the steps and participants in a product’s life cycle (from idea to
disposal) (Hawkes & Ruel, 2011).

Agricultural Development Programs (ADPs) and Value Chain in Nigeria

A value chain strategy will be encouraged by ADP in its future initiatives, according to IFAD
(2023). In order to affect and enhance the present policy and legal framework, this will need
interacting with the government. ADP will also look at partnering with the GEMS 3 project,
which is supported by the European Union and aims to improve the skills of public servants
handling land transactions. The government plans to establish a unit with assistance from ADP to
oversee the activities of the various development partners in Nigeria. Additionally, co-financing
by the government and other partners will guarantee the models’ longevity even when ADP
funding ends. Additionally, private sector organizations with CSR windows, such international
oil corporations operating in the Niger Delta, might be a source of money to scale up
accomplishments. Public-private partnerships are also being formed as part of the new value
chain initiative backed by ADP, which might be helpful in scaling up businesses in Nigeria. In
2011, the administration adopted a multisectoral transformation plan in response to the issue of
young unemployment.

The Federal Ministry of Agriculture’s Agricultural Transformation Agenda (ATA), a component

of the National Transformation Agenda, aims to promote agriculture as a business and works
along value chains to expand opportunities by increasing agricultural productivity, value addition,
processing, and commercialization thus creating jobs and wealth and guaranteeing food security,
especially for youth and women. Similarly, ADP’s assistance to the Nigerian government’s
initiative to reduce poverty in rural regions focuses primarily on people and targets a significant
number of smallholder farmers. Smallholder farmers are the main players in ADP-supported
programs and initiatives that work with communities. The Fund also supports commodity-based
interventions that offer financial and technical support along a number of value chains, including
those for vegetables, agroforestry products, roots and tubers, and animal products (IFAD, 2023).

IFAD (2012) The Value Chain growth Programme (VCDP) is firmly rooted in the Government’s
goal for agricultural growth through adoption of a commodities value chain approach, as defined
in the Agricultural Transformation Agenda (ATA), and is closely aligned with ongoing
Government strategy and policy. It also aligns with the National Agricultural Investment Plan’s
policies and other important sectoral plans that support rural development and food security. The
initiative will concentrate on resolving challenges along the cassava and rice value chains based
on government goals as well as market analyses and opportunities. ADP will focus on helping
the government and its development partners construct a solid foundation and create an
atmosphere that will be conducive to a much longer-term value chain development plan.

Additionally, the agricultural and rural sectors’ efforts are directed by a number of strategic goals;
one of these goals is to emphasize the value chain by boosting production and promoting agro-
processing.

Application of the Value Chain and Modernization Theory to the Study

The individuals, groups, or structures that form the society in this regard comprises of
Agricultural cooperative members. It, therefore, logically follows that rural development
impinges on the activities of a network of interdependent parts. Invariably, this societal
arrangement is crucial for growth and development in the rural areas of the State and Nigeria at
large. It is pertinent therefore to know or determine how the flow of inputs and outputs within the
society is managed as obtained through “help”.

Value chains have been seen as a conductor enhancing information flows between various actors
in the chain, which has resulted to quite a number of governance debates. These governance
issues have everything to do with the complexities of power relations within the chain, which
determine how financial, material and human resources are allocated and flow within the chain
(Laven 2011). Therefore, Schmitz (2001) has outlined four key parameters that define the
production process of a product. These are: What is produced, how it is produced, when it is
produced and how much is to be produced.

Discussion

The findings align with existing literature that underscores the transformative role of IFAD in
Nigeria’s agricultural sector. By promoting inclusive development, fostering innovation, and
advocating for supportive policies, IFAD has contributed to improved rural livelihoods. However,
the sustainability of these achievements depends on continued investment, stronger partnerships,
and adaptive strategies to address emerging challenges.

This chapter highlights the critical impacts and challenges of IFAD’s interventions, providing
insights that inform the recommendations in the subsequent chapter.
 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

Summary

This study examined the impact of the International Fund for Agricultural Development (IFAD)
in Nigeria, highlighting its contributions to rural agricultural development and poverty
alleviation. The findings reveal that IFAD has played a crucial role in enhancing economic
growth, promoting social inclusion, and fostering technological advancements in farming
practices.

The research underscored several positive outcomes, including increased agricultural

productivity and improved income levels for smallholder farmers. Programs such as the Value
Chain Development Programme (VCDP) have contributed significantly to rice and cassava
production, providing better market access and strengthening rural economies. Socially, IFAD’s
gender-focused interventions have empowered women and fostered community cooperation
through capacity-building initiatives.

Technologically, IFAD has facilitated the adoption of modern and sustainable farming practices,
which have not only boosted productivity but also contributed to environmental conservation.
These initiatives have promoted climate-smart agriculture and resource-efficient farming
techniques. Furthermore, IFAD's collaboration with the Nigerian government has positively
influenced policy reforms and strengthened local agricultural institutions.

Despite these successes, challenges such as limited infrastructure, sustainability concerns, and
security issues persist. Addressing these challenges requires stronger government collaboration,
sustained investments, and the engagement of private stakeholders to ensure long-term success.

In conclusion, IFAD’s interventions have made a significant positive impact on Nigeria’s

agricultural landscape. However, the continued commitment of all stakeholders is necessary to
build on these achievements and foster sustainable rural development.
CONCLUSION

The International Fund for Agricultural Development (IFAD) has proven to be a vital catalyst for
agricultural and rural development in Nigeria. Its strategic interventions have significantly
improved the livelihoods of smallholder farmers, strengthened rural economies, and fostered
social inclusion. By promoting modern agricultural techniques and sustainable farming practices,
IFAD has contributed to increased productivity and environmental conservation. Study shows
that agricultural production is not only fundamental to improving nutrition, but is also the main
source of income for many. The ADP as an institution of change in agricultural sector has gone a
long way to ensure that farmers are offered and are assisted with the best practices however,
based on evidence shown from the findings of the study ADP are functional in their efforts to
influence adequate production pattern, through working effectively to improve processing
systems and adequate marketing and sales techniques. The success of IFAD’s initiatives
underscores the importance of collaborative efforts among governments, international agencies,
and local communities. Despite the evident progress, ongoing challenges such as infrastructural
deficits, security concerns, and sustainability issues must be addressed. Strengthening
partnerships, increasing investment in rural infrastructure, and empowering local agricultural
institutions are critical to overcoming these challenges. Moving forward, a comprehensive and
inclusive approach that leverages technological advancements, addresses climate challenges, and
fosters private sector engagement will be crucial for sustaining the gains made by IFAD. With a
continued focus on innovation and collaboration, Nigeria’s agricultural sector can thrive,
contributing to national economic growth and improved rural livelihoods.

RECOMMENDATIONS

Having discussed the findings and drawn some conclusions therein, the following
recommendations were made;

The study recommends that the IFAD should do more in giving financial assistance the women
network to have more financial backing which will enable them produce more food and, to
organize more workshops, lectures, seminars, conferences among others for farmers.
Majority of the farmers are illiterate, adult education programmes should be mounted for them in
their various communities and prize awarded for good work. These will help them to understand
how to use new agricultural techniques and understand instruction on agricultural handouts

Aspects of agricultural production that are largely the responsibility of farmers must be given
adequate attention. Such areas include, for example, food crop production, livestock production,
processing, storage and marketing of agricultural produce, pest and disease control

Strengthening partnerships in IFAD should continue fostering collaborations with the Nigerian
government, private sector stakeholders, and international development agencies to enhance the
sustainability of its interventions.

Investment in Rural Infrastructure such as roads, storage facilities, and market infrastructure
will improve agricultural productivity and facilitate market access for rural farmers.

Capacity Building and Training programs should be provided to farmers on climate-smart

agricultural practices and modern farming techniques to boost productivity and environmental
sustainability.

Enhancing Financial Access and Expanding access to credit and financial services for
smallholder farmers is essential for supporting their investment in improved farming
technologies and practices.

Security Concerns: Collaborative efforts between government agencies and local communities
are necessary to mitigate security challenges that hinder agricultural activities in rural areas.

Climate Resilience Strategies: IFAD should intensify efforts to promote climate-resilient

farming techniques to help farmers adapt to changing environmental conditions.

Monitoring and Evaluation: Establishing robust monitoring and evaluation frameworks will
ensure the effective implementation and assessment of IFAD’s programs, allowing for timely
adjustments to enhance their impact.
Youth and Gender Inclusion: Targeted programs should be developed to engage youth and
empower women in agricultural activities, fostering a more inclusive and dynamic agricultural
sector.
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