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Federal Republic of Nigeria Federal Ministry of Agriculture and Rural Development Staple Crop Processing Zones Support Project (scpz)


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2.3 The SCPZ and ABIR Development Footprint


The SCPZ and ABIR shall involve three categories of land use area zoned as follows and portrayed in Figures 2.1 and 2.2:

  • The SCPZ core area.This area shall comprise 250 hectares, made available by the State Government to the Federal Government for the creation of the processing zone, where agro-processing facilities will be established.

  • The Agribusiness Investment Region (ABIR).This is a 280,000 hectare area, more or less, within 30 km radius surrounding the SCPZ core area, and intended to meet the anticipated future demand of commercial agricultural producers associated with and supplying the SCPZ.

  • Land for infrastructure and other works financed by the project. The exact location and size of land required is not yet known. This category of land will overlap with the other categories.

The SCPZ core area and the ABIR are expected to be the site of investments requiring the allocation of significant quantities of land to the private sector. As the first private sector mover in the SCPZ, Cargill is currently in discussions with the Government of Nigeria and the Government of Kogi for access to land in both the SCPZ core area and the ABIR. To establish its cassava processing plant, Cargill is seeking approximately 50-60 hectares in the core zone (the Cargill Plant). Cargill is also negotiating an approximately 30,000 hectares in the ABIR (the Cargill Farm) in order to ensure a steady and sufficient supply of produce to the processing plant. The exact dimensions and boundaries of the Cargill Farm have not yet been defined, pending the outcome of ongoing discussions with local communities and Kogi State.


2.4 Delineation of Scope and Project Boundaries for Purposes of the ESMF of the ESMF

This Environment and Social Management Framework (ESMF) has been prepared in connection with the Staple Crop Processing Zones (SCPZ) Support Project, comprising four components described at pages _below (hereafter, the “SCZP Support Project).  The ESMF shall apply to significant adverse environmental and social management risks, impacts and mitigation in Kogi State resulting from the following:



  1. Investments directly funded by the SCZP Support Project, including infrastructure and other investments anticipated to be financed under Components 1 and 2.

  2. Establishment of the SCPZ Core Area, comprising approximately 250 hectares, as well as private investment by tenants in the SCPZ Core Area.

  3. Investment by the anchor tenant (expected to be Cargill) in the establishment of a nucleus farm in the ABIR comprising approximately 30,000 hectares (final dimensions still to be determined).

For purposes of this ESMF, the term “Project” shall refer to the above three categories of activities, and the terms “sub-project”, “PAP” etc., shall have a corresponding meaning.

The Kogi State Government has, in addition, expressed its intention to apply the ESMF to subsequent SCPZ-related investments within the ABIR, in order to assure consistent treatment throughout the ABIR.

In short, the project area for purposes of this ESMF would be wherever Bank investments take place, plus the SCPZ Core Area, plus Cargill. In addition, the World Bank’s safeguards will apply to any SCPZ-related investment in the ABIR.  Within the ABIR, investment not financed by the Bank, whether in whole or in part, investment not related to the SCPZ will not fall within World Bank safeguards policies.



(FMARD/UNIDO,/MAHINDRA 2013)

Figure 2.1: The Alape SCPZ and ABIR in Kogi State-Nigeria



Figure. 2.2: The Proposed SCPZ and ABIR 30Km Radius Project Boundary



2.5 The Proposed Project Activities

The proposed SCPZ and AGIR Development will transform 250ha of agricultural and undeveloped land into an agricultural production field processing zone and 280,000 ha or mostly agricultural and undeveloped land into large scale monoculture plantations.



For the proposed investments directly supported by the Project, the land requirements expected for implementation of Component 1 of the Project are outlined in Table 2.1 with the list of the main proposed project activities.


Table 0.2: SCPZ Project Components and Main Proposed Project Activities

SCPZ Support Project Expected Land Requirement

SCPZ Support Project

Component

Ha




Component 1.1: Power Generation

10

5.0

0.2

4.8




Component 1.2: Water Development

100

50

1.7

48.3




Component 1.3: Land clearance & roads

100

50

1.7

48.3




Component 1.4 Social Infrastructure

10

5

0.2

4.8




Proposed Project Activities

Crop production

Agro processing Facilities

Infrastructure

Farm Establishment/Cultivation

  • Clearing of forest

  • Development and operation of agricultural fields

  • Construction of weir/dams

Establishment and operation of facilities for processing of raw cassava tubers into starch, chips, garri, etc

Development of necessary support infrastructures (gas transmission line, water supply system,




As for the land required for the SCPZ Core Area, the Cargill Farm and future investments in the ABIR, the following three scenarios should be considered:


Business as usual”: Under this scenario, despite the joint commitment of the Federal Government and Kogi State to establish an enabling investment environment through the SCPZ Support Project, no private investor uses this opportunity to establish a processing plant in the SCPZ and/or a professional managed farms in the ABIR. In turn, it can be expected that in such a scenario the SCPZ Support Project will not started or will stopped at an early stage and the land and resources of the SCPZ and ABIR continued to be used similar to a non-project scenario i.e. “business as usual”.
Cargill only: Cargill Inc. has made clear commitments to establish a Starch Processing Factory, a Chicken Animal Feed Factory and up to 30,000 ha of professional managed farmland, a portion of which will be subleased to Contract Farmers. Under this scenario, one would assume that no other investor will follow the Cargill model and that in the long run, the activities of the SCPZ Support Project are implemented, but only 50ha of the SCPZ and 30,000 ha of the ABIR managed professionally, while the rest will be occupied over time by small holder farmers and used similar to the “business as usual” scenario.
Base case”: The base case scenario assumes that over time 60,000 ha of farm land will be put to professionally managed cultivation over the next 20 years to feed processing units, supporting multiple value chains involving processing capabilities such as starch, flour, animal feed, meat production, high value crops, and multiple supporting services, either directly to these value chains such as tractor and agrichemical distributors or indirectly such as banks, food and fuel retailing, etc. In the first phase of 5 years approximately 30,000 ha of land will be cultivated (i.e. the Cargill Scenario). In the second phase, professionally cultivated land will be increased to 40,000 ha by year 10. In subsequent phase productive land will be increased to at least 60,000 ha.
For purposes preparation of this ESMF, it has been assumed that the Cargill scenario will be realized over the short term and that some progress will be made toward securing subsequent investments in both the ABIR and SCPZ as envisaged under the Base Case scenario. The Safeguard instruments that will be supported by sub-component 3.2 of the project is intended to help the government and its partners appropriately guide and sequence the pace of SCPZ-related investment in the ABIR.

CHAPTER THREE POLICY, LEGAL AND INSTITUTIONAL FRAMEWORK
3.1 Introduction

The environment has emerged as one of the most topical issues of contemporary times. This is in realization of the ever-increasing negative environmental impacts of rapid industrial development. As natural resources are being exploited at rates unprecedented in human history, the quality of the environment deteriorates and many of the development projects become unsustainable. This has therefore necessitated the enforcement of relevant environmental protection laws in order to protect and restore the Nigerian environment.


Thus the main aim of this Chapter is to review Nigerian legislation, guidelines and International conventions that are relevant to the proposed project. The legislation outlined in the foregoing parts of this chapter are derived from Nigerian Government laws and regulations, State and local Government laws as well as international conventions and other instruments that Nigeria is signatory to. The World Bank Safeguard Policies are also discussed in addition to other relevant voluntary standard tools.

The Chapter is presented in Sections detailing, essentially, the relevant Administrative and legal framework/structure and then the relevant regulatory instrument and policies.


3.2 Administrative Framework

The relevant administrative structures are presented here below:


3.2.1 Federal Level Institution

1. National Council on Environment

This consists of the Minister of Environment, Minister of State for Environment, and State Commissioners of Environment and is the apex policy making organ on environment. The Council participates in the formulation, coordination, harmonization and implementation of national sustainable development policies and measures for broad national development. The Council meets regularly to consider and receive States’ reports on environmental management; national environmental priorities and action plans as it affects Federal and State governments; and exchange ideas and information and where necessary the Federal Government through Federal Ministry of Environment gives financial and technical assistance to States having problems in implementing environmental policies.


2. The Federal Ministry of Environment

In Nigeria, the power of regulation of all environmental matters is vested in the Federal Ministry of Environment (FMENV), hitherto, the now defunct Federal Environmental Protection Agency (FEPA) which was set up by Act 88, of 1988) Set up by Presidential Directive No. Ref. .No. SGF.6/S.221 of October 12, 1999.


The Ministry Is Empowered with regulation of all environmental matters, protecting, enhancing and preserving the Nigerian environment

  • Carries out the Federal Executive Council decisions on environmental matters.

  • Mandated to co-ordinate the environmental protection and conservation of natural resources for sustainable development in Nigeria some of which are:

    • monitor and enforce environmental protection measures;

    • enforce international laws, conventions, protocols and treaties on the environment;

    • prescribe standards and make regulations on air quality, water quality, pollution and effluent limitations, the atmosphere and ozone layer protection, control of toxic and hazardous substances; and

    • Promote cooperation with similar bodies in other countries and international agencies connected with environmental protection.

  • In response to her mandate the Ministry has developed far reaching legal reference instruments for

    • Achieving environmentally sound management of resources and sustainable development across all major sectors of the economy.

For enforcement mechanism the Ministry has two agencies namely:

  • National Oil Spill Detection and Response Agency set up by NOSDRA ACT, 2005 and National Environmental Standards and Regulations Enforcement Agency set by NESREA ACT 2007.

The National Environmental Standards and Regulations Enforcement Agency is most directly relevant to the proposed project.
3. National Environmental Standards and Regulations Enforcement Agency

The Federal Government in line with Section 20 of the 1999 constitution of the Federal Republic of Nigeria established the National Environmental Standards and Regulations Enforcement Agency {NESREA} as a parastatal of the Federal Ministry of Environment.


The bill for an act establishing the agency was signed and published in the Federal Republic of Nigeria Official Gazette No.92, Vol. 94 of 31st July, 2007. By the NESREA Act, the Federal Environmental Protection Agency Act Cap F 10 LFN 2004 was repealed.
NESREA has responsibility for the protection and development of the environment, biodiversity conservation and sustainable development of Nigeria’s natural resources in general and environmental technology including coordination, and liaison with, relevant stakeholders within and outside Nigeria on matters of enforcement of environmental standards, regulations, rules, laws policies and guidelines. Its role in impact mitigation monitoring cannot be over emphasized in the SCPZ / ABIR project.
4. Federal Ministry of Agriculture and Rural Development (FMARD)

The Federal Ministry of Agriculture and Rural Development ensures that the citizenry are provided with credible and timely information on government activities, programs and initiatives in the development of agriculture and food production; while creating an enabling technological environment for socio-economic development of the nation


As part of the Transformation Agenda for import substitution and creation of rural employment, saving foreign exchange, the Ministry has adopted a multi-disciplinary, private-public collaboration approach to increase crop yields such as for cassava and to organize farmers into cost-effective supply chains and link them to large scale factories; which in turn provides employment for landless labour and offers opportunity to develop the agro-service industry.
5. Federal Ministry of Water Resources (FMWR)

The Federal Ministry of Water Resources (FMWR), initially created in 1976, is responsible for formulating and coordinating national water policies, management of water resources including allocations between states, and approving developmental projects.

Specifically the functions of the FMWR include:


  • Establishment and operation of National Water Quality Laboratories and Monitoring Network and water quality standards.

  • Maintenance of database on water supply and sanitation facilities and performance.

  • Mobilization of national and international funding and technical support. Promote and coordinate other collaborative activities by other government and Nongovernmental agencies in the sector.

  • Provision of technical support and assistance to State and Local Government Water Supply and Sanitation Agencies and community water supply and sanitation committees.

  • Creation of an enabling environment for meaningful private sector participation in the sector.

  • Provision of a framework for regulation of private sector participation in water supply and sanitation.

  • Assistance to individual agencies, and be responsible for the maintenance of the hydrological primary network.

Specifically on the SCPZ, the ministry through the Nigeria Hydrological Service Agency (NIHSA) will provide the technical assistance on water resource (underground and surface water) assessment of the SCPZ and the ABIR in general. This will guide inform decision on water supply to the zone.






















6. Federal Ministry of Works

  1. Facilitate the rehabilitation of existing and construction of new access roads to link the SCPZ and the surrounding ABIR with the national road network,

  2. Rehabilitate/expand feeder roads within the ABIR,

  3. Supervise any road construction by private investors to meet national standards.



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