FGN/IFAD Value Chain Development Programme
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Ogun

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Ogun State

Ogun State, nicknamed the “Gateway to Nigeria,” is a southwestern Nigerian state with a rich Yoruba heritage. It’s known for its diverse agricultural sector, a high concentration of industries, and abundant natural resources. 

Key Features:

  • Location and Geography:

Ogun State lies in the southwestern part of Nigeria, bordering Lagos, Oyo, Osun, and Ondo states, as well as the Republic of Benin. It features tropical lowland forests, with parts transitioning to savanna and mangrove ecoregions. 

  • Economy:

Ogun State has a strong agricultural sector, with major crops including rice, beans, melon, maize, cassava, yams, plantains, and bananas. It also boasts a high concentration of industries and is a major manufacturing hub in Nigeria, with numerous factories. 

  • Natural Resources:

The state is rich in natural resources like limestone, phosphate, granite stone, gypsum, bauxite, bitumen, feldspar, clay, glass sand, kaolin, quartz, tar sand, gemstones, and crude oil. 

  • Population:

Ogun State is divided into 20 local government areas with an estimated population of 6.4 million as of 2020. 

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Participating LGAs

  1. OBAFEMI OWODE
  2. YEWA NORTH
  3. IJEBU NORTH EAST
  4. IFO
  5. IJEBU EAST
  6. ODOGBOLU
  7. YEWA SOUTH
  8. ODEDA
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Nigeria is predisposed to severe negative impacts from climate change due to its fragile economy, weak resilience and low adaptive capacity. Rural livelihoods significantly depend on the performance of climate sensitive natural resources, especially in the agricultural sector. Environmental degradation, extreme weather and long-term climate change that undermine the natural resource stock and productive landscapes pose important challenges to sustainable agriculture, livelihoods and food security. Future climate scenarios project a consistent temperature rise (about 0.02oC per year from 2000 until 2100) and increase in variability and occurrences of extreme events leading to possible dry spells, droughts, floods, recurrence of locust and pests and reductions in yield. Annual flooding from the Niger and Benue Rivers and local tributaries and resource conflicts have heightened loss on agricultural investments and soil fertility and human insecurity.

 

VCDP is stepping up environmental and climate change activities under a systematic strategy that includes mainstreaming options for green growth and climate-smart production and processing, improvement of resilience through deepening of insurance and “no regrets” options, and provision of appropriate climate information.

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In Nigeria, a major constraint faced by women in the agricultural sector is lack of access to formal credit. This challenge is felt more acutely by women than men. According to a 2022 report by ActionAid, 77% of Nigerian women in the agri-food systems lack access to government credits like those in the Central Bank of Nigeria (CBN) and other financial institutions. Activities in the agri-food systems and most informal sectors of the rural economy of developing nations including Nigeria require lots of capital which most women lack (World Bank, 2012).  According to Enhancing Financial Innovation & Access (EFInA)’s Access to financial services in Nigeria 2020 survey, women are more financially excluded than men – only 45 per cent of women use formal financial services, compared with 56 per cent of men. Access to formal credit becomes a huge challenge for these women as they cannot build/grow their businesses in line with their aspirations.

 

The overall goal of financial inclusion in VCDP is to ensure that farmers have sustainable access to financial services after exiting two times matching grant support for inputs and one-time matching grant support for equipment. More also, other value chain actors such as financial services, off-takers, insurance services were able to provide financial services directly or indirectly to them. The services include savings, credit, cashless credit with off-takers and insurance services. In order to achieve this, the programme developed a financial inclusion strategy which covers the following strategic areas:

 

  • Financial literacy training to the beneficiaries at the cluster level
  • Provision of capacity building and technical assistance support to financial institutions with MOU to enhance effective delivery of financial services and products
  • Provision of technical assistance support to insurance service providers
  • Provision of support in setting up Digital Financial Services (DFS)

 

Under financial literacy training, the major goal is to ensure that VCDP beneficiaries understand the concept of financial terminologies used by service providers and make informed decision about financial services. Under technical assistance support to financial institutions, the major objective is to ensure that the programme provides a structured demand-driven and result-oriented capacity building support to financial institutions which will enable them to provide sustainable financial services in terms of friendly financial products (savings and credits) to VCDP beneficiaries.

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