Upscaling the Integrated Production and Processing of Selected Estranged Oilseeds, Nigeria
CFC is happy to fund a project on oilseed crops with high potentials to improve human diets, prevent malnutrition and food insecurity and to provide employment through income generation in the society. The project was framed on a dual objectives of green and socio-economic development aiming to empower approximately 4,000 smallholders. In benefiting from technical support and the guaranteed purchasing of raw material, the smallholders will be given the opportunity to almost having a new beginning of their economic life. The project also aims to create greater connectivity in the region, while also creating employment opportunity for youth and women.
EFUGO Farms Limited (EFL), established in 1987 and based in Abuja region of Nigeria, is producing various crop and livestock products. The project focuses on the production of edible oils (from groundnuts, soybeans, sesame) and non-edible oils (from castor beans, shea butter and neem seeds). There is a large demand for the products due to huge market for these oils and derived products in Nigeria.
EFL has already installed a new processing plant but needs resources to acquire additional components such as bleaching machines, weighing machines and tankers. Current supply of oil seeds is insufficient to run all aspects of the oil processing facility. EFL seeks to engage more than 20,000 farmers to supply oil seeds for the mill. The CFC funds will be used to purchase these additional components and for working capital needed to source seeds from the farmers.
The CFC loan of USD 1,500,000, guaranteed by the Federal Republic of Nigeria, was signed in the second quarter of 2017. The loan was fully disbursed in the first quarter of 2018.
EFL has launched an outgrower program managed by a company called Farmore to drive the engagement of smallholder farmers to grow castor in 9 states. The outgrower program successfully recruited 4,000 farmers with 6,000 hectares of land for the 2018/2019 agriculture season. In parallel, EFL recruited an experienced agronomist from India to coordinate the sourcing of seeds suitable for local conditions and with high oil content and yield ratio. The processing of castor in the factory is being upgraded, while the impact of the same and the use of castor oil is under review.
EFL has since been able to expand the operation by accessing a loan facility for inputs to 2,000 farmers under the Anchor Borrowers Program (ABP) of the Central Bank of Nigeria (CBN). EFL is in the process of accessing another facility for 2,000 additional farmers under the Agri-Business Small and Medium Enterprises Investment Scheme (AGSMEIS) program.
Project overview CFC-2015-07-0032
|Project type:||Regular Project||Organization:||Efugo|
|Commodity:||Oilseeds||CFC Financing:||USD 1,500,000|
|Country:||Nigeria||Cofinancer:||Zenith Bank: USD 2,500,000 Counterpart contribution: USD 893,000|
|Form of finance:||Loan||Target Impact indicators:||