ABSTRACT
In this five chapter research work, an exposé is carried out on the role of cooperative societies in ensuring the success of the FADAMA III project. Chapter one presents an introduction to the research while chapter two consists of a review of related literatures, in which subject matters such as the scope, benefits and implementation arrangement of FADAMA III as well as the importance, problems of cooperative societies and their possible solutions are identified. Chapter three and four consist of the research design and methodology as well as the data analysis and interpretation while chapter five consist of the summary of findings, recommendation and conclusion. Based on the research, it will be observed that the success of the FADAMA III basically depends on the progress of the FUGs and FCAs which are registered Fadama cooperatives, however these cooperatives are still faced with some challenges such as poor awareness, low level of education and poverty level of the members. There is therefore need for more public awareness about the benefits of the FADAMA III project especially in the rural areas. There is also need for a slash down in the members’ counterpart contribution especially for the newly registered FUGs and FCAs particularly in the area of input support.
LIST OF ABBREVIATIONS AND ACRONYMS
ADP – Agricultural Development Programme
ADPEC – Agricultural Development Project Executive
Committee
ARCN – Agricultural Research Council of Nigeria
ASAs – Advisory Services Activities
CBO – Community Based Organization
FADPEC – Federal Agricultural Development Project
Executive Committee
FCA – Fadama Community Association
FCT – Federal Capital Territory
FMAWR – Federal Ministry of Agriculture and Water
Resources
FUG – Fadama User Group
IDA – International Development Association
LDP – Local Development Plan
LFD – Local Fadama Desk
LFDC – Local Fadama Development Committee
LFDO – Local Fadama Desk Office
LGA – Local Government Area
NFCO – National Fadama Coordination Office
NFDP – National Fadama Development Project
NFRA – National Food Reserve Agency
NFTC – National Fadama Technical Committee
NGO – Non-Governmental Organization
PAD – Project Appraisal Document
PDO – Project Development Organization
PEC – Programme Evaluation Committee
PFMU – Project Financial Management Unit
PIM – Project Implementation Manual
SFCO – State Fadama Coordination Office
SFTC – State Fadama Technical Committee
SMANR – State Ministry of Agriculture and Natural
Resources
TABLE OF CONTENT
Cover page i
Title page ii
Approval page iii
Dedication iv
Acknowledgement v
Abstract vii
List of abbreviations and acronyms viii
Table of Content
Chapter One: Introduction
- Background of the Study 1
- Statement of Problem 4
- Objective of the Study 7
- Research Questions 8
- Research Hypothesis 9
- Significance of the Study 9
- Scope and Delimitations of the Study 10
- Definition of Terms 12
Chapter Two: Literature Review
- History and Origin of the Project 14
- Objectives and Performance Indicators of the Project 16
- Scope and Beneficiaries of the Project 19
- Funding and Components of the Project 20
- Project Implementation Arrangements 33
- Benefits of the FADAMA III Programme 49
- Cooperative Effects and Community Development 51
- Problems of Cooperative Enterprises in Nigeria 58
- Prospects of Cooperative Societies in Nigeria 65
Chapter Three: Research Design and Methodology
- Research Design 70
- Area of Study 72
- Population of Study 72
- Sampling and Sampling Procedure 73
- Instrument for Data Collection 76
- Validation of the Instrument 78
- Reliability of the Instrument 78
- Method of Data Collection 79
- Method of Data Analysis 80
References
Chapter Four: Data Presentation and Analysis
4.1 Presentation Analysis 82
4.2 Test of Hypothesis 92
4.3 Summary of Findings 104
Chapter Five: Summary of Findings, Recommendation and Conclusion
- Summary of Findings 105
- Recommendations 109
5.3 Conclusion 112
5.4 Areas for Further Research 114
Bibliography
Appendix
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
World Bank (1996) describes poverty in Nigeria as “widespread and severe”. Despite the country’s vast resources, she is still known with low GDP per capita, high unemployment rate, low industrial utilization capacity, high birth rate and agricultural dependence (Jhingan 2005). World Bank (1996) further states that low productivity in agriculture is the cause of high incidence of poverty in the country.
Agriculture is a major sector in the Nigerian economy providing employment for more than 70% of the population. According to pmnewsnigeria.com, “since the nation’s independence in 1960, agriculture had been the mainstay of the nation’s economy, providing the largest chunk of foreign exchange inflow into the country. Moreover, it contributed about 63% to the nation’s GDP according to official statistics… With the dramatic shift of focus to crude oil exploration and attendant boom of the 1970s, agriculture was displaced as the nation’s main foreign exchange earner. As a consequence therefore, agriculture’s contribution to the nation’s GDP declined to 34% just as unemployment began to make an upward movement.
Although 80% of the land in Nigeria is cultivable and about 13% is forested, it is sad to note that as at 1990, only 42% of the cultivable area was farmed. Although the United Nations testify of an increase in agricultural output in recent years but this increase has been attributed to the expansion of the area under cultivation rather than from increased productivity. The sector has been hampered by lack of investment in improved farming technology while over farming of fragile soil has worsened the problem of soil degradation.
In the bid to solve these agricultural problems faced by the nation, different regimes have over the years drawn up various agricultural plans and policies among which include Operation Feed the Nation (OFN), Green Revolution (GR) and Structural Adjustment Programme (SAP). The National Fadama Development Project (NFDP) is however a major instrument used in achieving the Government’s poverty reduction objective in Nigeria in recent years. The project which was initiated in the early 1990s is now in its third edition or phase. In the first phase, it had only six participating states with only Jigawa as a “core state”, i.e. a state in which Fadama I was fully implemented. However, the National Fadama Project is currently found in all the 36 states of the federation including the FCT.
Enugu state is one of the beneficiary states in the FADAMA III project. The state which is a mainland state in south eastern Nigeria shares borders with Abia state and Imo state to the south, Ebonyi state to the east, Benue state to the north east, Kogi state to the north west and Anambra state to the west. The state has good soil-land and climatic conditions all year round, sitting at about 223 metres above sea level and the soil is well drained during its rainy seasons. According to the Wikipedia, “Economically, the state is proportion its working population engaged in farming, although trading (18.8%) and services (12.9%) are also important”. The state has 17 local government areas and according to the State Project Coordinator FADAMA III, Mrs. Amaka Okenwa – Uzoechina, each of the seventeen local government areas has no fewer than 100 cooperative Fadama User Group engaged in producing livestock, crops, processed foods, marketing, storage and distribution.
1.2 STATEMENT OF PROBLEM
The goal of increasing food production and reducing food import has elicited many programmes and policies at the various level of government. The first was the establishment of River Basin Development Authorities (RBDAs) in the early 1970s and by the late 1980s, the development of small-scale irrigation systems in fadama land areas commenced.
The fadama irrigation concept emerged in one of the World Bank assisted programme with the launching of the National Fadama Development Project (NFDP) in 1993. Kudi, T.M et al (unpublished) citing Cox and Akin (1979) describes the Fadama concept as an age-old tradition in Hausa land where the land that floods on seasonal basis allow for the growth of a variety of crops under small scale irrigation farming system. Many reasons have been advanced for the necessity of supplementing rain fed agriculture with irrigation in Nigeria. This is because the country is endowed with underground and surface water reserves, rich pastures and favourable agro-ecological conditions in the country’s low lying planes with alluvial deposits called fadama. It was in the light of these potentials that the First National Fadama Development Project (FADAMA I) was designed in 1993 to promote simple and low-cost improved irrigation technology under World Bank financing. The widespread adoption of the technologies enabled farmers to increase production by more than 300% in some cases. Evaluation of FADAMA I revealed that the full realization of project benefits was hampered by some specific short falls in project design and implementation, including the lack of involvement of project clients in project planning; project was limited to crop production ignoring downstream value addition activities of marketing and processing and ignoring of other Fadama resource users.
Government impressed by the achievements of FADAMA I approached the ADF and the International Development Association of the World Bank for support in expanding the achievements of FADAMA I in scope and size. To achieve its aims, FADAMA II was designed with a focus on community driven development with maximum participation of the stakeholders at every stage of the project cycle (Msuya M.M et al: unpublished). Despite the successes recorded in the FADAMA II project, the project still faced some constraints. Adegbite A.D et al (2007) identified some of the problems discovered as, “… inadequate infrastructural and storage facilities, inadequate capital for farm operation, insufficient access to micro-credit facilities and other support services by members of the Fadama endowed communities …” The Third National Fadama Development Project (FADAMA III) is a follow-up on the second phase. This research therefore aims to establish the role co-operative societies have to play in the actualization of the FADAMA III project.
1.3 OBJECTIVES OF THE STUDY
The main objective of this research work is to identify the relevance of cooperative societies in ensuring the success of the FADAMA III project in Enugu state, factors militating against these co-operative societies and possible solution to these challenges faced by the co-operative societies.
However to ensure efficiency and precision, this, main objective is further splitted into specific objectives which are to:
- Analyze the objectives of the Third National Fadama Development Project;
- Identify the project implementation arrangement of the Third National Fadama Development Project as well as to modus operandi.
iii. Discover and analyze the impact of the FADAMA III project on the life of the people of Enugu state, particularly those in the rural area.
- Make suggestions and recommendations that will help improve the contribution of co-operative societies to the actualization of the FADAMA III project.
1.4 RESEARCH QUESTIONS
During the course of this research, the researcher intends to provide answers to the following questions:
- What is the Third National Fadama Development Project all about?
- What are the objectives of the project?
iii. How is the project being executed?
- What are the contributions of the project to the development of Enugu state?
vii. How can these limitations be minimized if not entirely eradicated?
1.5 RESEARCH HYPOTHESES
H0: The impact FADAMA project have not encourage the spirit of agriculture in rural.
H1: The impact FADAMA project have encourage in the spirit of agriculture in rural.
H0: Fadama has not contributed positively on the development of rural areas in Enugu State.
H2: Fadama has contributed positively on the development of rural areas in Enugu State.
1.6 SIGNIFICANCE OF THE STUDY
The usefulness of the findings of this research cannot be over emphasized. First of all, this research will help the state government with tips on how to effectively use co-operative societies in the actualization of the goals of the FADAMA III project.
Secondly, the research will provide the organizers and coordinators of the FADAMA Development Project with possible solutions to the challenges currently faced by the project.
Thirdly, prospective organizers of community development oriented programmes will find this research work a useful guide to the actualization of their prospects.
Finally, though the researcher restricted this research study to Enugu state, the result of the findings will be of immense benefit to all coordinators and benefactors of the FADAMA III project all over Nigeria, as well as, students conducting similar research work on the same topic or related ones.
1.7 SCOPE AND DELIMITATIONS OF THE STUDY
In a study of this nature, one would like to accumulate data from many areas. But, in view of length of time allowed for this research, such a wide range sample was almost entirely difficult to collect and as such the researcher concentrated his field work in Enugu. The choice of Enugu was based on the time factor allowed and upon practical considerations including the fact that the researcher resides in Enugu.
Also, the researcher faced financial constraint as there was not enough capital to spend in transportation, fact finding and acquisition of necessary literature that would have helped in the writing of this research work.
Other challenges faced the researcher include difficulties in accessing relevant materials as well as low level of co-operation on the part of the respondents either as a result of ignorance in form of illiteracy or non availability due to tight schedules.
1.8 DEFINITION OF TERMS
Below is the definition some basic concept frequently used during the course of this research:
- Co-operative society: This is an association of persons who have voluntarily joined together to achieve a common end through the formation of a democratically controlled organization; making equitable contributions to the capital required and accepting a fair share of the risks and benefits of the undertaking in which members activity participate (Bob-Igwe C.C and Ugwuanyi Lillian: 2006).
- Fadama: This is the Hausa name for irrigable land-usually low-lying plains underlain by “shallow” aquifers found along major river systems. The Fadama concept is an age-old tradition in Hausa land where land that floods on several basis allows for the growth of a variety of crops under small scape irrigation farming system. Such lands are especially suitable for irrigated crop production and fishing and traditionally provide feed and water for livestock.
iii. Fadama Community Associations (FCAs): These are apex organizations of economic interest groups which derive their livelihood from the shared natural resources of the Fadama land.
- Fadama User Group (FUGs): An FUG is a group of an average of twenty (20) persons who share common economic interest and registered as a Fadama cooperative.
FUGs and FCAs are the primary beneficiaries of the Fadama Project.
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