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1 REVIEW OF NIGERIA'S RURAL DEVELOPMENT POLICY FOR SUSTAINABLE GROWTH BY ENGR. (DR.) SOLOMON NYAGBA FNSE 1st Deputy President, Abuja Chamber Of Commerce‘ Consultant Energy/Infrastructure African Business Roundtable (ABR) Former MD/CEO Benue Cement Co. Plc. Gboko Nigeria Presentation at the West African Regional Conference on Smart, Appropriate Technologies for Rural Communities Date: July 9 11, 2009 Abuja, Nigeria

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REVIEW OF NIGERIA'S RURAL DEVELOPMENT

POLICY FOR SUSTAINABLE GROWTH

BY

ENGR. (DR.) SOLOMON NYAGBA FNSE

1st Deputy President, Abuja Chamber Of Commerce‘

Consultant Energy/Infrastructure

African Business Roundtable (ABR)

Former MD/CEO Benue Cement Co. Plc.

Gboko Nigeria

Presentation at the West African Regional Conference on Smart, Appropriate Technologies for Rural Communities

Date: July 9 – 11, 2009

Abuja, Nigeria

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REVIEW OF NIGERIA'S RURAL DEVELOPMENT

POLICY FOR SUSTAINABLE GROWTH

BY

ENGR. (DR.) SOLOMON NYAGBA

Presentation Outline Introduction

Brief Review of National Policy on Integrated Rural

Development

Analysis of the Policy using SWOT Principles

Renewable Energy – A Key Implementation of Federal

Government Policy on Smart Technologies in Rural

Communities

Conclusion and Recommendation

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INTRODUCTION

3

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• Rural communities are the most important

sectors of the Nigerian, indeed the West

African Regional Population. There are

several reasons to support this position.

4

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• Agricultural and rural developments are crucial for the

structural transformation and economic development of

West Africa Region. Agriculture contributes 20 per cent

of GDP in northern Africa and 30 per cent of GDP in sub-

Saharan Africa. The rural population represents an

average of over 60 percent of the total population on the

continent; about 90 per cent of the rural labor force

engage directly or indirectly in agricultural activities. For

the continent’s rural people, accelerated agricultural and

rural development would contribute to greater efficiency,

increased household income, improved standards of

living, and poverty reduction.

5

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• Experience from the developed economies has

shown that a sound rural development policy

must posses the following key components:

– Must be sustainable

– Must be Efficient

– Must be Affordable

6

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Rural Development and Sustainability

• We must all understand that sustainable development is

a strategy by which communities seek economic

development approaches that also benefit the local

environment and quality of life. It has become an

important guide to many communities that have

discovered that traditional approaches to planning and

development are creating, rather than solving, societal

and environmental problems. Where traditional

approaches can lead to congestion, sprawl, pollution and

resource over consumption, sustainable development

offers real, lasting solutions that will strengthen our

future. 7

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• Sustainable development provides a

framework under which communities can use

resources efficiently, create efficient

infrastructures, protect and enhance quality

of life, and create new businesses to

strengthen their economies. It can help us

create healthy communities that can sustain

our generation, as well as those that follow

ours.

8

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• Sustainable development therefore must

meet the needs of the present without

compromising the ability of future

generations to meet their own needs.

9

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• My presentation will cover a

comprehensive review of the National

Policy on integrated Rural Development

of the Nigerian Government – produced by

the Federal Ministry of Agriculture and

Rural Development

10

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• The review will also include a SWOT

(Strengths, Weaknesses, Opportunities

and Threats) analysis. SWOT analysis is a

basic technique that is often used in

strategic planning, improving corporate

success, organizational development and

identifying competitive advantage, so as to

achieve better understanding of the

proposed initiatives.

11

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• It will be clear from the review that the demands

of Smart, Appropriate and Resource Efficient

Technologies are not clearly defined, except in

the area of Rural Energy Supply which is

covered in the Renewable Energy Master Plan

(REMP) – policy document produced by the

Energy Commission of Nigeria.

• This aspect of the policy is like part of the

implementation strategy for Smart and Efficient

Technologies for Rural Development.

12

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OVERVIEW OF NIGERIA'S POLICY

ON

INTEGRATED RURAL

DEVELOPMENT

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CHAPTER 1Introduction and Background

1.1 General Introduction

1.2 Meaning and Scope of Integrated Rural Development

1.3 Integrated Rural Development and the National Interest

1.4 Rural Condition in Nigeria: An Overview

1.4.1 Dimensions of Rural Poverty

1.4.2.1 Rural Mass Deprivation

1.4.2.2 Individual Deprivation

1.5 Evolution of Integrated Rural Development Policy

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CHAPTER 2

Policy Objectives And Strategies

2.1 Policy Objectives (14)

– The overview objectives of the National Policy Integrated Rural Development

draw from the national objectives of developing the rural areas, raising the quality

of life of the rural people, alleviating rural poverty and using rural development to

contribute to laying a solid foundation for national development.

2.2 Strategies for Integrated Rural Development (5)

– To achieve integrated and even development on a sustainable basis, the

strategies to be adopted will empower rural dwellers through the development of

productive employment, enhancing their income, ensuring protection of the

environment, promoting gender responsiveness and ensuring adequate care for

vulnerable group groups.

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CHAPTER 3

Priority Areas for Integrated Rural Development

3.1 Introduction

Policies are implemented through the designed and execution of programs. The National Policy on Integrated Rural Development lays special emphasis on five areas:

3.1.1 Promotion of rural productive activities;

3.1.2 Supportive human resources development;

3.1.3 Enhancement of enabling rural Infrastructure;

3.1.4 Special programs for target groups;

3.1.5 Rural community organizations and mobilization.

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CHAPTER 3Priority Areas for Integrated Rural Development

cont..

3.2 Promotion of Rural Productive Activities

3.2.1 Policy Statement

3.2.2 Objectives

3.2.3 Strategies

3.2.4 Policy Areas

3.2.4.1 Agriculture, Fisheries. Animal Husbandry and Forestry

3.2.4.2 Mineral Resources Development

3.2.4.3 Manufacturing and Industry

3.2.4.4 Marketing and Distribution

3.2.4.5 Rural Financial Systems

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CHAPTER 3 Cont….

3.3 Supportive Human Resources Development and Utilization

3.3.1 Policy Statement

3.3.2 Objectives

3.3.3 Strategies

3.3.4 Policy Areas

3.3.4.1 Health and Population

3.3.4.2 Culture and Social Development

3.3.4.3 Education, Technology and Skills Development

3.3.4.4 Research and Extension Services

3.3.4.5 Information and Communication

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CHAPTER 3cont..

3.4 Enhancement of Enabling Rural Infrastructure Policy3.4.1 Policy Statement

3.4.2 Objectives

3.4.3 Strategies

3.4.4 Policy Areas

3.4.4.1 Transport Infrastructure and Facilities

3.4.4.2 Communications Infrastructure

3.4.4.3 Housing

3.4.4.4 Environment

3.4.4.5 Energy

3.4.4.6 Water and Sanitation

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CHAPTER 3cont..

3.5 Special Programs for Target Groups

3.5.1 Policy Statement

3.5.2 Objectives

3.5.3 Strategies

3.5.4 Policy Areas

3.5.4.1 Women

3.5.4.2 Youth

3.5.4.3 Children

3.5.4.4 The Elderly and the Retired

3.5.4.5 The Handicapped

3.5.4.6 Beggars and Destitute

3.5.4.7 Emergencies and Natural Disasters

3.5.4.8 Economically Disadvantaged Areas

3.5.4.9 Border Areas

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CHAPTER 3cont..

3.6 Rural Community Organization and Mobilization

3.6.1 Policy Statement

3.6.2 Objectives

3.6.3 Strategies

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CHAPTER 4

Institutional Framework

4.1 Introduction

Principle Stakeholders; (8)

1. Federal Government

2. State Government

3. Local Government

4. Communities

5. Non-Governmental Organization

6. Non-Profit Organization

7. Private Sector Enterprises

8. External Support Agencies

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CHAPTER 4Institutional Framework cont..

4.2 Roles and Responsibilities of the Stakeholders in Rural Development

4.3 Government Agencies

4.3.1 Federal Government

4.3.2 Department of Rural Development

4.3.3 State Governments

4.3.4 Local Governments Communities

4.4 Non-Governmental Organizations (NGOs),

Non-Profit Organisations (NPOs)

and Private Sector Enterprises (PSEs)

4.6 External Agencies

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CHAPTER 5

Sustainable Funding For Integrated Rural Development

5.1 Introduction

5.2 Government Funding

5.3 Community Funding

5.4 Funding by NGOs, NPOs and PSES

5.5 Funding by External Agencies

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CHAPTER 6

Coordination, Monitoring, Evaluation And Review

6.1 Introduction

6.2 Coordination

6.3 Monitoring and Evaluation

6.4 Review

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STRENGTHS:

-Policy ensures that the private sector plays a

vital role -Policy highlights

agriculture, as it is often considered as less

'developmental'.

WEAKNESS:

-No specific policy relating to "smart

technology”.

OPPORTUNITY:

-Integrate smart appropriate, efficient

technology at the early stage of development.

-Democratic govt. which will hopefully guarantee stability.

THREAT:

-Implementation

-Resource Availability -Policy inconsistency

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RENEWABLE ENERGY

A Key Implementation of

Federal Government Policy on

Smart Technologies in Rural

Communities

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EXECUTIVE SUMMARY

Background

The Renewable Energy Master Plan (REMP) articulates

Nigeria's vision and sets out a road map for increasing the

role of renewable energy in achieving sustainable

development.

The REMP is anchored on the mounting convergence of:

• Values,

• Principles and

• Targets as embedded in the

• National Economic Empowerment and Development Strategy

(NEEDS),

• National Energy Policy,

• National Policy on Integrated Rural Development,

• The Millennium Development Goals (MDGs) and

• International conventions to reduce poverty and reverse global

environmental change.

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BACKGROUND …. CONTINUED

Towards the coming decades, Nigeria envisions a peaceful and

prosperous nation driven increasingly by renewable energy.

The country will exploit renewable energy in quantities and at prices

that will promote the achievement of equitable and sustainable

growth.

SHORT TERM

In the short term, crude oil will continue to play a dominant role in the

economic development of the country.

Nigeria's fossil-led economy is under severe pressure.

Decades to come, the sun will slowly but certainly set on crude oil

production.

Today, large hydropower plants are increasingly threatened by a

shrinking River Niger, shaking the security of electricity supplies.

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Nigeria envisions an energy transition from crude oil to a less carbon

intensive economy increasingly powered by gas.

Gas will represent a new growth pole and provide a bridge to a low

carbon economy that secures increased prosperity and preserves

our environment.

In the next ten years, gas is expected to overtake crude oil as a

source of revenue; provide a basis for reliable power supply and a

cleaner environment.

The effect of renewable energy in national energy supply should

begin to be felt.

Background continued

MEDIUM TERM

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Background …. Continued

Nigeria envisions a country that will significantly be less

dependent on hydrocarbons.

Energy from

• Sun,

• Modern and more efficient conversion of biomass energy,

• Small hydro plants and

• Wind along with conventional technologies, will dominate the

energy landscape needs.

Far into the future, Nigeria will join the rest of the world in

developing a hydrogen economy and in accessing the vast energy

entrapped in the oceans and in the Earth's crust.

Challenges and opportunities

This bold new vision is achievable as Nigeria addresses

present challenges.

• the reform of the policy,

• regulatory and institutional

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Challenges and Opportunities ……... CONTINUE

framework that will enable a rapid scale up of the market for renewable

energy.

• Prices and financing constraints will be addressed to create a level

playing field, and increase incentives for renewable energy.

• Poor product quality and standards must be regulated to ensure

consumer confidence and sustainability of the market.

• Public awareness and promotion will be critical elements of the drive

to expand the market for renewable energy. Lastly,

• Addressing gaps in key R&D areas and building human and

manufacturing capacities are key issues that must also be

addressed.

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DRIVERS FOR CHANGE

The demand for energy services by a huge proportion of

the population that remain inadequately served.

The commitment and completion of far reaching power sector

reforms will also create a basis to expand the role of

renewables in meeting electricity targets, especially in rural

power supply.

International development in the market for renewable

energy technologies and the actions of government bilaterally

and within multilateral bodies will help shape successes in

delivering more energy from renewable sources.

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KEY OBJECTIVES

The overall objective of the REMP is to articulate a national

vision, targets and a road map for addressing key

development challenges facing Nigeria through the

accelerated development and exploitation of renewable

energy.

Put in place a comprehensive framework for developing

renewable energy policies, legal instruments, technologies,

manpower, infrastructure and market to ensure that the

visions and targets are realized.

Expanding access to energy services and raising the

standard of living, especially in the rural areas;

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Key Objective ……... CONTINUED

Stimulating economic growth, employment and

empowerment;

Increasing the scope and quality of rural services, including

schools, health services, water supply, information,

entertainment and stemming the migration to urban areas;

Reducing environmental degradation and-health risks,

particularly to vulnerable groups such as women and children;

Improving learning, capacity-building, research and

development on various renewable energy technologies in the

country; and

Providing a road map for achieving a substantial share of the

national energy supply mix through renewable energy.

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Hydropower, large scale 14,000MW

Hydropower, small scale 734 MW

Fuelwood 13,071,464 hectares (forest land 1981)

Animal waste 61 million tones / yr

Crop Residue 83 million tones / yr

Solar Radiation 3.5 7.0kwh/m2-day

Wind 2-4 m/s (annual average)

Nigeria’s Renewable Resources

Energy Source Capacity

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Initial Capital Costs Electricity Generating Systems

Technology Size (KW) Initial Capital Cost ($/KW

Engine Generator

Gasoline 4 760

Diesel 20 500

Micro hydro 10 20 1,000 2,400

Photovoltaic (PV) 0.07 11,200

Photovoltaic (PV) 0.19 8,400

Wind Turbine 0.25 5,500

Wind Turbine 4 3,900

Wind Turbine 10 2,800

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Operation, Maintenance, & Fuel Costs for Different Technologies

Technology O & M Costs Fuel Costs

(cents/KWh) (cents/KWh)

Engine

Generator

2 20

Micro Hydro 2 0

Photovoltaic 0.5 0

Wind

Turbines 1 0

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Solar Energy

Solar Thermal

Biomass

Solar Photovoltaic

Wide Energy

Biogas

Hydrogen Energy

Ocean Energy

Tidal Energy

Wave Energy

Geothermal Energy

GLOBAL OVERVIEW OF NIGERIA’S RENEWABLE ENERGY

VISION

“Energy Resources, Technologies and Markets

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TARGETS

Targets for Installed Electricity Capacity (MW)

Sources 2007 2015 2025

Wind 1 20 40

Solar PV 5 75 500

Solar thermal - 1 5

Small hydro 50 600 2000

Biomass 50 400

Total 56 746 2945

ECN High Growth Scenario

Projections 7000 14000 29000

Percentage share. of projected

energy

demand

0.8 5 10

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PLANNED ACTIVITIES AND MILESTONES

The REMP sets out six distinct activities with concrete

milestones to be reached within the plan period. These

activities are organized around the following programmes:

• Framework Programme for Renewable Energy Promotion;

• Nigerian Solar Programme;

• Nigerian Small Hydro Programme;

• Nigerian Wind Programme;

• Nigerian Biomass Programme; and

• New Energy Research and Development Programme.

FINANCIAL IMPLICATIONS

Meeting the targets of the Renewable Energy Master Plan will

demand significant investments in renewable energy systems.

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Policy, legal and regulatory

I framework 0 90 32 122

2 Institutional framework 0 0 0 0

3 Economics and Financing 0 70 20 90

4 Capacity Building 100 100 100 300

5 Public Awareness 10 100 100 210

6 Inter-Agency Collaboration 10 10 10 30

7 Research and Development 50 50 50 150

8 Monitoring and Evaluation 0 10 10 20

Sub-Total 170 430 322 922

Framework Programme for Renewable Energy Promotion

S/no Programmes and Activities ST (Nm) MT (Nm) LT (Nm) Total (Nm)

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BIOMASS ENERGY

S/NO ST ST MT LT Total

1 Data Acquisition 200 100 100 400

2 Capacity Building: Manpower 1082 2246 6,978 10,306

3 Market Development and

Promotion 271 315 290 876

4 Site Identification 30 90 90 2]0

5 Technology Assessment &

Review 10 10 15 35

6 Biogas Technology/Diffussion

Programme 60 120 180 360

7 Intensive Plantation of fast

growing trees100 300 600 1000

8 Capacity Building 40 50 3100 3190

Sub-Total 1,793 3,231 11,353 16,377

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SOLAR ENERGY

S/NO ST ST MT LT Total

1 Data Acquisition 40 80 100 220

2 Capacity Building :Manpower 60 240 260 560

3 Capacity Building: Manufacturing

and Production 10 100 100 210

4 Capacity Building; Support

Infrastructure 100 500 800 1400

5 Market Development and Promotion 650 1100 1100 2850

6 Research and Development

Framework 50 100 200 350

7 International, Regional and Inter-

Agency Cooperation 10 50 100 160

8 Public Awareness 10 10 50 70

9 Policy, legal, & regulatory

framework 310 345 500 1155

Sub-Total 1240 2525 3210 6975

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SMALL HYDROPOWER

S/NO Activity ST (Nm) MT (Nm) LT (Nm) Total (Nm)

1 National Survey 18 0 0 18

2 Assessment of Agricultural

& Industrial Demand 6 0 0 6

3 Implementation of Fiscal

measures 0 0 0 0

4 Codes and Standards 5 0 0 5

5 Institutional Structure 0 200 0 200

6 Power Purchase Agreement 3 0 0 3

7 Information System 4 0 0 4

8 Public Awareness 10 0 0 10

9 Domestic, Private Sector

Participation 4 0 0 4

10 Water Resource

Management 4 0 0 4

11 Pilot Schemes 14 840 1,500 2,354

12 Capacity Building 30 120 120 270

13 Research and Development 36 80 100 216

14 Private Sector Participation 0 4 6 10

Sub-Total 134 1244 1,726 .3,104

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WIND ENERGY

S/NO Activities ST MT LT Total

1 Data Acquisition 150 100 140 390

2 Data Analysis 0 0 200 200

3 Establishment of a

wind test facility 500

0

100

100

0

600

160

4Capacity Building:

Manpower 60

5

Establishment of a

Hybrid

Demonstration Plant

200 0 0 200

6 Policy Framework 10 0 0 10

7 Capacity Addition 0 170,000 380,200 550,200

8

Capacity Building;

Support

Infrastructure

0 0 30,000 30,000

Sub-Total 920 170,200 410,640 581,760

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A HYDROGEN ENERGY

S/NO Activities ST MT LT Total

1 Research and Development

Centres 5 5 50 60

2 Proposal Development 2 10 50 62

3 Appropriation 0 0 30 30

4 Budget Line 0 0 0 0

5 Commencement of

Research 10 25 0 35

Sub-Total 17 40 130 187

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OCEAN ENERGY

S/NO Activities ST MT LT Total

1 Research and Development

Centres 5 5 50 60

2 Proposal Development 2 10 50 62

3 Appropriation 0 0 30 30

4 Budget Line 0 0 0 0

5 Commencement of

Research 10 25 0 35

Sub-Total 17 40 130 187

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GEOTHERMAL ENERGY

S/NO Activities ST MT LT Total

1 Research and Development

Centres 5 5 50 60

2 Proposal Development 2 10 50 62

3 Appropriation 0 0 30 30

4 Budget Line 0 0 0 0

5 Commencement of

Research 10 25 0 35

Sub-Total 17 40 130 187

Grand Total 4,308 177,750 427,641 609,699

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CONCLUSION

AND

RECOMMENDATIONS

54

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Conclusion and Recommendations

• To reestablish Federal Ministry of

Agriculture and Rural Development

• The department of Rural Development be

upgraded to a full Agency for Rural

Development

• Policy to be reviewed to incorporate key

elements of smart, appropriate, and

affordable technologies for Rural

communities 55

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THANK YOU