• Nigeria Country Programme
 
 

Nigeria Country Programme

Country Programme Background

UNIDO has a long standing relationship with Nigeria and has been involved in the country since 1966. The current Nigerian Country Programme (CP) entitled Economic Development through Poverty Alleviation: Promoting Competitiveness and Sustainable Export of Value Added Products, covers the period 2009-2012 and also includes projects carried over from the previous country programme modality, the Country Service Framework II. It builds on a long UNIDO presence in and collaboration with Nigeria, and attempts to consolidate the previously implemented Country Service Frameworks (Phase I and II).

The overall objective of the CP is to support Nigeria’s industrialization efforts and the main counterpart agency is the Federal Ministry of Trade and Investment (FMTI). The CP is implemented under three themes, namely Poverty Reduction through Productive Activities, Trade Capacity Building and Energy and Environment. In all, the CP incorporates around 40 projects covering areas of industrial governance, private sector development (PSD), trade facilitation, agro-industry development, energy and environmental sustainability.  

The Country Programme follows the UNIDO thematic priorities and includes the following themes and corresponding components:

Theme A: Poverty Reduction through Productive Activities includes three components:
•    Component A1: Governance, Research and Capacity Development
•    Component A2: Agro-Industries, Value Addition and One Village One Product (OVOP)
•    Component A3: Private Sector Development

Theme B: Trade Capacity Building includes two components:
•    Component B1: Trade Capacity Building
•    Component B2: Investment and Technology Promotion

Theme C: Energy and Environment includes two components:
•    Component C1: Renewable Energy
•    Component C2: Environment

 

 

Selected Activities

Poverty Reduction through Productive Activities

Agro-Industries and Value Addition

Agriculture and agro-industry remain vital to Nigeria’s drive towards its slated development goals as outlined in the Vision 20:2020. Agriculture contributed approximately 30% to GDP in 2010 and was one of the driving forces behind the economic growth experienced by the country. More recently, the sector contributed 43.6% to GDP in the third quarter of 2011.  In addition, the importance of agriculture to the Nigerian economy can be seen by the fact that it employs approximately 70% of the population. This is mostly related to the processing of raw products and thus presents a good potential for value addition and the growth of agro-industries.

Given the competence and experience of UNIDO in the area of agro-industry and agribusiness development, specifically in the development of value chains, UNIDO is well-placed to support the Government of Nigeria (GON) in growing and expanding the sector. Agro-industry is currently addressed as a component of the Poverty Reduction through Productive Activities theme in the UNIDO Country Programme (CP) for Nigeria.  The component covers Agro-industries, Value Addition and One Village One Product (OVOP) interventions.  

The Agro-industry and value addition components of UNIDO Nigeria’s CP are consistent with and supportive of the needs and priorities of the country and key government policies and specifically the Vision 20:2020 and the more recent Transformation Agenda which incorporates agro-industry, agro-processing and agribusiness in their strategies to achieve development goals.

The overall objective of the component is to promote industrialization, rural development and economic empowerment in Nigeria by adding value to the country’s agro resources. Descriptions of selected projects under the agro-industry and value addition projects are provided below:

The Common Facility Centre Project

The Common Facility Center (CFC) in Aba, Abia State has evolved from multiple projects addressing the leather and the garment/textile sectors in the region. The CFC is a shared facility for the improved production and knowledge of the leather and garment clusters also located in Aba. Clusters of various sectors are numerous and well-established in the majority of states in Nigeria and cluster development is promoted by the Government of Nigeria (GON).

Located in close proximity to the clusters, the CFC provides training aimed at improving the skills of the entrepreneurs in the clusters and thus contributes to improving the production quality.  There are large numbers of entrepreneurs working in the leather and garment clusters in Aba and the CFC has demonstrated potentials of reaching a wide cross section of target beneficiaries. The assignment and payment of staff of the CFC is under the responsibility of the Abia State Government.  

There are 2 key work streams or project components of the CFC – Leather and Garment. The leather projects under the CFC have been completed and the garment component will end by December 2012. The Common Facility Centre (CFC) has been constructed and is in use and an assessment of equipment needs was completed and equipment supplied for the CFC. The building is well designed and built and appropriate for the functions of the CFC.  

The overall goal of this project is to contribute to poverty reduction and improved livelihoods through enhanced capacity of micro and small-scale operators in selected sectors to access markets with products of adequate quality. The overarching objective of the project is to establish a CFC adequately equipped and furnished to provide training and in house demonstration of enhanced production technologies for the large numbers of footwear, leather goods and garment manufacturers located primarily in Aba and assist them in to increase their contribution in further development of the relevant industrial sectors in Nigeria.

The project aims to improve performance (product range, quality and productivity) of footwear and other leather products manufactured by small-scale entrepreneurs of the Aba leather industry sector of Nigeria. Other specific objectives of project components include:
•    Creation of a coordination and implementation framework to steer and implement the project
•    Establishment of institutional mechanisms for training of the CFC staff and the installation of equipment
•    Training the staff/trainers and up-grading existing entrepreneurs technical and management skills in ready-made garment sector
•    Improving the capacity of support institutions and providing services in entrepreneurial, technical and management training

Implementation Status of the Leather Component of the CFC

This component of the project has ended. The CFC now has trained staff available to assist entrepreneurs in design and pattern engineering and has organized several trainings in both technical skills related to leather work as well as management training.  The entrepreneurs now have access to equipment that was previously unavailable and several resident entrepreneurs have obtained contracts for large orders of school uniform shoes and military boots. During an exhibition in which the CFC was able to promote their products, entrepreneurs made contact with potential distributors. In addition, entrepreneurs from the CFC have participated in a government sponsored exhibition and the project has also supported several missions of local and international experts and one mission for CFC staff and entrepreneurs to the CFC in Kenya. The umbrella association of key stakeholders is well organized and able to promote the CFC among members and beneficiaries.  

Although the leather component of the project has now ended, more equipment are still needed to improve the Centre’s production capability as well as its competiveness. It is also envisaged that the association’s financial or technical capacity will evolve to enable them take over and manage their CFC on their own.
 
Implementation Status of the Garment Component of the CFC

Three of the seven activities associated with this output have been completed. These include the allocation and equipment of offices for CFC.  In addition, the project employed a garment production expert for 1.5 months in 2010.

The other four activities are ongoing and have not yet been completed. The steering committee is yet to be organized and officials have not been appointed to assist with the coordination of the CFC. Some training has taken place, including the training of 42 garment entrepreneurs at the NEPC/AGOA training center in Lagos.  A pilot training for entrepreneurs has been completed and a comprehensive training plan and curriculum is being developed.  The CFC is also in negotiations with organizations and schools to determine the feasibility of identifying training partners.
 
A key output of the garment component of the project was an analysis of the garment and textile sector in Nigeria which included an action plan for revitalizing the sector. The government has taken several steps using the garment and textile assessment produced in order to strengthen the textile sector.  Several entrepreneurs have also been successful in obtaining contracts for uniforms, both government and school uniforms.  This market as well as higher end garments, such as suits do not face the same competition from foreign imports and smuggled goods and have the potential to be profitable for the entrepreneurs.  This focus has provided the project with support and ownership as well as impetus to achieve slated objectives.

Rice Processing Project

This project is still in an early stage. The project, Supporting Integrated and Comprehensive Approaches to Climate Change Adaptation in Africa- Promoting and integrated approach to adaptation in Nigeria through building the governance system, empowering children as change agents and demonstrating adaptation benefits in the agricultural sector, is a regional project being led by UNDP and jointly implemented with UNICEF and UNIDO. The UNIDO portion of the project in Nigeria – Rice Processing will address adaptation to climate change through the introduction of Small Hydro Power (SHP) which will be used to support agro-industry in the community. Agricultural engineering and mechanization to increase sustainable production and improve post-harvest storage and processing is included in the project and represents the agricultural engineering subcomponent of the UNIDO led portion of the project.

The project is funded by the Government of Japan. Land for the building of the rice mill will be provided by the ALGA located in the Obagagi village and the civil works for the project will be provided by the cooperative and ALGA.  The main beneficiary is the Ehowodo Farmers Cooperative which has approximately 300 members who could potentially be direct beneficiaries.  It is envisaged that the electricity harnessed from the SHP as part of project will eventually be used to power the rice mill being installed.  Until the SHP is available the rice mill will use a stand-by diesel generator.

Women’s Salt Project in Ebonyi State

UNIDO Nigeria has undertaken several interventions in Nigeria related to salt processing and most recently through a project in Ebonyi State; Betterment of the Livelihoods of Women through Adoption of Improved Salt Processing Technology in Ebonyi State which was designed and implemented under the One Village One Product Scheme within the Agro-industry component of the Country Programme.

The project goal is to enhance productivity for wealth creation as well as development of women in Uburu communities of Ebonyi State. The project aims to increase the quantity and improve on the quality of salt production in the target community.

The salt processing project, under the present CP, began in March of 2009 and was completed in March of 2010.  It was funded primarily by the Japanese Government through their Grant Assistance to Grassroots Human Security Project (GGP) programme.

The three sites located in Ebonyi State are the communities of Uburu, Okposi and Idembia Ezza. Each site is located next to a salt source, either a small pond or lake.  Each site also serves between 4 and 5 cooperatives with each cooperative representing approximately 45 members.  

Improving Income Generating Potential of Oil Palm in Nigeria

This project is the Nigerian component of the regional project Improving the Income Generating Potential of the Oil Palm in West and Central Africa. The long term objective of the project is to promote the development of a sustainable oil palm sector for income generation and poverty alleviation in the West and Central African Region.  The project aims to accomplish this by introducing technologies and equipment to promote competitive raw material production, effective and efficient palm oil processing and oil palm by-product utilization.

There will be pilot activities at two sites in Nigeria. The first site in Akwa Ibom state will include the refurbishment of an oil palm processing facility donated by the local government and not currently in use.  The site will include a palm oil pilot processing centre, a nursery and a model farm of oil palm will be set within the same geographical area.

The second site in Ondo state is located on land, within an oil palm cluster, which has been donated by the local government.  The project will construct an oil palm processing facility, an oil palm seedling nursery as well as a pilot oil palm farm.

A third site in Imo State is currently being considered but this has not been finalized.

Private Sector Development (PSD) and Industrial Governance

The private sector in Nigeria is recognized as the main engine for driving much needed economic growth, greater competitiveness, employment and diversity in the country. The main components of UNIDO’s PSD and industrial governance portfolio in Nigeria range from the Industrial information system and computer refurbishment project, which provides support to the Federal Ministry of Trade and Investment (FMTI), to the ‘Survey of enterprises in selected ACP Regions’ project, which is a regional project covering 19 African countries.

The research studies conducted by the CP on key sectors enhance the knowledge base for sound industrial policy formulation. Likewise, capacity building support to national institutions such as the FMTI’s industrial information center on the one hand, and the Organised Private Sector (OPS) on the other are relevant to enhanced knowledge generation and management and public private partnership development. COMFAR training, equally provided through UNIDO, is relevant to the larger institutions’ investment feasibility analysis needs, particularly with the Bank of Industry, the Nigerian Investment Promotion Council, the Enterprise Development Council and the FMTI. Together, these projects aim to enhance the knowledge base in Nigeria regarding various industrial sectors, with the overall aim of reducing poverty through pro-poor industrialization strategies.

Moreover, UNIDO Nigeria has led various competitiveness studies to provide reliable empirical data for industrial development in the country. The survey of enterprises in Nigeria was implemented in collaboration with the National Bureau of Standards and other institutions and associations collaborating in the industrial survey process.

The CP continues to provide support to industrial governance through the Organised Private Sector (OPS), which acts as a common lobby for various Private Sector (PS) associations in Nigeria and has a rotating Secretariat among them. Currently, the Manufacturer’s Association of Nigeria (MAN) holds the chairmanship. UNIDO also has a decade-long capacity building collaboration with a number of Nigerian PSD-related associations such as MAN and the Lagos Chamber of Commerce and Industry (LCCI) and institutions such as the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).

In addition, the UNIDO-Hewlett-Packard cooperation for entrepreneurship and IT education in Nigeria - part of a global effort aims to develop the entrepreneurial and IT skills of young people and women in particular, working with a cross section of industrial associations (MAN, LCCI, SMEDAN), entrepreneurship training centres (CENSIRT, EDC) and an education institution (Ebonyi State University).

Descriptions of selected PSD and Governance, Research and Capacity Development projects are provided below:

Support to the Organized Private Sector (OPS)

UNIDO Nigeria provides support to industrial governance through the OPS, which acts as a common lobby for various Private Sector (PS) associations in Nigeria and has a rotating Secretariat among them. Currently, the Manufacturer’s Association of Nigeria (MAN) holds the chairmanship. UNIDO also has a decade-long capacity building collaboration with a number of Nigerian PSD-related associations such as MAN and the Lagos Chamber of Commerce and Industry (LCCI) and institutions such as the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). The OPS is also a platform for Public Private Partnership for industrial and trade policy formulation.

The CP works closely with the OPS in Nigeria and provides varied support services including advocacy for improved business environment, organizing study tours and facilitating propagation of information on global best practices in manufacturing. In 2011 for example, OPS representatives participated in a training programme organized by the CP on use of industrial statistics in Japan organized by the CP and another in production management which held in Nigeria. The CP is in regular consultation and dialogue with the OPS and will continue the development of the platform through capacity building focused on enhancing competencies for national policy inputs and advocacy.

There is a very strong national ownership of initiatives targeting the OPS and UNIDO Nigeria’s cooperation with the OPS is set to grow particularly in its lobbying and advocacy aspects in key sectors such as energy, automotive and agro-industries.

SPX Nigeria

SPX Nigeria centre is a collaborative effort between the Federal Republic of Nigeria and UNIDO. It is focused on building the industrial capacities and capabilities of domestic Small Medium Enterprises (SME's) and establishes linkages between themselves and Large Scale Enterprises (LSE's) nationally and globally.SPX Nigeria provides a range of services in different functional areas. The services are grouped under these areas:
•    Database: Development of a database outlining business capabilities for business matching and linkages. Proactively identifying and registering main contractors and opportunities they provide.
•    Match-making: Presenting suppliers to potential buyers.
•    Business Promotion: Organisation of exhibitions and trade fairs, provision of business information through seminars workshop and newsletters.
•    Consultancy: Benchmarking services, research data including information about existing markets and new market opportunities
•    Training: Capacity development programmes for SMEs, supplier development programmes

More information can be found on the SPX Nigeria website

The Industrial Information System and Computer Refurbishment Project

The project provides ICT capacity building for staff of FMTI which includes training in industrial information management and web based applications. Training on Computer Model for Feasibility Analysis and Reporting (COMFAR) has also been provided for a range of national institutions like the Nigerian Investment Promotion Commission (NIPC) and the Education Development Centre (EDC). The project also aims to strengthen BICs Network and Linkages around the country.

Under this project, UNIDO Nigeria has established a Resource Center within the FMTI which serves as both an information sharing and training center. Over one hundred and forty Ministry staff have been trained in various aspects of IT and industrial information management and three Business Information Centres (BICs) have been established – one each in the Manufacturing Association of Nigeria, the Lagos Chamber of Commerce and Industry and the Enterprise Development Centre. The centres also run business advisory services and work closely with the UNIDO-HP entrepreneurship development Project.

The COMFAR trainings is particularly useful to larger institutions such as the NIPC, investment banks, ministries, training institutions (such as EDC) and others dealing with major projects that have a strong need for the investment feasibility analyses that COMFAR offers.

Some highlights of the project include:
•    Training needs assessment of the FMTI has been completed and an action plan developed for implementation
•    Over 140 staff members of FMTI have been trained in computer usage and web-based applications
•    Over 100 personnel have been trained in Computer Model for Feasibility Analysis and Reporting (COMFAR) from various national institutions

UNIDO-Hewlett Packard (HP) Cooperation for Entrepreneurship and Information Technology Education

UNIDO partnered with Hewlett Packard (HP) in 2008 to implement a global programme for entrepreneurship and IT education. The overarching objective of this joint venture programme, a sterling Public Private Partnership (PPP) model, has been to equip aspiring and existing entrepreneurs in developing countries with hands-on business and IT skills. The programme focuses on imparting knowledge and skills on how to start, run and grow enterprises. In 2010, building on the successful implementation of the Graduate Entrepreneurship Training through IT” (GET-IT) programme in Africa and the Middle East, the programme coverage was expanded to Asia and Latin America.  Today, at the core of the partnership is the global Learning Initiative for Entrepreneurs (LIFE) training programme which is available in several languages and covers selected topics in the areas of marketing, operations, communications and finance for different stages of entrepreneurship; from imagining to innovating.  

In Nigeria, the UNIDO-HP partnership programme is implemented in collaboration with the Micro-Enterprise Acceleration Institute (MEA-I) and the Education Development Center (EDC). The LIFE trainings are provided by carefully selected partner organizations. These selected partner organisations receive a HP technology package, various online tools, access to the LIFE curriculum and are eligible for grants. Partner organisations are selected based on a scoring system that has a mandatory gender equality promotion component. The designated LIFE trainers in the partner organisations undergo an intensive Training-of-Trainers course to become certified. The GET-IT/LIFE initiative has benefitted greatly from close alignment and synergies with national entrepreneurship development programmes.

The UNIDO-HP programme is currently working with the following institutions to implement the programme in Nigeria:

•    Center for Small Industry Research and Training (CENSIRT) Ebonyi State
•    Ebonyi State University, Ebonyi State
•    African Leadership Forum, Lagos/Ogun
•    University of Uyo, Akwa Ibom State
•    SMEDAN, Abuja
•    Cherish Support Foundation, Katsina State
•    Abuja Enterprise Agency, Abuja
•    SME-Microfinance Agency, Niger State
•    National Institute for Education Planning and Administration, Ondo State

Key achievements of the Nigerian UNIDO-HP Project

In 2009, CENSIRT received the ‘World Best Achiever’ award in the LIFE network. On account of this, UNIDO and HP provided support to upgrade the center (image below), which was officially inaugurated in July 2010.
 
The high degree of national ownership and leadership in programme management is also noteworthy. This has embedded UNIDO’s project inputs into local programmes, blurring the line between UNIDO and government inputs, with clear efficiencies through sharing of resources.
A summary of project accomplishments by end of 2011 is provided in table below:

Following the successful implementation of GET-IT/LIFE programme, UNIDO is planning to launch a national integrated Entrepreneurship Curriculum Programme (ECP) for secondary and vocational school in Nigeria.  The ECP curriculum is designed for youth to develop a positive attitude towards entrepreneurship and self-employment. The integrated LIFE-ECP curriculum bridges the divide between entrepreneurship, business and technical skills courses. The curriculum will be adapted to the Nigerian milieu and UNIDO has relevant experience in the methodology of adapting the ECP to local conditions

The imminent introduction of LIFE-ECP curriculum in secondary and technical schools is in sync with the Federal Government’s initiative to mainstream entrepreneurship and IT within the educational system as it is with the UNDAF objective to improve the quality and relevance of education of young people. The Project will benefit from UNIDO’s experience in adapting the Entrepreneurship Curriculum Program appropriately to local conditions. UNIDO has been implementing similar technical assistance projects in Angola, Mozambique, Namibia, Timor-Leste and Uganda. Syllabi, training materials, teacher’s and student’s guides from these other country projects will be shared as tools in adapting and developing content within the Nigerian educational context.

Institutional Support to FMTI and other Government Agencies

UNIDO Nigeria provides varied institutional support to the FMTI. The support provided by the CP to the FMTI has included facilitating the development of a national strategy for agribusiness and agro-industry, with an adaptation of the 3ADI programme for Nigeria – the Nigerian Agribusiness Agro-industries Development Initiative (N2ADI) as well as support towards the development of national industrial, investment and trade strategies and policies. UNIDO Nigeria continues to work closely with the FMTI to develop a strategy for optimizing the use of industrial parks and zones as vehicles for promoting industrial clusters for sustainable industrialization. Our specific inputs encompass policy oriented advisory services, facilitating information exchange, promotion of south-south partnerships, the organisation of industrial development and management training programmes and study tours aimed at sharing best global practices as well as building competency levels of personnel in Ministry.

With respect to other Government Agencies, UNIDO Nigeria responds to specific requests within its mandate and available resources and will continue to collaborate with, and provide institutional support services to the various institutions. Nigeria has several relevant with varying technical assistance needs. Examples of these agencies include – the Standards Organization of Nigeria (SON), Nigerian Investment Promotion Commission (NIPC), Nigerian Export Promotion Council (NEPC), Raw Materials Research and Development Council (RMRC), National Automotive Council (NAC), Federal College Of Chemical & Leather Technology (CHELTEC), National Environmental Standards and Regulations Enforcement Agency (NESREA), Energy Commission of Nigeria, National Bureau of Statistics (NBS) and Bank of Industry (BOI).

Click here for selected examples of our engagement with national agencies

Trade Capacity-Building

Overview

UNIDO Nigeria recognizes that Nigeria needs to increase its participation in global trade, most especially its non-oil export if the country is to achieve its vision 2020 objective of becoming one of the top 20 economies in the world by 2020. As illustrated by table below the growth rate figures, for the non-oil sector, as reported by the Central Bank of Nigeria (2010), have generally decreased in recent years.  

UNIDO Nigeria interventions under this thematic area have been largely channeled through national institutions and based on responding to specific requests from the institutions. Click here to view some of our interventions through national institutions.  The West Africa Quality Programme which is one of UNIDO’s regional programmes is providing interventions aimed at improving the sub-region’s industrial competitiveness.

Energy and Environment

Overview

The energy and environment theme of the Country Programme (CP) has two components:

Component C.1 is renewable energy for productive uses and industrial energy efficiency. The component objective is building national capacities for the development of renewable energy resources for energy production, power generation and sustainable energy management. There are four sub-components:
•    Biomass
•    Small Hydro Power
•    Solar Power and
•    Industrial Energy Efficiency.

Component C.2 is environment and its objective is strengthening national capabilities in industrial and urban pollution control and waste management, industrial productivity and profitability improvement through conservation of resources and implementation of multilateral environmental agreements. There are five sub-components:
•    Pollution Control
•    Waste Management & Transfer of Environmentally Sound Technology;
•    Capacity Building and Development of Framework for Sustainable Integrated Municipal Waste Management
•    Mitigating the Impact of Climate Change & Strengthening Capacities to benefit from the Clean Development Mechanism of the Kyoto Protocol;  
•    Enabling activities for the early implementation of the Stockholm Convention on Persistent Organic Pollutants (POPs) and implementation of the Montreal Protocol for the phase-out of Ozone Depleting Substances (ODS)

Brief on Energy sources and usage in Nigeria

In Nigeria, only about 40% of the total population the majority living in urban areas, have access to electricity.  Less than 20% of the rural households have access to electricity. The electricity that is being supplied is more often than not unreliable. Most manufacturing establishments are not connected to the national grid and those connected receive electricity only for a few hours per day.  Hence, most establishments depend on their own backup diesel generators for their electricity needs.  Due to diesel usage, the electricity costs for industries are high resulting in increased production costs affecting their competitiveness.

On average, the estimated cost per kWh of diesel generated electricity is about double the cost of electricity provided by the national grid. This limits the growth of industry and hinders the overall development of the country.  Current estimates put electricity demand at 15,000+ MW whereas the installed capacity is around 6,000 MW and the actual generation is only between 3,600 MW and 4,000 MW.  This large gap is being met by using individual diesel generating sets installed by the industrial and commercial sectors and also by a few households.

There are a large number of identified Small Hydro Power (SHP) sites in the country - approximately 400, with potential for supporting micro-hydro (less than 100 kW) and mini-hydo (between 500 kW and 5,000 kW) schemes. The country is also endowed with significant biomass energy resources that are not being utilized.  The country’s biomass energy resources have been estimated to be 83 million tonnes of crop residues per year and 61 million tonnes of animal wastes per year. Most of these wastes are either dumped or burnt.

The Government has power and energy as foremost on its agenda to facilitate industrialization and rural development. The Nigeria Vision 20 – 2020 for making Nigeria one of the top 20 global economies calls for an installed capacity of 35,000 MW (pp143-144). However, the country has only about 6,000 MW installed capacity as of now with a contribution from renewable energy of about 60 MW. Of this about 50 MW of power are generated by SHP.  As part of its measures to achieve the objective mentioned above, the Federal Ministry of Power plans to scale-up SHP from its current level to 600 MW by 2015 and 2,000 MW by 2025, which is in line with the Renewable Energy Master Plan (UNDP/ECN, 2005). In the 2010 Appropriation Act, the National Assembly approved nine new SHP projects with a combined installed capacity of 150 MW in support of the 2015 objective.

The three UNIDO energy related services are:

•    renewable and rural energy for productive uses—demonstration of the potential of new and renewable resources to support productive uses in rural areas;
•    industrial energy efficiency— technical assistance on energy management standards, energy system optimization and deployment of new energy-efficient technologies; and
•    energy policy— advice on appropriate policies and partnerships for long-term solutions to energy needs.

There are six SHP projects in the CP, one biomass project, one State Government funded project that includes both biomass and solar activities and one project supporting improvements in industrial energy efficiency for agro-processing.

Brief on Environmental policy focus in Nigeria and UNIDO’s response

The Nigeria Vision 20:2020 encapsulates the key principles and thrusts of the National Economic Empowerment and Development Strategy and the Seven Point Agenda (2007 – 2011), situating both within a single, long term strategic planning perspective.  Fundamental to the Vision are two broad objectives – optimizing human and natural resources to achieve rapid economic growth, and translating that growth into equitable social development for all citizens. These aspirations are defined across four dimensions—social, economic, institutional and environmental. The environmental dimension calls for sustainable use of Nigeria’s natural endowments. More specifically the Vision calls for:
•    incorporating extensive pollution control and waste management programmes such as the provision of sewage treatment plants for major cities; remediating  of POPs in contaminated sites; installing medical waste management incinerators in federal medical institutions and ensuring integrated waste management facilities in all the states
•    ensuring local manufacturing capacity for basic water supply and sanitation equipment;
•    developing training schemes for state water supply agencies on the co-ordination of the activities of local artisans and mechanics in the provision of services to the water supply and sanitation sector;
•    compliance, monitoring and enforcement of appropriate standards towards creating changes in attitudes and
•    enlightening the citizenry and corporate organisations on ways and methods to go green that would reduce waste and pollution.
A later section in the Vision calls for adequate water and sanitation facilities at industrial parks and clusters.

The four UNIDO environment related services are:

•    cleaner and sustainable consumption for  promoting resource efficient and low-carbon industrial production;
•    water management for improving the management of large scale marine ecosystems;
•    Montreal Protocol for phasing-out ozone depleting substances; and
•    Stockholm Convention for reducing the health and environmental damages of persistent organic pollutants.

Descriptions of selected projects under the Energy and Environment thematic area are provided below:

1.    Technical Assistance in the Fabrication of Micro Turbines in Nigeria

The objective of this project is to create local capacity for the manufacture of micro turbines in Nigeria. Specifically it is supporting two parastatals-- the National Agency for Science and Engineering Infrastructure (NASENI) and its two associated institutes, the Scientific Equipment Development Institute (SEDI) and the Engineering Materials Development Institute (EMDI), and the Product Development Agency (PRODA) to transfer micro-turbine technology to Nigeria. Major components of the project are purchase of a license from a Swiss company ENTEC Engineering and Consulting, a study tour in 2010 to the ENTEC manufacturing facility in Indonesia during which eight engineers from Nigeria fabricated one 75kW turbine based on the Swiss design and fabrication of a second 75kW turbine and associated control panel in Nigeria. Fabrication of turbine components is ongoing at the three locations in Nigeria and it is anticipated that the components will be assembled at the Engineering Materials Development Institute by the first quarter of 2012.. The two turbines will then be installed at Ikeji-Ile in Osun State, where they will provide electricity to identified communities and a ten hectare industrial cluster for SMEs set aside by the Osun State Government.

2.    150 kW SHP project in Waya, Bauchi  State

This project as well as the completed one in Enugu was initiated as a collaborative effort between UNIDO/Nigeria and the Energy Commission of Nigeria (ECN). In line with its mandate, the ECN wanted to increase the number of operational SHP plants in rural areas. It approached UNIDO to draw on the services of the International Centre for Small Scale Hydro (IC-SHP) in China.  A team from ECN, UNIDO and IC-SHP inspected four potential sites with existing dams and selected two, one in the north of the country (Bauchi) and the other in the south of the country (Enugu). The IC-SHP working with the RC and the Upper Benue River Basin Authority prepared a DPR for installing a 150 kW micro hydro station at the Waya dam site.  The dam was built in 1992 to supplement domestic water supply to the Bauchi LGA and to irrigate about 100 hectares downstream of the dam by gravity.

3.    Climate Change African Adaptation Programme—1.2 MW Power Plant in Benue

The project is ongoing. It is aimed at promoting an integrated approach for adaptation to climate change through building a governance system, empowering children as change agents and demonstrating adaptation benefits in the agricultural sector.

The project is being led by UNDP and will draw on the services of UNICEF and UNIDO. UNIDO is responsible for the installation of the SHP plant (three turbines of 435 kW) and will lead on linking the SHP plant to flood control, to electricity access for ten communities, to expanded options for post harvest storage and processing and to support for entrepreneurial activities in the agricultural machinery sector.

The project is supportive of the priorities set out in the 2009-2012 UNDAF. There is also a plan to link electricity generated to productive uses. Already UNIDO has undertaken a study of the rice growing potential that is needed to fully utilize the planned rice processing facility. The national grid already supplies electricity to two local government areas -Apa and Agatu. The project also has the potential to reduce flooding with the construction of a reservoir, increase domestic access to electricity and support post harvest processing and other entrepreneurial activities.

4.    Technical assistance in energy efficiency improvements in rice mill cluster in Abakiliki

The project was initiated and funded by the Ebonyi State Government. Originally, the project was to install a three ton per hour energy efficient rice mill at the existing rice processing cluster in Abakaliki township. This is a cluster with about 580 small milling machines of various capacities and 11 destoning machines. The present rice milling machines are diesel powered and very old. The capacity utilization is about 10% and the efficiency of power generation is quite low. The resulting air pollution from the milling and destoning machines and the accumulated rice mill husks influenced the State government to designate three new rice milling clusters, to locate an energy efficient rice mill in one of the three new clusters and to propose closing the rice processing facility in Abakaliki Township. The State Government is currently constructing the housing for the rice milling equipment, which is sitting in a shipping container on the site.

It is expected that a 3 ton per hour modern efficient rice mill should demonstrate the viability, profitability and productivity of an efficient rice milling operation. It should lower the cost of milling, which is currently powered by diesel generators, and allow for the closure of the old rice milling facility, consequently eliminating the attendant air pollution in the area as well as the accumulation of rice husks.

5.    Phase-out of Ozone Depleting Substances (ODS) in Nigeria

UNIDO implemented the phase-out of ODS use only in the refrigeration, aerosol and solvents sector; UNDP implemented the phase-out activities in other sectors. The UNIDO project purchased 16 ultra sonic cleaning machines, six fast hydro-carbon cleaning machines and one solvent recycling machine, which is operational at the Scientific Equipment Development Institute in Enugu.

As the chemicals for the ultrasonic machines need to be imported and are expensive, the National Ozone Office undertook a study to assess whether the needed cleaning chemicals could be manufactured in Nigeria. The assessment is yet to be completed.

The project is essentially completed with total phase out of 177 tons of CFCs and 33 tons of CTAs. A project completion report will be prepared by the end of 2011 at which time the minimal funds remaining in the project will be spent to purchase and install the needed replacement parts for the solvent recycling machine.

6.    Nypa Palm Clearance & Mangrove Replacement Demonstration Project n Nigeria

The nypa palm project was one of the 16 demonstration projects funded under the GCLME project. After a feasibility report and a study tour to Thailand, the main purpose of the demonstration project was changed from nypa palm eradication to one that demonstrated how the use (harvesting) of nypa palms could reduce their propagation capacity. Thus the project focused on both re-forestation of native mangrove and utilization of nypa palm as a measure to control infestation in the Cross River Estuary in south-east Nigeria. The demonstration project was undertaken over a two year period—January 2010 to December 2011. It successfully cleared a small area of nypa palms and replanted it with native mangroves. It also successfully showed local villages that nypa palm propagation could be limited by using nypa seeds for eating and making charcoal.

7.    Establishment of Best Available Techniques (BAT) and Best Environmental Practices (BEP) Programme for Industry

This is a pipeline project. The project proposal is focused on reduction or elimination of unintentionally produced POPs. UNIDO has submitted a project identification form and project preparation grant request to GEF to fund formulation of a project document. The Federal Ministry of Environment expressed interest in cleaner production activities during the evaluation mission and mentioned an almost completed report on cleaner production potential in 20 plants (16 food and beverage and 4 leather).

8.    Mini-Grid Based Renewable Energy (Biomass) Sources to Augment Rural Electrification

This is a pipeline project. A 5 MW rice husk based power generation plant and mini grid will be installed within the Ikow rice mill cluster in Ebonyi State. The plant is expected to provide electricity for several rice mills with a total rice processing capacity of 34 tons per hour, a large stone crushing industry cluster, a university hospital and a government house. The electricity would replace diesel generators.

There is a clear need for electricity cheaper than that generated by diesel to power the rice mill cluster and other activities. An estimated 64000 tons of rice husk per year is produced as waste by rice growing clusters around the project site,This amount should be sufficient for power generation because the annual rice husk requirement would be around 45,000 tons per year.  The provision of electricity is expected to reduce the production costs of the rice mills and would increase the quality of life when electricity is made available to a hospital, university, school and local communities.