Projects Justification

Justification

Economic Justification: The lockdown of nations around the world as a result of Covid-19 pandemic exacerbated the problems we face on dependence on foreign goods and crude oil as the only foreign exchange earner.

This had led to concerted efforts aimed at changing the picture as it is well understood that any nation that is not capable of being self- sufficient in food production faces a lot of economic security problems. As there is availability of local knowledge on the commodity, we want, as a matter of priority, to utilize our expertise in collaboration with CBN to make our country better by inward development.

There is need for adequate supply of raw materials implying that farming challenges such as use of crude farming implements, smallholder farmlands, and poor access to capital which inhibits farmers’ use of modern planting, harvesting and threshing machines, must be resolved”. This project is intended to take up this challenge of modernizing rice production and processing in Nigeria.

Financial Justification: The feasibility analysis has established that the project is capable of self-sustenance while at the same time discharging debt service obligations as and when due and having handsome balances at the end of every dry and wet season of operations. The commodity and in addition to domestic demand. These suggest that it is financially prudent to finance this project as it is capable of generating sufficient returns to justify the injections of funds required for its establishment.

Social Justification: The farm project location is by Obajana Junction and Irepeni Village in Adavi LGA of Kogi State. It is a rural settlement almost devoid of large scale economic activities. The establishment of this project will contribute significantly to the socio-economic development of the rural area by providing direct and indirect employment to many people in the area and the state in particular and the country in general.

Project Site

Project Site Description: The land holding of the project is 10,000hectares between Obajana Junction and Irepeni Village in Adavi LGA of Kogi State. The site situated along Okene – Lokoja Highway at about 20 kilometres from Lokoja and about 200 kilometres to Abuja, the FCT. The trunk A (Federal) Highway that links Okene-Lokoja-Abuja is fairly of good quality tarred road.

Project Site1 - Coordinate

Project Site2 - Coordinate

Project Site3 - Coordinate

Project Site4 - Coordinate

Climate

Vegetation

The project location lies within the northern fringes of the Southern Guinea savannah vegetation zone. The vegetation is typical of flood plains and marsh (Fadama) vegetation of this vegetation zone, being made up of tall grasses with scattered shrubs and small trees. All evidences available indicate that the site will be ideal for both dry season irrigated agriculture and rain-fed agriculture.

Soil

The entire project site had two major soil types with one type conspicuously predominating. About 85% of the entire site had clay loam with a small proportion of silt while about 15% contained clay loam soil with very high silt content. The soil texture appeared uniformly fine all through the entire project land.

Agricultural Potentials

The potentials of this site are immense in terms of suitability for large scale agricultural production. The site is capable of supporting the crop and even some permanent crops.

The Project

The developmental presented in this report involves the cultivation of 10,000 hectares on lease for 5000 farmers. It is site 2 hectares each for 5000 farmers will be carved out. There will be inter-plot roads of 5 metres width each and perimeter roads of the same width. This arrangement will ensure effective monitoring and control. The network of inter-block and inter-plot roads is expected to serve as fire breaks to protect the project site from the hazards of bush fire.

The other 200 hectares bought by our company is for administrative block, staff quarters, warehouse, seed processing plant, vehicle yard, borehole, solar powered electricity etc. The rice product milling packaging will be in the second phase.

Project Infrastructure: Development of access roads, water supply and electricity supply, constitutes the major infrastructural development anticipated to get the project established. Construction of the required buildings is expected to be carried out to ensure full development of the basic requirements.

These structures include the Farm Office/Store, Workshop/Implement Shed, Solar Powered Electricity, Boreholes, School, Clinic etc. Production Process: This reports are made under the assumption that all items required are put in place for the successful take-off of the schedule of production. They are as follows:

i.The tractors provided will be employed to plough, harrow and ridge in readiness for planting in the first year.

ii.Planting will commence from about the middle of December 2020 and will continue up to the middle of January 2021.

iii.The land preparation to harvesting processes and production of finished products on the farm will be largely mechanized to save costs on labour. Weed control is expected to be effected by means of chemicals that will be applied through mechanical means. For this also, standard practices are recommended in this report with thorough considerations of the crop combinations and likely rotation. Recent events within the nation’s economy, however, tend to indicate that too much rigidity cannot be applied if results are to be obtained. As much as possible, all requirements will be procured in bulk and prior to need.

Production Target

We plan that the increase in scale of production will affect the achievement of production targets for the first year of operation.

Marketing

The produce expected from each year’s operation are expected to be over a rather wide area covering the sphere of influence of the Off-Takers investors in the rice business. Ultimate product outlets are expected to include local rice processors and export.

A novel marketing strategy will be worked out for the development of more markets for the rice products. The marketing strategy will aim at releasing produce to the market at the time prices are optimum. Information gathering for this purpose will therefore be an important part of the marketing strategy to be adopted.

Schedules for the Operation of the Farm

Field operations are expected to commence as soon as funds are available. This is expected to culminate in the production of rice at the end of the first season.

Infrastructural development is expected to commence at the end of field operations for the first project year. All the required buildings for phase 1 are expected to be completed during this period. These buildings will include the farm house of the prime anchor which will accommodate offices, stores and residential areas for some workmen and security staff.