Environment and Development Management Nigeria-Germany
This study examined the impacts of the E-wallet Fertilizer Subsidy Scheme on the quantity of fertilizer use, on crop output, and on yield in Nigeria. The study made use of the Nigeria General Household Survey (GHS)-Panel Datasets of 2010/2011 and 2012/2013 which contain 5,000 farming households in each of the panel. The study has applied relevant evaluation techniques to analyse the data. The results of the impact analysis demonstrate that the scheme has generally increased the yield, the crop output, and the quantity of fertilizer purchase of the participating farmers by 38%, 47%, and 16%, respectively. The study concludes that increased productivity, which the scheme engenders, can help to reduce food insecurity in Nigeria. Provision of rural infrastructure, such as a good road network, and accessibility to mobile phones, radio, etc. will increase the readiness of the small-scale farmers to accept the scheme or any other similar agricultural schemes in Nigeria. The new fertiliser subsidy scheme goes back to the initiative of Nigerian Agriculture Minister Akinwumi A. Adesina, now President of the African Development Bank in Abidjan. He was awarded the Sunhak Peace Prize for Good Governance and Agriculture Innovations in Africa (see on his life and the award: http://sunhakprize.blogspot.com/2018/11/main-achievements-of-akinwumi-adesina.html).
The Achievements of Akinwumi A. Adesina
The E-wallet Fertilizer Subsidy Scheme had an estimated yield impact of 66% on the side of the participating small-scale poor farmers; this is much higher when compared with the estimated yield impact of 38% on the side of the the average farmers who are participating in the scheme. This suggests that the overall impact of the scheme could be higher if the scheme is well targeted at the small-scale poor farmers. Increased productivity through fertiliser use will reduce food insecurity in Nigeria. Provision of rural infrastructure will increase accessibility of the small-scale farmers to the scheme, so that measures by the government in this direction are important.
The new study is part of the research programme by Professor Alabi on Nigerian agricultural sector initiatives which is undertaken at the invitation of the Faculty of Economics and Business Studies of the University of Bremen, based on a guest researcher agreement in cooperation with Professor Karl Wohlmuth. Professor Karl Wohlmuth from the Research Group on African Development Perspectives is cooperating with the Nigerian Professor since many years, and supervises also this particular research programme. Professor Alabi has just finalized his essay for the next volume of the African Development Perspectives Yearbook 2020/21 on “Financial inclusion, Innovation and Agricultural Development in Nigeria”. The Nigerian Professor works for the Yearbook Project now for more than 10 years as a co-editor and as an author. Professor Alabi has successfully applied various times for grants from the AERC/African Economic Research Consortium, Nairobi, Kenya, the leading African economic science Think Tank; also this study was financed by the AERC. He was also a Research Fellow of the Alexander von Humboldt Foundation at IWIM, University of Bremen for a period of around 2 years (see: http://www.iwim.uni-bremen.de/environment_and_development_management_nigeria_germany/).
The record of fertilizer subsidies in Africa is weak. Therefore it is important to study the Nigerian E-wallet approach which seems to contrast the Africa-wide negative assessments of fertiliser subsidies.
The Economist wrote on July 1st, 2017 a famous article: “Why fertiliser subsidies in Africa have not worked/Good intentions, poor results”
The Impact of the E-Wallet Fertilizer Subsidy Scheme and its Implications on Food Security in Nigeria,
by Reuben Adeolu Alabi, Professor at the Ambrose Alli University, Ekpoma, Edo State, Nigeria, and currently staying as Visiting Guest Researcher at the Faculty of Economics and Business Studies of the University of Bremen; the study is co-authored by Oshobugie Ojor Adams, Ambrose Alli University, Ekpoma, Edo State, Nigeria; it was published as Research Paper 390, January 2020, 42 pages, and it was released by AERC/African Economic Research Consortium, Nairobi, Kenya.
For a Download of the Study: https://aercafrica.org/wp-content/uploads/2020/01/Research-Paper-390.pdf
Remarks about the status of the research grant by AERC: This Research Study was supported by a grant from the African Economic Research Consortium (AERC). The findings, opinions and recommendations are those of the authors, however, and do not necessarily reflect the views of the Consortium, its individual members or the AERC Secretariat.
Published by: The African Economic Research Consortium
P.O. Box 62882 - City Square
Nairobi 00200, Kenya
© 2020, African Economic Research Consortium.
This study was written by Guest Researcher Professor Reuben A. Alabi from the Ambrose Alli University in Ekpoma, Nigeria and by Professor Emeritus Karl Wohlmuth, University of Bremen, Germany. It investigates in a comparative form the progress of waste management policies in Nigeria and in Germany, with special emphasis on the conditions in the Lagos State of Nigeria and in the Country State of Bremen in Germany. Also, the move from conventional waste management in the linear economic model to integrated resource and waste management in the circular economic model is discussed. While waste management in the linear economic model focusses in Nigeria and in Germany on a distinct hierarchy of objectives, the resource and waste management in the circular model incorporates the whole life cycle of the products and the societal relevance of the products in view of its objectives. Focus is in the study on the country state of Lagos in Nigeria and on the country state of Bremen in Germany. Both country states have a great role as harbour and logistic towns, as industrial towns and as towns with scientific and technological infrastructure. There are also differences as Lagos is an important financial services hub while Bremen is famous for its aircraft and space industry. The study compares the progress of waste management and resource conservation policies but reflects also on the different institutional and logistical structures of waste management in the two country states, being the result of specific economic sectors and factors. Factors such as the importance of formal and informal private enterprises, the role of public institutions and of private actors in the waste management business, and the relevance of public waste management policies, laws, plans and balance sheets play a role in the study. Also, the role of new equipment and new communication technologies for the further development of the waste industry in the two countries/country states is considered.
The Necessity of A Move Towards Sustainable Waste Management in Nigeria
Source: Towards a sustainable waste management (The Guardian, 16 May 2016; Link: https://guardian.ng/opinion/towards-a-sustainable-waste-management/)
The study is based on relevant literature which is available for the two countries/states and on meetings/interviews with experts on waste management in the two countries/states. Based on questionnaires the authors have investigated the specific frameworks of waste management policies. A major result is that Germany (and Bremen) and Nigeria (and Lagos) can cooperate in a mutually beneficial way on waste management – in policymaking and planning, on developing and selecting equipment and new technologies, on services provision and training, but also on guiding the transformation process towards a circular economy. Nigeria can learn from the German and European way of implementing coherent policies, while Germany and Europe can learn from Nigeria’s way to solve problems which arise at the local level. The study brought to attention that the waste industry in Germany and in Bremen is embedded into a complex web of directives, laws and regulations; this is a strict policy framework from the EU level downwards and to the EU level upwards. In Nigeria, there is no coherent waste governance system down from the federation, but at local and state levels there are some binding rules (of formal and/or informal origin). This quite different way of organizing waste management has consequences for the development of the waste industry in the two countries. It impacts also on the selection of options used in waste management in regard of the six (6) objectives discussed in the hierarchy of actions chosen (see below).
Most Favoured and Least Favoured Options in Waste Management
For Nigeria, this situation means that local informal producers, local informal organizations, and local informal waste management actors play a great role. Important is it that informal actors in the waste management business are rediscovered as partners of public agencies, public firms and formal sector private firms. Informal sector firms can also be partners in the transformation from waste management in the linear economy model towards resource management within the circular economy model. Informal enterprises can ably prepare end-of-life products for re-use or they can make them the basis for large-scale recycling and recovery. Privatization versus re-communalization is another issue of relevance for the waste industry as experiences in Lagos and in Bremen show. For Germany, the decision criterion should be the ability to innovate for a circular economy; this should be the basic criterion for privatization versus re-communalization. In Nigeria, a larger role of informal enterprises in the waste industry can contribute to the circular economy. Such firms can redesign the products and can remanufacture them for low-income social groups; waste can then be reduced or even prevented. Waste prevention is an issue for both countries/country states/municipalities. Bremen as a country state and Bremen as a municipality can support initiatives for a deep cooperation in a waste management partnership with Lagos and Nigeria. Lagos can be the first address for such a cooperation, although the population and the industry size of Lagos State are so much bigger compared to Bremen.
Waste Management Facilities as used in Germany are exported globally to developed and emerging economies
Policy Focus and Dissemination of the Study
There is great interest from the side of waste management authorities in Nigeria in the policy recommendations presented in the study. Professor Alabi is discussing the possibility of workshops in Nigeria to inform the public about the major results. Also, waste management and resource conservation companies show interest in the investigation of the two authors. Because of the rate of population growth, the speed of urbanization and the need to scale up industrial, agricultural and agro-industrial development in Nigeria, there is urgency in regard of implementing such policy recommendations.
Bibliographic Details on the New Study on Waste Management in Nigeria and Germany:
Wohlmuth, Karl/Reuben A. Alabi, 2019, The Case of Sustainable Management of Waste in Germany (and Bremen) and Practical Lessons for Nigeria (and Lagos), pages i-xxx and 147 pages and i-vii pages, Materialien des Wissenschaftsschwerpunktes „Globalisierung der Weltwirtschaft“ (ehemals: Materialien des Universitätsschwerpunktes „Internationale Wirtschaftsbeziehungen und Internationales Management“), Bd. 44, April 2019, ISSN 0948-3837, Access Link: http://www.iwim.uni-bremen.de/publikationen/pub-white.htm and: https://www.karl-wohlmuth.de/weisse_reihe/.
Since 2015 Professor Alabi is researching in Bremen at the Faculty of Economics and Business Studies of the University of Bremen. This is part of the activities of the Research Group on African Development Perspectives Bremen, directed by Professor Wohlmuth. Professor Wohlmuth is supervising the research activities and is advising this particular research programme. For the years 2019 and 2020 Professor Alabi has proposed four new research projects, after having finalized four others in recent years (see the detailed Research Report of Professor Alabi). Among the finalized research projects are: Cassava Production, Processing, Fortification and Acceptability in Nigeria (for the Volume 20 of the African Development Perspectives Yearbook, Volume 20); The Pro-poorness of the Fertilizer Subsidy and its Implication on Food Security in Nigeria (for the Africa Research Department of IMF); The Case of Sustainable Management of Waste in Germany and Practical Lessons for Nigeria (in joint authorship with Professor Wohlmuth and addressed to waste management authorities in Nigeria); and The Causes and Economic Consequences of Political Conflicts in Nigeria (for the Community of Students from Nigeria in Germany).
Among the new research projects are: Impact of State Government Public Expenditure on Yam Productivity and Its Implications for Food Security in Nigeria (for AERC, Nairobi); Addressing Youth Unemployment in Nigeria Using Agricultural and Business Technologies (in cooperation with staff from World Bank and IFPRI); Impact of the Agricultural Credit Guarantee Scheme Fund on the Productivity of Food Crops and Its Implications on Food Security in Nigeria (in cooperation with agencies of Nigerian States and the Nigerian Federation); and Financial Inclusion, Innovation and Agricultural Development in Africa (in cooperation with the editors of the African Development Perspectives Yearbook).
To pursue these research programmes, Professor Alabi is cooperating with international organizations (IMF, World Bank) and with international and regional African research organizations (IFPRI, AERC). The research commitment at the IMF Headquarters in Washington D. C. was an excellent opportunity to present his research findings on innovative agricultural policies of Nigeria (see the picture from the event below). A short report on the project is presented here (Alabi IMF Activity – E-Wallet-Fertilizer Subsidy).
Lecture at IMF Headquarters in Washington D. C. by Professor Alabi (third person from right) about:
THE PRO-POORNESS OF The FERTILIZER SUBSIDY AND ITS IMPLICATIONS FOR FOOD SECURITY IN NIGERIA
Source: Seminar at IMF Headquarters in Washington D. C./Presentation by Professor Alabi
Professor Alabi has recently launched a global research and publication initiative (see the link to the project: https://www.frontiersin.org/research-topics/10096/labor-requirements-of-alternative-land-use-systems-and-the-impacts-on-livelihoods). The research programme - in cooperation with staff from World Bank and IFPRI - is titled “Labour Requirements of Alternative Land Use Systems, and the Impacts on Livelihoods”. It has the following research interest (taken from the overview): “Projections indicate that food production may need to increase by 60% by 2050 to meet the food requirements of a growing global population. However, conventional forms of agriculture are often unsustainable and global croplands are increasingly impacted by soil erosion, reduced fertility, and/or overgrazing. As populations grow and food demand increases, pressure on land resources is expected to rise and make lands more vulnerable to degradation. Namely, further increases in the use of fertilizers and pesticides for expanding food production may cause excessive nutrient loading in soils, leading to eutrophication and declining soil fertility.” As the programme is of great relevance for Africa, submission of original research from African research teams are expected.
Applications to support researches and to publish original research are invited from the three partners of the project which form the core editorial team.
Labour Requirements of Alternative Land Use Systems, and the Impacts on Livelihoods
About Frontiers Research Topics (as requested from the editors): “With their unique mixes of varied contributions from Original Research to Review Articles, Research Topics unify the most influential researchers, the latest key findings and historical advances in a hot research area! Find out more on how to host your own Frontiers Research Topic or contribute to one as an author.”
Professor Alabi was invited to participate at the June 2019 meeting of the African Economic Research Consortium (AERC) at Cape Town, South Africa. He will give a presentation about the research programme “Impact of public expenditure on yam productivity and its implications on food security in Nigeria”. This is a follow-up to a high-level meeting of AERC in Nairobi, Kenya in December 2018. The research programme has a great importance for the agricultural transformation policy in Nigeria (see the Abstract of the research programme for AERC by Professor Alabi - Yam Productivity in Nigeria). Professor Alabi cooperates intensively since years with AERC; he has participated at various high-level meetings and has received valuable research grants from the institution. Research output from these research programmes are published in issues of the African Development Perspectives Yearbook. Professor Alabi is one of the co-editors of the Yearbook.
Professor Karl Wohlmuth has given advice to the Promotions Committee of the Federal University Of Technology in Akura, Nigeria. The Promotions Committee is responsible for the appointment of Professors and Associate Professors. Professor Wohlmuth was asked to evaluate candidates on the basis of their publications and overall qualifications for the position in question. It is a sophisticated multi-stages system of evaluation for the promotion to the rank of a Professor and an Associate Professor. Karl Wohlmuth was invited for this function by the Vice-President of the University and by the Head (Secretary) of the Promotions Committee. The Federal University of Technology is a leading University in Nigeria.
Also, Professor Wohlmuth has advised the Promotions Committees of the University of Khartoum (Sudan) and of the University of Juba (South Sudan) concerning appointments to Full Professorship. The University of Khartoum is on the way of reorganizing and strengthening its academic profile to regain the leading position which it had after independence among African universities. The University of Juba, as well as other universities in South Sudan, are still suffering because of the civil war in the country and the serious governance problems.
Professor Wohlmuth was also active as a reviewer of manuscripts, book proposals and articles for peer-reviewed journals. The Canadian Journal of Development Studies asked him to review manuscripts. This journal is now a leading journal on development studies in North America. The UNU-WIDER Institute in Helsinki asked Professor Wohlmuth to review a contribution for an international journal. UNU-WIDER is the globally leading institute for development research. Professor Wohlmuth was also active for the Journal Of International Development, for the journal Comparative Economic Studies, and for various African journals. Again, Professor Wohlmuth was asked to review proposals for book publications for the Economics Book Editions programme of Routledge Publishers.
Professor Wohlmuth was invited to advise a leading German multinational on issues of Customer Assessment to Optimize Business Models in Africa. As there are increasing business relations with Africa, the role of different groups of customers (by size, sector, and country) is becoming more and more relevant. It is therefore important to optimize the business models in Africa accordingly. A preparatory group of the German multinational company is involved in writing the first draft of the assessment.
Professor Wohlmuth has given advice and was peer-reviewing a Strategy Document on Revitalizing Sudan which was written by Dr. Murtada Mustafa. The Strategy Document is emphasizing five core pillars (Education, Entrepreneurship, Agriculture, Industry, and Management/Civil Service), which are considered as the basis of a new development strategy for Sudan. Dr. Murtada Mustafa was the first permanent Undersecretary of Labour in the government of Sudan. He has also had various leading functions in the International Labour Office (in Geneva, Harare, Cairo, and Khartoum). The Strategy Document will also be published in the Sudan Economy Research Group (SERG) Discussion Papers, and it will be circulated to policymakers inside and outside of Sudan. It will be published in English and in Arabic languages.
Professor Wohlmuth is also supporting and advising two Guest Researchers at the Faculty of Economics and Business Studies, University of Bremen: The agricultural economist Professor Reuben A. Alabi, Department Of Agricultural Economics, Ambrose Alli University, Ekpoma, Nigeria is in Bremen for the period 2015-2018, and the international economist Professor Chunji Yun from the Faculty of Economics, Seinan Gakuin University, Fukuoka-City, Japan is in Bremen for the period September 2017 to August 2018. For both researchers this is a further stay for research programmes, in cooperation with Professor Wohlmuth, at the University of Bremen and at IWIM. Both researchers have published in the various IWIM Publications Series. Further publications are expected from this research period.
Professor Alabi is doing researches on waste management and related value chains in Nigeria (comparing such value chains with the ones in Germany) and on aspects of the agricultural transformation in Nigeria. He is also these months working as a research fellow at the International Monetary Fund (IMF) in Washington D. C. in their African Department to do research and to give advice on the E-wallet fertilizer subsidy scheme which was introduced in Nigeria by Akinwumi A. Adesina, at that time the Nigerian agriculture minister who is now the President of the African Development Bank in Abidjan. It is the purpose of the assignment to the IMF to look at the possibilities of a wider use of the Nigerian E-wallet fertilizer subsidy scheme in other African countries. Professor Alabi and Professor Wohlmuth cooperate in Bremen on editions of the African Development Perspectives Yearbook concerning aspects of Nigeria’s economic and agricultural transformation. Most recently, Unit 2 of Volume 20 (a Unit is a collection of essays for a specific theme, introduced by the editors of the Unit) was finalized on “Science, Technology and Innovation Policies for Agricultural Transformation in Nigeria”. A strategy was outlined on the basis of the Unit 2 by Professors Alabi and Wohlmuth.
The researches by Professor Chunji Yun centre on the European integration process. He is interested in the fact that the European Union (EU) has 28 (later after Brexit 27) employment regimes and labour policies, so that cross-border investments by firms through global and regional value chains have implications for the national employment regimes and the still national labour markets. He investigates the implications of cross-border investments on nationally organized labour markets for two sectors (automobiles and electronics). He will analyse the different sectoral structures of the value chains which are demanding different types of labour by function at different levels of skills and at different places; these cross-border investments and value chains are then leading to quite different labour market outcomes. He concentrates in his research work on the cross-border investments of German companies in the Visegrad countries to study the repercussions of the changing value chains on the national labour markets and the national labour policies in Germany and in the four Visegrad countries. Because of the fact that Bremen is a centre of production networks, such as for automobiles and automotive parts, there is also the possibility for Professor Yun to visit production sites in Bremen. Professor Wohlmuth and Professor Chun have discussed the first research report in December 2017; the second research report is due in February 2018 for a further intensive discussion and review.
Professor Reuben Adeolu Alabi, Guest Researcher at the Faculty of Economics and Business Studies, University of Bremen, was invited by the African Department of IMF to do researches over February and March 2018 at the IMF Headquarters on The Pro-Poorness Of The Electronic Fertilizer Subsidy Programme And Its Implications On Food Security In Nigeria. Professor Alabi will continue his researches on the Electronic Fertilizer Subsidy Programme Nigeria (EFSPN) which he started in Bremen during his research stay since 2015. The EFSPN Scheme is considered as innovative and as a model for other African countries. It was introduced by Akinwumi Adesina, since 2015 acting as the President of the African Development Bank, in the time when he served as Nigeria's Minister of Agriculture and Rural Development. Until his appointment as Minister in 2010, he was Vice President of Policy and Partnerships for the Alliance for a Green Revolution in Africa (AGRA).
The shortcomings associated with the fertilizer subsidy scheme led Nigeria to adopt the Growth Enhancement Subsidy Scheme (GESS) in 2011. In this scheme the private sector plays the role of supplying and distributing fertilizer, while the government is involved in the registration of the beneficiaries and the payment of 50% of the cost of fertilizer and of other agro-inputs received by the farmers. The scheme delivers subsidized agricultural inputs to farmers through an electronic wallet (e-wallet) system. With unique voucher numbers that are delivered to their phones, farmers then redeem their input allocation from accredited agro-dealers. It is expected that this scheme will improve agricultural input distribution and marketing. In addition, it should provide incentives to encourage actors along the fertilizer value chain to work together towards the common purpose of improving agricultural productivity, household food security, and income. The hope is that this would better serve the intended beneficiaries who are farmers and reduce the fiscal burden of a universal fertilizer subsidy from the government thus making it more effective. However, there is need to find out if this new scheme is pro-poor and to test its impact on the fertilizer use and the productivity of the farmers in Nigeria. Professor Alabi will continue his researches about the pro-poorness of the programme in Washington D.C. at the IMF Headquarters, and will advise the IMF staff on the relevance of the system for other African countries. The new fertilizer subsidy scheme of Nigeria is also revolutionizing the finance system in rural areas of Nigeria (see: http://www.cgap.org/blog/bringing-mobile-wallets-nigerian-farmers).
This analysis is part of the programme “Food Security and Agricultural Transformation in Nigeria” which is done by Professor Alabi in Bremen in cooperation with Professor Karl Wohlmuth, who is advising the research programme since 2015. The two professors have now finalized a Unit of Volume 20 of the African Development Perspectives Yearbook on “Science, Technology and Innovation (STI) Policies for Agricultural Transformation in Nigeria”. The Unit on Nigeria has an Introduction written by the two professors on the issues, the contributions and the proposed strategy for Nigeria. New tools for agricultural transformation are considered, such as using indigenous agricultural technologies, developing Genetically Modified (GM) crops, and implementing Food Fortification strategies in Nigeria. A critical evaluation of these new tools is presented. Professor Alabi will continue his researches in Bremen until 2020. He has published widely in the IWIM publications series and he is acting as a co-editor of the African Development Perspectives Yearbook. Professor Wohlmuth supports the programme since 2015 as a senior adviser.
Professor Karl Wohlmuth was in recent months active as an adviser to research projects, conferences and publications (see some projects below):
Professor Wohlmuth was invited by the President of the UN Economic and Social Council to participate at the Global ECOSOC Conference in Victoria Falls, Zimbabwe as a speaker on “Industrialization based on Agricultural Development”. Global Meetings in Dakar, Victoria Falls and New York City emphasize the role of Sustainable Development Goal Nine (SDG 9) on Sustainable Industrialization, Infrastructure Development and Innovation. This will be an ongoing task of ECOSOC. ECOSOC has the lead in implementing the 17 SDGs.
Guest researcher Professor Reuben A. Alabi extends his research stay in Bremen for three more years. The new Research Programme for 2018-2020 was recently presented as a Letter of Intentions and discussed with Professor Wohlmuth. It has three major components, comprising major policy issues of agroindustry development in Nigeria (Crop productivity, Public expenditure for agriculture at state level, and Combatting youth unemployment through agriculture development).
Professor Alabi was appointed in March 2017 as a Full Professor of Agricultural Economics at Ambrose Alli University in Ekpoma, Edo State, Nigeria. The Dean of the Faculty of Economics and Business Studies of the University of Bremen, Professor Jochen Zimmermann, had extended the invitation. Professor Wohlmuth is working as a consultant and senior project adviser in these projects.
Preparations are ongoing for the research visit of Professor Chunji Yun, Faculty of Economics, Seinan Gakuin University, Fukuoka-City, Japan. He will work for a year in Bremen on the research topic of “Production Integration and Labour Market Interdependencies in the European Union.” This is his second research visit at IWIM for a period of one year. The Dean has extended an invitation to him for a year.
Further on, Professor Wohlmuth has advised the research project of Yves Bagna who has constructed a new “Porter Competitiveness Index”, based on Porter’s Diamond Theory. Throughout the research period Professor Wohlmuth was the main adviser to the project. The book is now published by the Research Institute of IWVWW e. V. at Berlin, and further essays on the methodology are forthcoming. Yves Bagna has also compared the new “Porter Competitiveness Index” with the long-established “Global Competitiveness Index” of the Word Economic Forum. Yves Bagna, an engineer and economist from Cameroon, has during his research also visited the Institute of Professor Michael Porter at the Harvard Business School.
Also, Professor Wohlmuth was active to review a chapter for a new UNIDO book about Industrialization in Africa, in his function as the lead author of the chapter. He has also revised and extended a background paper on the issues for UNIDO.
In addition, Professor Wohlmuth has peer-reviewed articles for international and African journals, such as the prestigious journal Comparative Economic Studies. As the number of African refereed journals increases, the demand for evaluations rises. Members of the Research Group on African Development Perspectives Bremen are invited to support such activities.
Work on the volumes 20 and 21 of the African Development Perspectives Yearbook is progressing. On Science, Technology and Innovation (STI) Policies in Sudan, a cooperation is under way with Professor Samia Satti Nour from the University of Khartoum, a leading international expert on STI policies. The Cooperation, which is targeting on issues of “Science, Technology and Innovation Policies for Sudan”, is advancing towards a separate Unit (a collection of papers) in Volume 20. A Unit on “STI Frameworks for Africa” is prepared in Cooperation with Patrick N. Osakwe, UNCTAD, Geneva and Nazar Hassan, UNESCO, Cairo. A Unit on STI Policies in Nigeria is done in cooperation with Professor Alabi. Other Units will be prepared on issues of Human Resources Development and STI, on STI Policies in North Africa, and on Publications on STI Policies: Book Reviews and Book Notes.
The Friedrich Ebert Foundation (FES) Tunisia has published four language versions (English, French, Arabic, German) of a study on “Elements of an Employment Strategy for Tunisia”. Professor Wohlmuth is one of the three authors, a joint work of three development economists working on Africa since decades.
Various publications were released by Professor Wohlmuth on the middle class in Africa, on deindustrialization and reindustrialization in Tunisia, on transformative regional integration in Africa, and on guidelines for policymakers in Africa to promote global and regional value chains.
Professor Reuben A. Alabi, Full Professor of Agricultural Economics since March 2017 at the Ambrose Alli University, Ekpoma, Edo State, Nigeria, will continue his researches in Bremen for three more years (2018 - 2020). He is already in Bremen since 2015, at the invitation of Professor Karl Wohlmuth who is also consultant and senior project adviser to these research projects. He will undertake in the coming years researches on various issues of development in Nigeria:
Research Project One: ‘Cassava Production, Processing, Fortification and Acceptability in Nigeria’, a publication for Volume 20 of the African Development Perspectives Yearbook. He is also one of the Volume Editors and Unit Co-Editor for the Unit on Nigeria in Volume 20. Volume 20 will appear for 2018, while Volume 21 will be ready for 2019. Professor Alabi will also assist in the work for Volume 21.
Research Project Two: He will conduct researches on ‘Impact of State Government Public Expenditures on Yam Productivity and its Implications on Food Security in Nigeria’. In this context he will also organize a Policy Workshop in Nigeria. The intention is to inform the policymakers, the civil society, and academia about the policy implications of these researches. Focus is on the role of state level public finances in contrast to analyses of the federal level public expenditures.
Research Project Three: He will also conduct researches on ‘How to Address Youth Unemployment in Nigeria by Using Agricultural and Business Technologies’. Also this project will lead to a Policy Workshop in Nigeria. The intention is to inform the policymakers, the civil society and academia about these researches. As growth has not contributed to employment creation in Nigeria, this project will link directly employment policies for the youth and agricultural development policies to enable young entrepreneurs.
Recent researches by Professor Alabi in Bremen have led to important international publications (a full list of publications is contained in the Letter of Intentions submitted for the Research Programme 2018-2020):
International Publication One: AGRODEP
No. 0036 - Does an Inorganic Fertilizer Subsidy Promote the Use of Organic Fertilizers in Nigeria?
This study examines the crowding-out or -in effect of organic fertilizers as a result of the inorganic fertilizer subsidy program in Nigeria. The study made use of the Nigeria General Household Survey (GHS) dataset from 2010-2011, which contains 5,000 farmers. We estimate the probability and intensity of organic and inorganic fertilizer use conditioned on the amount of fertilizer subsidy accessed by the farmers using Probit and Tobit IV methodologies. The results reveal that organic fertilizer is being used as an alternative to inorganic fertilizer and that the farmers who are not able to access the fertilizer subsidy rely on organic fertilizer. Apart from revealing the crowding-out effect of the fertilizer subsidy on the use of organic fertilizers, our findings also bring to the fore the role that transportation and regional constraints play in stimulating inorganic fertilizer application among farmers outside the fertilizer subsidy scheme. We conclude with some recommendations on how to increase organic fertilizer use and promote integrated soil fertility management among farmers in Nigeria.
The full paper is available at:
International Publication Two: AFRICAN ECONOMIC RESEARCH CONSORTIUM (AERC), NAIROBI, KENYA
Title: THE PRO-POORNESS OF FERTILIZER SUBSIDY AND ITS IMPLICATIONS ON FOOD SECURITY IN NIGERIA Authors: ALABI, Reuben Adeolu Department of Agricultural Economics, Ambrose Alli University, Ekpoma Edo State, Nigeria, e-mail: email@example.com and
ADAMS, Oshobugie Ojor Department of Agricultural Economics, Ambrose Alli University, Ekpoma Edo State, Nigeria, e-mail: firstname.lastname@example.org
FINAL REPORT SUBMITTED TO The AFRICAN ECONOMIC RESEARCH CONSORTIUM (AERC), NAIROBI, KENYA
We examined the pro-poorness of the newly introduced e-wallet fertilizer scheme in Nigeria. The study made use of the Nigeria General Household Survey (GHS)-Panel Datasets of 2010/2011 and 2012/2013 which contain 5000 farmers in each the panel and supplemented it with Federal Ministry of Agriculture and Rural Development (FMARD) data on fertilizer subsidy. We determined the pro-poorness of the scheme by estimating its benefit incidence and concentration index, and estimated the impact of the scheme on fertilizer use, output and yield of the participating farmers using the propensity score matching (PSM) methodology. We found that the e-wallet scheme was able to register about 70% of the expected number of registered farmers, while the roll-out and redemption rates stood at 79% and 69% respectively. The proportion of farmers who used fertilizer in Nigeria declined from about 39% in the pre-wallet scheme to 38% during the e-wallet scheme. The percentage of farmers that used subsidized fertilizer also decreased from 13% in the pre-wallet era to 12% during the e-wallet scheme. We indicated that the concentration indices of fertilizer subsidy before and during the e-wallet schemes were 0.0328 and 0.0168 respectively. Since they were positive, it means that their distributions are not pro-poor, but fertilizer subsidy with the e-wallet scheme is more pro-poor than the pre e-wallet scheme because it has a lower concentration index. While the largest-scale farmers shared 23% in the fertilizer subsidy before and during the e-wallet schemes, the share of the smallest-scale farmers were 18% and 19% in the fertilizer subsidy before and during the e-wallet scheme respectively.
This may explain the relative pro-poorness of e-wallet over the pre-e-wallet scheme. However, the e-wallet scheme was not pro-poor in absolute terms because the share of the largest farm size group of farmers was higher than the share of the smallest farm size group during the e-wallet scheme. The study showed further that the share of the rural area in the fertilizer subsidy was about 39% and 41% before and during the e-wallet scheme respectively. The study demonstrated that the fertilizer subsidy distribution is not pro-poor in the rural area and in the South-South, North-West and North-Central regions of Nigeria. The study revealed further that the participating farmers in the e-wallet fertilizer scheme used more fertilizer than non-participating farmers in the range of 278kg to 293kg per farmer. The output of the participating farmers was significantly higher by 827kg but there were not significant differences in their farm productivities. The study revealed that the small and the smallest farm holders who contributed about 70% of the total yield of all the farmers shared only 39% of the subsidized fertilizer during the e-wallet fertilizer scheme. This non-pro-poor distribution of subsidized fertilizer has been implicated for non-significant differences in the farm productivities of participating and non-participating farmers in the scheme. The study concluded that, though the e-wallet scheme is more innovative and transparent than the previous fertilizer subsidy scheme, some factors that limited the pro-poorness of the past fertilizer subsidy scheme are still inherent in the e-wallet scheme. In order to improve the impact of the scheme on food crop productivity and on food security, the study recommended how the pro-poorness of the e-wallet scheme can be addressed with special reference to the rural area, the South-South, the North-West and the North-Central regions.
See the Final Report to AERC by the Authors: PDF AERC Contribution
Competing Successfully for International Research Awards
Professor Alabi holds various research awards and international scholarships: Research Grant from Bilateral Cooperation in Education and Research (Internationales Büro des BMBF, Bonn, Germany; Georg Forster Research Fellowship Award of the Alexander von Humboldt Foundation (AvH Foundation), Bonn, Germany; Innovative Research Grant from African Growth & Development Policy Modelling Consortium (AGRODEP-IFPRI), Washington D. C., USA; Research Grant from the African Economic Research Consortium (AERC), Nairobi, Kenya; Research Grant by the Partnership for Economic Policy (PEP) Research Network, Quebec Canada; and Excellence in Publication Grant from African Growth & Development Policy Modelling Consortium (AGRODEP-IFPRI), Washington D. C., USA). He also has applied for funding for the projects in the new research period in Bremen (2018 – 2020). Professor Karl Wohlmuth is advising the research activities of Professor Alabi now since 2004. In this year the cooperation started between the universities in Ekpoma, Nigeria and in Bremen, Germany at the occasion of a Research Workshop on African Development.
Professor Alabi has published in most of the publication series of IWIM (Book Series, African Development Perspectives Yearbook Series, Blue Discussion Paper Series, and White Discussion Paper Series).
Volume 19 of the African Development Perspectives Yearbook for the year 2017 is already available in the bookshops. In Volume 19 of the African Development Perspectives Yearbook with the title “Africa’s Progress in Regional and Global Economic Integration – Towards New Trade and Investment Policies” major strategic and policy issues are analysed. The guiding issue is how to make trade and investment policies in Africa relevant for structural change. It is asked how these policies can support structural transformation through more policy coherence, strict implementation of programmes and a future-oriented development management approach. So far these policies are not fully coordinated with other key policy areas, like sector policies, competition and technology policies, private sector policies, regional and spatial policies, labour and equity policies, and policies to strengthen global value chains. Also severe implementation problems have affected the impact of trade and investment policies. The lack of future-oriented trade and investment policies has led for Africa to missed opportunities in global trade and investment integration.
The focus in Volume 19 is, first, on new trade policies in Africa for structural change. The framework of coherent and comprehensive trade policies is presented; the role of international organisations in promoting agricultural export trade is analysed; and the divergence between planned and actual export diversification strategies is discussed. Second, another focus in Volume 19 is on new investment policies in Africa for structural change. It is investigated how investment policies could be redirected towards major economic sectors, like agriculture and manufacturing. It is also asked how oil-exporting countries can strengthen their industrial policy towards export diversification. It is also analysed how global value chains can be strengthened by appropriate policies. Third, there is a section in Volume 19 with book reviews and book notes being related to the themes of volumes 18 and 19.
Complementary to Volume 19 is Volume 18 with the title “Africa’s Progress in Regional and Global Economic Integration – Towards Transformative Regional Integration”. Based on Africa’s deep routed structural problems the key aspect of a more transformative regional integration process is how to promote structural transformation by adapted strategies and policies for the whole region.
The African Development Perspectives Yearbook Project started in 1989 with volume 1 on Human Dimensions of Adjustment in Africa. Over the years the African Development Perspectives Yearbook has become the leading English-language publication on African Development Issues in Germany.
Launch Event in Kigali, Rwanda in October 2016: UNECA (United Nations Economic Commission for Africa) and the University of Bremen will launch the two recent volumes of the African Development Perspectives Yearbook in a three days ceremony in Kigali, Rwanda. Speakers from the United Nations, from the Government of Rwanda, from universities in Rwanda, from various media, and the management staff of the Research Group on African Development Perspectives Bremen will launch in their statements the new editions. A Press Conference on Day One, a Workshop on Day Two and a Visit to the Universities in Kigali and to the Genocide Memorial on Day Three are part of the programme (see the Preliminary Programme of the Launch Event as a Launch of the Yearbook). Ms. Valentine Rugwabiza, Minister of East African Community, Republic of Rwanda, will give the Keynote Presentation to launch the new editions of the African Development Perspectives Yearbook.
More information about the new publication:
The Book is available as a Hardcopy Edition and as an E-Book Edition.
How to order the book? See: http://www.lit-verlag.de/isbn/3-643-90785-1 The other volumes in the Series: http://www.lit-verlag.de/reihe/adpy and http://www.iwim.uni-bremen.de/africa/africanyearbook.htm About the Research Group on African Development Perspectives: http://www.iwim.uni-bremen.de/africa/about.htm and https://www.karl-wohlmuth.de/afrikanische_entwicklungsperspektiven/ Entry about the African Development Perspectives Yearbook at Wikipedia: http://en.wikipedia.org/wiki/African_Development_Perspectives_Yearbook
Again Professor Alabi, Guest professor at IWIM, was invited to an AERC conference in Addis Ababa to report on ongoing researches about “Pro-poorness of fertilizer and agrochemical use and its implications on food security in Nigeria”. He has developed at IWIM a methodology to analyze the pro-poorness of fertilizer subsidies from the side of state and federal governments in Nigeria. He will participate at the AERC Biannual Research Workshop in Addis Ababa, Ethiopia in November/December 2015 for a full week; he will give presentations and he will participate at discussions. AERC is a leading research foundation for the support of African scientists to become part of the international research community. The invitation was presented to him by the Executive Director of AERC in Nairobi, Kenya.
As an AGRODEP member, Professor Reuben A. Alabi was invited to attend a high level “Applied Panel Data Econometrics” training course. The AGRODEP/IFPRI Dakar Management Team has selected Professor Alabi from a long list of candidates. The training workshop took place in Dakar, Senegal, on September 7-11, 2015. AGRODEP (African Growth & Development Policy) Modelling Consortium, facilitated by IFPRI, is an institution to support African agricultural economists. The programme is supported by the prestigious IFPRI (International Food Policy Research Institute) in Washington D.C. (see the Link to AGRODEP: http://www.agrodep.org/ ). The aims of AGRODEP are self-described as follows: “The African Growth and Development Policy Modelling Consortium is an initiative aimed at positioning African experts to take a leadership role in the study of strategic development questions and the broader agricultural growth and policy debate facing African countries.” and “AGRODEP maintains repositories of economic models and data sets, related documentation and research output available to all Network Members.”
Professor Reuben Adeolu Alabi, Department of Agricultural Economics, Ambrose Alli University, Ekpoma Edo State, Nigeria and IWIM, University of Bremen, and Adams Oshobugie Ojor Adams, Department of Agricultural Economics, Ambrose Alli University, Ekpoma Edo State, Nigeria, presented a research report on “The Pro-Poorness of Fertilizer Subsidy and its Implications on Food Security in Nigeria” (see the Research Report and the Agenda of the Conference in Arusha, Tanzania) at the Biannual AERC Research Workshop. An AERC Plenary Session on “Sovereign Wealth Funds and Natural Resource Management in Africa” and five Research Groups Meetings were held from May 31-June 4, 2015 in Arusha, Tanzania.
Professor Reuben A. Alabi, IWIM and Professor Karl Wohlmuth, IWIM, presented the paper “The Case of Sustainable Management of Solid Waste in Germany: Practical Lessons for Nigeria based on the Country State of Bremen” at the 2nd International Summit: Waste Summit 2015, Financing Management In Developing Economies, 22nd - 24th April 2015, Lagos, Nigeria (see the Extended Abstract). The Waste Summit was organized by the Waste Management Society Of Nigeria (WAMASON) and the International Solid Waste Association (ISWA). These are leading environmental organizations in Nigeria (see the two websites: http://www.environmental-expert.com/companies/waste-management-society-of-nigeria-wamason-24860 and http://www.iswa.org/ ). Professor Reuben A. Alabi is the Project Director of the Research Programme “Environment and Development Management Nigeria-Germany: Comparing Waste Management Value Chains” at IWIM, University of Bremen. At Lagos, the Paper and a Power Point Presentation were given. Professor Karl Wohlmuth is Consultant and Senior Advisor in the Project since January 2015. The duration of the Project is through end of 2017.
This is to inform the public about new researches done by Professor Reuben A. Alabi who is now for three years in Bremen at the Excellence University to do researches on "Waste Management Value Chains in Nigeria. Lessons from Germany and the Country State of Bremen".
The most recent study on agro-industrial development in Nigeria is “Economic Analysis of Effect of Flood on Income Distribution among Farmers in Edo State, Nigeria”. Osasogie Daniel Izevbuwa from the Department of Agricultural Economics and Extension, Ambrose Alli University, Ekpoma, Edo State, Nigeria has contributed also to this study (see the PDF of the Journal Article and the Link to the study: http://ijraf.org/v2-i3.php ). What did the study reveal?:
The study estimated the effect of flood on the income distribution of the victims in Etsako East Local Government Area of Edo State. A multistage sampling technique was employed to sample respondents for the study. Questionnaire and interview schedule were used to obtain information from the farmers. The data obtained were analysed econometrically. The income inequality increased among the victims due to the lopsidedness of the distribution of the compensation. For example, the study indicates that the middle income group lost 18% of their income during the flood and they got only 13% of the total compensation, whereas the richest income group lost 33% of their income and received 44% of the total compensation. Corruption and nepotism/tribalism have been implicated for the skewed distribution of the compensation among the victims.
In the prestigious International Food Policy Research Institute (IFPRI) in Washington D.C. Professor Alabi and his research team have published the study: “Analysis of Agricultural Public Expenditures in Nigeria, Examination at the Federal, State, and local Government Levels”. The study was published as an IFPRI Discussion Paper 01395 in December 2014 by the Development Strategy and Governance Division (see the PDF of the IFPRI Study). The study comes out with important messages:
The level of public spending on agriculture in Nigeria remains low regardless of the indicator used. Agricultural spending as a share of total federal spending averaged 4.6 percent between 2008 and 2012 and has been trending downward precipitously. In contrast, Nigeria recorded an annual average agricultural growth rate of more than 6 percent between 2003 and 2010, and agricultural gross domestic product followed an increasing trend between 2008 and 2012. Budgetary allocation to agriculture compared with other key sectors is also low despite the sector's role in the fight against poverty, hunger, and unemployment and in the pursuit of economic development. To develop the agricultural sector, all tiers of governmentfederal, state, and localshould increase spending. The state and local governments should step up efforts to increase internally generated revenue so as to reduce overdependence on allocations from the federation account.
Professor Reuben A. Alabi is also contributing to Volume 19 of the African Development Perspectives Yearbook with an Essay on The Role Of International Organisations In Promoting Agricultural Export Trade In Sub-Sahara Africa. This study is done in cooperation with Professor Kehinde Omotola Adejuwon, Department of Agricultural and Resource Economics, Federal University of Technology, Akure, Ondo State, Nigeria. This study examines the role of international organisations in promoting agricultural exports in Sub Sahara Africa (SSA), with particular emphasis on IFAD, WTO, and especially the Aid For Trade (AFT) programmes. The study concentrates on four major export crops in SSA, such as cocoa, coffee, cashew and cotton. Professor Alabi is now cooperating since 2004 with the African Development Perspectives Yearbook project.