Enugu Accelerated Rice Production Initiative

Project Description and Introduction:

Country: Federal Republic of Nigeria State: ENUGU STATE 

Business sector: Agribusiness

Category: Fertilizer Plant, Rice and Wheat Production and Processing 

Project Ownership: Private

Estimated Total Project Cost: US $200 million

This proposed endeavor is an integrated complementary project encompassing a solar farm to support rice production and milling supported by fertilizer production and use. Structurally, it is a public private partnership (PPP). The federal Government and Enugu State government comprise the public partner, partnered with an array of private partners. The number of private partners will probably increase to incorporate new entities as the partners seek to expand their capital flows and operational activities. Collaborative relationships are already envisioned with private partners. all partners are also involved in intensive promotion and development of Agriculture and other Non-Oil resources in Nigeria. We have presented this business concept to the International Finance Corporation (IFC) of the World Bank; and we believe that their willingness to schedule a meeting with us and discuss further details when we come to Nigeria is an indication that if we work with them within their guidelines and funding criteria, there is a higher probability to secure their participation, capital funding and management assistance for these projects. On the basis of the Bank’s funding criteria, we are optimistic we have satisfied their preliminary requirements and conditions 

KINI Worldwide, LLC, in collaboration with Nigerian public and private partners will provide the capabilities to utilize proven cost efficient, state of the arts technical and management solutions to create vast employment opportunities, while providing effective sustainable agricultural development projects in these six complementary areas, namely:

a) Solar farm, 

b) Rice farm and production, 

c) Rice milling plant, 

d) And NPK fertilizer blending and packaging plant.

Project Impact:

“We simply don’t have it. We don’t print dollars, but the people are angry that we are not making dollars available. We became importers of rice; $5m a day; wheat, $6m a day; tomato paste, $400m a year; and $20bn a year on food.’’ 

-Chief Audu Ogbeh, Federal Minister of Agriculture and Rural Development, Nigeria, Punch Newspaper of Nigeria, August 10, 2016. 

Consistent with the current policy initiative of the federal government to intensify and boost local food supply, Nigerian entrepreneurs and agriculture practitioners in concert with global specialists and consultants have assembled appropriate modern technology, management and capital to improve yield per hectare and irrigable sites for all-year-round cultivation of staple foods, in particular, wheat. 

Furthermore, President Bola Tinubu, in November of 2023 promised a new era in the country's agricultural sector, vowing that it would no longer be business as usual as his administration seeks to boost food security as well as diversify the economy from over-reliance on petroleum. 

In addition, in 2024, President Bola Tinubu of Nigeria has promised to improve agricultural production, diversify the economy, and boost food security. He said that his administration would enhance agricultural production, promote workers' welfare, and activate the economy. He also vowed to reduce the cost of agricultural inputs by 93%. 

Lastly, The governor, represented by his Deputy, Barr. Ifeanyi Ossai, commended the Commissioner for Agriculture and Agro Industrialisation, Mr Patrick Ubru. He said, “I am impressed by what I see today. It is encouraging, I commend the farmers of Enugu State and with your synergy, support and 

cooperation to Enugu State Government, production of rice will continue to increase for the benefit of all. This is the development we have been craving for as well as the growth we are praying for. Indeed, our tomorrow is here.” 

Mr. Mbah noted that the Enugu rice brand would grow bigger than what it was known for, stressing that the state would soon be known as a rice producing state. He explained that Enugu was now an oil producing state and also doing well in the agricultural sector, saying, “This will help to reduce hunger to zero by 2031.” 

As we are, Enugu State is committed to give maximum support to the mandate and vision of the state for agriculture.

Project Scope:

KINI Worldwide LLC, USA and its Nigerian Partners will find suitable land to produce rice for the betterment of the state and its people. We would be part of the infrastructure needs and discussions, and would bring in irrigation structure to best facilitate the growth of high yielding crops. Twenty thousand hectares of land would be earmarked for the rice farm. The rice produced at the farm will be processed in the nearby mill for local consumption and exported to regional markets to be disseminated out to the people.

The rice mill is expected to operate at a capacity of 20 metric tons per hour and be expandable up to 100 metric tons per hour. These three agro allied industries are expected to provide a hub for further development of infrastructure and industrial expansion of the communities and the state. There is a provision in the business plan to establish an educational academy to offer practical training for Enugu indigenes to acquire skills in wheat production, the milling process and technology. 

Solar 

In its simplest term, what is a Solar Farm? A solar farm is a large collection of photovoltaic (PV) solar panels that absorb energy from the sun, convert it into electricity and send that electricity to the power grid for distribution and consumption. 

The components that a solar farm can offer are: 

• Turnkey Power and Lighting Kits 

• Power Designed to Last Years 

• Pre-Wired Kits 

• Telecom & Remote Power Solutions 

• Custom Solutions Available 

Our partner works with businesses worldwide offering Off Grid Power Solutions. They have key partners and projects in South Africa which will aid us in the design in Nigeria. They are a global Power and Off Grid Solutions Company. They help their clients worldwide to build Solar Lighting and Power Kits – from Micro Grids in remote areas to Cell Towers in mountain tops. Their innovative technology brings Off Grid Power and Lighting with reliable efficiency, high CRI brightness and sustainability that will last for years. 

Our partner is a leading manufacturer of Smart Solar Power and Lighting System Solutions. They design, engineer and manufacture Solar Power Units to meet all your power needs from Sign Lighting to Shipping Containers to Cell Towers – and a whole lot more. If you have a client needing industrial, commercial or residential Remote Power or Lighting, we design and engineer every Solar Power System to solve those standard and customized needs. 

Rice 

The paddy rice from which the U.S. quality parboil milled product is to be produced and sold will be supplied from rice grown in Nigeria along with paddy from abroad as needed until such time as there is sufficient and suitable quantity of paddy produced within Nigeria to operate the mill at full capacity. A comprehensive proposal will be presented complete with detailed financial analysis and forecast for ten years using conservative estimates based upon prevailing and current market prices with a 3% annualized inflation calculation factored in. All indications forecast in the financial model will support an aggressive ability by our partners. 

By striving to be a leading food business region, Enugu State can enhance areas of the State by investing in production agriculture. As such, Enugu stands poised to help improve lives. Here is an opportunity to steer the green revolution in Enugu with the use of locally sourced materials to develop and produce unique consumer products for local markets. This strategy is reducing dependence on imported raw materials and creating value for businesses, consumers and the State/Region at large.

A company to invest in the training of large numbers of Enugu citizens for the purpose of fulfilling job placement in what will be a vertically integrated rice production model throughout the Enugu region and the country at large, within six months of completing construction and the commencement of product sales. 

The full employment potential for this project is hard to calculate, but it is not hard to imagine the possibilities going into millions of jobs when considering the upstream/downstream job requirements for what is an untapped multi-billion dollar market. 

Even In the current U.S. economy, it is often overlooked that 1 out of every 5.5 jobs is directly tied to production agriculture. Along with those jobs, come food security and a major contribution to what is the World’s largest economy. 

A complete feasibility study of the technical and capital requirements for setting up the rice mill will be carried out by a USA Engineering and Construction Company, the technical partner in this project. However, following are the preliminary factors that will be assessed by the technical partner. 

Fertilizer 

In 2016, Nigeria was still almost wholly dependent on fertilizer imports, utilizing enormous foreign exchange reserves and paying higher prices that many farmers cannot afford. While agriculture is Nigeria’s most engaging economic sector, employing over 70% of its population, it remains grossly inefficient with crop yields and productivity rates well below optimum levels. A key factor in revitalizing this sector and feeding the increasing population of Benue State, in particular, and Nigeria in general, is more intensive use of agricultural inputs and, in particular, fertilizer. The vast majority of its population is small-scale farmers with little access to fertilizers and can’t always afford them. When the fertilizer is available, the farmer often pays well above the average world market price due to exchange rate variability, poor transport infrastructure, high transportation costs and other import overhead costs. 

Nigeria is the largest fertilizer market in the West Africa sub-region, representing an average of 45 percent of total fertilizer consumption (in nutrients base) in the Economic Community of West African States (ECOWAS). Yet, with the exception of South Africa, farmers in Sub-Saharan Africa are estimated to apply about 8.0 kg of fertilizer per hectare yearly, about 10 percent of the world’s average. 

With increased release of higher yielding and fertilizer consuming crop varieties, the potential for fertilizer consumption in Nigeria now is estimated at around 12 million metric tons per annum. Nigerian farmers are urgently in need of mineral fertilizers to increase agricultural productivity and yields, to bring life back to the depleted soils, and to feed the Nation. 

Education 

One of the partners in the technical team is an agricultural college located in North Dakota, USA. Their expertise and educational deliveries will be beneficial to the overall success. They will be instrumental in providing technical support as well as educational training. This technical assistance and educational training will be a key component of the overall success of the partnership, farms, plants and processing.

This part of the partnership is key to the overall success and training for this setup as well as replicated projects throughout Nigeria. This is just one of many things that sets our project apart from others. 

Lastly, this educational partner will allow us to partner with other educational universities across the region for training. This will be key in short term training that will lead to people being trained and ready to enter the agriculture workforce.

Rice and Wheat Mill Study:

Phase I (Goals): 

1. Develop scope of solar farm enterprise 

2. Develop scope of rice farming enterprise 

3. Develop plan of rice farm development 

4. Develop scope of rice mill project 

5. Develop plan for rice mill development 

6. Develop project timeline 

7. Develop project deliverables (i.e. jobs creation, production capacities, yields, etc.)

8. Develop order of magnitude capital budget 

9. Develop qualifications of bidders to meet price, quality and project timeline requirements

Activities: 

1. Review existing project scope documents 

2. Update and revise project scope 

3. Meet with stake holders to review and approve the scope of work 

4. Meet with stake holders to determine desired timing of development for each part of the scope of work 

5. Meet with stake holders to determine project deliverables - Produce timeline for the project scope 

6. Produce scope of work for Phase II of the tender process 

Phase 1 Estimated Cost	US $300,000
Estimated Time Required	20 Weeks

Phase II (Goals):

1. Develop farm site facility requirements 

2. Develop basic design criteria and requirements 

3. Develop post-harvest facilities requirements 

4. Develop support infrastructure requirements

Activities: 

1. Create solar farm plan and infrastructure 

2. Create general plan view of facility infrastructure 

3. Create post-harvest facility requirements including, drying, storage, parboiling, milling, warehousing, shipping etc. 

4. Create plan view of facility layout. 

5. Create preliminary design of Flow diagrams

6. General arrangement drawings

7. Preparation of equipment bid packages with specification

8. Preparation of construction bid packages with specifications

Deliverables:

1. Review of and documentation of project scope 

2. General plan view of facility and infrastructure 

3. Review of, selection of and drawings of facility layout including: 

   1. General size and location of buildings 

   2. General size and location of major equipment 

   3. General layout of traffic flow including roads, waterways and parking 

   4. General location of utilities and utility routing 

   5. General drainage plan 

4. Flow diagrams for receiving, drying, storage, milling and packaging 

5. General arrangement drawings of receiving, drying, storage, parboiling, milling and packaging equipment to be supplied for bidding purpose 

6. Specifications of machines and systems to be supplied for bidding purposes

7. Specifications for roads, parking lots, support buildings and utilities. 

8. Requirements for training the processing operators 

Phase 2 Estimated Cost	US $600,000
Estimated Time Required	20 Weeks

Fertilizer Plant Feasibility Study:

Our partner will prepare the feasibility and budget for the fertilizer plant and will also be responsible for the construction, operation, training and maintenance for all phases of the facility.

Solar Farm Feasibility Study: 

Our solar partner will prepare the feasibility and budget for the solar farm and will also be responsible for the construction, operation, training and maintenance for all phases of the facility.

Summary

We at KINI Worldwide, LLC stand ready with our partners to bring this cutting-edge agricultural enterprise to Nigeria. In summary, this project would accomplish the following: 

• A reduction in the state’s based power due to the solar farm. 

• Increase rice production while employing Nigerians as managers and farm laborers.

• State of the art milling facility to make sure a quality product is available to the citizens of Enugu State. 

• Production of rice will continue to increase for the benefit of all. 

• An educational partner that can help train workers in agriculture while providing technical assistance. 

• It will boost food security as well diversify the local, state and national economies.

• Enhance agricultural production throughout the country. 

• The model can be accomplished in segments and can be replicated throughout the country.

Our mission aligns with that of Enugu State and the wise words of President Bola Tinubu by facilitating increases in agricultural production, to increase the income of farmers and production agriculture, diversify local, state and national economies, and to raise the standard of living of rural populations, thereby, creating jobs and reducing poverty across Nigeria. 

Lastly, our project echos the words of Mr. Mbah, that the Enugu rice brand would grow bigger than what it was known for, stressing that the state would soon be known as a rice producing state. Furthermore, he explained that Enugu “will help to reduce hunger to zero by 2031.” 

We are excited about this project and look forward to working with you in the many years to come!