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INALDS Product Document
Land Development for Sustainable Agriculture


1.1 INTRODUCTION

Integrated Nationwide Agricultural Land Development Scheme (INALDS) is a private sector-led initiative of Nigerian Agricultural Mechanization & Equipment Leasing Company (NAMEL)- and Mantrac Nigeria Limited (MNL) structured to leverage on public and private partnerships to open Agricultural Land using global best practices and flexible differed payment model.

Under INALDS, high quality tailored made Agricultural Land Development (“Land Clearing”) equipment are deployed for the land clearing chain operations ranging from Tree Mulching, tree felling, windrowing, de-stumping root picking to the creation of farm roads. the operations are carried out by highly trained equipment Operators and Technical Managers. INALDS services are delivered timely taking into considerations the seasonality of Nigerian Agriculture and we provide further recommendations on soil fertility management system, land use optimization including irrigation services and access road.

The INALDS builds on the on-going implementation of the Federal Government Enabled-Private Sector Driven Agricultural Mechanization Programme (PSDAMP) being coordinated by NAMEL as well as other Government and private sector Tractor/Mechanization service providers. INALDS is a complimentary service that ensures more Tractorable lands are developed to promote commercial Agriculture while carrying out de-stumping operations to enhance Smallholders and medium-scale farmers use of Mechanized equipment.

BRIEF ON THE PARTNERS

A.NAMEL is a strategic mechanization organization operated by a team of experts with several years of combined experience in mechanization project design, implementation and service provision. NAMEL brings to bear the best experience and expertise pedigree to expand, consolidate and ensure the sustainability and profitability of Agricultural practices through Public-private partnership (PPP).

B.Mantrac: Mantrac Nigeria Limited is the authorized CAT dealer in Nigeria, distributing and supporting the full range of CAT products, with the aim of supplying the best equipment to the most demanding industries and keeping them running at peak productivity. Mantrac Nigeria is not only a supplier but also a solution provider using integrated business solutions backed by technical expertise and local knowledge.


1.2 PROJECT GOAL

The overall goal of the INALD Scheme is to create a robust partnership project that takes away the 100% initial financial burden of “Land Clearing” from the Federal, State and Local governments, investors as well as the farmers using flexible deferred payment model while enhancing the needed capacity for small and medium-scale farmers to expand their areas under cultivation and increase their productivity

1.3 TARGET CLIENTS

The current financial and agricultural realities in Nigeria highlights the inadequate capacity and will-power of stakeholders to procure, own and manage Land Clearing Machineries or operate Equipment Hiring Enterprise.

INALDS as a scheme targets the under-listed clients to provides services using a flexible/deferred payment model, with emphasis on the entire value chain development and management, market, profitability and sustainability.

  • Smallholder farmers: 1 – 10 hectares (In clusters of at least 100ha)
  • Medium and commercial farmers
  • Federal Government
  • States and Local Government
  • Private organizations
  • Development Partners
  • Agricultural related organizations

1.4 POTENTIAL PROJECT STAKEHOLDERS

The key stakeholders whose partnership will be leveraged upon to ensure the success of the scheme include but not limited to:

  • Corporate and individual Farmers
  • Farmers Organizations
  • Federal Ministry of Agriculture & Rural Development (FMARD)
  • State and Local governments
  • Central Bank of Nigeria
  • Development partners
  • Mantrac Nigeria Limited
  • Private Organizations
  • Nigerian Agricultural Insurance Corporation
  • Investors
  • Insurance Companies
  • Financial Institutions

2.0 THE FUNDING MODEL

The Project operates on a differed payment model where beneficiaries make equity deposit medium-scale and the balance of the cost of Land clearing is spread over a period. this takes away the initial 100% investment cost and shares the burden with the project.

With the high precision equipment, best practice agricultural land development, we are ensuring that our pricing and costing will remain competitive. through INALDS, a well-cleared land, free of stumps, stones and roots with minimal top-soil disturbance are delivered in readiness for tillage operation.

2.1 FUNDING CATEGORIES

The Project funding model entails that the client makes a % equity contribution of the total cost of Land Clearing after having certified the required eligibility criteria while the repayment of the loan balance is spread over a period of 2 - 4 years (24 - 48 months).

The funding Model is categorized into two which are;

A: Private investors/Farmers Land Development Project

B: Government/Development Partners Supported Land Development Project (In view)

DESCRIPTION 24 MONTHS TENOR 36 MONTHS TENOR 48 MONTHS TENOR
Investor/Farmer 30% 40% 50%
Loan Component
(NAMEL/Mantrac)
70% 60% 50%

A. Private Investors/Farmers Funding Model

Note: Loan Tenor Can Exceed 48 Months If Hectarage to be Cleared is more than 5000ha

2.2 LOAN REPAYMENT STRUCTURE

  • Loan Tenor on Cash Flow Projection is 24 – 48 months
  • Project exceeding 5,000 Ha, loan tenor is negotiable
  • Moratorium is structured based on Crop Value Chain and Cycle of Production

2.3 EXPECTED PRIMARY REPAYMENT SOURCES

  • Federal/State Government interventions
  • Proceeds from Sales of the Farm Produce through an off-taker/Anchor buyers’ arrangement
  • Other operational cash flow activities

3.0 THE INALDS PROJECT ACTIVITIES

The activities of INALDS are primarily focused on best practice Agricultural Land Development and are classified into:

A.INALDS Products and Services

The following services are directly delivered:

i.Brushing

ii.Tree Felling

iii.Pilling/Windrowing

iv.De-Stumping

B. Ancillary Services

The ancillary services are recommended to ensure optimal use of the land. INALDS provides advisory services on these ancillary components and the investor/beneficiary may directly implement or through other service providers.

These services include:

i.Soil Fertility Management System

ii.Irrigation Services

iii.Farm Access/feeder Roads

3.1 SERVICE DEMAND SEQUENCE

The following sequence of operations applies:

1.Submission of application for land clearing, by individual/corporate farmers to INALD Secretariat domiciled in NAMEL Office

2.Filling of the NAMEL / MANTRAC Preliminary Project Assessment questionnaire

3.Proposed Site inspection by INALD Technical Team

4.Discussion of Inspection reports and Cost implication with clients (Number of hectares, Job scope and others and Payment Terms)

5.Submission of relevant individual/company documents and business plan for the land utilization including land ownership/lease documents

6.Issuance of the term sheet and approval of credit /MOU where applicable.

7.Provision of NAMEL/Mantrac joint offer to the client.

8.The signing of a commercial agreement with the client.

9.Payment of equity/counterpart funding or any other payment option agreed.

10.Mobilization to Site and implementation


4.0 TYPE OF EQUIPMENT UNDER THE NAMEL/MANTRAC LAND CLEARING PROJECT

The following factors will be taken into consideration when deciding the clearing method and the equipment to be used: the scale of operation; quality of work and timeliness; and environmental consequences.

S/No. Description of Machinery Function
1 Bulldozer Tree cutting & felling
2 Chain cutter Tree cutting & felling
3 Wood de-stumper Removal of stumps
4 Dozer with Tree Pusher Tree Felling
5 Leveller Soil Levelling
6 Ripper Removal of roots
7 Feeler Bunches Cutting of Tree (into logs)
8 Wood muncher Grinding the tree
9 Saw Cutting of trees
10 Tree Crabber Loading of timbers
11 Stone Crusher Crushing stones

4.1 ELIGIBILITY

To participate in the scheme the following criteria is expected to be satisfied:

1.Evidence of land ownership or lease agreement

2.Possess a minimum of 100Ha to be cleared (Clustering of Smallholdings up to 100 hectares)

3.Ability to raise equity (Cooperative group funds/ personal or shareholder’s Investment) of the total cost of land clearing

4.Farm insurance with accredited Insurance Firms

5.A certification/Affidavit that the individual/firm has never been blacklisted by any Organisation or has been Bankrupt

6.Comprehensive Business Plan with a detailed cash-flow analysis

7.Relevant experience in the Agricultural sector