|
|
The
United States Agency for International Development (USAID) and the
Shell Petroleum Development Company of Nigeria Limited (Shell) today
announced they are to be partners in a $20 million sustainable development
program in Nigeria.
The agreement was announced in Washington D.C. by Andrew S. Natsios,
USAID Administrator, and Sir Philip Watts, Chairman of the Committee
of Managing Directors of the Royal Dutch/Shell Group of Companies.
The partnership is one of the largest country-specific
agreements under USAID's new business model, the Global Development
Alliance, which promotes public-private partnerships to implement
sustainable development programs around the world. By partnering
with the private sector, in addition to developing country governments
and non-governmental organizations, USAID is able to extend its
reach and effectiveness in responding to new global challenges. |
Shell
will contribute $15 million over the next five years to the partnership
and USAID will contribute $5 million. The partnership's program will
aim to help build capacity and opportunity for Nigerians in the strategic
areas of agriculture, health, and small and medium size enterprise.
USAID and Shell initially plan to focus their work on food security
through a cassava cultivation support program; the prevention of malaria;
and supporting the export shrimp industry.
The cassava project is expected to be the first to commence, with
start-up by the end of 2003. Its aim is to provide greater income
for cassava farmers in 11 Nigerian states. The program will improve
technology transfer to address cassava mosaic disease and to develop
cassava processing. It will also help identify further commercial
markets for cassava, such as ethanol production, livestock feed and
use in baking. In addition to being a staple food, starch from cassava
is already used in other industries including textile manufacturing.
The cassava project will be implemented by the International Institute
of Tropical Agriculture in Ibadan, an international agricultural research
centre which has successfully implemented USAID and other cassava
program. The institute is also a key partner with the Government of
Nigeria in the implementation of the Nigerian Presidential Cassava
Initiative.
Sir Philip said today: "Shell already spends about $60 million
annually in the Niger Delta on its well-established social investment
program. I am proud that Shell will now be able to extend this important
work with this partnership with USAID. I am confident that our program
together will make a significant contribution to socio-economic development
in Nigeria and in the Niger Delta in particular. "
Mr. Natsios said: "Investing in people is perhaps the single
most important factor in achieving long-term economic growth. USAID
is proud to partner with Shell in the Delta region, particularly as
we embark on implementing a new $350 million, five-year program of
development and capacity building throughout Nigeria."
USAID has been working in Nigeria since the 1960s and provides $65-70
million annually in development assistance to Nigeria in the areas
of democracy and governance, economics and agriculture, education,
health and HIV/AIDS.
The Shell Petroleum Development Company of Nigeria Limited was incorporated
in 1937 and is the oldest and largest producer of oil and gas in Nigeria.
Shell in Nigeria spends some $60 million each year on social investment,
assisting communities to develop agriculture and social infrastructure
including community health and educational facilities.
|
On
September 25, 2003, the United States Agency for International Development
(USAID) Mission to Nigeria and the Shell Petroleum Development Company
(SPDC) signed a five-year, $20 million Memorandum of Understanding
(MOU) to share their common goals of promoting democracy, stability
and economic prosperity in Nigeria. USAID/Nigeria will contribute
$5 million and SPDC will contribute $15 million. This is the largest
strategic partnership for USAID. The
MOU was signed with the understanding that an Addendum will be executed
for each specific activity to be implemented. Initially, USAID and
Shell will focus on food security, economic growth and health activities
such as cassava cultivation, prevention and treatment of malaria,
and support for the shrimp industry. The first Addendum, to be signed
by USAID/Nigeria and SPDC/Nigeria in mid-November 2003, will launch
the Cassava Enterprise Development (CED) Project. This $4.2 million
Project is a four-year, integrated initiative that aims to provide
income for cassava farmers in eleven Nigerian states by increasing
production, expanding post-harvest, value added processing, and
identifying commercial markets for cassava within various industries.
The USAID and Shell strategic partnership
will help promote economic growth and stability by revitalizing
the cassava industry. Cassava is one of the most widely-cultivated
crops in Nigeria and provides food and income to over 30 million
farmers and large numbers of processors and traders. It is an important
regional food source for 250 million people in West Africa - nearly
one-third of the population of sub-Saharan Africa.
Despite the significance of cassava to the region, production has
been nearly stagnant over the past ten years. More recently, this
food-staple has been threatened by the Cassava Mosaic Disease (CMD).
Having devastated crops in Uganda in the late 1980s, CMD became
a pandemic in East and Central Africa by 1999, causing up to 100
percent loss of the crop in affected areas. In Nigeria, the most
vulnerable areas are the South-South and South-East states, including
the Niger Delta region. The Delta is an area that has suffered historical
conflict and unrest and is the center for Nigeria's multi-billion
dollar oil industry.
The United States, through USAID, is the
largest bilateral donor to Nigeria. Under USAID/Nigeria's Transition
Strategy, 1999 - 2003, USAID provided assistance to Nigeria totaling
more than $320 million in support of democracy and governance, economic
management and agricultural growth, education and health, including
HIV/AIDS, and infrastructure.
USAID/Nigeria's recently approved five
year strategy for 2004 - 2009 will provide close to $350 million
to improve democratic governance, increase economic livelihoods,
enhance social sector services delivery, and reduce the impact of
HIV/AIDS. USAID/Nigeria works at national, state and local government
levels with over 500 local public, private and civil society partners
to develop activities and approaches to consolidate democratic rule,
increase incomes and delivery key social sector services (education
and health) to communities. USAID/Nigeria also works with communities,
particularly women's groups and other non-governmental organizations,
to help institutionalize democratic principles and increase the
capacity of these organizations to advocate for their needs and
hold government accountable.
The Shell Petroleum Development Company
(SPDC) of Nigeria has a long history in Nigeria and has grown to
be one of the largest oil companies operating in the country. Consistent
with sound corporate citizenship and its support for sustainable
development, Shell has substantial social sector investments in
the Niger Delta, the area from which it extracts oil and gas, as
well as other regions of Nigeria. |