Introduction

Large-scale procurement, handling, and distribution of seeds in formal transactions by institutional actors – such as governments, NGOs, and development programs – often impede the development of a sustainable seed industry. This is evident in the Nigerian seed market, where institutional buyers make up a significant portion of the total seed market. According to The African Seed Access Index (TASAI, 2019), institutional markets account for approximately 50% of the total volume of maize and rice seeds transacted in the country.

While institutional buyers have the potential to power the growth of the seed industry, they are often a leading cause of market distortion. Concerns include the size of the seed demand relative to market capacity, the ad-hoc nature of purchases, the inability to engage in long-term contracts with local seed companies, and the practice of procuring seed in bulk. With the practice of procuring seed in bulk, institutional players break a critical feature of a healthy seed industry: package integrity. These issues were highlighted during the federal government’s Growth Enhancement Support Scheme (GESS), which supported the bulk distribution of subsidized seed (and other inputs) to farmers.

Investigating Institutional Seed Market Challenges and Sustainable Practices

The National Seed Road Map (NSRM) of Nigeria – a strategic policy document that guides stakeholders in Nigeria’s seed sector – envisions a seed sector that is increasingly demand and market-driven, dynamic, and functioning; operating sustainably with minimal government, NGO, and project subsidies and interventions and one in which if interventions are made, they promote accountability and sustainability.

In line with the NSRM, the Collaborative Seed Programme (CSP) is currently implementing a study on the functioning of Nigeria’s institutional markets. The aim is to develop strategies that reduce seed market distortion by institutional buyers. The study specifically looks at:

• The challenges and opportunities within the existing seed procurement, dissemination, and marketing practices of commercial value chain actors, and humanitarian and food security programmes
• The current business models and production capacities of seed companies that supply to institutional markets and the institutional arrangements between institutional players and these seed companies
• Modalities, best practices and institutional arrangements for enhancing the functioning of institutional seed markets to become demand and market-driven and operate sustainably.

As a crucial first step in the study, the programme organized an inception workshop on 21 June 2023 in Abuja, bringing together stakeholders from government, seed companies, and development partners to align on the objectives, and secure stakeholder support and commitment.

During the workshop, several key issues were addressed. Inconsistencies in government policies were identified as a major challenge fostering uncertainty and hindering long-term planning in the seed sector. Additionally, the lack of collaboration among institutional market actors underscored the need for improved coordination and communication. Furthermore, the absence of a comprehensive protocol for seed intervention in the country was recognized as a significant gap requiring attention.

A breakout group presents their session outcomes in plenary at the inception workshop; discussion during breakout session. (Image Source: Sahel Consulting, 2023)

The study team conducted subsequent interviews with seed companies, and they provided valuable feedback and insights, sharing experiences and challenges in the market. Companies emphasized the need to route large-scale seed procurement through the National Agricultural Seed Council (NASC), citing its deep understanding of companies’ capacities to allocate supply effectively. They suggested support to bolster production capacities to meet growing institutional buyer demands and stressed the need for their involvement in the intervention planning process.

The study team’s visit to Tomato Jos Limited, and Da Allgreen Seeds Limited.
(Image Source: Sahel Consulting, 2023)

Government stakeholders in subsequent interviews emphasized the importance of involving seed experts in the institutional markets procurement process to avoid suboptimal decisions. They noted that current practices delegate seed procurement to personnel from financial and procurement departments lacking sufficient knowledge of the seed system. They also emphasized the need for robust monitoring and evaluation mechanisms to ensure the dissemination of quality seeds to targeted beneficiaries as against the practice of just entrusting the procured seeds to the leadership of farmer associations for dissemination to beneficiaries without any checks.

The Chief Executive Officer of the Nigerian Economic Summit Group (NESG), a leading think tank on the Nigerian economy, expressed support for the study at the recent CSP steering committee meeting. He emphasized the importance of implementing government subsidy schemes without disrupting private-sector players in the economy. Furthermore, he highlighted his organization’s commitment to facilitating the convening of key stakeholders for the study and disseminating its findings to relevant authorities.

Study team having a discussion with officials of Agricultural Research Council of Nigeria (ARCN); and after discussion with officials of Federal Ministry of Agriculture and Food Security (Image Source:  Sahel Consulting, 2023)

Government stakeholders in subsequent interviews emphasized the importance of involving seed experts in the institutional markets procurement process to avoid suboptimal decisions. They noted that current practices delegate seed procurement to personnel from financial and procurement departments lacking sufficient knowledge of the seed system. They also emphasized the need for robust monitoring and evaluation mechanisms to ensure the dissemination of quality seeds to targeted beneficiaries as against the practice of just entrusting the procured seeds to the leadership of farmer associations for dissemination to beneficiaries without any checks.

The Chief Executive Officer of the Nigerian Economic Summit Group (NESG), a leading think tank on the Nigerian economy, expressed support for the study at the recent CSP steering committee meeting. He emphasized the importance of implementing government subsidy schemes without disrupting private-sector players in the economy. Furthermore, he highlighted his organization’s commitment to facilitating the convening of key stakeholders for the study and disseminating its findings to relevant authorities.

Conclusion

Reforming Nigeria’s institutional seed market is one of the critical aspects required for developing a sustainable seed industry. The Collaborative Seed Programme’s study aims to identify and highlight challenges in the market, by examining current practices and will develop strategic recommendations to policymakers on how to foster a demand-driven and sustainable market. The support from key economic organizations like the Nigerian Economic Summit Group (NESG) further underscores the importance of this initiative.  In the next year, the team will convene a midterm evaluation workshop with stakeholders to assess progress and findings, followed by drafting a policy brief, consultations for refinement, and a communication campaign to disseminate it to relevant seed sector stakeholders.