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Subcomponent 1.1: Support to policy formulation, planning, and capacity strengthening

This subcomponent aims to strengthen the policy environment, knowledge base, and human resource capacity of the livestock sector as a springboard for enhancing livestock productivity, resilience and value chain performance. It will finance five activities, beginning with preparation of a comprehensive Livestock Master Plan and follow-up analyses to guide the development of a sustainable, efficient livestock sector in the short to medium term.

Subcomponent 1.2: support to Animal Husbandry and Advisory support

Subcomponent 1.2 will build producers resilience to climate change and reduce the sector GHG emissions and other negative environmental externalities by improving the availability and adoption of superior livestock breeds, Good Animal Husbandry Practices (GAHPs) and feed resources adapted to the adversity of ruminant production systems. It will finance four sets of activities that contribute directly to climate change adaption and mitigation by reducing methane emissions per unit of meat or milk produced (based on improved feeding and manure management) and by increasing carbon sequestration (based on improved pasture and rangeland management).

Subcomponent 1.3: Support to Animal Health Services Strengthening

Subcomponent 1.3 will strengthen the delivery of livestock health services and improve the coordination between animal and environmental health services, as embodied in the One -Health concept. Improvements in the delivery of animal health services will increase productivity by reducing livestock morbidity and mortality, in turn improving the resilience of livestock and livestock-based livelihoods to climate shocks, including diseases induced by climate change. By contributing to greater efficiency (increased milk yield, daily weight gain, reproductive performance, feed conversion ratio), improvements in animal health will also reduce the intensity of GHG emissions from the livestock sector and help to mitigate climate change, as well as reduce food loss. Expanding the capacity of animal health services and improving their coordination with human health services is also the key to preventing and responding to public health threats such as AMR and zoonotic diseases, including those with pandemic potentials.

Component 2 builds on herd-level improvements in productivity arising from investments under component 1 (improved breeds, animal health and GAPHs) to expand overall production of meat and milk and reduce imports of those commodities. To that end, it will enhance and modernize the value chain for livestock products, and encourage increased private investment in priority segments of the value chain, while mainstreaming climate change adaptation and mitigation measures. In addition to augmenting national production, these activities will build more resilient livelihoods, create jobs, promote rural economic growth and improve food safety.

Sub-component 2.1: Support to Market Linkages and Market Development

Sub-component 2.1 will foster a market orientation among small and medium producers by ensuring: (1) market access/availability; (ii) that producers capture a fair share of product/commodity value; (iii) transparency in market prices and (iv) the highest level of appropriate value addition at the farm level through primary processing (bulking, cooling, sorting, packing and so on) to increase profits and reduce food waste. The demand-supply balance for meat (beef) and milk in Nigeria (which will be reconfirmed through rapid localized supply and demand studies during implementation) as well as consultations held during project preparation, indicate that prospective off-takers and markets for these commodities abound in the country, including small and medium agribusinesses working or seeking to work in partnership with organized livestock producers to “create volume”, and value, reduce transaction costs, and increase their bargaining power in identified commodity markets.

Sub-component 2.2: Support to Increased Access to Finance

The sub-component builds on activities under 1 and sub-component 2.1 to further de-risk the livestock value chain expand lending in the livestock sector and promote climate adaptation and mitigation. It will address critical challenges in providing credit to livestock value chains, particularly loan duration and realistic risk adjusted pricing. Accordingly, Sub-component 2.2 will finance three main activities: a credit line, sharing facility, and technical assistance through input-based financing.

Sub-component 2.3: Support to Selected Livestock Service Centers

Activities under this subcomponent will complement activities under subcomponent 2.1 and 2.2. by accelerating the momentum of smallholder commercialization and private sector investment in the livestock value chain, while scaling up climate-smart livestock production systems. In line with the NLTP, this subcomponent will provide support to create Livestock Service Centers (LSCs) in selected areas to promote commercialization, reduce open grazing and attract private investment in the livestock sector.

While improved provision of animal husbandry, animal health and animal identification and traceability services under component 1 will indirectly help to mitigate herder-farmer conflict (mainly through improved productivity, reduced resource use intensity, and livestock security) thereby contributing to improved resilience of communities affected by conflict, component 3 will address the most proximate cause of herder-farmer conflict: the declining quantity and quality of resource (water and rangeland),constrained access to resource and declining social cohesion.

Subcomponent 3.1: Support to Natural Resource Management and Pasture Improvement

Subcomponent 3.1 will finance investments to improve the quantity and quality of water and rangeland-resource that are critical for productive pastoral systems with increased climate resilience and carbon sequestration. It provides support to assess the status of water and feed (including forage and fodder) using remote sensing technologies and tools such as the FAO feed balance methodology. The resulting information will be disseminated to guide decisions on improved feed and water management, utilization and access.

Subcomponent 3.2: Support to Conflict Mitigation

This subcomponent provides support to increase capacity for conflict prevention and resolution, focusing initially on herder-farmer conflicts. Through activities at the local, national and transnational level, this subcomponent seeks to: (1) mitigate the resource-based drivers of conflict; (ii) increase local capacity for conflict resolution; and (iii) facilitate policy dialogue to address the underlying drivers of conflict.