Opportunities

INVESTMENT IN KATSINA STATE
The strategic sectors of investment in the State include the following:
i. Agriculture
ii. Solid Minerals
iii. Hospitality and Creative Arts
iv. Power
v. Property Development
4.1 Agricultural Sectors
AGRICULTURE Prospects on Agricultural Production Processing & Commodity Trade Katsina State is an agrarian State. Agriculture, in the form of crop and livestock production is the main employer. It provides food and income earning for majority of the people. This submission provides some baseline data on the agro-ecological conditions of the State. It is an insight on the high capacity and also the comparative
advantage of the State in agricultural production. There are indeed vast open opportunities for investment in agro-allied business enterprises in the State Agricultural Productivity
i. Production Environment
Katsina State lies entirely within the tropics (latitude 11o00’ to 13o25N Longitude 6o45’ to 9o05E) with distinct rainy season (May to October) and dry season (November to April). Though the weather conditions can be chilly and dusty in December and January, there are no frost or freezing temperatures to deter plant growth. The soil vary from deep clay loam to sandy loam with gentle topographic features over much of the State. The critical determinants of plant growth (and hence agricultural production) are the availability of suitable land and adequacy of water supply, thus, with development of its natural water resources and irrigation infrastructures, the State has capacity of cultivating various types of crops and livestock production year-round.
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This gives the State the comparative advantage of producing and supplying fresh, organic products on demand in any season of the year by
using its rain-fed and irrigation agriculture in complimenting each other. ii. Rain-fed Agriculture The State covers a land area of 24,192 square kilometers of which 67% (about 1.60 million hectares) are devoted to cultivation over this two seasons. The State has been divided into three agro-ecological production zones. This offers advantage of growing a wide range of crops. Some of these crops are shown in Table 1.

Table 1 Agricultural production under rain-fed condition in Katsina State Productivity indicators and major crop grown. S/N Agro-ecol.
Production Zone Average Annual Rainfall (mm) Length of Growing Period (days) Approximate area under cultivation (hectares) Principal crops
grown:

1. Guinea Savannah 900-1200 150-180 650,000 maize, sorghum, rice, sugar cane, beans (cowpeas), soybeans, cotton, cassava, fruits,
   vegetables, fodder crops
2. Sudan Savannah 750-900 120-150 700,000 maize, sorghum, rice, sugar cane, beans (cowpeas), soybeans, cotton, groundnut (peanut),
   cassava, sweet potatoes, fruits, vegetables, fodder crops.
3. Sub-Sahel Savannah 600-750 90-120 250,000 beans (cowpeas), millet, sorghum, early maturing drought resistant maize, groundnut
   (peanut), sesame, soybean, cassava, sweet potatoes, melon, fodder crops.
   iii. Irrigation Agriculture: The irrigation calendar begins where the season for rain-fed cropping terminates with the cessation of rains. This is generally by the end of October. The irrigation season continues till the commencement of the rains in May of subsequent year. There are several irrigation sites spread all over the State and more areas are being developed for dry season farming to complement rain-fed agriculture. Page 15 of 25.
   Since irrigation is a farming system with human controlled moisture environment regimes, almost any type of crop can be grown under it irrigation depending on market demand. But farmers in the State generally concentrate on the production of horticultural crops, especially, tomatoes, pepper, onion, cabbage, lettuce and various kinds of melons. There is a wide scope for investment in horticultural crop production in the State; investors may well look into the possibility of establishing large scale commercial farms or contract local farmers as outgrowers to source the commodities in commercial quantities. Investors may also play the agric value through modern storage facilities and grain processing factories, procurement of external markets and transportation of the commodities either fresh or
   processed. Some of the major projects and crops traditionally cultivated in the area are presented in Table 2.
   Table 2 Irrigation/dry season farming in Katsina State Productivity indicator resources and major crop grown traditionally grown
   S/N Name of Project Reservoir capacity Size of Area of Cultivation (hectares) Principal crops grown.
4. Jibia 140.0 3,400 Beans, groundnut (peanut), maize, wheat, pepper, onion, lettuce, cabbage, irish potato, sweet potato, pumpkin, sweet melon.
5. Zobe 177.0 5,000 Pepper, wheat, maize, tomatoes, onion, sweet potato, irish potato, citrus, mango, guava, sweet melon.
6. Sabke 62.0 1,000 Pepper, wheat, maize, tomatoes, onion, sweet potato, irish potato, citrus, mango, guava, sweet melon.
7. Daberan 30.0 200 Pepper, wheat, maize, tomatoes, onion, sweet potato, irish potato, citrus, mango, guava, sweet melon.
8. Ajiwa 50.0 300 Pepper, wheat, maize, tomatoes, onion, sweet potato, irish potato, citrus, mango, guava, sweet melon.
9. Mairuwa – 100 Tomatoes, pepper, maize, onions, banana, assorted vegetables
10. Gangara – 100 Tomatoes, pepper, maize, onions, banana, assorted vegetables
11. Raddawa – 100 Tomatoes, pepper, maize, onions, banana, assorted vegetables
12. Ruwan Sanyi – 100 Tomatoes, pepper, maize, onions, sweet potato, irish potato, sweet melon.
13. Miscellaneous small schemes

• 35,000 Tomatoes, pepper, maize, onions, sweet potato, irish potato, sweet melon. Page 16 of 25
  The following table gives a comprehensive list of the agricultural resources in the State with possible industries each (resource) could support. The availability of various types of crops cultivated in the State provides an opportunity for setting up of agro-allied industries. As previously stated, cotton, beans, tomato and pepper, groundnut, millet, maize and guinea corn are raw materials for various types of industries. Leather and shoe manufacturing industries are feasible because of the availability in commercial quantity of hides and skin in all the nooks and crannies of the State.
  Funtua textiles factory which employs over one thousand workers depend heavily on cotton being produced in Funtua, Bakori, Dandume, Sabuwa, Faskari, Danja, Dutsin-Ma, Kurfi, Malumfashi and Kafur local government areas of the State. The availability of these raw materials offers wide ranging opportunities for setting up more commercial ventures in the State. The two oil mills situated in Katsina and Funtua depend on groundnut and cotton seed for their raw material requirements. Agriculture is the single most important employer of labour in the State. iv. Fruits trees/Orchard Development Because of its favourable tropical climatic conditions which permit plant growth year-round and its abundant water resources, the State is positioned to become a major producer of fruits for home consumption and export. A wide variety of mangoes, citrus, guava, papaya and date palm are presently grown in small peasant holding for local consumption as fresh fruits. With the expansion of irrigation farming system, the State Government is seriously looking for investors to partner in the establishment of commercial scale plantation estates for fruits production as well as theallied industries for packaging, value-addition processing and International Airport offer much credence to the proposal.
  v. Livestock Production
  Due to the long history and tradition of rearing livestock dating back to antiquity, Katsina State is one of the leading supplies of live animals and animal-related products for the nation. Page 17 of 25
  The State excels in ruminant production with capital asset of one million cattle, three million goats and two million sheep. Allied to the livestock is production and conservation of fodder crops which constitutes significant component and contributes to the aggregate
  commodities and agricultural productivity of the State. Fodder production and conservation is an allusive but lucrative income generating vocation for the farmers under both the rain-fed and irrigation farming system.
  vi. Katsina Songhai Initiative
  The State has entered into an agreement with Songhai Farms (Benin Republic) to establish three centres at zobe dam, sabke dam and
  mairuwa dam. These centres will develop 15,000 hectares for the production of various crops, food processing and animal husbandry. The centres will also serve for training of youth in modern farming techniques. Table 3 Baseline production and price indices of some selected agricultural commodities in Katsina State (One US$ = N160.00)
  S/N Type of Commodity PRODUCTION PER HECTARE (TON/Ha) AVERAGE PRICE Rain-fed Irrigation (N/TON)

1. Maize 2.50 1.50 55,000.00
2. Sorghum 2.00 – 50,000.00
3. Millet 1.50 – 51,900.00
4. Wheat – 3.50 95,000.00
5. Rice (un-diluted) 2.50 1.00 120,000.00
6. Beans (cowpeas) 0.85 1.20 83,400.00
7. Soya beans 0.85 1.20 65,000.00
8. Groundnut (peanut) 5.00 5.00 120,000.00
9. Sesame 7.50 7.50 165,000.00
10. Sweet potatoes 25.00 25.00 80,000.00
11. Irish Potatoes 20.00 25.00 90,000.00
12. Fresh Tomatoes 20.00 25.00 135,000.00
13. Fresh Pepper 8.00 15.00 270,000.00
14. Onion 15.00 25.00 285,000.00
15. Green Vegetables 6.50 8.00 250,000.00
16. Cotton 5.00 – 90,000.00
17. Legume Fodders 5.00 10.00 45,000.00
18. Grass Fodders 7.00 14.00 35,000.00
    Proposed Projects for Investment
    The main goal of the Government of Katsina State is to harness the vast agricultural potential in the State, ensure food security for the people and Page 18 of 25 lay a solid foundation for rapid industrialization and economic transformation of the State. The Government is, therefore, exploiting every opportunity to promote and support the establishment of projects that can diversify economic activities and open more avenues for employment in the State for the betterment of its people. The Government has particular interest in agro-allied enterprises with priority focus on Projects such as:
    i. Commercial crop production for domestic and export Markets, i.e the establishment of large scale production farms with focus on crops such as maize, sorghum, beans, soybeans, potatoes, sunflower, sesame, tomatoes, pepper, onion, garlic.
    ii. Commercial livestock production for domestic and export markets i.e
    a) Sheep breeding and multiplication ranch for production of animal feed; feeds
    b) Goat breeding and multiplication ranch for production of feed; feeds
    c) Fodder crop production and conservation farms for commerce;
    d) Sheep/Goat finishing feed lots for meat processing factories.
    iii. Development of orchard plantation estates Establishment of large scale fruit production farms involving introduction of improved seeds/varieties of enhanced quality  with focus on citrus, mango, guava, cashew, papaya (pawpaw) and date palm.
    iv. Value-addition, processing and packaging factories, i.e
    a) Tomato handling factories – cold chain bulk storage and preservation processing/value addition and production of tomato puree;
    b) Oil extraction industries focusing on sunflower, sesame and soyabeans;
    c) Fruit extraction/beverage production and industries;
    d) Meat processing and packaging industries;
    e) Hides/skin tanneries and related entrepreneur.
    v. Marketing and provision of agro-allied services, i.e
    a) Produce marketing and export services.
    b) Manufacturing/procurement of agricultural machinery, equipment, tools and spares;
    c) Production/Dealership of inputs of production;
    d) Linkages to technical service providers. Page 19 of 25
    Projects Institutional Arrangement
    Katsina State is an ideal place for agro-allied business enterprises with favourable enabling environment for growth. There is close to 50,000 hectares suitable for irrigation with the possibility of cultivation of crops year round (See Table 2).
    There are also 106,000 hectares of virgin forest in the State (See Annexture 1). The State Government will be prepared to release these areas for agricultural development. There are three possible institutional arrangements according to which Projects proposed above may be fashioned and managed. The proprietorship of the Projects may take either of the following:
     Foreign Direct Investment (FDI)
     Public Private Partnership (PPP)
     Contract/Outgrower Mobilization and Support.
    Irrespective of for adopted, the Government will give full support to investors wishing to be involved in any aspect of agro-allied businesses in the State. The land policy in the State is liberal and flexible. Government will facilitate acquisition and undertake development of social and public service infrastructures. The latter includes developing access roads, domestic water supply, power supply and general security measures to safeguard the investments. TABLE 4 Sample reserved forest areas in Katsina State S/N Forest Reserve Water Availability Remarks
19. Yan-tumaki 80,653 Zobe Dam Located about 6 Km away
20. Zobe/Makera CFA 1,170 Zobe Dam Located adjacent to dam, some rudiments of irrigation taking place in small portion
21. Tsabu/Dan-haji 8,492 Sabke Dam Located about 5 Km away from the dam
22. Kaya 6,326 Daberam Dam located about4 Km away from the dam
23. Kwankiro 6,089 Mai-ruwa Dam located about 18 Km from the dam
24. Gangara 3,210 Gangara Dam located about 4 Km away from the dam
    4.2 SOLID MINERALS
    The mineral potentials of Katsina State is enormous, the national demand for industrial materials and associated products, as industrial input is also very high. Page 20 of 25
    The part which the development of solid minerals can play in accelerating economic, political and social growth within the State or indeed the Nation is immense, self reliance in industrial minerals raw materials not only saves foreign exchange used in the importation of often over-priced and over specified materials, but also gives valuable transfer of technology and provides gainful employment.
    Solid minerals can provide ultimate funds for investment in other sectors of the economy and generate foreign exchange for the country Investment Opportunities in Solid Mineral Sector The following are recommended areas of investment:
25. Ceramic Industry to provide electrical insulators (see table 2 on import and local production) and tiles that are presently imported in the country. This will also take advantage of the power programme of the Federal Government.
26. Glass Industry as the State has the main raw materials (Silica Sand a Feldspar) and there is still a supply gap in the Country (see tales 3 on import and production of glass)
27. Kaolin Processing to produce pharmaceutical grade as well as for paint plastics and detergent industries.
28. Granite Cutting and Polishing Chalk Making
29. Paint Making
    TABLE 1 Minerals Inventory of Katsina State S/N Mineral Location of Occurrence Local Govt Area (LGA) Work Done General Remark
30. Gold Within the schist belt in the western part of the State In 10 LGAs Panning done at Bakori by GSD and NMC investigated some of areas in the schist belt. Artisanal miners have worked or are still working in some of the areas. Aerial geophysics recently done by the Federal Government Gold found in most of the schist. Investigation of the schist belt is necessary to define the mineralization
31. Granite; Many locations in Daura and Zango LGA’s Location mostly during geological mapping by GSD Good for cutting and polishing
32. Kaolin Main locations are Dan-Marke, Kabomo, Dutsinma, Wagini, Kuka and Rimi In 27 LGAs Identified in Kankara by GSD and NMC. GSD worked on Nahuta in Batsari LGA. Some work also done by Katsina Investment Co. At Dutsinma Assessment of quality and quantity is recommended
33. Glass Sand Many rivers especially Baure In 21 LGAs Identified and presently exploited for one of the glass Glass sand suitable for glass making identified Page 21 of 25 and Kaita companies
34. Feldspar Many locations In 7 LGAs Identified Presently been supplied to some ceramic and glass industries
35. Tantalite / Columbite Many locations In 15 LGAs Artisanal mining been carried out Need proper investigation to determine quantity
36. Iron Ore Five Main locations In 5 LGAs Identified Assessment of quantity and quality is recommended
37. Precious stones Many ar eas mined by artisanal miners In 12 LGAs Identified and some presently been exploited by artisanal miners
    assessment of quantity is recommended.
38. Nickel, Copper, Cobalt, Platinum, Vanadium, Chromate Polymetallic association in Jibia and Chromate found with asbestos at Danbide and Mallam Tanko In 3 LGAs Some done on asbestos by GSD and also in Jibia The Jibia minerals are an important find. The Chrome needs further investigation
39. Diamonds Kafur 1 LGA Pitting, geophysics and geochemistry by ABU, GSD and Diamond company of Sierra-Leone Kimberlite pipe identified. Diamonds picked elsewhere may be from this pipe. Further investigation required. More interesting targets identified by recent aerial geophysical survey
    4.3. TOURISM INDUSTRY
    The State has rich cultural heritage from which it drives its pleasing epithet: Home of Heritage and Hospitality (HHH). The State therefore has potentials for the development of the hospitality industry. Its rich history and culture have endowed it with tourism attraction sites. These include monuments like the Gobarau Minaret in Katsina City, Kusugu Well in Daura Town, Old Katsina College, the two Emirs’ palaces, Durbi Takusheyi at Mani, etc. Recreational parks, resorts and game reserves could be established in locations close to water reservoirs (Jibia, Ajiwa, Mai’ruwa dams) and forest reserves (Runka). In this regard, Government has already shown commitment with the establishment of Charmah Park at Jibia located by the Jibia Dam. Investors are welcome to partner with the Government in developing the Park into an international standard facility. With the ultra modern 35,000 capacity multi-purpose stadium completed, Katsina will be a hub for sports and the development of Hotels including 5-Star, and world class sporting facilities will be handsomely rewarded. Page 22 of 25.
    In addition, the Sallah festivities marking the end of Ramdan fasting and the Maulud of Nabii (Sallar Gani) which gives grandeur to the existing historical heritages of the Hausa people at large are gradually celebrated by the two emirates of Daura and Katsina. Besides the main display of skillful horse riding on the Sallah days (Id-Fitr and Adha), the following days are celebrated with Durbah display called Hawan Bariki in Katsina town and Hawan Daushe in Daura town. These Durbar displays are in procession of colorful horses and their skillful riders in harmonious panoply with cultural drummers, singers and dancers. These Durbar events have proven irresistible and are a must-watch by foreigners on personal visits to Katsina State or by special invitation of the Government or by the two Emirate. Councils of Katsina and Daura.
    Investment Opportunities
    There are investment opportunities in the Hospitality industry by developing commercial tourism infrastructure and related services. These include:
     Hotels Development of all categories
     Holiday Resorts
     Games Reserves
     Tourist Guide Agencies
     Travel Guide
     Transportation
     Development of Private Zoo.
    Incentives
    The Government will welcome any investor interested in developing the Tourism Industry and will make the following available in this regard.
     Provision of Land and basic infrastructure
     5 – year tax holiday
     Full equity ownership especially by foreign investors
    4.4. PROPERTY DEVELOPMENT
    The potentials for property development in the State are quite high and attractive. The State has been opened up with a good network of roads especially the State Capital that has been complemented with a 40KM Ring Road encircling the City. Page 23 of 25
    With a population of about 7Million out of which over 50% in young and growing, opportunities in property development will continue to grow as well. Since the State’s creation in 1987, the Government has been largely the driver in housing delivery through its policy of building mass low-cost housing units particularly to Civil Servants in the State.
    Investment Opportunities
    It is high time for the Private section to assume the pivotal role in housing delivery to match the growing need in the State. The Government will continue to support the effort of the Private Sector in achieving the goal of providing housing for all at affordable cost.
    Beside residential estate development opportunity abounds in other commercial property like Hotels and Shopping Malls. In particular, the Government has taken the initiative in constructing the Katsina-Dubai International Market and Katsina City Mall. Modern Markets were also constructed in all the 34 Local Governments in the State. For the efficient running of these Markets Government will be willing to enter into any arrangement with the Private Sector.
    Incentives
    In addition; Government is committed to providing Land for mass housing and for commercial development by the private sector through public – private partnership.
     Government is committed to provide basic infrastructure such as roads and drainages, water, electricity supply etc at all sites designed for housing development.
     The services of the Government machinery through the appropriate MDA (Ministry of Land and surveys, Katsina State Housing Authority, Katsina State Investment and Property Development Company) will be appropriately deployed to support private property developers with all the necessary requirements for developing the sector.
     Up to 100% ownership of housing is allowed for both foreign and local investors.
    4.5 POWER SECTOR
    The development of the Power Sector remains key to the development of other sectors of the economy not just for Katsina State but for the whole Country. The Page 24 of 25 challenges in the sector include inadequate power generation, transmission and distribution capacities.
    Power Sector used to be the exclusive pressure of the Federal Government which currently has capacity to generate about 6000MW which is about 10% of national demand. There is improvement in the power generation in the Country, but the challenges of transmission and distribution account for losses of the power generated thereby aggravating the cost of operating the sector.
    The sector has been transformed with the passage of the Electric Power Sector reform with the transmission distribution being run by the Private Sector. The transformation also opened up the Sector for Private Individuals and State Governments to partake in the generation chain. This will step up the availability of power generated and improve on its consumption thereby reducing losses and
    improving generating cost recovery. What all these means is that there are ample opportunities for investment by the Private Sector.
    The current demand for power in Katsina State stands at about XXXMW With the anticipated increase in industrial activities the power requirement is going to increase which could widen the demand gap further the question is who fills in the gaps. The Government of Katsina State is currently partnering with Messrs XXX for the generation of XXXMW using Solar Technology. There is also the wind mill 10MW power generation at Lambar Rimi which is about to be commissioned. After this arrangement comes on board, there will still be some gaps in the power requirement for the State making further Investment in the sector feasible.
    Investment Opportunities
    From the foregoing, there are huge Investment opportunities in the sector and for it to be run effectively, to be affordable by consumers (industrial as well as residential), to be environmentally friendly, the sector should be driven by the private sector. The Government of Katsina State, on its part, is ready to give all the necessary support in this regard.