NIGERIA: EARTHCARE TRANSFORMS WASTE INTO ORGANIC

UNCLAS SECTION 01 OF 02 LAGOS 000097

SIPDIS

DEPARTMENT FOR OES/PCI NFITE, MGERDIN
STATE PASS OPIC FOR DERB, ZHAN, MSTUCKART, JEDWARDS
STATE PASS TDA FOR LFITTS, PMARIN
STATE PASS USAID FOR NFREEMAN, GBERTOLIN, GWEYNAND, SLAWAETZ
STATE PASS EXIM FOR JRICHTER
DOC FOR 3317/ITA/OA/KBURRESS
DOC FOR 3310/USFC/OIO/ANESA/DHARRIS
DOC FOR USPTO-PAUL SALMON
TREASURY FOR DFIELDS, AIERONIMO, RHALL, DPETERS
TRANSPORTATION FOR KSAMPLE

E.O. 12958: N/A
TAGS: EAID SENV EAGR EINV PGOV GH NI
SUBJECT: NIGERIA: EARTHCARE TRANSFORMS WASTE INTO ORGANIC
FERTILIZER


1. (U) Summary: In December 2008, Regional Environmental Officer
(REO) visited EarthCare, a company engaged in the collection and
processing of municipal waste into organic fertilizer in the city of
Lagos. EarthCare, was launched with assistance from the U.S.
Foreign Commercial Service (FCS) and a loan guarantee from the U.S.
Export-Import Bank (EIB) to collect and process municipal waste into
organic fertilizer at its processing plant in Ikorodu, a
neighborhood in Lagos. The project employs about 60 permanent
workers and 40 additional workers who collect and transport waste to
the processing site. Thirty per cent of the fertilizer produced by
EarthCare goes directly to women farmers. Other states have
contacted EarthCare to duplicate the Ikorodu model in their states.
On February 17, 2009, Dr. Benjamin Ohaieri, CEO of EarthCare, told
Pol-Econ Associate that Lagos State government has authorized
EarthCare to sell its fertilizer to the public. However, he
indicated that he would like the government to buy the fertilizer
and distribute to farmers' cooperatives. He added that Lagos State
government has conducted its own tests and found that EarthCare's
fertilizer can boost agricultural output. End Summary.

EarthCare Transforms Waste into Organic Fertilizer
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2. (U) EarthCare Nigeria Ltd (ENL) is a joint venture (with
EarthCare Technologies Inc (ECTI) of Arkansas) engaged in the
collection and processing of municipal waste to organic fertilizer
in the city of Lagos. It was initiated with the assistance of the
U.S. Foreign Commercial Service (FCS) in 1998 and a loan guarantee
from the U.S. Export-Import Bank (EIB) to introduce and market ECTI
composting technology in Nigeria and West Africa. Currently, Lagos
State produces about 6-8,000 metric tons of waste every day, while
Ikorodu, a Lagos neighborhood where the plant is located, produces
about 1,500 tons. The Lagos State Waste Management Authority
(LAWMA),the government agency responsible for collecting and
disposing of waste, supported EarthCare's start up and granted the
company 36 hectares of land at Ikorodu.

EarthCare Wants to Sell Fertilizer to the Public
-------------- --------------


3. (SBU) The Company went operational in 2006 with investment
capital of about USD 200 million. When the project began, Lagos
State government entered into a tripartite agreement with EarthCare
and farmers, where the state government would issue EarthCare a bank
guarantee and farmers would collect fertilizer from EarthCare.
Unfortunately, according to Ohaieri, Lagos State did not honor its
commitments and as a result EarthCare had serious economic problems.
The alternative was for Earthcare to directly sell to the public;
however, it was not allowed to do so by the state government. On
February 17, 2009, Ohaieri told Pol-Econ Associate that the state
government had finally agreed to allow EarthCare to sell its
fertilizer to the public. A 25 kilogram bag of fertilizer is sold
for 1,600 naira (approximately USD 12).

Project Creates Jobs
--------------


4. (U) EarthCare is still in business because its activities are
transparent, Ohaieri said. Currently, EarthCare has 2 trucks and 9
containers and employs about 60 workers both male and female and an
additional 40 "area boys", who collect organic waste such as farm
waste/residue, market waste, domestic waste and sawdust and
transport it to the site. (Note: Area boys are local unemployed
youths often engaged in gang activity. End note). The organic
fertilizer is tested for minerals and bacteria before it is bagged
and sold. According to EarthCare policies, 30 per cent of the
fertilizers must be sold to women farmers.

Other States Want Similar Projects
--------------


5. (U) EarthCare has demonstration farms that make use of the
organic fertilizer it produces and grows banana, sugar cane, pawpaw,
plantain, rice, yams, pumpkins, and fruits and vegetables. The

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project also maintains ponds for raising African catfish and
tilapia. Currently, the produce is sold only to EarthCare employees
at reduced prices. Other states have approached EarthCare asking to
copy the Ikorodu project but the company insists that it will not
duplicate the model in other states until the company is satisfied
that the Ikorodu model is operating at an optimal level.


6. (U) REO and Embassy Abuja have cleared this cable.