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 -------------- -------------- ¶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 LAGOS 00000097 002 OF 002 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.