VZCZCXRO6864
RR RUEHMA RUEHPA
DE RUEHOS #0097/01 0611443
ZNR UUUUU ZZH
R 021443Z MAR 09
FM AMCONSUL LAGOS
TO RUEHC/SECSTATE WASHDC 0548
INFO RUEHUJA/AMEMBASSY ABUJA 0167
RUEHZK/ECOWAS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC

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.