Arewa Cotton signs tripartite MoU with FG, Ogun government

Driven by increased cotton and lint demands from local textile industries as well as exports, Arewa Cotton, a Nigerian natural fibre company, based in Abuja, the Federal Capital Territory, has signed a tripartite memorandum of understanding (MoU) with the Federal Government and Ogun State government on the improved production and marketing of cotton.

The tripartite agreement, which is targeted at the cultivation of 20,000 hectares cotton farmland at Iwoye-Ketu, a rural community in Imeko-Afon Local Government Area of Ogun State and the production of 100,000 metric tons of lint for local textile manufacturers and exports, according to report, will cost Arewa Cotton between N1.5 billion and N2 billion at a start.

Having considered the commitment of farmers in the state towards cotton farming, coupled with the enabling factors provided the state government as regards cotton production and trading, Arewa Cotton is planning to relocate its ginnery – a cotton processing plant located in the Northern part of the country to Ogun State, in order to start as part of the agreement.

Speaking at the official roll out of Growth Enhancement Support (GES) for cotton held at Iwoye-Ketu, weekend, Adebayo Olayemi, financial controller of Arewa Cotton, disclosed that the company had signed MoU with the Federal Government to develop cotton in Southwest and North Central, as part of Arewa Cotton and government’s joint efforts to create wealth, generate jobs and meet up with the local and foreign demands.

Olayemi said Arewa Cotton, which initially dealt in cotton processing and trading, now involves in cotton farming in addition to ginning and trading, in order to ensure right quality and quantity of cotton being produced by farmers, hence the company finances, co-ordinates and empowers farmers so as to encourage farmers to increase production for better returns.

“The MoU we signed is to develop cotton in South West and North Central, but we want to start with South West, that is why we are here at Iwoye-Ketu. We are at Iwoye-Ketu because we want to start with those already involved in cotton farming; we must encourage them, we must give them empowerment, we must ensure that they love what they plant.

“We must also give them the benefits and opportunities that whatever they are planting we will take it from them, that is why, we are monitoring the farming process. After the Iwoye-Ketu, we will also repeat it in Oyo State and other states in the region,…, we will move to the North Central.

“In each state, we want to cultivate minimum of 20,000 hectares, besides, we want to make sure that we engage farmers as much as we can; we want to make sure that at least, 20,000 metric tons of lint are produced in each state. Our target is to generate nothing less than 100,000 metric tons of lint and that we want to start as urgent as possible between now and 2014,” Olayemi said.

Speaking earlier, Lanre Bisiriyu, the permanent secretary, state ministry of agriculture, confirmed that the state government entered into agreement with Arewa Cotton with a view to facilitating huge investment in the cotton value chain, just as he said: “Just about two weeks ago, the state government sponsored a training programme on production, grading and marketing of cotton to our farmers as a way of developing the cotton sector.”

By: RAZAQ AYINLA