Deal #3074

Nigeria
Created at
2013-02-22
Last update
2023-03-24
Last full update
2023-03-24

Land area

Intended size
50 000 ha
Size under contract (leased or purchased area)
  • [2011, current] 19173 ha
Comment on land area
Initial plantations include Biase, Ibiae, and Calaro- totaling 19173 hectares. Wilmar acquired 10791ha from Obasanjo Farms in 2012 (recorded in deal #5042). Cross River State Government is reported to be identifying lands for the company's expansion in the area. Some reports state that the intended size is 100 000hectares while others state that the intended size is 50 000hectares. Friends of the Earth report states that the intended size is hundreds of thousands of hectares. PZ Wilmar has almost 26,500 hectares of palm oil plantations in Cross River State- but this includes the area under deal #5042.

Intention of investment

Intention of investment
  • [2011, current] Agriculture unspecified (19173 ha)
Comment on intention of investment
Oil palm for multiple uses. One report states that the company was illegally selling the logs from clearing the land.

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
  • [2011, current] Concluded (Contract signed)
Comment on negotiation status
During a recent privatization round, the company won bids for 3 plantations. The company has committed to spend $650m into oil palm plantation estate including mills and refining facilities. The company only conducted the social impact assessment in 2012.

Implementation status

Implementation status
  • [2011] Startup phase (no production)
  • [current] In operation (production)
Comment on implementation status
Land clearing commenced in 2011. RSPO has requested the company to halt all activities until it has complied with its regulations

Contract farming

Contract farming
Yes
Comment on contract farming
The company is looking into a smallholder scheme. In 2018, the company launched its Pilot Out growers Scheme. The goal is to support local farmers to develop viable and sustainable oil palm businesses.