Deal #3075

Land area

Intended size

12 000 ha

Size under contract (leased or purchased area)

[2006, current] 12000 ha

Comment on land area

Divided over 4 plantations (in four different states). 3,500 hectares of lies within the Iguobazuwa Forest Reserve. The land area may have increased, to include Edo State Rubber estate and an additional 4000 hectares, as per farmland grab article dated 20/01/2015, where Abdul Oroh states that he handed over the rubber estate in January 2015. One report states the size under contract is 14000ha. Expect to plant 2300ha at the Urhonigbe Rubber Plantation.

Intention of investment

[2006, current] Non-food agricultural commodities (12000 ha)

Comment on intention of investment

Production of rubber trees

Nature of the deal

Lease

Negotiation status

[1961] Concluded (Contract signed)
[2006] Concluded (Change of ownership)
[1961, current] Concluded (Contract signed)

Comment on negotiation status

Previously the only investor was Michelin (the primary investor was Michelin Development Company). Michelin ceded the plantations to SIPH (International Society of plantations Rubber trees-- part of SIFCA) in exchange for shares in 2006. Michelin Nigeria Limited had actually acquired majority shareholdings in Utagba-uno Rubber Estate Limited in 1961. As far as we can tell, SIPH is operating on lease previously concluded by Michelin (no change to lease therefore contract year is back to 1961).

Implementation status

[current] In operation (production)

Comment on implementation status

It is not clear when Michelin originally brought the plantation into production.

Contract farming

Yes

Not on leased / purchased (out-grower)

Yes

Not on leased area/farmers/households (out-grower)

[current] 2300 ha

Comment on contract farming

2300 hectares of land were planted from 2006 to 2011. Agence Francaise Development (AFD) is assisting in financing the program.