Arewa Cotton, FG, Ogun sign MoU

on   /   in Business 10:31 pm   /   Comments

SUBSEQUENT to increased cotton and lint demands from local textile industries as well as exports, Arewa Cotton, a Nigerian natural fibre company, based in Abuja, 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, recently, Adebayo Olayemi, financial controller of Arewa Cotton, noted that the company had signed MoU with the Federal Government to develop cotton in South-West 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.

 

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