The sudden discovery of the commercial value of a hitherto useless Arira wood has changed the economic outlook of Irele community and its indigenes in Ekiti State. The main buyers are the Chinese who call the tree “the new cocaine”, Seun Akioye reports
Business could not have been better for 16-year-old Lanre Odunnusi (surname protected) and many people in his Irele community in Ikole Local Government Area of Ekiti State can testify to that. To show his newly acquired status, he bought himself a boxer motorcycle –which costs N110, 000. In the last six months, he has made dramatic changes to his life, which includes dropping out of school.
“Arira has changed my life. In the last six months, I have bought a bike and I have everything I need, all from doing the Arira business,” Lanre said as he prepared to take his motorcycle on a ride with his friend.
Prior to June 2013, the people of Irele had been predominantly farmers, blessed with a large expanse of land. Irele farmers were known as the kings among Ekiti yam farmers. During the course of clearing the land for farming, the farmers often met a strong resistance in the hundreds of thousands of Arira trees which mostly proved difficult to uproot.
The head of the community, Chief Odofin Madayedupin, said: “We used to burn the Arira tree; they are very stubborn and you need to uproot them completely to get rid of them. When we prepared for the planting season, Arira was always a problem for farmers.”
But that changed the afternoon in June when a stranger walked into the town and demanded to buy the “troublesome” Arira. At first, the farmers were happy to dispose off the wood and to make a little extra for what they considered useless trees. But in July, more people came and then one day, some Chinese exporters showed up in the town and the trade in Arira wood began in earnest.
The economy of the town changed as money poured in. The Chinese exporters were willing to pay thousands for a piece of good Arira wood in the measurement of 7ft and 12 inches. The next six months proved decisive as more prosperous indigenous merchants evolved, many indigenes resident in Lagos, Ibadan and other far -away places began to return home. The trade in Arira known as the “new cocaine” had begun.
Lucrative business
Arira tree with the botanical name Pterocarpus Mildbraedii is a savanna specie found in Oye and Ikole local governments in the northern fringes of Ekiti State. It is also found in larger quantities in Kogi State. The tree at maturity– usually five years– is 12 inches thick and 7feet tall, though many are shorter and thinner than that. Arira has at least three branches, which can also be exploited for money.
The first Chinese merchants who came to the community exploited the villagers in the initial business deals, cutting more than 10 trailers of wood and paying only N10, 000. Soon the youths began to see the potential and joined in the trade. At first they merely load the wood into the trailers and earning a pitiful sum of N400 per log.
But today the indigenes are in full control of the business. They control every aspect of it and some of them even deal directly with the Chinese exporters in Lagos.
The economic chain of the Arira business is complex and often confusing. At the top of the chain are the Chinese exporters who buy from a local marketer. Next are the marketers, who are either indigenes or outsiders; they comb the community for the best Arira specie.
There is usually an operator who cuts down the trees; he earns N500 per log of wood. The tractor that transports the log to the gantry takes N500 per log and when it gets to gantry, it costs N4000 per log. This is where majority of the indigenes have found prosperity. They buy the trees and sell to middle men at the gantry making some tidy sum. At the gantry, the loaders–usually 10 in number– who are also indigenes charge N60,000 to load a trailer with 200 logs. The trailer owner also charges N1000 per log and a full trailer costs N200, 000.
But the indigenes are not the only beneficiary of the trade; the government is also raking in its share of the boom. According to the Director of Forestry (Non timber forest produce), Ministry of the Environment in Ado-Ekiti, Olubunmi Olatilu, the state government is aware of the Arira boom and collects a levy on the wood.
“Until a year ago, it was used locally for charcoal; it was not even listed in our tariff. But now the government has its own share of it,” he said.
According to Olatilu, the state collects toll fees from marketers who also need to get an approval for N150, 000 with a six month validity period after which they must renew. This, according to Olatilu, is to prevent exploitation. Also, the marketers need to register at the gantry for a fee of N50, 000 and for every stump exploited, government collects N850. There are the border control officers and the forest guards who reportedly collect N60, 000.
But underneath the booming trade is corruption. According to several sources who are involved in the trade but who asked not to be named, the cost of corruption from the gantry to Lagos could be as much as N100,000, excluding other legitimate charges. One source said soldiers on the road to Lagos collect bribes as high as N10,000 while the police also demand bribes. The interstate agencies in Osun and Ogun states also collect tolls and some officials also demand bribes.
“If you are transporting the wood to Lagos, you need to keep a minimum of N100,000 aside to pave way for your smooth journey because of all the officials on the way. As soon as they see it is Arira, they jump up because it’s Christmas for them,” a source said.
In all, a trailer load of good quality Arira wood successfully transported to Lagos fetches about N1.6 million. If one deducts the expenses, the net profit to a marketer could be in the region of N1.2 million.
But many of the Irele indigenes prefer to conclude their business in the town; a successful sale of a trailer of the tree in Irele could fetch about N800, 000. Every day, a minimum of six trailers depart Irele for Lagos, carrying with them millions of naira worth of wood. A bulk of the money, however, remains with the Irele indigenes.
A changed community
It is difficult to find a household in Irele not directly involved in the Arira business and many of these households have tales of prosperity to tell. When The Nation visited the town, not much has changed in terms of physical structures but the story of Arira prosperity lies more in the changed lives of the indigenes.
“We the elders allowed the youths to be involved in this business because we could see the prosperity it has brought to the town. Those who were poor suddenly became rich and built houses. Others bought cars. It has been almost like a dream, our people have never seen this kind of economic boom before,” Madayedupin said.
Lanre’s connection to the Arira trade is being a loader. With that he was able to buy his bike and some other necessary things needed in his house. Olumide Adesegun, also a loader, confessed the trade has changed his life.
“ I have made money that I never dreamt of,” he said and shifted uneasily on the logs of Arira he had been sitting on. I only work during the holidays and I make about N40,000,” he confessed.
This is no small money for a poor 15-year-old in a poor community and there are others who have really made it big. The Nation learnt that since the trade began, no less than eight houses have been built using the proceeds from the trade. Also, several cars were bought; some of which remain in Irele and others taken to Lagos.
“I know children who suddenly became rich and were able to give their parents N100,000 to buy whatever they want,” Lanre said.
Olaniyi Ogundele, a big trader in Arira and one of those who have built a house through the trade, politely acknowledged that the trade has been good to him.
“ Arira has changed our lives, many of us were poor people but today lives have been changed; thanks to our once invaluable tree. Personally, I have benefitted immensely and I am very thankful to God. I bought this motorcycle and built a house all less than one year,” he said smiling after every sentence.
In late February when The Nation visited the community, there was a peaceful calmness in the town. Flung in the northern fringe of the state, Irele is the border town to Kogi State. In Ado Ekiti, the state capital, not a few claimed ignorance of the town, so the indigenes use the closest community of Aiyedun to describe their town. Around noon a group of youths were engaged in the loading of Arira into a trailer, carrying the log on their shoulders. To lessen the workload, they joked and sang among themselves. At the end of the day, each one will get about N10,000.
A looming famine
But in spite of the wealth the Arira has brought to the people of Irele, there are fears of an impending famine in the community. With the easy money brought by Arira, none of the youths feels inclined to farm any longer.
“ We don’t farm again. All our children have gone after Arira and our farms laid waste. What are we going to eat next year if we don’t farm,” one elder, who was generally referred to as Baba, asked.
Afolahan Madayedupin, a big trader in Arira, shared this sentiment. For him, if nothing was done, the community might be setting itself up for an unpleasant farming year.
“ We normally farm in this place but nobody wants to do it now. To get labourers to work on your farm is even difficult, one boy gave his father N100, 000 to go and hire labourers and they couldn’t find any,” he said.
Subsequently, the price of foodstuff has gone up in the community. Food sellers no longer cut N50 meat but now sell for N200 per piece.
“We are in Arira era,” they said.
Education too has been affected with many students dropping out of school temporarily and permanently.
The Chinese connection
The first big merchants to show interest in Arira were the Chinese. They came from Lagos and bought in large quantities. None of the villagers had any knowledge of what the Chinese use the wood for or why they are desperate to get their hands on them.
Madayedupin said: “We don’t know why they want it, we just know they are very eager to buy them.” But with the Chinese involvement, rumours began to spread that the wood were used to build ships, some mentioned railways while others said the Chinese use it for charcoal.
But, according to The Nation’s investigation, all major marketers who bring the wood to Lagos have just one destination: China Town in Ojota, Lagos. According to a major marketer who pleaded anonymity, the Chinese in China town are sole exporters of the wood.
“All we do is to bring the Arira down to China Town where they buy them and pay in cash. No matter how much you bring, the Chinese pay you in cash right there,” he said.
Another marketer told The Nation that the major buyer was a Chinese man called Mr. Chou. His office he said was directly on top of the N100 Supermarket. Investigations in China Town revealed that the wood is treated as a secret in the market. They are usually discharged at the back of the building away from the prying eyes of the public.
When The Nation visited Mr. Chou in his office, a Nigerian interpreter coldly asked if the reporter was there on business, then he called Chou who was holed up in his inner office. A quick perusal of the room showed that a part had been divided to serve as a private space for Chou while the other is the reception area. A table with two opposing chairs sat in the middle of the room and at the other corner was a sleeping mattress.
Chou denied knowledge of the Arira tree. He said he neither knew what they are used for or how to get them and he would not be happy to entertain any other question on it. When The Nation first visited the market late February, there were more than 5,000 Arira woods at the back. But in March, the package had reduced to less than 500, an indication that business has been good.
So, what do the Chinese use the Arira for and why do they always pay in cash? An enquiry at the Chinese Embassy through the Chinese Commercial and Trade Office yielded nothing. But Olatilu said: “The major use of wood is construction and furniture. From the length of the Arira, you can see it cannot be used for anything else but furniture. But that is my own deductions; I cannot emphatically say it is used for furniture.”
But recently there has been a lull in the business because there has been a ban on importation by the Chinese government. This, according to sources, was due to the illegal use of the trees to smuggle cocaine into the country. This has cut the demand for the wood drastically and has become a big source of worry in Irele.
Last week, the town of Irele wore a sour look. Strewn along the road from Aiyedun through Ipao to Irele were Arira trees waiting for buyers. Lanre acknowledged that there has been a lull in the business but he prayed for a quick resolution so business can continue.
“ Please help us tell the government to resolve this issue. See all our trees on the ground waiting for buyers, the government should lift the ban,” he said in a low voice.
Fear of deforestation
Environmentalists have expressed concern that the continuous exploitation of the Arira could lead to deforestation. But majority of the indigenes of Irele disagreed. They claimed it is just one of the species of tree in the forest and it has the capacity to regenerate itself. They have an ally in Olatilu who said: “The quantity being exploited now does not connote the extinction of the specie. As government, we are not folding our hands, regeneration exercise is going on and private loggers are being encouraged to cultivate unused land for Arira.”
So, what is the future of Arira and the economic prosperity it has brought to the town of Irele? Many of the citizens believe that more wealth will come to the town through the tree. For Afolayan, the government can still help by providing more tractors to move the trees from the forest to the gantry. Currently, there are only 15 tractors in use, short of the 30 needed for effective business.
The indigenes do not want the government to regulate the business of Arira. According to Ogundele, the traders themselves would regulate it.
“The government should leave this business for us. We will regulate it and pay taxes and other levies to the government, but the government should not ban or regulate this business,” he said.
But the elders of the town have counseled the youths about the future of the business. Speaking on behalf of the elders, Madayedupin said the youths should re-invest the money into other sustainable businesses.
As this reporter was about leaving the town, Ogundele’s mobile phone rang; it was a call from his business partner. The voice at the other end sounded excited and it also affected Ogundele.
“Yes, I am coming right away,” he said. “That was a business call. Somebody wants to buy my trees. I am sorry I cannot attend to you again. This is more important to me,” he told the reporter and then swung his bicycle around and disappeared into the middle of town.
