BUA Group has said it is no longer interested in the 50,000 hectares of land in Kogi State over the failure of the land to meet its intended purposes.
The withdrawal of interest followed a threat by the state Assembly to revoke the Certificate of Occupancy on the land allocated to the company for investment purposes in 2012 for non-payment of compensation.
The group in a statement said that the land lacks adequate infrastructure to aid investment, insecurity and that it was not suitable for investment and use for intended purpose.
BUA Group said the land was only accessible by water and agreed to Kogi states decision to revoke the C of O.
Below is the statement by BUA Group:
We are in receipt of your letter dated September 21, 2022, on the above subject matter. We wish to state for the records that BUA has yet to take possession of, and has never utilized the land due to the following reasons:
1. Lack of any infrastructure: Since our invitation by the State in 2012 to invest in that land, there has been no visible effort by the state and successive governments to date, to address the issue of access (i.e. infrastructure, roads) that will enable us to utilize the land for its intended purpose. Currently, the land is only accessible by water, and without the required investments and other enabling infrastructure, the venture will not be feasible.
2. Major security challenges: There has been a massive deterioration of security in, and around, the area for the past few years making it practically impossible to start any project there as an investor.
Read also: Obajana Cement Plant has commenced full operation – Dangote Cement Plc
3. Outcome of feasibility of studies: We conducted further feasibility studies on the land and found out that only about 30% of the entire land mass is suitable for our investment with the rest (66%) consisting of rocky, hilly, and undulating areas which are not suitable for its intended purpose.
Finally, due to the reasons enumerated above, and the fallout associated with it, we hereby wish to indicate through this letter, and inform you that we are no longer interested in continuing with our proposed investment.
We wish to however state unequivocally that had we decided to proceed with the proposed project, BUA would have been happy to pay all dues and necessary compensation to the state and other stakeholders in line with our obligations.
This is because as a responsible organization, we believe in the principles of equity, sustainable business practices, and fairness. This has been the hallmark of our operations and engagements with communities and governments, everywhere we operate. Unfortunately, since the land cannot be used for its intended purpose and based on the foregoing, the Government of Kogi State may go ahead to revoke the land if it so wishes.
Thank you,
Yours Faithfully,
MANAGEMENT
BUA GROUP
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
