By Onome Amuge
BUA Group, a leading foods, infrastructure, mining and manufacturing conglomerate, has withdrawn its interest in the 50,000 hectares of land it acquired from the Kogi State government in 2012 over lack of infrastructure and security challenges in the state.
This is coming after BUA was summoned by the Kogi State House of Assembly to explain why it refused to pay for the allocated land, saying no compensation has been paid to the communities that own the expanse of land. The Assembly also threatened to revoke the Certificate of Occupancy on the land.
BUA Group, in its defence, denied taking possession of the asset after it discovered the land’s hilly topography leaves only about 30 percent conducive for investment.
“Since our invitation by the state in 2012 to invest through that land, there has been no visible effort by the state and successive governments till date to address the issue of access (i.e., infrastructure, roads) that will enable us utilise the land for its intended purpose,” BUA Group said.
The company said currently, the land is only accessible by water and without the required investments and other enabling infrastructure, the venture will not be feasible.
“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,” it stated in the letter.
BUA pointed out that there have been recurring security challenges around the area over the years after the initial indication of interest and granting of the Certificate of Occupancy (CofO), noting that the security of its investment as well as staff is paramount.
It further noted that the feasibility study conducted on the land revealed that only about 30 percent of the entire landmass was suitable for investment while the rest consisted of rocky, hilly, and undiluted areas which are not suitable for its intended purpose.
The company, therefore, said it was no longer interested in investing in the property, adding that the Kogi government may revoke the CofO of the land if it so wishes.
“If BUA had decided to proceed with the proposed project, BUA would be very happy to pay all dues and necessary compensation to the state and other stakeholders in line with our obligation,” the company said.
“This is because as a responsible organisation, we believe in the principles of equity, sustainable business practices, and fairness. That has been the hallmark of our operations and engagement with communities and governments everywhere we operate,” it said.
