BUA Group has reacted to the threat by Kogi State Assembly to revoke 50,000 Hectares of land allocated to the company for development in 2012 over non-payment of compensation.
The company has opted to have the Certificate of Occupancy revoked by the State in view of the fact that not only did the lack of infrastructure to provide access to the land a hindrance but there have also been recurring security challenges around the area in the years after the initial indication of interest and granting of the C of O.
Moreover, the terrain of the land in question, after feasibility was done revealed that it would not able to serve the purpose for which BUA intended.
According to BUA, ‘ we conducted feasibility on the land and found out that only about 30% of the entire land mass is suitable for investment, with the rest consisting of rocks, hilly and undulating areas which is not suitable for its intended purpose.
In the statement issued by the BUA Group, they disclosed that ‘since their invitation by the State Government in 2012 to invest in the State through the land, no visible effort by the State Government and its successors to address issues of access to the land. As an investor, BUA also claimed that issues of security of its investment as well as staff are also paramount hence the company had to think twice given the deteriorating security situation in the area.
The company further revealed that it has a record of being one of the best when it comes to paying of dues and entitlements to States and local indigenes anywhere it operates and this is verifiable in all the states where it has investments.
The BUA group also said, ‘As a responsible organisation, we believe in the principle of equity sustainable business practices and fairness’ and this has been the hallmark of their activities and operations everywhere they do business either with communities or governments.
Regretting that the land cannot be used for its intended purposes, the company, therefore, says the State Government can go ahead and revoke the Certificate of Occupancy.
RE: DEMAND NOTICE FOR GROUND RENT AND DEMAND FOR PAYMENT OF COMPENSATION IN RESPECT OF CERTIFICATE OF OCCUPANCY
Nos.KG.11713
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:
- LACK OF ANY INFRASTRUCTURE: 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 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.
- 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.
- OUTCOME OF FEASIBILITY 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 is 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
