BUA Loses Interest in Kogi, Pulls Out of Deal
BUA said it has withdrawn interest in the 50,000 hectares of land in Kogi State over the failure of the land to meet its intended purposes, according to a statement by the group on Tuesday.
The company said this after the Kogi State Assembly threatened to revoke the Certificate of Occupancy on the land allocated to the company for investment purposes in 2012 for non-payment of compensation.
A statement by the company made available to newsmen disclosed that since the Kogi state invited BUA to invest in 2012, there has been no visible effort by the state and successive governments to address the issues of access to the land that will enable BUA to utilize the land for its intended purpose.
It said the land is only accessible by water without any enabling infrastructure. BUA disclosed 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 noting that the security of its investment as well as staff is paramount.
Furthermore, the company noted that the feasibility study conducted on the land revealed that only about 30% of the entire land mass was suitable for investment while the rest consisted of rocky, hilly, and undiluted areas which are not suitable for its intended purpose. READ:BUA Foods Gains N13.20 after Listing by Introduction
The group said the Kogi Government may revoke the CofO of the land if it so wishes as 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.
“This is because as a responsible organization, 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”, BUA said
# BUA Loses Interest in Kogi, Pulls Out of Deal#