Companies

BUA Group declines interest in 50,000-hectare Kogi land

The BUA Group has said it is no longer interested in taking a 50,000-hectare land in Kogi State, saying the land cannot be used for its intended purpose.

This followed the summon of the company by the Kogi State House of Assembly on Monday.

It would be recalled that the House summoned BUA Group over a 50,000-hectare land allegedly acquired 10 years ago without payment.

The lawmakers, at a public hearing of one of its ad-hoc committees, said it was an offence for BUA Group to hold the land for more than 10 years without paying for it, adding that if the company refused to pay for the land and compensate the community, the government would revoke the C of O.

However, the company, while reacting to the development via a statement made available to The Star on Tuesday, said it has yet to take possession of the land and did not utilise it for factors which included lack of infrastructure and security challenges.

The BUA Group added that further feasibility studies on the land revealed that only about 30 per cent of the entire land mass was suitable for the company’s investment.

The company stated: “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. 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.

“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 organisation, 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,” BUA Group said.

The Star