BUA Group has cited the insecurity in Kogi as one of the numerous reasons it’s withdrawing its interest to invest in the state.
In a letter addressed to the Director-general of the state’s Bureau of Lands and Urban Development, BUA expressed its non-interest in a 50,000-hectare land it acquired from the Kogi government in 2012.
BizWatch Nigeria understands that the letter follows the summoning of the company by the Kogi State House of Assembly.
The chamber had summoned BUA to explain “why it refused to pay for the land and why it refused to compensate the community involved”.
However, in what appeared to be a response to the summoning, BUA said it had never taken possession of the land, adding that lack of infrastructure and security challenges present in the state is responsible for its non-interest.
“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,” the letter reads.
“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.”
BUA Group said it had conducted feasibility studies on the land and found out that only about 30 percent of the entire land mass is suitable for its investment with the rest – 66 percent – consisting of rocky, hilly, and undulating areas which is not suitable for its intended purpose.
The company, therefore, said it was no longer interested in investing in the property.
“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,” the statement added.
This development is, however, coming on the heels of the closure of Obajana Cement, which was closed secured by Dangote Industries.
The state government explained that the decision to close the cement plant was due to the fact that the acquisition of Obajana Cement by Dangote didn’t follow due process.
However, while Dangote continued the operation of Obajana Cement amid the ownership tussle with Kogi government, BUA appeared to have joined the list of investors putting their resources elsewhere in the country.