The Bureau of Public Enterprises (BPE), on Wednesday, transferred the asset title of the Ogboyega North and South coal blocks to the Orbit Exploration and Natural Products Limited (OENPL).
At the hand-over ceremony at the BPE headquarters in Abuja, the Director General, Alex Okoh, charged the new investor to justify the Federal Government’s high expectations to optimize the coal blocks.
Recall that the coal blocks were acquired by Western Metal Products Company Limited (WEMPCO) in 2007, at the cost of about $7.378 million and $7.678 million, respectively.
But in March 2019, WEMPCO requested for approval from the BPE to transfer the Coal blocks’ Mineral title documents to OENPL.
The request, which is in line with provisions of Article 18.6 of the SSPA signed with WEMPCO in 2007, prompted the Bureau to conduct due diligence on the technical and financial capabilities of Orbit Exploration and its conformity with the operational guidelines of the Federal Ministry of Mines and Steel Development.
Okoh expressed optimism that the takeover by OENPL would lead to effective management of the two coal blocks and boost the economy of the host communities and Nigeria at large.
He added that by signing the agreement, “OENPL will assume all rights, privileges and obligations as contained in the original Asset Sale & Purchase Agreement (ASPA) executed between the Bureau and Western Metal Products Company Limited (WEMPCO) in 2007.”
Twelve years after privatisation, the coal blocks operated below expectations, which led the company to be classified as a non-performing enterprise.
The Director-General also said OENPL has agreed to operate according to BPE’s mandate and that the new investor would remain on the monitoring framework of the Bureau.
Twelve years after privatisation, the coal blocks operated below expectations, which led the company to be classified as a non-performing enterprise.
As part of the Federal Government economic recovery and growth plan, the government directed the National Council on Privatisation (NCP) to identify the causes of the non-performance of some of the privatised enterprises and proffer viable solutions towards their resuscitation.
A Director with OENPL, John Ndanusa Akanya, commended BPE and the Federal Government for the seamless transfer of the asset title documents to Orbit, which he said is a wholly Nigerian company.
He promised to make the coal blocks work effectively so that the Federal Government would achieve the purpose for which the company was established.
