The Bureau of Public Enterprises (BPE) has charged Orbit Exploration and Natural Products Limited (OENPL), the new investor in Ogboyega North and South coal blocks, to justify the Federal Government’s high expectations to optimize the coal blocks.
The Director General of the Bureau, Mr. Alex Okoh, gave this charge when the asset title of the coal blocks was transferred to the investor in Abuja.
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 explained 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”.
The Director General also disclosed at the ceremony that “OENPL has agreed to operate according to BPE’s mandate and that the new investor would remain on the monitoring framework of the Bureau.
It would be recalled that the coal blocks were acquired by Western Metal Products Company Limited (WEMPCO) in 2007 but in March 2019, WEMPCO requested for approval from the BPE to transfer the Coal blocks’ Mineral title documents to Orbit Exploration & Natural Products Limited (OENPL).
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 government’a economic recovery and growth plan, it 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.
In March 2019, WEMPCO requested for approval from the BPE, to transfer the Mineral Titles of the Coal Blocks to Orbit Exploration & Natural Products Limited (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 & Natural Products Limited and its conformity with the operational guidelines of the Federal Ministry of Mines and Steel Development.
In his remarks, a Director of OENPL, Mr. John Ndanusa Akanya, commended the privatization agency and the government for the transparent transfer of the asset title documents to his company.
Akanya assured the company’s Board and management would make the coal blocks work effectively so that the Federal Government would achieve the purpose for which the company was established.
