₦airaland Forum

BUA: We await official communication

In order to quell the ongoing war between Dangote Group and BUA Group over the mining rights in Obuh, Okpella, Etsako East Local Government Area of Edo State, the federal government has ordered both companies to vacate the site to prevent a breakdown of law and order in the area.

The order came just as the community leaders in the area have expressed worry over the development, accusing the Federal Ministry of Mines and Solid Minerals of causing the crisis by giving licences to the warring parties to mine in the same site.



They urged both the federal and Edo State governments to urgently find a peaceful resolution to the crisis, adding that a further escalation would negatively affect both revenue and employment opportunities of the community.

Edo State governor, Godwin Obaseki who revealed the federal government’s directive during a meeting with leaders and elders of Okpella community at the Government House, Benin City, yesterday, noted that parties involved in the crisis were in court, and therefore the federal government had decided that further mining in Obuh community be suspended to allow a peaceful resolution of the dispute in court.

According to Obaseki, “We are following the rule of law, there is a dispute, it is not unusual to have disputes over assets, but there are laid down methods to resolving disputes of this nature.

“What we understand as a government is that there is dispute or claim between the two parties over an existing mining right and the Mining Act of 2007 is quite clear, the Federal Ministry of Mines and Minerals Development decides on how to award or issue leases.

“In this particular case, there are multiple claims and they have all gone to court. We have a letter from the Federal Ministry of Mines and Minerals Development instructing that the party currently mining that particular site should vacate it, pending the outcome of the decision in court.

“So the position of the Edo State government today is that court orders must be obeyed, the federal government´s instruction should be obeyed, that the mine should be shut until the outcome or the determination of the case in court.”

Also speaking at the meeting, the spokesman of Okpella community, Ayuba Giwa, said: “What we are saying in our response to the presidency is that we blame the Federal Ministry of Mines and Solid Minerals that they ought to have been more prudent in granting the mineral licences.
“We implored all parties to abide by the rule of law and the rule of law includes the fact that in 1994, Okpella took this matter to the Federal High Court in Benin and judgment was given in favour of Okpella.

“Then it dawned on us that the ministry was not complying with the judgment, which was partly responsible for this debacle we are in now. In 2014, Okpella went to the Federal High Court in Benin, so it is not just only BUA and Dangote that is in court, Okpella is also in court.
“So it is fair and just that the matter is resolved in the interest of the community and Edo State because any breach of peace impacts on our people first and foremost and that is why we came to see Mr. Governor.”

However, the BUA Group has said it would await official communication from Edo State government, adding that the state government does not have jurisdiction over the site.
In a statement signed by the Group Head, Corporate Communications, Otega Ogra, the company said it would abide by court ruling urging it to maintain status quo.

It read in part: “We heard of the alleged closing down of the Obu mines in Okpella, Edo State by the Governor of Edo State. While this remains in the territory of hearsay, our position on this matter remains very clear.

“Just as the Edo State Government said in its statement, this is an issue no state government has jurisdiction over as it is a Federal Issue. It is however interesting to note that the mine under contention, ML2541, has been claimed repeatedly by the Ministry of Mines and Dangote to be in Okene, Kogi State.

“Thus, we are curious and are at great loss as to why the Governor of Edo State is closing down a mine in Edo State which has been claimed by the other parties involved to be outside his state in Okene, Kogi State and which the purported ML2541 license also states clearly.

“The ministry has written us prior and our response was published in our open letter to the president on December 4, 2017. This case remains in a competent court of jurisdiction which has ordered all parties – BUA, Dangote, the Ministry of Mines and others to maintain status quo and we will continue to abide by the dictates of the court as a responsible corporate citizen.

“We are however yet to receive some form of official communication asking us to close our mining sites ML18912 and ML18913 in Edo State, thus this alleged closing down report still remains in the territory of hearsay. We will respond accordingly when and if we get an official communication from the proper authorities.”

Desyner:
Govt of saving. I was expecting buhari to start some major projects like dams, refinery, rail etc and not endless savings. He is still better than his predecessor though.

finest0007:
Not sure if they have improved the quality but this rice is so short!!! The grains are almost all divided into 2 or 3 pieces. Still eating it. They need to increase standard

Osucoward:
The rice is grown in both Lagos and Kebbi.
I don't care about other states.

Osucoward:
Ogun state has always been proximal to Lagos. Proximity is not the only thing helping. Remember Ogun state of 8 years ago? The one box heads and poor clowns loves belittling?


1) Ogun, like Lagos, is also close to the Atlantic Ocean
2) Ogun is viable for industrial growth
3) Investors trust Ogun state
4) Ogun has leaders with vision. They harnessed all of Ogun's benefits to bring in investors
5) Ogun indigenes [and Yorubas in general) are passionate about making the state/region grow.

All these factors work together to make Ogun the fastest growing state atm.

I'm not disagreeing with you that agriculture sustains the economy, I just don't want us to streamline on agriculture and neglect other economical sectors.

Osucoward:
Lagos needs to partner with rice farms in Ogun/Ekiti too to keep the growth in the SW

Osucoward:
Just agriculture? Revenue diversity is the father of successful economy. Ogun state is toeing that path.

To ensure even and fair distribution of LAKE Rice Lagos State Government has sought the participation of major rice distributors and signed agreement with the distributors in the transportation, distribution and marketing of LAKE rice.

Special Adviser to the Lagos State Governor on Food Security Mr. Ganiyu Okanlawon who signed on behalf of the Lagos State Government said the agreement would ensure that residents get LAKE rice not just from designated centres but also from the open market at the official government price.

Okanlawon explained that the agreement which is valid for one year in the first instance and may be extended by mutual agreement in writing for additional period involves major distributors in various rice markets in the State which have the capacity to receive and distribute large tonnes of LAKE Rice during after the yuletide season.

“The distributors shall transport and market LAKE Rice, engage in equitable distribution of the product by avoiding hoarding and other sharp practices and ensure all year round continuous and equitable distribution of LAKE rice”, he said.


Noting that the need to ensure availability of the product to citizens is key in the State’s drive to attain food sufficiency, the Special Adviser stated that food production and self-sufficiency have been given priority attention at State’s policy and strategic level

Okanlawon, who implored the distributors not to default in the agreement assured the distributors of Lagos State Government commitment to keep its end of the bargain.

Speaking earlier, the Permanent Secretary, Ministry of Agriculture, Mr. Olayiwole Onansanya explained the agreement sets out the terms upon which the parties will co-operate with each other for execution of the scheme.

He added that the state government will verify claims of address and warehouse or shops of the distributors, approve all business plans before implementation and conduct regular monitoring visits with respect to capacity and effectiveness of the distributor.


Responding on behalf of the distributors, the Iyaloja of Dalako Rice Market, Mrs. Ibilola Sholaja thank the State government for the opportunity given to distributors to be part of history in the sales of LAKE rice.

She assured the State government that distributors will abide by the terms of the agreement.

The war of integrity between Minister of State for Petroleum Resources Ibe Kachikwu and Nigerian National Petroleum Corporation (NNPC) Group Managing Director (GMD) Dr. Maikanti Baru got more intense yesterday.

The oil giant faulted the Minister’s claim that he was not consulted on $10billion Crude Term Contracts.

The NNPC said Kachikwu made an input into the shortlisting of 40 off-takers for the Crude Term Contracts by recommending seven companies, which were engaged.

Also, the minister was said to have nominated two companies for the alleged Direct Sales, Direct Purchase (DSDP) transactions, which Kachikwu claimed were worth $5billion.


The corporation said while the Minister was its GMD, he sent a memo to the Bureau of Public Procurement (BPP) seeking clarification on the status of the NNPC Tenders Board.

NNPC’s position is contained in a fact-sheet apparently prepared against the backdrop of the six posers raised by loyalists of Kachikwu for GMD Baru. The Nation published the posers exclusively yesterday.

Besides the posers, the minister had in an August 30 memo to President Muhammadu Buhari alleged that he was being sidelined by the GMD.

He said: “As in many cases of things that happen in NNPC these days, I learn of transactions only through publications in the media. The question is, why is it that other parastatals which I supervise as Minister of State or Chair of their Boards are able to go through these contractual and mandatory governance processes and yet NNPC is exempt from these?”

Sources, who spoke with our correspondent, with a fact-sheet said the “posers amounted to mere academic exercise and sheer deceit by the minister”.


They claimed that the minister was consulted on most of the transactions he listed in his memo to the President, including Crude Oil Term transactions, Direct Sales, Direct Purchase (DSDP) contracts and Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline contract.

The fact-sheet said: “For record purposes, Nigerians should be aware that Kachikwu single-handedly superintended and approved the off-takers of Nigerian Crude Oil and gas for 2016/ 2017. There were no issues then.

“As for the off-takers for 2017/2018, the minister was consulted by the GMD. Out of a list of 40 off-takers, Kachikwu recommended seven firms, which were accepted by NNPC management without any issue. He initially nominated three and later added four. His judgment was respected, accepted and approved by NNPC management alongside 33 others.

“The seven off-takers he recommended are as follows: North-West Petroleum; Setana Energy; Emo Oil; Litasco Supply and Trading Company; Voyage Oil and Gas; Levene International and Cespa Trading. Since the Minister strongly recommended all these companies, we concurred with his recommendation which was based on a professional judgment. We also did not find any of the companies wanting and they met the criteria for crude lifting.

“On DSDP, the Minister also nominated two companies, Messrs Falcon Bay Energy Limited and Rain Oil Limited. The NNPC avoided all these details in its statement on Monday in order to protect the interest of these companies doing legitimate business. But Nigerians can appreciate that Kachikwu’s input was sought.

“Regarding AKK Pipeline contract, NNPC has explained that it is still in the works; it has not been awarded by the Federal Executive Council (FEC).

“There was this $9.2billion Escravos Gas Pipeline Project which the GMD did not touch in his memo to the President. Apart from discussing and reviewing it with the Board of NNPC, the GMD wrote a June 29, 2017 memo to the Presidency and after official process and consultations with the Minister, it was approved. In fact, the Minister gave the final approval in a memo of August 22, 2017, although with some reservations.

“Concerning sections 130(2) and 148(1) of the 1999 Constitution, the Minister only alluded to the powers of the President. The NNPC GMD made it clear that he obtained the approval of the President on these transactions. If the President, as the senior Minister of Petroleum Resources, has exercised his constitutional powers, what else is the Minister of State for Petroleum Resources after?

“It should be noted that NNPC and its GMD are only following the standards put in place by the Minister of State for Petroleum Resources on Crude Oil Term Contracts and other transactions. NNPC is following the same rules which the Minister put in place. But the Minister is now criticising the same rules. The only thing that has changed is that Kachikwu is not the substantive GMD of NNPC again.’

“Nigerians need to know that the Minister (while he was the GMD of NNPC) wrote a memo to the Bureau of Public Procurement (BPP) to seek clarifications on the financial limit of NNPC Tenders Board. And the BPP put the limit at $20million. This is what the NNPC management has been adhering to.”

When contacted, a top source in the Ministry of Petroleum Resources, who is in the position to know, said NNPC was lying.

The source said: “All of the above are lies. No official documentation backing this. This and possibly more to come are vain efforts to discredit Kachikwu and cover up the damning allegations he made.”