After years of non-performance, the asset title of Ogboyega North and South coal blocks has been acquired by Orbit Exploration and Natural Products Limited (OENPL), its new owner with a charge that justifies the government’s high expectations to optimise the two coal blocks.
The coal blocks were acquired by Western Metal Products Company Limited (WEMPCO) in 2007 under the federal government’s privatisation programme but years of dismal performance led the then investor to seek the approval of the Bureau of Public Enterprises (BPE) in March 2019 to sell the Coal blocks’ Mineral title to Orbit Exploration & Natural Products Limited (OENPL).
At the formal hand-over on Wednesday, BPE’s Director-General, Alex Okoh asked OENPL, the new owners to effectively manage the two coal blocks to boost the economy of the host communities and Nigeria at large.
Having acquired the two coal blocks, 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.
OENPL by this agreement will be monitored by the BPE to ensure that it operates according to the Bureau’s mandate.
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’s 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 for their resuscitation.
In March 2019, WEMPCO requested approval from the BPE to sell to OEPNL, and in line with provisions of Article 18.6 of the SSPA signed with WEMPCO in 2007, the Bureau conducted 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.
A Director with OENPL, John Ndanusa Akanya, commended BPE and the federal government for the seamless transfer of the asset title documents to his company 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
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