Nigerian govt approves takeover of coal mines

The Federal Government has approved the takeover of Ogboyega North and South Coal Blocks from Western Metal Products Company (WEMPCO).

The Head of Communications, Bureau of Public Enterprise (BPE), Ibeh Chidi, disclosed this in a statement on Tuesday.

He said the approval for takeover of the coal mines was given to Orbit Exploration and Natural Products Limited (OENPL) at the National Council on Privatisation (NCP) meeting presided over by Vice President Yemi Osinbajo in Abuja.

Chidi added that the company was set to generate electricity from the coal mines.

The statement read: “In granting the approval, the council noted that BPE’s due diligence on the enterprise indicated that OENPL can provide the financing and technical expertise needed to successfully operate the mines.

READ ALSO: Nigerian govt moves to revive Enugu coal mines

“It further noted that WEMPCO had requested for BPE’s approval to transfer the mineral titles of the two coal blocks to OENPL in line with the provisions of the Asset Share Purchase Agreement (ASPA).

“Also, OENPL has proposed to spend N112 billion to procure equipment for operationalising the two coal blocks and power generation.”

Ogboyega North and South Coal Blocks were sold to WEMPCO in 2007 for $7.378 million and $7.678 million respectively.

However, 15 years after the transaction, the two coal blocks have not been fully operationalised.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now