The 10th Senate of the Federal Republic of Nigeria has directed the Bureau of Public Enterprises (BPE) to stop the process of privatising 5 Coal Blocks which has already began with immediate effect.
This was contained in a letter to the director of the agency, tagged: SEN/EW/022/010/2023, dated 10th October, 2023, signed by the Chairman, Senate Committee on Solid Minerals Development, senator Osita Ngwu, titled: RE: REQUEST FOR EXPRESSIONS OF INTEREST: – INVITATION FOR EXPRESSION OF INTEREST FOR THE PUBLIC BIDDING OF NIGERIAN COAL CORPORATION (NCC) FIVE (5) COAL BOCKS – NOTICE TO STOP FURTHER ACTION, in response
to an earlier advertisement in some national dailies for which BPE had started receiving submissions on Expression of Interest.
“We write in response to the above-mentioned publication circulated through some major daily Newspapers namely: – Thisday, Daily Sun and Guardian on Tuesday April 4, 2023 on which you have received submission from interested persons on Expression on Interest, and against which you want to sell the under listed properties:
“i. Amansiodo Coal Block ii. Onyeama Coal Block ili. | Okpara Coal Block iv. Inyi Coal Block v. Agwasi-Azagba Coal Block.
“The reasons adduced in the publications was “The Bureau of Public Enterprises, in pursuant of the FGN economic policy on diversification and improved economy, commenced the reform of the NCC by advertising the 9 avaliable coal blocks.
“While 3 of the coal blocks (Ogboyega North, Ogboyega South and Okaba) were successfully taken, one of the coal blocks is currently on a pilot project on coal to power of the Ministry of Solid Minerals Development,”
“While the Senate supports all credible moves to diversify and grow our economy, it is also our duty to oversight the accuracy of claims made in either the procurement or disposal of public facilities or utilitics,” the Senate said.
It lamented the numerous failed attempts at resolving the operationalising the Nigerian Coal Corporation (NCC), starting from 2002 when the Nigerian government signed a failed agreement with Kopex, a Polish company based in Warsaw to take over mining and boost productions with the NCC playing supervisory roles, to the engagement.
“Thereafler the government engaged a Bulgarian company and based on the agreements established the “Bul-Nig™ to reflect the name of the two countrics, in another unsuccessful arrangement where the company was expected to take 40 percent of the gains while the NCC takes 60 percent.
“After the BulNig arrangement failed, Nigeria and South Africa signed an agreement for the development of the coal industry in Nigeria by exploring specifically the Onyeama, Okpara and Owukpa Mines.
“Again, it is our understanding that nothing came out of the arrangement as no mining activity ever commenced based on the agreement.
“You may further wish to recall that technical advisory committee set up by the federal government tasked with reviving the industry in 2003 didn’t submit any proposats or recommendations before the NCC started selling off some of its assets to pay off mounting debts, including salaries owed its staff.
“It is important to note that the promise by BPE that the Corporations coal blocks would be handed to credible investors that would invest money and expertise to mine the coal blocks to create jobs and boost the economy of the state and Nigeria at large is yet to be seen, there are also no records avaliable to the Senate that any of them has commenced operations,” the Red Chamber noted further.
The Senate therefore asked BPE to stay action on the privatisation processes forthwith and and furnish it with relevant documents.
“In light of the above, it is the resolve of the Senate that all the processes for the privatisation of the listed blocks be halted with immediate effect.
“Furthermore, you are to within 7 days of the receipt of this letter avail the committee with the under listed documents: i Authorisation to commence with the Privatization Process i. Update on the Coal to Power project of the Ministry of Solid Minerals Development; ii. List and sales costs of all the assets of NCC (building, lands, machinery) sold by BPE; iv. Detailed Status on the current state of the earlier privatised 9 blocks listed in your advert; v. Copies of the process used in Privatisation of the 9 blocks; Vi. Agreements between the NCC and the concessionaires; Vil. The authorisation and sales agreement and cost procuring the coal washery built by Kopex contractors, Poland; vil. The current status and capacities of the coal briquette plants at Enugu and Ankpa in Kogi state as well as the weigh bridges at Enugu, Okaba and Owukpa; ix. Status of Geometric Power, 1000MW coal fired power plant; x. Current Status of the Oji River Coal Power Plant.
“While awaiting your prompt response and action on the above, accept the assurances of our regards,” it said.
