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BUA Cement Faces Backlash over Host Community Rift

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BUA Cement faces crisis with Imiokpe host community in Edo, accused of exploitation, expired agreements, and disregard for mining laws

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BUA Cement is facing a major crisis with its host community in Imiokpe, Okpella, Etsako East LGA of Edo State, as locals accuse the cement giant of exploitation, manipulation, and disregard for Nigeria’s mining laws.

Also readBUA Group Refutes Illicit Forex Deals Allegations

In petitions and protest letters addressed to the Director-General of the Nigeria Mining Cadastre Office, the Imiokpe kindred alleged that BUA Cement has failed to conclude a Community Development Agreement (CDA) with them since the expiration of the last agreement in November 2024.

 

unity Alleges Illegal Stakeholder Negotiations

The kindred argues that under Section 116(1) of the Nigerian Minerals and Mining Act, 2007, mining companies are mandated to sign a CDA directly with host communities.

Instead, they accuse BUA of negotiating with “stakeholders” rather than the rightful landowners and mineral title holders.

“Ownership of land rests squarely on kindreds in Okpella, who by law are referred to as host communities. It is our client, as host community, that BUA Cement Plc is mandated to execute a CDA with not the entire Okpella clan,” the petition filed by their solicitors, Sylva A. Oniakhena & Co., stated.

 

Expired Agreement and Exploitation Claims

The community further alleged that BUA has been extracting limestone, laterite, clay, and iron ore from Ikpe-Obia and Oke-Igholi mining sites without a valid agreement, describing the situation as “daylight exploitation.”

They claim royalties paid are grossly inadequate compared to the volume of minerals extracted daily and argue that the community has been sidelined in employment opportunities, infrastructure, and revenue-sharing.

“BUA’s style is to delay, exploit, and profit without giving the host community its due benefits. This aberration will no longer be tolerated,” one of the protest letters read.

 

Ultimatum and Licence Revocation Threat

In a 7-day ultimatum, the Imiokpe kindred warned that if BUA Cement fails to conclude a CDA, they will pursue legal and direct action, including reclaiming and mortgaging their mineral titles to other compliant investors.

Their lawyers also petitioned the Nigeria Mining Cadastre Office to revoke BUA’s mining licence should the company continue to defy the law.

 

A Test Case for Mining Governance

Analysts suggest the Imiokpe dispute may become a litmus test for the enforcement of Nigeria’s mining laws.

Also readDangote Cement Dividend Aapproval Seals N506bn Payout to Shareholders

They note that other Okpella kindreds such as Egbetua (with BUA) and Ukhomuyio (with Dangote Cement) have executed direct CDAs, raising questions of double standards in Imiokpe’s case.

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Tinubu to Open Niger Delta Economic Summit in Port Harcourt

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Tinubu Niger Delta summit opens in Port Harcourt as investors and policymakers gather to drive investment, innovation and industrial growth

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Dangote Refinery Sets ₦525 Share Price for Landmark IPO

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Dangote Petroleum Refinery has set its initial public offering price at ₦525 per share, with the company seeking to raise about ₦2.15 trillion as it prepares to enter Nigeria’s public equities market.

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The Securities and Exchange Commission has approved the offer for 4.1 billion ordinary shares at ₦525 each. If fully subscribed, the offer would generate approximately ₦2.15 trillion, equivalent to about $1.6 billion at current exchange rates.

The offering is expected to open on 14 September 2026, according to Aliko Dangote, the president of Dangote Industries. The planned sale is positioned to become one of the largest equity offerings in Africa.

The IPO marks a significant step in Dangote Group’s plans to broaden ownership of the refinery and raise additional capital for expansion.

The refinery currently has a stated processing capacity of 650,000 barrels of crude oil per day. Dangote has said the company plans to increase that capacity to 1.4 million barrels per day as part of its longer-term expansion strategy.

The planned share sale follows a $1 billion underwriting programme completed in August, providing additional financial backing ahead of the public offering.

The refinery, located in the Lekki area of Lagos State, is one of Africa’s largest industrial projects and has become an increasingly important player in Nigeria’s fuel supply market since beginning operations.

The public offering will give Nigerian investors an opportunity to acquire shares in the refinery directly, while providing Dangote Petroleum Refinery with fresh capital to support its next phase of growth.

The company has also indicated ambitions to expand beyond its current Nigerian operations, with Dangote recently announcing plans for another refinery project in Kenya.

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Glo @23: Staff Unite for a Memorable Sports Celebration

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Glo marks its 23rd anniversary with a lively staff sports fiesta in Lagos, featuring football, games, prizes and celebrations centred on teamwork (more…)

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