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BPE hands over C of O of Ikorodu Bricks and Clay Limited to core investors

In a bid to help the core investors in the Ikorodu Bricks and Clay Limited (IB & CL), to raise need capital to resuscitate the company, the General of the Bureau of Public Enterprises (BPE) has handed the Certificate of Occupancy (C of O) to the director of the new owners.

In a statement, the BPE said the Brick and Clay Company, formerly owned by the federal government was privatised in 2006 and sold to a core investors; Continental Project Development & Supplies Ltd. (CPDSL).

BPE said through its post-transaction monitoring exercise, it was discovered that IB&CL stopped operations few years after privatisation due to the core investor’s inability to raise capital to finance the operations.

Thus, the company was listed as one of the non-performing enterprises and in the quest (through the Committee set up for non-performing enterprises) to identify the challenges inhibiting performance, CPDSL stated the inability to raise capital to finance its operations as part of its challenges and thus approached the Bureau to secure Certificate of Occupancy (CofO) for the company to enable them secure financial facility to resuscitate the company.

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The Bureau consequently approached the Federal Ministry of Works and Housing to secure C of O for the company and the Ministry requested the Company to pay for the ground rent for the facilitation of the title document, prompting the Bureau to intervene and requested for a waiver to enable the company secure necessary finance to turn around the company to profitability.

Consequently, President Muhammad Buhari magnanimously granted the waiver of the fee, and directed the Bureau to ensure that the Core Investor undertakes to revive the company after the waiver is granted.

Speaking at the handing over of the C of O to the company in Abuja, BPE Director General lex Okoh, said the government is committed to providing the enabling environment and necessary support for all privatised enterprises in the country to perform optimally so that the objectives of privatisation would be realised.

According to Okoh, CPDSL should revive the company and bring it to profitability in the shortest timeframe and for the benefit of Nigerians.

Okoh also gave the following conditions for the handover the document to the directors of the new owners of the company:

That they follow through with the Execution of revised Performance Agreement which was submitted by the core investor in May 2021. The  Bureau will monitor the implementation of the Post Acquisition Plan (PAP) to ensure strict compliance; and

“The  Core Investor to note the addendum to the Share Sales/Purchase Agreement (SSPA) which prevents the Core Investor from the sale or disposal of part or the whole Shares or land of the company without the prior notice and approval of the Bureau.

In his response, the company’s Group Chairman, Albert Awofisayo said the company would abide by the reviewed Share Purchase Agreement (SPA) to resuscitate the company to generating employment in Nigeria.

 He appealed to the Federal Government to intervene in the power supply to the company as the cost of generating power by the company was expensive.

It would be recalled that Ikorodu Bricks & Clay Company, wholly owned by the Federal Government of Nigeria was privatised through a core investor sale in 2006.

The company was acquired 100 percent by Continental Project Development & Supplies Ltd. (CPDSL) through a competitive bidding process.

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