Our acquisition of the Obajana cement plant went according to due process — Dangote

Management of Dangote Industries Limited has insisted its acquisition of Obajana Cement Plc in 2002 followed due process, contrary to claims by the Kogi State Government.

The conglomerate claimed that the Kogi State government has no stake in Obajana Cement Plc. He also said that the company, as a responsible company, has been paying relevant state taxes, levies and royalties to the Kogi State Government since 2007 when production started at the acquired cement plant.

These clarifications were contained in a statement issued by the management of Dangote Industries Limited entitled "Obajana Cement Plant: Separating Facts from Fiction".

According to the statement, "This is a statement issued for the sole purpose of addressing the concerns and apprehensions of Dangote Cement Plc (DCP) stakeholders, in particular the more than 22,000 people it employs directly and more indirectly, as well as thousands of entrepreneurs, wholesalers, users of our products, our financiers and shareholders.

"At a time of significant economic challenges facing us as a nation, we believe that everything must be done to ensure that our economy runs efficiently, our people are employed, the businesses that depend on us thrive and do not not discourage those who take the risks of necessary, legitimate and important investments in our economy.

"The closure of our factory has materially jeopardized the economic well-being of our country without any consideration for its significant consequences.

"While reserving our rights to arbitrate pursuant to the existing agreement, we have reported the unlawful invasion by KSG and the resulting adverse effects to all appropriate authorities, including the federal government of Nigeria which has now intervened in the matter.

"We hope that the dispute resolution process we have initiated will quickly resolve disputes and allow us to focus on our business without distraction and continue our important contribution to our national economy.

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"It is against this background that we briefly state the following: The Obajana Cement Plant is one of the most critical elements of economic activity in the country, being one of the highest taxpayers and the vehicle of one of the largest companies.invested by thousands of Nigerian and foreign investors.Its most important assets are (1) its land, the factory and machinery therein, and (2) the vast limestone deposit covered by mining leases issued under license by the Federal Government of Nigeria (FGN).

The company clarified that the land on which the Obajana cement plant is built was acquired solely by Dangote Industries Limited (DIL) in 2003.

"The land on which the Obajana Cement Factory is built was acquired solely by Dangote Industries Limited (DIL) in 2003, long after it acquired the shares of Obajana Cement Company in 2002, following the legally binding agreement it has with KSG will invest in Kogi State. DIL has been issued three Certificates of Occupancy in its name after payment of necessary royalties and compensation of landowners. machines were designed, engineered, purchased, built and paid for solely by DIL, again, well after the acquisition of the shares of Obajana Cement Company.The limestone and other minerals used by the Obajana Cement Plant, under the provisions of the Nigerian Constitution, belonged to the Federation, with authority only in the FGN and not in the state in which the minerals are located, to grant licenses to extract and exploit the resources,” the company explained. .

"After the agreement with KSG, DIL applied for and obtained mining leases on the said limestone from FGN at its expense and has complied with the terms of the leases from the beginning. The Kogi State Government n had no minerals to give away, had no assets to give away and only invited DIL, as most responsible governments do, to come into the state and invest in ways that will create jobs, develop state and save it taxes.

"After several engagements and an assessment of the viability of the proposed opportunity, DIL has agreed to establish a cement plant in Kogi State and provide all of the substantial capital required for the investment.

The company, however, said: the state government "has no form of investment or participation in OCP, so no dividends or other economic and/or shareholding rights could have accrued to him from the operations of the company.”

He said focusing on the current state of affairs, the company said: "While we do not want to speculate on the motivation for the misrepresentations made by KSG regarding the ownership of the company, which resulted in the unfortunate illegal forced closure and damage of ...