We own Obajana Cement plant 100% – Dangote Group

The management of Dangote Industries Ltd. (DIL) says it owns Obajana Cement plant 100 per cent and its acquisition in 2002 followed due process.

The company said this in a statement issued by Mr Anthony Chiejina, Group Head Branding and Communications, DIL, titled, ‘Obajana Cement Plant: Separating Facts from Fiction.’

The group said the Kogi government had no equity interest in Obajana Cement Plc, and that the company had been paying relevant state taxes, levies and charges to the Kogi government since it started production in  2007.

“This is a statement issued for the sole purpose of addressing the concerns and apprehensions of the stakeholders of Dangote Cement Plc (DCP), especially the over 22,000 people it employs directly, and more indirectly, as well as thousands of contractors, wholesalers, users of our products, our financiers and shareholders.

“At a time of significant economic challenges that we face as a nation, we believe all must be done to keep our economy running effectively, our people employed, businesses that depend on us thriving, and not discourage those who take the risks of needed, lawful and significant investments in our economy.

“The shutdown of our plant has materially jeopardised the economic wellbeing of our country without any regard for its significant consequences,” said the statement.

The group said whilst reserving its rights to proceed to arbitration in accordance with the extant agreement, it had reported the unlawful invasion and the consequential adverse effects of same to all the relevant authorities, including the Federal Government of Nigeria who had intervened in the matter.

“It is hoped that the dispute resolution process we have initiated will quickly resolve the disputes and allow us to focus on our business without distraction and continue our significant contribution to our national economy,” the company said.

According to the group, the Obajana Cement Plant is one of the most critical components of economic activities in the nation, being one of the highest taxpayers, and vehicle for one of the largest companies invested in by thousands of Nigerian and foreign investors.

“Its most important assets are (1) its land, the plant and machinery thereon, and (2) the vast limestone deposit covered by mining leases issued under licence by the Federal Government of Nigeria (FGN),” it added.

The company said: “The land on which the Obajana Cement Plant is built was acquired solely by Dangote Industries Limited (DIL) in 2003, well after it had acquired the shares in Obajana Cement Company in 2002, following the legally binding agreement it entered into with KSG to invest in Kogi State.

“DIL was issued three Certificates of Occupancy in its name after payment of necessary fees and compensation to landowners.

“The plant and machinery were conceived, designed, procured, built, and paid for solely by DIL, again, well after it acquired the shares in Obajana Cement Company.