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Dangote: Our acquisition of Obajana Cement plant followed Due Process

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Obajana

 

Obajana Cement PLC was incorporated in 1992 and as at 2002 had no paid up shares

* Kogi State has no equity interest in Obajana Cement Plc

 

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

 

* The land on which the Obajana Cement Plant is built was acquired solely by Dangote Industries Limited (DIL) in 2003

 

* Taxes paid to Kogi Govt yearly since production commenced in 2007

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

 

 

The conglomerate asserted that Kogi State government has no equity interest in Obajana Cement Plc. It also stated that the company as a responsible corporate organisation has been paying relevant State taxes, levies and charges to the Kogi State government since 2007 when production commenced in the acquired cement plant.

 

These clarifications were contained in a statement issued by the management of Dangote Industries Limited titled ‘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 the stakeholders of Dangote Cement Plc (DCP) especially the over twenty-two thousand 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.

 

“Whilst reserving our rights to proceed to arbitration in accordance with the extant agreement, we have reported the unlawful invasion by KSG and the consequential adverse effects of same to all the relevant authorities, including the Federal Government of Nigeria who has now 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. It is in this context that we state in brief as follows”, the company added.

 

According to the statement, “The Obajana Cement Plant is one of the most critical components of economic activity 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).”

 

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

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“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. The limestone and other minerals used by the Obajana Cement Plant, by the provisions of the Nigerian Constitution belonged to the Federation, with authority only in the FGN and not the State in which the minerals are situated, to grant licences to extract and mine the resources”, the company explained.

 

“After the agreement with the KSG, DIL applied for and obtained mining leases over the said limestone from FGN, at its cost and has complied with the terms of the leases since inception. The Government of Kogi State had no minerals to give, had no assets to give, and only invited DIL as most responsible governments do to come into the State and invest in a manner that will create employment, develop the State, and earn it taxes”, the statement added.

 

In a section of the statement titled, ‘The Incorporation of OCP and the Invitation by KSG’, the company noted that, “In 1992, the Kogi State Government incorporated Obajana Cement PLC (OCP) as a public limited liability company. Sometime in early 2002, about 10 years after the incorporation of the OCP (which still had no assets or operations as of that time), KSG invited Dangote Industries Limited (DIL) to take the opportunity of the significant limestone deposit in the State by establishing a cement plant in the State.

 

“Following several engagements and assessment of the viability of the proposed opportunity, DIL agreed that it would establish a cement plant in Kogi State and provide the entirety of the substantial capital required for the investment.

 

“DIL also agreed, following a specific request by KSG, to use the OCP name (albeit only existing on paper as of that time, and without any assets or operations) for the time being, as the vehicle for this investment

On 30 July 2002, KSG and DIL entered into a binding agreement to document their understanding. The agreement was amended in 2003 and remains binding on, and legally enforceable by, the parties to same,” the statement explained.

 

On the issue of an Agreement between Dangote and Kogi State Government, the statement gave a summary. It noted that “it was agreed, inter alia, that: DIL would establish a cement plant with a capacity of 3,500,000 metric tonnes per annum; DIL shall hold 100% of the shareholding in OCP, and source for all the funds required to develop the cement plant; KSG shall have the option to acquire 5% equity shareholding in OCP within 5 years; and KSG shall grant tax relief and exemption from levies and other charges by KSG for a period of seven (7) years from the date of commencement of production.”

Consistent with the terms of agreement, DIL sourced for 100% of the funds that was used to develop the plant without any contribution from KSG. In line with its rights, ensuring alignment with the Dangote Brand, as part of internal restructuring and for better market recognition the name of OCP was changed to Dangote Cement Plc in 2010, and a number of other significant cement companies (such as the Benue Cement Company) owned by DIL were merged with OCP to become the enlarged Dangote Cement Plc”, the statement added.

 

On the issues of ‘Execution of the Agreement: The Plant, Taxes, Shares & Dividends’, the statement noted, “DIL assiduously and at significant cost met all the terms of the agreement between it and KSG in relation to OCP. It built the cement factory, much bigger and better than envisaged.

 

“KSG could not meet its financial obligations of contributing to the funding the plant in any form; neither could KSG fund acquisition of 5% equity shares in OCP when it was asked on a number of occasions to exercise the purchase option.

 

“KSG also did not meet its obligations to grant waiver of taxes, charges and levies that it could charge the operations, affairs and activities of OCP. Rather despite being entitled (under the terms of the agreement with KSG) to tax relief and exemption from charges and levies by KSG for a period of seven (7) years from the date of commencement of production, OCP (and now DCP) has paid all due sub-sovereign taxes, levies and charges to KSG since it commenced production in 2007.

 

“KSG does not have any form of investment or equity stake in OCP, so no dividend or other economic and/or shareholding rights whatsoever could have accrued to it from the operations of the company”, the statement added.

 

On the issue of the Acquisition of the Plant Site, the statement noted that, “After the agreement between DIL and KSG in 2002, DIL in 2003, applied to KSG for the acquisition of land for the plant site, and this application was granted with the issuance of three Certificates of Occupancy to DIL. DIL to the knowledge of KSG, paid substantive compensation to Obajana Farmland Owners located within the two (2) square kilometres plant site.

 

“Subsequently, in September 2004, DIL, in good faith, applied to the State Governor for the statutory consent for DIL to assign the plant site to OCP being DIL’s investment vehicle. This consent request was granted by the State Governor and the appropriate consent fees were paid by DIL”, it added.

 

Shedding more light on the company’s engagement with Kogi State Government, the statement explained that, “The investment of DIL in Kogi State through OCP was at the instance of the duly constituted government of Kogi State, done in accordance with the law of the State and all enabling laws in that regard, and the transaction documents were effectively, lawfully and duly executed by the Governor and Attorney General of the State (at the time), after internal approvals were obtained within the government.

 

“Since the inception of Alhaji Yahaya Bello’s administration in 2016, and regardless that government is a continuum, we have had series of enquiries about the ownership structure of the Dangote Cement PLC as it relates to the alleged interest of KSG; and had several engagements with the officers of the State government including Governor Yahaya Bello. At all of these engagements we have provided all the details and information supported by relevant documents, required by the Government and the State House of Assembly to confirm our lawful investment.

 

“For instance, in 2017, we were invited by the Judicial Commission of Inquiry, and we made our submission to the commission with relevant documents to support our position. We are yet to receive any feedback from the Judicial Commission of Inquiry. While still waiting to hear of the report of the Inquiry, we were invited by the State House of Assembly on the same matter earlier this year, and again, we provided evidence in support of our position that KSG does not have any equity or other interest in OCP or DCP.

 

“On Wednesday 5 October 2022, hundreds of dangerously armed men, other than law enforcement officers, attacked our cement plant in Obajana, Kogi State, destroyed our property, inflicted grievous injuries on many of our employees, and shutdown operations at the plant. KSG has admitted that the armed invaders acted on its instructions, and in furtherance of the recent enquiry by the Kogi State House of Assembly in connection with the ownership of the Obajana Cement Plant.

 

“Curiously, on 6 October 2022, a day after the shutdown of our facility in Obajana on the orders of KSG, Governor Bello addressed the public and announced that a Specialised Technical Committee which was set up as part of the recommendations of the Judicial Commission of Inquiry had just presented its recommendations, which have been accepted by KSG. This statement makes it abundantly clear that the shutdown of DCP’s plant occurred regardless of the Governor’s own confirmation that implementation of the recommendations of the Specialised Technical Committee was still pending”, the statement noted.

 

Focusing on the current state of play, the company said, “Whilst we do not want to speculate on the motivation for the spurious claims being made by KSG in relation to the ownership of the Company, which have resulted in the unfortunate unlawful forcible closure and damage of our plant, and injury of several people, we condemn in strongest possible terms, the unlawful shutdown of our plant by KSG sponsored armed-thugs, the damage to our property (including the looting of large sum of money kept in the office), and grievous injury inflicted on our employees by them.

 

“This disruption of operations at the plant has caused loss of revenue not only to our company and its customers but has also adversely impacted revenue due to both the Federal and State governments. It has also occasioned loss of jobs for the teeming youths who are daily paid workers that throng our plant for their daily sustenance.

Appealing for overall peace and calm, the statement noted, “We implore all our stakeholders, namely shareholders, customers, suppliers, employees, and the entire community of Obajana and Kogi State at large to remain calm while we follow the legitimate and lawful process to resolve this matter. We shall keep our stakeholders duly updated whilst we remain confident that the statutory and contractual rights ofB DIL shall be upheld by these legal processes which we have initiated.”

 

 

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Emir Sanusi Woos Foreign Investors, assures opportunities, profit margin in Nigeria

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Emir of Kano, His Highness, Khalifa Muhammadu Sanusi II, has urged foreign investors to take advantage of booming business environment in Nigeria to invest their resources for maximum profit margin.

Khalifa Sanusi solicited investment opportunities in Nigeria while addressing global investors and captains of industries at the International Financial Investment and Trade Conference holding in Tunisia.

The former Governor of the Central Bank of Nigeria, explained that Nigeria reserves one of the fastest growing economy in Africa with highly competitive markets and business opportunities readily available for capital investors.

Sanusi essentially appealed to business and investment giants to tap from the robust economy with enabling environment in the areas of Manufacturing, Agriculture, ICT, Innovation and financial sector to grow their investment.

The royal highness used the occasion to showcase the growing fortune and global investment of Alh. Aliko Dangote, who started his empire taking the Nigerian business environment, believed foreign investors should capitalize on similar advantage.

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Sanusi made a strong case for investment opportunities in his country home, assured socio-econmic and natural endowments as major advantages investors should consider to build viral growth in Kano.

According to Emir Sanusi, remained that Kano is destination for trade, commerce and industries with 22 million population, natural resources, strategic location and well established international markets that serve many countries in West and Central Africa and beyond. That’s apart, he said incentives provided by the Kano State Government is another avenue for ease of doing business.

A release by Munir Sanusi Bayero, Galadiman Kano and Chief of Staff to emir Sanusi said the conference attracted prominent personalities including Governor of Bauchi State, Sen Bala Mohammed, Hon. Minister of Women Affairs, Haj. Imaan Suleiman, Amb. Bolaji, representing the Hon. Minister of State for Foreign Affairs, Bianca Ojukwu and DG of NEPZA.

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Kwankwasiyya Professionals Forum Condemns AB Bappah Bichi’s Remarks, Calls for Legal Action

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The Kwankwasiyya Professionals Forum convened a two-day emergency stakeholders’ meeting on May 4th and 5th, 2025, at Tahir Guest Palace Hotel in Kano to address concerns over alleged defamatory statements made by former Secretary to the State Government, AB Bappah Bichi, against the esteemed leader of the Kwankwasiyya movement, Dr. Rabi’u Musa Kwankwaso. The forum, comprising experts from diverse backgrounds, strongly condemned what it described as inflammatory remarks aimed at tarnishing Dr. Kwankwaso’s reputation. According to Comr. Haruna Musa Gaza, Chairman of the forum, “These statements are not only malicious but also an attempt to incite hatred and provoke violence against our revered leader.”

During the deliberations, members reaffirmed Dr. Kwankwaso’s enduring legacy and contributions to Nigeria’s political and socio-economic development. The forum praised his leadership, integrity, and philanthropic efforts, insisting that his work has positively impacted millions of Nigerians. “Dr. Kwankwaso is a visionary leader whose contributions to our great nation cannot be undermined by baseless accusations,” Gaza stated. The body further emphasized its unwavering support for Kwankwaso while calling on Nigerians to recognize the profound impact of his leadership.

In response to Bichi’s remarks, the forum resolved to pursue legal action to ensure accountability for what they termed defamatory allegations. Legal proceedings, according to Gaza, will be instituted to address the matter in court, and all available legal avenues will be explored to seek redress. “We will not allow these false claims to go unchallenged. Justice must prevail, and we will fight to ensure that defamatory statements like these do not go unchecked,” Gaza affirmed. The forum vowed to hold Bichi responsible for his utterances and pursue the matter to its logical conclusion through legal means.

Despite the forum’s strong condemnation, it urged all Kwankwasiyya supporters and Nigerians to remain calm and law-abiding in the face of provocation. The forum stressed the importance of maintaining peace and avoiding unnecessary escalation. “We call on our supporters to exercise restraint. Violence is never the answer, and our movement stands for peace and development,” Gaza emphasized. The forum maintained that while legal action is necessary, peaceful resolution and respect for the law remain top priorities.

Additionally, the Kwankwasiyya Professionals Forum commended the Kano State Governor, Engr. Abba Kabir Yusuf, for his administration’s efforts in advancing development projects across the state. The forum encouraged Kano residents to continue supporting the governor’s initiatives aimed at fostering progress and stability. “Governor Yusuf is working tirelessly for the betterment of Kano State, and we urge citizens to stand behind his administration’s laudable projects,” Gaza concluded. The forum reiterated its commitment to ensuring accountability while championing the cause of peace and development.

 

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Market Traders Association of Nigeria Suspends Operations of 36 State Chapters

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President market traders association of Nigeria Jamilu Abbas

 

The Market Traders Association of Nigeria (MATAN) has announced the suspension of operations across its 36 state chapters and the Federal Capital Territory (FCT), Abuja. The decision was disclosed by MATAN’s National President, Jamilu Abbas, while addressing journalists on the prevailing challenges within the association.

According to Abbas, the suspension comes in response to multiple concerns raised by stakeholders, alongside unforeseen circumstances that have impacted the organization’s unity.

He emphasized the need for solidarity, stating, “Based on the current situation across the country regarding our association, along with the receipt of various calls from stakeholders and unforeseen circumstances—including exchanges of words on our platform—I believe that we are one family, united in the progress of our great nation. That is why we are MATAN: when we work, our nation moves forward.”

The MATAN President clarified that, despite the general suspension, the scheduled inauguration for Imo State would proceed as planned, while that of Enugu State has been postponed. Abbas noted that further directives on the future of the association’s activities would be determined by the Federal Executive Council. He stated, “In view of all these developments, as the President and father of our teeming family members, I am here to announce that the Enugu State inauguration is suspended, while Imo State’s inauguration should proceed as scheduled. Furthermore, the operations of all 36 state chapters and Abuja are hereby suspended until the Federal Executive Council convenes and announces a new mode of operation for the entire 36 states and Abuja.”

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Abbas acknowledged that the suspension could cause disruptions for MATAN members but stressed that it was a necessary course of action. He expressed his regret over the inconvenience, adding that he remains optimistic about the upcoming discussions with the Federal Executive Council, which he believes will provide lasting solutions to the association’s concerns. “This decision was made out of necessity. I believe the suspension may hurt our members, and we regret any inconvenience this painful decision may cause. However, we had no choice but to implement it. I am confident that the outcome of our meeting will serve as the final solution to our grievances,” he stated.

MATAN members across the country will be awaiting further updates as the association navigates this transitional phase. In the meantime, Abbas urged traders to remain united, emphasizing his unwavering commitment to resolving the underlying issues affecting the organization.

The Market Traders Association of Nigeria is a national organization committed to supporting market traders and advancing trade-related policies for economic growth. The association plays a crucial role in facilitating dialogue between traders and government stakeholders, ensuring that market conditions remain favorable for business development.

This latest suspension marks a pivotal moment for MATAN, with traders, stakeholders, and the government looking ahead to forthcoming resolutions.

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