Headlines
Dangote: Our acquisition of Obajana Cement plant followed Due Process
Nasiru Yusuf
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.
KANO FOCUS reports that 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.
“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 of DIL shall be upheld by these legal processes which we have initiated.”
Kano State Governor Abba Kabir Yusuf has emerged as a beacon of hope for graduates left stranded due to the previous administration’s negligence regarding academic certificates.
His determination to rectify these injustices has culminated in decisive actions to secure the future of Kano’s youth. Ibrahim Adam, the Special Adviser to the Governor on Information, shared these developments with the media.
On December 9, 2024, Governor Yusuf traveled to Cyprus with a mission to obtain the overdue academic certificates for Kano students affected by the prior administration’s failure to meet its educational financial obligations.
During a critical meeting with the management of Near East University, the governor focused on facilitating the release of certificates for students who graduated between 2015 and 2019, particularly in essential fields like Medicine and Nursing.
This was confirmed by Sunusi Bature Dawakin Tofa, the governor’s spokesperson.
In a significant move, Governor Yusuf has settled the outstanding fees of €1.4 million (approximately ₦2.5 billion) owed to the university for 84 medical and2015 to 2019.
This substantial financial commitment honors the dedication and hard work of these graduates, restoring their hopes for a future that had previously been unjustly delayed.
According to Ibrahim Adam, the certificates are set to be handed over to the Kano State Scholarship Board through the Nigerian Ambassador to Turkey, marking a pivotal moment for the affected students.
Governor Yusuf acknowledged the challenges faced by the graduates, declaring, “This situation has been a significant setback for our children, hindering their dreams and aspirations, and it has also affected our state, which is in dire need of their expertise.”
His vision for a prosperous Kano is centered on prioritizing education, ensuring that talented individuals can make valuable contributions to the state’s advancement.
The governor’s proactive measures not only address the systemic issues in the education sector but also inspire renewed hope among Kano’s youth.
By fulfilling his promises, he emphasizes the crucial role of supporting young people in achieving their aspirations, which is vital to the state’s growth.
As this milestone is celebrated, it is evident that Governor Abba Kabir Yusuf’s relentless pursuit of educational reform signals a transformative era for Kano State.
His administration’s unwavering focus on education stands as a vital investment in the futures of individuals and the overall development of the state.
Under his leadership, Kano State is poised to realize its full potential, with eager graduates ready to make impactful contributions to their communities.
Governor Yusuf’s commitment to empowering the youth serves as an enduring reminder that with dedication and decisive action, a brighter future is attainable for all.
Mukhtar Yahya Usman
Kano State Governor, Alhaji Abba Kabir Yusuf, has been named Governor of the Year 2024 (Good Governance) by Vanguard Newspaper, in recognition of his transformative achievements in the education and healthcare sectors.
The recognition was announced in a statement issued by the Governor’s spokesperson, Sanusi Bature Dawakin Tofa, on Saturday.
Governor Yusuf received the award at a prestigious event held in Lagos, where eminent personalities from across the country were honoured for excellence in leadership and service.
Speaking at the ceremony, the Chairman of the occasion, Atedo Peterside, emphasized that the selection process was based on merit and verifiable impact, commending the awardees for their outstanding contributions to national development.
Vanguard’s Editor-in-Chief, Eze Anaba, praised Governor Yusuf for setting a high standard in governance through his commitment, innovation, and focus on people-centered policies.
In his remarks, Governor Yusuf expressed gratitude to Vanguard for the recognition, dedicating the award to the people of Kano State.
He reaffirmed his administration’s resolve to continue investing in sectors that directly impact the lives of citizens, especially education, health, and social welfare.
Other recipients of the Good Governance Award included Governors Umar Namadi (Jigawa), Charles Soludo (Anambra), Douye Diri (Bayelsa), Biodun Oyebanji (Ekiti), Sheriff Oborevwori (Delta) and Hope Uzodinma (Imo).
Governor Yusuf was accompanied to the ceremony by members of the State Executive Council, lawmakers, special advisers, local government chairmen, and close political allies.
This latest honour comes just four days after he received the Governor of the Year (Education) award from Leadership Newspaper.
The Governor is also scheduled to receive the Africa Good Governance Award from Heritage Times Magazine later this month in Morocco.
By Aminu Abdullahi Ibrahim
Kano State has the highest number of zero-dose immunization cases in Nigeria, with 15 local government areas (LGAs) identified as high-burden, according to Save the Children.
This alarming figure has prompted the launch of targeted interventions under the Boost Project, a collaborative initiative by Save the Children and GSK aimed at reducing the number of zero-dose and under-immunized children in the country.
During an engagement meeting held on Thursday with the Kano State Community of Practice (CoP) on Immunization, stakeholders renewed commitments to tackling the issue.
The project is currently being implemented in Kano and Lagos States, with focused interventions in Ungogo and Gezawa LGAs, which are among the most affected areas in Kano.
Speaking at a media and civil society dialogue, Taiwo Folake, Coordinator of the Boost Project, emphasized the critical role of public engagement in reversing the trend.
She called for increased media support to drive awareness and community action on immunization.
Folake explained that the Boost Project works closely with state and local governments, traditional and religious leaders, and caregivers to ensure that children who have never received routine vaccines are reached, while also reintegrating those who have dropped out of immunization schedules.
Dr. Itunu Dave Agbola, Policy and Advocacy Coordinator of the project, said the initiative is also focused on improving domestic resource mobilization for immunization funding, strengthening governance, and developing a Kano-specific immunization policy to enhance planning, funding allocation, and accountability.
She noted that building trust through community leadership is vital for vaccine acceptance.
Also speaking, Salisu Yusuf, Co-Chair of the Kano CoP on Immunization, reiterated the group’s commitment to working with all stakeholders to reduce the number of high-burden LGAs.
He dismissed widespread misconceptions about vaccine safety, assuring that vaccines are safe and scientifically approved.
Yusuf pledged to intensify sensitization efforts through media outreach, house-to-house campaigns, and community meetings.
The meeting marks a renewed drive to improve immunization coverage in Kano State, with a strong emphasis on reaching vulnerable and underserved communities.
Governor Yusuf Champions Education, Resolves Certificate Crisis for Kano Graduates
Governor Yusuf Bags Vanguard’s 2024 Good Governance Award
Kano Tops Nigeria’s Zero-Dose Immunization List as Boost Project Targets Urgent Action
Kano, 12 others prone to meningitis
Uromi killings: Kano deputy Governor leads fact-finding team to Edo state
Book Review: Quintessential Elegance in Islamic Scholarship, Sheikh Ibrahim Khaleel
Emir Sanusi II Calls for Justice Over Killing of Kano Indigenes in Edo
Emir Sanusi II Warns Against Internal Betrayal and External Meddling in Kano
IGP Orders Kano Police to Investigate Emir Sanusi, Withdraws Invitation from Force HQ
