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.”
Headlines
Abdulaziz unveils project inspection initiative, trains APC social media inflluencers at Arewa media summit
Nasiru Yusuf Ibrahim
The Senior Special Assistant to President Bola Ahmed Tinubu on Media and Public Enlightenment, Abdulaziz Abdulaziz, has unveiled a regional project inspection initiative aimed at showcasing key development projects in Northern Nigeria, while urging journalists and social media influencers to uphold ethical communication and combat misinformation.
Speaking on Monday at the maiden Arewa Media Summit in Kano, organised by his office, Abdulaziz said the gathering was conceived to strengthen dialogue between government, citizens and the media through accountability, responsibility and ethical communication.
He said effective governance depends on transparency, responsible civic engagement and a professional media that serves as a bridge between leaders and the people through factual and balanced reporting.
The presidential aide also cautioned social media influencers, who command large online audiences, to verify information before publication and avoid content capable of creating division, particularly as the country approaches the 2027 general elections.
According to him, more than 100 All Progressives Congress (APC) social media communicators were trained ahead of the summit to enhance their capacity to communicate government policies, programmes and achievements effectively.
Abdulaziz also unveiled the Gani Ya Kori initiative, a regional project inspection tour designed to spotlight landmark projects executed by President Bola Ahmed Tinubu and Northern state governors that have received limited public attention.
“The initiative will help ensure that citizens are adequately informed about development projects and government interventions across the region,” he said.
The summit also featured a keynote address by the Minister of Information and National Reorientation, Mohammed Idris, who urged journalists and social media influencers to deny bandits and terrorists the publicity they seek.
“The media has an indispensable role in denying violent extremists the publicity they seek while promoting unity, resilience and hope,” the minister said.
He stressed that democracy flourishes when government remains transparent, citizens participate responsibly and the media performs its constitutional role with professionalism, fairness and integrity.
Idris observed that while the digital revolution has transformed communication by making every smartphone a broadcasting platform, it has also accelerated the spread of fake news and disinformation capable of undermining national unity and public confidence.
Declaring the summit open, Kano State Governor Abba Kabir Yusuf called on other states to emulate Kano’s Special Reporters Initiative, through which more than 150 young people have been deployed to ministries, departments, agencies and the state’s 44 local government areas to strengthen government communication and public enlightenment.
KANO FOCUS reports that the summit attracted journalists, broadcasters, filmmakers, digital content creators, academics, policymakers and communication professionals from across Northern Nigeria to deliberate on the theme, “Government, Citizens: Accountability, Responsibility and Ethical Media Practice.”
Nasiru Yusuf Ibrahim
The Kano State Government says it has executed 1,508 development projects worth more than N928 billion across the state’s 44 local government areas since Governor Abba Kabir Yusuf assumed office, with about 80 per cent of constituency projects awarded between 2023 and 2025 already completed.
KANO FOCUS reports that the Commissioner for Public Procurement, Projects Monitoring and Evaluation, Comrade Nura Iro Ma’aji Sumaila, disclosed this during an international press briefing on the administration’s infrastructure development programme.
According to Comrade Sumaila, the projects cover critical sectors including roads, urban renewal, education, healthcare, security and other social infrastructure.
He said 799 of the projects have been completed, while 709 are at various stages of execution. He added that the state is also implementing 619 constituency projects through members of the Kano State House of Assembly.
The commissioner noted that about 80 per cent of the constituency projects have been completed. However, he said some projects remain unfinished because of rising construction costs caused by inflation.
He said the government has submitted a request to Governor Abba Kabir Yusuf for an upward review of contract sums to enable contractors complete the affected projects.
Breakdown of projects
Comrade Sumaila said the administration spent over N169 billion on urban renewal projects, including road rehabilitation, drainage construction and other metropolitan infrastructure.
He said another N118 billion was committed to constructing five-kilometre roads in 38 local government areas to improve connectivity across the state.
According to him, the government also awarded contracts worth over N6.8 billion for the construction of Kano State Neighbourhood Watch security divisions in 36 local government areas.
He added that rural infrastructure projects covering education, healthcare and other social interventions across the 44 local government areas account for contracts valued at more than N397 billion, while other ongoing projects have a combined value of about N255 billion.
Commitment to transparency
The commissioner said the Ministry of Public Procurement, Projects Monitoring and Evaluation would continue to ensure compliance with due process and technical standards in the execution of government projects.
He said the ministry’s mandate includes monitoring projects to ensure value for money and prudent utilisation of public resources.
According to him, the administration’s investments in infrastructure are intended to improve mobility, strengthen security, expand access to education and healthcare, improve water supply and stimulate economic growth across the state.
Nasiru Yusuf Ibrahim
Kano State has emerged as the highest-ranked sub-national government in the Economic Community of West African States (ECOWAS) for education spending, according to the latest Sub-National Education Spending Index developed by the University of Paris.
KANO FOCUS reports that the ranking places Kano State first among 209 first-level sub-national governments across 15 ECOWAS member countries, underscoring the state’s growing reputation for prioritising investment in education.
According to the published index, Kano topped the rankings with an overall S-WAESI score of 87.21, outperforming other leading regions, including Dakar and Saint-Louis in Senegal. Lagos State was the second Nigerian state on the list, ranking 16th overall.
The assessment evaluated states and regions using the S-WAESI (Sub-National Weighted Aggregate Education Spending Index) methodology, which measures government commitment to education through indicators such as actual education expenditure, spending per student, budget execution, education priority, transparency and evidence-based reporting.
The methodology assigns 35 points to actual education spending, 25 points to spending per student, 20 points to budget execution, 10 points to education priority and 10 points to transparency.
The report indicated that Kano excelled largely due to its strong actual education spending and budget execution, making it the best-performing sub-national government in the region.
The ranking covered states, regions, districts and municipalities across Nigeria, Senegal, Ghana, Côte d’Ivoire, Sierra Leone, Liberia, Benin, Burkina Faso, Mali, Niger, Togo, Guinea, Guinea-Bissau and Cabo Verde.
Kano State Accountability Forum on Education (K-SAFE) said the recognition reflects Kano State Government’s sustained investment in expanding access to education, improving school infrastructure and strengthening educational planning and budget implementation.
KANO FOCUS reports that the achievement is expected to further boost the state’s profile as a leader in education reform within West Africa and provide additional momentum for ongoing efforts to improve learning outcomes across the state.
The latest ranking comes amid renewed attention on education financing across ECOWAS, with experts increasingly emphasising transparent budgeting, efficient resource utilisation and sustained public investment as critical drivers of quality education.
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K-SAFE hails Gov. Yusuf as Kano tops ECOWAS education spending ranking
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Kano ranks best in ECOWAS on education spending index
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