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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.”
Nasiru Yusuf Ibrahim
The Kano State Chapter of the Arewa Consultative Forum (ACF) has inaugurated a security committee aimed at strengthening community-based responses to insecurity in the state and wider northern region.
KANO FOCUS reports that the committee was inaugurated on Tuesday at the ACF Secretariat by the Chairman of the ACF Board of Trustees in Kano State, Brigadier General Haliru Akilu (Rtd), who said the initiative was a strategic response to Nigeria’s growing security challenges.
Gen. Halliru Akilu inaugurating Gen. Idris Bello Dambazau while Dr Goni Faruk Umar is watching
Akilu described the committee as a platform for strategic engagement, grassroots intervention, and policy articulation to support formal security institutions.
“This committee is envisioned to serve as a fulcrum of strategic engagement and community-driven security intervention. It symbolizes our collective resolve to restore order and peace to our communities,” he said.
He noted that the committee draws membership from various security and paramilitary agencies including the NDLEA, Police, Hisbah, Civil Defence, FRSC, NAPTIP, and vigilante groups.
Gen. Halliru Akilu delivering his address
According to him, the committee is tasked with assessing the evolving security landscape in Kano and beyond, acting as a bridge between citizens and security agencies, and developing actionable, data-driven recommendations to promote peace, vigilance and resilience across ethnic, religious, and political divides.
General Akilu stressed that the committee must operate beyond bureaucratic routines and ensure its insights influence national policy. He also urged members to demonstrate integrity, confidentiality, and dedication.
Chairman of the committee, General Idris Bello Dambazau (Rtd), pledged to uphold the mandate of the committee with seriousness and discipline.
Gen. Idris Bello Dambazau (Rtd) granting interview to journalists
“We’re bringing the seriousness of military service into this assignment. Time in service is life. One minute can cost lives. That’s how seriously we’re taking this task,” he said, adding that the committee was set to begin work immediately.
On his part, the NDLEA Commander in Kano, Ahmed Idris, commended the synergy among security agencies in the state and expressed optimism that the ACF’s initiative would serve as a model for other states.
Cross section of members of the security committee
“In Kano, we’ve built a strong culture of collaboration. This committee reflects that spirit and the quality of its membership shows the seriousness of the ACF,” he said.
KANO FOCUS reports that the initiative comes as Kano and other northern states are facing security threats such as banditry, kidnapping, drug abuse, and youth radicalization. Observers say the ACF’s grassroots-focused approach could offer a much-needed complement to conventional security responses.
Gen. Halliru Akilu (rtd) inaugurating Gen. Idris Bello Dambazau (rtd)
Speakers at the event called for similar committees to be replicated across other states in the region, with hopes that the Kano model would become a blueprint for wider regional intervention.
Members of the security committee and ACF officials
General Akilu closed the event with a call for the committee to chart a new course for peace and security in the region, describing the inauguration as “a bold first step.”
Nasiru Yusuf Ibrahim
United Nations Children’s Fund (UNICEF) has urged the Kano State Government to declare a state of emergency on polio and routine immunisation due to the resurgence of circulating vaccine-derived polioviruses (cVDPVs) in the state.
KANO FOCUS reports that with18 polio cases recorded across nine states, including three in Kano, UNICEF Acting Chief of Field Office, Michael Banda, emphasized the need for urgent action. “Polio knows no boundaries. An outbreak anywhere threatens children everywhere,” he said.
Senior Education Manager and Officer-in-Charge, UNICEF Field Office, Kano, Michael Banda, made the revelation during a media dialogue on polio and routine immunization in Kano.
Mr Michael Banda
According to Banda, Kano accounted for three cases uncovered in Warawa, Nasarawa, and Bunkure local government areas of the state, amid zero immunization and misconceptions against the deadly infection.
cVDPV refers to a type of poliovirus that arises from the oral polio vaccine (OPV), used in the prevention of polio.
According to the Global Polio Eradication Initiative (GPEI), on rare occasions, the weakened virus in the OPV can mutate and begin to circulate within a community, causing infections and potentially paralysis, similar to wild poliovirus.
Although Banda reminded that polio has been the leading cause of paralysis and death among children, he affirmed the disease is on the brink of eradication with vaccination of 3 billion children globally in the last 37 years.
The UNICEF boss, however, worried that the fight against polio is not over in some countries, including in Nigeria, because of low vaccination rates, thereby paving the way for polio outbreaks.
Banda explained that there is a collaboration with the Kano State Government through the Primary Health Care Management Board to broaden public knowledge on the potency of the vaccination.
He added that the media dialogue was targeted to solicit media support in raising awareness and mobilizing parents on the polio vaccination campaign in Kano ahead of World Immunization Week, beginning from 24th and 30th April 2025.
On her part, representative of Kano state Primary Healthcare Management Board, Hajiya Saadatu Ibrahim, identified challenges of hard-to-reach settlements, missing houses, zero-dose vaccination, and poor healthcare workers as major setbacks.
Hajiya Saadatu Ibrahim,
She reassured that the government has a renewed strategy to overcome the challenges, including a new method of recruiting immunization workers and the involvement of external supervisors
She said Kano State Government will immunize 4.1 million under five children.
A polio vaccination campaign is scheduled for April 24-30, 2025, coinciding with World Immunization Week. UNICEF is collaborating with the state government to raise awareness and mobilise parents.
Aminu Abdullahi
The ICEADA AGILE partnership, aimed at promoting girls’ education at the grassroots level, has organized an Activity Feedback Workshop and Quarterly Meeting to assess the successes and challenges of the project across six local government areas in Kano State.
KANO FOCUS reports that the local governments areas include: Bebeji, Kiru, Karaye, Madobi, Rogo, and Warawa.
Prof M. B Shittu presenting IEC materials to Nasiru Yusuf Ibrahim
Speaking at the event, Prof. M.B. Shitu, Team Leader and Project Manager, explained that the project was designed to engage key stakeholders in the selected local government areas to sensitize communities on the importance of enrolling girls in school.
Cross section of ICEADA/AGILE mentors
He noted that participants of the workshop are Community Engagement Mentors selected from the six local governments.
“Their role is to engage directly with community members to promote girls’ enrollment in schools,” he said.
“Part of their responsibility is to carry out sensitization and mobilization campaigns within their communities. Our main concern is increasing the enrollment and retention of girls in secondary education. That’s why we introduced the Community Engagement Mentors—to collaborate with parents and local organizations in support of girls’ education,” Prof. Shitu added.
Cross section of ICEADA/AGILE mentors
He also revealed that the project has recorded significant progress across the six LGAs, although a few challenges still persist and are currently being addressed.
“One of the aims of this workshop is to review the activities carried out in the last quarter and set new community goals to strengthen our campaign. We’ve also launched house-to-house awareness campaigns to tackle the issues affecting girls’ education in these communities,” he stated.
Participants expressed satisfaction with the project’s progress. Lami Idris, a Community Mentor from Karaye LGA, shared her experience.
“We are going from house to house to educate people on the benefits of girls’ education. One of the major challenges we face is the lack of schools in some villages. Some girls have to walk long distances to reach school,” she said.
Review meeting in session
Abdullahi Balarabe Kiru, Secretary of the Nigeria Union of Teachers (NUT) in Kiru LGA, reported that data collected from the area showed over 40 girls are currently out of school. He affirmed that efforts are ongoing to address the issue.
Nasiru Yusuf Ibrahim presenting IEC materials to community mentors
In his remarks, Malam Nasiru Yusuf Ibrahim, Communication Officer of the AGILE Project, disclosed that 130 new schools will be constructed in Kano State to tackle the problem of out-of-school children.
He also highlighted insecurity and the destruction of school infrastructure as major challenges facing the education sector.
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