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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
Home-based Super Eagles coach, Augustine Eguavoen has invited Kano Pillars legendary midfielder, Rabiu Ali, and 29 players for the African Nations Championship (CHAN) qualifiers against Ghana.
KANO FOCUS reports that the 8th edition of the continental championship – reserved exclusively for footballers plying their trade with clubs in their country’s domestic Leagues with standard contracts – is scheduled to take place in February 2025 in Kenya, Uganda and Tanzania.
Kano Pillars’ evergreen midfielder, Rabiu Ali, who has scored eight goals this season, is among the players called.
The 44-year-old Ali has been a key player for Kano Pillars this season alongside Super Eagles captain, Ahmed Musa.
Other Kano Pillars players invited are Aminu Adam Sani and Nelson Abiam.
All the invited players will arrive at the Remo Stars Sports Institute, Ikenne-Remo, Ogun State on Wednesday, 4th December 2024, where the team will train ahead of the first leg of the qualification fixture against Ghana’s Black Stars B, billed for the Accra Sports Stadium on Sunday, 22nd December.
The second leg will take place at the Godswill Akpabio Stadium, Uyo on Saturday, 28th December.
By Abdullahi Yusuf
By some definitions,education is both the act of imparting knowledge to others and the act of receiving knowledge from someone else. Scholars have also defined education as the knowledge received through schooling or instruction.
Education plays a very important role in the life of a person as it trains,equips and prepares him or her to face and surmount the challenges of life.
This essential sector has, however, suffered neglect in Kano State,over the years, with primary schools and secondary schools sustaining dilapidated classrooms, dearth of furniture, teachers and instructional materials, among other challenges.
This apparent decay in the sector prompted the administration of Governor Abba Kabir Yusuf to declare a State of Emergency to arrest the situation and restore the lost glory of education in the state.
While declaring the State of Emergency in the sector on June 8,2024, Governor Abba Kabir Yusuf said inter alia:”As your elected Governor entrusted with the solemn responsibility of steering our state towards prosperity and progress, I cannot ignore the glaring reality that confronts us in the realm of education.
“With education being our number one priority, and believing that education is not only a public good, but also the greatest asset that any people can bequeath to its upcoming generation because no people can grow beyond the quality and standard of their education system, we must, therefore, take radical but practical measures to reposition education provisioning in our State.
“Nearly four out of every five classrooms in our primary and junior secondary schools are marred by dilapidation and disrepair, rendering them unsuitable for the noble pursuit of knowledge.
“Today, I stand before you to announce the declaration of a STATE OF EMERGENCY in the education sector. A state of emergency, as declared today, is an extraordinary legal measure that allows us to take some bold steps to address these critical challenges swiftly and effectively,” the governor said.
Five months after the commencement of the implementation of the State of Emergency in the all-important sector, members of the Correspondents’ chapel of the Nigeria Union of Journalists(NUJ),Kano Council,set out on a tour of projects being executed by the State Government under the initiative,and their findings were quite revealing as they were educative.
The tour took the Reporters to many primary and junior secondary schools in whose premises a one-storey block of four classrooms each is being constructed across the 44 local government areas of the state to address the challenge of inadequate infrastructure bedeviling the education sector.
The Writers also monitored the provision of furniture and instructional materials as well as the deployment of more teachers as part of the efforts of the Government to respond to the challenges in the sector.
The schools visited included but not limited to Namadi Primary School,Unguwar Jakada in Gwale Local Government Area,Sabon Layi Special Primary School, Bichi,in Bichi Local Government Area, Dawakin Tofa Model Primary School in Dawakin Tofa Local Government Area and Garin Dau Central Primary School in Warawa Local Government Area.
Others include: Hotoro South Special Primary School, Chula Central Primary School in Ajingi Local Government Area,Yelwa Model Primary School in Dala Local Government Area,Ungogo Special Primary School in Ungogo Local Government Area and Kumbotso Special Primary School in Kumbotso Local Government Area.
In virtually all these schools visited,it was observed that the implementation of the State of Emergency has taken shape with the construction of one-storey block of four classrooms reaching advanced level of completion, provision of more furniture and instructional materials and deployment of additional teaching staff.
Another notable development in the schools is the high level of attendance of pupils and teachers, with lessons going on steadily, which,it was gathered, was encouraged by the ongoing efforts of the State Government to improve the standard of education, especially as it was evident in the provision of furniture and teaching aides such as books and writing materials.
Some stakeholders interviewed appreciated Governor Abba Kabir Yusuf for launching the education revival programme.
The stakeholders whom included Sarkin Fulani Dagacin(Village Head) of Kumbotso,
Aminu Iliyasu, described the measure as “bold and timely.”
“The ongoing implementation of State of Emergency in the education sector by the State Government ably led by Governor Abba Kabir Yusuf,is a welcome development as it will address the decay in the sector,”Iliyasu said.
He particularly commended the construction of one-storey block of four classrooms for primary schools across the 44 local government areas of the state, as well as the provision of furniture and instructional materials and deployment of more teachers to primary schools in the state.
On his part, the Headmaster of Kumbotso Special Primary School, Shuaibu Idris, commended the State Government for its provision of more classrooms, furniture and teaching aides to the school.
The gesture,Idris said, would boost teaching and learning in the school,but appealed to the State Government to deploy more of such infrastructure to the school.
Similarly,the Headboy of Yelwa Model Primary School in Dala Local Government Area,Saminu Sunusi, and the Headgirl of the school,Hadiza Ahmed Sulaiman, lauded the introduction of the State of Emergency by the State Government,saying the initiative would boost school enrollment and improve the education sector.
In the same vein, Nura Yusuf,the Headboy of Ungogo Special Primary School in Ungogo Local Government Area,and his counterpart,the Headgirl of the school,Jamila Isa Suleiman,said they were encouraged by the provision of additional infrastructure, teachers and instructional materials under the initiative.
On his part,the Headmaster of Dawakin Tofa Modern Primary School in Dawakin Tofa Local Government Area, Sabi’u Sunusi Idris, commended the State Government for providing furniture, teaching materials,water and toilet facilities in the school, so also Latifatu Jibrin Bichi and Abdulrahaman Idris, both parents of some pupils in the Sabon Layi Primary School,Bichi, who lauded the government for intervening in the education sector.
Like any government work, however,the implementation of the State of Emergency in the education sector is confronted by challenges.These include inadequate furniture, teaching and learning materials, toilet facilities as well as dearth of classrooms and teaching staff in the primary and secondary schools visited.
It was also observed that lack of perimeter fencing, inadequate number of security guards, near total absence of libraries and dispensaries were prevalent in the schools.
These challenges formed part of the testimonies of stakeholders met on ground, including Aminu Iliyasu,the village head of Kumbotso,who said that poverty and hunger are distracting primary school pupils in the area.
Iliyasu lamented that many of the pupils stray away from school and indulge in petty trading and other menial jobs because their parents cannot provide adequate care for them and other members of their respective families.
“Because of the prevailing poverty and hunger in the country, many of the pupils have to indulge in petty trading and other menial jobs so as to complement their families’ income,” he said.
In this situation,the village head said, the parents find it difficult to make any material contribution to the State Government’s efforts to revamp education.
Another major challenge facing the implementation of the State of Emergency as testified by some primary school pupils including the Headboy of Yelwa Model Primary School in Dala Local Government Area,Saminu Sunusi,and the
Headgirl of Ungogo Special Primary School, Jamila Isa Suleiman,is the inadequate number of toilet facilities in the schools.
The pupils complained that the existing toilets in their respective schools are grossly inadequate, forcing them to either do their sanitation at home or defecate in the open.
Dearth of furniture and inadequate number of teaching staff are also part of the major challenges as lamented by the Headmaster of Hotoro South Special Primary School, Habibu Sani, and his Sabon Layi Primary School, Bichi counterpart, Malam Auwal Baduku.
Both Headteachers said shortage of chairs and desks had compelled the pupils to be receiving their lessons on bare floor.
Similarly,the Headmasters said, the low number of teachers had compelled them to ration them between the multitudes of classrooms in their respective schools, which they pointed out,is inimical to the implementation of the State of Emergency programme.
Again,some other Headteachers complained that lack of perimeter fencing had exposed their schools to the menace of trespassers and thieves, which according to them, negate the State of Emergency initiative.
The findings of the tour clearly revealed that in spite of the challenges,the State of Emergency in the education sector as declared by Governor Abba Kabir Yusuf,is working as planned.What is now needed is more vigour in its implementation as requested by the stakeholders.
••••Reaffirms Commitment to Press Freedom and Journalists’ Welfare
Kano State Governor, Alhaji Abba Kabir Yusuf, has congratulated Comrade Alhassan Yahaya on his election as the President of the Nigeria Union of Journalists (NUJ).
Comrade Yahaya emerged victorious at the 8th Triennial Delegates Conference held on Thursday in Owerri, Imo State.
In a statement issued by the governor’s spokesperson, Sunusi Bature Dawakin Tofa, Governor Yusuf described the election of Comrade Yahaya and his team as a reflection of the trust and confidence reposed in them by journalists nationwide.
He called on the new leadership to promote inclusiveness, maintain the ethical standards of journalism, and focus on capacity-building initiatives to align with global best practices.
The governor emphasized the critical role of a free press as the Fourth Estate of the Realm in safeguarding democracy and advancing societal development.
He reiterated Kano State’s commitment to ensuring the welfare and safety of journalists, recognizing their vital contributions to informing and educating the public.
Governor Yusuf expressed optimism that the new NUJ leadership would steer the union toward transformative achievements that would strengthen the media industry for the benefit of the nation.
He also pledged his administration’s support in fostering a thriving and independent press.
The Kano State Government wished the new NUJ leadership a successful tenure filled with impactful milestones for the media professional.
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