Dangote responds to Obajana plant closure

Dangote Cement Plc wishes to enlighten stakeholders and the public on the recent shutdown at its Obajana Cement plant in Kogi State.

Dangote Cement said, "thugs and local vigilantes from the State Government invaded and sealed the Obajana Cement plant [last Wednesday] over alleged claims of unpaid taxes and Kogi State Government purported equity interest in Dangote Cement PLC. This development led to several of our staff being harmed by these thugs and local vigilantes."

Dangote comments that it's taking firm action to address this situation, and that Dangote Cement Plc continues to perform its obligations as a compliant corporate organisation.   

Meanwhile, the Manufacturers Association of Nigeria (MAN) has condemned Wednesday’s invasion of Dangote Cement Plant by the Kogi State Vigilante Service (KSV), saying the action will discourage new investments in the state. MAN President, Mansur Ahmed, claimed "it is unimaginable that a state government would take such drastic action to shut down a plant that provides job opportunities and economic activities on a huge scale for the people of Kogi State."

Since the plant closure, Kogi State government has published a report on the acqusition of Obajana Cement plant by Dangote Cement which states the transfer of Obajana to Dangote Industries Ltd is 'invalid, null and void'. Dr (Mrs) Folashade Ayoade, public by Secretary to the State Government disclosed in the report that three Certificates of Occupancy for Obajana Cement Company Plc, which were solely owned by the Kogi State government at the time, were used to obtain a loan of NGN63bn (US$145.2m) by Dangote.

Ayoade added that, "Kogi State government should take steps to cancel the existing seven Certificates of Occupancy in the name of Dangote Cement Company."