Obajana Crisis Sending Wrong Signal To Investors – NESG

The Nigerian Economic Summit Group
(NESG) has said the recent dispute between Kogi State and Dangote Cement Plc over ownership of the cement plant in Obajana the action taken by the state government gives the impression that such a commercial dispute cannot be amicably settled using the existing dispute resolution mechanisms.

NESG said the action sends inappropriate signals to investors, both
domestic and foreign, and could result in an increase in Nigeria’s risk rating.

“Our inability as a Nation to give the right signalling to investors will lead to subdued investment flows and capital flight which has a number of consequences,” NESG chairman Asue Ighodalo said in a communique that was issued for the board of directors of the group yesterday.
Titled: ‘Building Inestors’ Confidence: Wrong Time for Missteps,’ the communique said the crisis between the state government and Dangote could hamper Nigeria’s ability to sustain the growth and development of the non-oil sector which is expected to reign in needed revenues to finance the 2023 budget and remain so for the next foreseeable future.

The expected investment into the oil sector of which the full implementation of the newly passed Petroleum Industry Act is expected to attract, for which the government has taken a number of steps, a development Ig said may be jeopardized.