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Obajana Plant Is 100% Owned By Dangote Cement – Mgt

by Olushola Bello
3 years ago
in Business
Obajana
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Dangote Cement Plc, said Obajana Cement plant in Kogi state  is 100 per cent owned by the company.

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This was stated, in a release, signed by the group managing director of  Dangote Cement Plc, Michel Puchercos.

This is as the Organised Private Sector (OPS), berated the state government over the closure of Dangote Cement, Obajana Plant, describing the action as being hasty.

The OPS under the aegis of National Association of Chambers of Commerce, Industries, Mines and Agriculture (NACCIMA), Lagos Chamber of Commerce and Industry (LCCI) and Abuja Chamber of Commerce and Industry (ACCI) in separate statements described the action of the Kogi State governor, Yahaya Bello as shocking and disappointing, saying, for every day the factory is shut, millions of naira are lost and the reputation of Kogi state takes a negative hit.

According to the release, the management of Dangote Cement wishes to inform members of the public, especially its customers and other stakeholders of the recent invasion of its Obajana Cement Plant, Kogi State by armed vigilantes on the orders of the state government.

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“The vigilantes, led by some officials of the State government were apparently acting on a resolution of the Kogi state House of Assembly on controversial tax claims; claims that the state governor had also contradicted when he said the shutdown was due to an alleged invalid acquisition of the company by Dangote Industries Limited,” it pointed out.

It noted that, “in the process of forcefully evicting the workers to enforce the shutdown, the vigilantes shots at 27 of our workers and also destroyed some of the company’s property at the plant.

“We have taken steps to get the hoodlums apprehended by the law enforcement agencies, and we will ensure that full legal action is taken against them.”

Dangote Cement appealed to all its staff and its customers to remain calm while we explore all possible legal steps to address the situation.

It stated that “the welfare of our staff remains our key focus as we work hard to minimise further impact on our people and operations.

“While we reiterate that Obajana Cement plant is 100 per cent owned by Dangote Cement, we remain resolute in transforming Africa, while creating sustainable value for our people, communities, investors and customers.”

The director-general of NACCIMA, Olusola Obadimu said that the issues between the company and the state over tax dispute ought not to have led to sealing of the company but should have been resolved in a conciliatory and amicable atmosphere.

Obadimu said the state government should have trodden a path of caution, and called for the immediate reopening of the factory for normal production activities to resume.

He stated that NACCIMA’s position was based on some key considerations bordering on the impact of the factory’s closure on the economy and thousands of people whose means of livelihood depend on the production activities of the factory.

The NACCIMA boss urged that the factory be reopened as quickly as possible to enable it continue its operation and fulfil its necessary responsibilities, not just on tax obligations, but also keep the hundreds of thousands of Nigerians in its direct and indirect employment dutifully engaged; while sustaining its crucial services not just to the people and government of Kogi State but Nigeria in general.

Also, the director-general of LCCI, Dr. Chinyere Almona said the attack on the cement factory reflected the poor handling of investment protection issues in the country.

The Chamber said it believed there are more decent ways to handle regulatory and legislative matters concerning businesses in Nigeria than resorting to violence.

According to the Chamber, the invasion of the Dangote Cement Factory by youths that led to the shooting of factory workers is unfortunate, ill-construed, and avoidable.

The LCCI boss noted that the federal government and Kogi State government had hitherto benefited from business revenues and social investments, saying  “it is therefore expected that the government would be interested in creating an enabling business environment that can attract both local and foreign investors.

“And where there are infractions, handling such should be in accordance with best practices and the rule of law that protect investors’ rights and human lives.”

LCCI called for a meeting of all government agencies connected with the acquisition of the cement plant to resolve any differences thereof.

The Chamber noted that the growing mining industry in Kogi State has benefited from the production activities of the Dangote Cement Factory, which offers both infrastructural and Corporate Social Responsibility (CSR) projects to enhance the standard of living in the state.

“We see a role for the Presidential Enabling Business Environment Council (PEBEC), the Bureau of Public Enterprises (BPE), the Nigeria Investment Protection Commission (NIPC), and the Kogi State government in resolving this issue. We, therefore, expect to see a swift intervention by these agencies toward a win-win resolution,” LCCI advised.

Director-general of the Abuja Chamber of Commerce and Industry (ACCI), Ms. Victoria Akai urged the state government to employ dialogue in resolving whatever differences it has with the cement company so as to protect the image of the state as an investment destination.

She said both the state governor and the owner of Dangote Cement Plc, Alhaji Aliko Dangote are men of peace who should resolve any business dispute through consensus without jeopardizing the multi-billion naira investment and thousands of jobs of Kogi indigenes.

“We therefore call for the immediate re-opening of the factory and commencement of alternative dispute resolution. Dangote Cement is a company with commendable sustainability records. The company has blazed the trail within Nigeria and across Africa.

“Nothing should therefore be done to truncate the growing business at a time other African countries are opening their doors wide for Dangote investment. The factory has been able to take many out of the street thereby reducing unemployment that has been a major problem in the country.

“The closure of the factory will further increase unemployment. It is in the best interest of Kogi state to reopen the factory so as not to scare away local and foreign investors,” ACCI noted.

Meanwhile, the Kogi State government presented to the public, the report of the Specialised Technical Committee on the Evaluation of the Legality of the Alleged Acquisition of Obajana Cement Company Plc by Dangote Cement Company Limited.

The detailed report, submitted to Governor Yahaya Bello and was presented to the public by the Secretary to the State Government, Dr. (Mrs) Folashade Ayoade revealed that the purported transfer of Obajana to Dangote Industries Limited, was invalid, null and void.


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