Nigeria Must Step in to manage the Obajana and Dangote Cement Tussle

This is an own-goal tussle which can devastate many things in Nigeria. Yet, we want justice to also do its job. For that, I call on the Kogi State government and Dangote Cement to modulate their postures: “A statement titled, “Illegal Shutdown of Dangote Cement, Obajana Plant”, signed by the Group Managing Director (GMD), Dangote Cement Plc, Michel Puchercos, said that the company has the full ownership of the Obajana plant”.

If you check 2,000 years of economic history, you will notice that property rights are the foundation of commerce. Where that is not possible, nations fade or struggle to advance.

I have no additional information to add anything to this topic but one thing I will say is this: the way Nigeria handles this will affect its mining, extractive, etc industry playbooks.  What is happening is consequential. Yes, if you can build a cement plant as a state in Kogi to make use of limestone, can Rivers State build a refinery to make use of its oil deposits? As this happens, many interpretations will emerge on the way Nigeria manages solid minerals (gold, silver, limestone, etc) and hydrocarbon (oil, gas) rights in the nation.

Can Mr. President call Aliko Dangote and Kogi State governor to see him today? We cannot use the agbero motorpark strategy here: the president must step in immediately. Yes, the court can come in but assets must be protected while that happens.

The factory is said to have begun back in 1992, during the regime of former head of state, Gen. Ibrahim Babangida, shortly after Kogi State was created. It took a turn in 2002, when the Kogi State Government and Dangote Cement Plc allegedly signed an agreement over the Obajana factory. A document purportedly signed by the Kogi State Government and the Dangote Group, which was seen by Tekedia, claims that both parties had agreed that besides collecting taxes from the company,  the state government will own 10% of the cement factory.

Concerned indigenes of the state said that the issue has lingered for so long because preceding governors had failed to take it up. For the current governor of the Kogi State, Yahaya Bello, it’s time to put the matter to rest once and for all time. People familiar with the matter said that the Kogi State House of Assembly had repeatedly summoned the Chairman of Dangote Group, Aliko Dangote himself, and had shunned a representative sent by the company – insisting that Dangote must appear in person to answer questions regarding his company’s failure to honor its agreement with the state.

The Obajana Factory Ownership Tussle Between Dangote Cement and Kogi State Govt.

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