Dangote Industries: Obajana Cement acquisition properly done

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The management of Dangote Industries Limited says its acquisition of the Obajana Cement Plant (OCP) followed due process contrary to claims by the Kogi state government (KSG)

The management of Dangote Industries Limited says its acquisition of the Obajana Cement Plant followed due process contrary to claims by the Kogi State Government .

But on Tuesday, the management of Dangote Industries Limited gave details of the transaction in a statement titled ‘Obajana Cement Plant: separating facts from fiction.’ “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.

“Consistent with the terms of the agreement, DIL sourced 100 percent of the funds that were 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 owned by DIL were merged with OCP to become the enlarged Dangote Cement Plc.

“KSG also did not meet its obligations to grant waiver of taxes, charges and levies that it could charge for the operations, affairs and activities of OCP. Rather despite being entitled to tax relief and exemption from charges and levies by KSG for a period of seven years from the date of commencement of production, OCP has paid all due sub-sovereign taxes, levies and charges to KSG since it commenced production in 2007,” it added.

 

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