Connect with us

news

Dangote: Our acquisition of Obajana Cement plant followed Due Process

Published

on

Dangote Cement Trucks Wrongfully Intercepted In Adamawa

Dangote: Our acquisition of Obajana Cement plant followed Due Process

Obajana Cement

 

*Obajana Cement PLC was incorporated in 1992 and as at 2002 had no paid up shares

* Kogi State has no equity interest in Obajana Cement Plc

* The plant and machinery were conceived, designed, procured, built, and paid for solely by DIL, well after it acquired the shares in Obajana Cement Company

 

* The land on which the Obajana Cement Plant is built was acquired solely by Dangote Industries Limited (DIL) in 2003

* Taxes paid to Kogi Govt yearly since production commenced in 2007

 

The management of Dangote Industries Limited has insisted that its acquisition of the Obajana Cement Plc in 2002 followed due process, contrary to claims by the Kogi State government.

 

 

The conglomerate asserted that Kogi State government has no equity interest in Obajana Cement Plc. It also stated that the company as a responsible corporate organisation has been paying relevant State taxes, levies and charges to the Kogi State government since 2007 when production commenced in the acquired cement plant.

 

 

 

 

These clarifications were contained in a statement issued by the management of Dangote Industries Limited titled ‘Obajana Cement Plant: Separating Facts from Fiction.’

 

According to the statement, “This is a statement issued for the sole purpose of addressing the concerns and apprehensions of the stakeholders of Dangote Cement Plc (DCP) especially the over twenty-two thousand people it employs directly, and more indirectly, as well as thousands of contractors, wholesalers, users of our products, our financiers and shareholders.

 

 

 

 

 

“At a time of significant economic challenges that we face as a nation, we believe all must be done to keep our economy running effectively, our people employed, businesses that depend on us thriving and not discourage those who take the risks of needed, lawful and significant investments in our economy. The shutdown of our plant has materially jeopardised the economic wellbeing of our country without any regard for its significant consequences.

 

“Whilst reserving our rights to proceed to arbitration in accordance with the extant agreement, we have reported the unlawful invasion by KSG and the consequential adverse effects of same to all the relevant authorities, including the Federal Government of Nigeria who has now intervened in the matter. It is hoped that the dispute resolution process we have initiated will quickly resolve the disputes and allow us to focus on our business without distraction and continue our significant contribution to our national economy. It is in this context that we state in brief as follows”, the company added.

 

 

 

 

 

According to the statement, “The Obajana Cement Plant is one of the most critical components of economic activity in the nation, being one of the highest taxpayers, and vehicle for one of the largest companies invested in by thousands of Nigerian and foreign investors. Its most important assets are (1) its land, the plant and machinery thereon, and (2) the vast limestone deposit covered by mining leases issued under licence by the Federal Government of Nigeria (FGN).”

 

The company clarified that the land on which Obajana Cement Plant is built was solely acquired by Dangote Industries Limited (DIL) in 2003. “The land on which the Obajana Cement Plant is built was acquired solely by Dangote Industries Limited (DIL) in 2003, well after it had acquired the shares in Obajana Cement Company in 2002, following the legally binding agreement it entered into with KSG to invest in Kogi State. DIL was issued three Certificates of Occupancy in its name after payment of necessary fees and compensation to landowners.

 

 

 

“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”, the company explained.

 

“After the agreement with the KSG, DIL applied for and obtained mining leases over the said limestone from FGN, at its cost and has complied with the terms of the leases since inception. The Government of Kogi State had no minerals to give, had no assets to give, and only invited DIL as most responsible governments do to come into the State and invest in a manner that will create employment, develop the State, and earn it taxes”, the statement added.

 

 

 

In a section of the statement titled, ‘The Incorporation of OCP and the Invitation by KSG’, the company noted that, “In 1992, the Kogi State Government incorporated Obajana Cement PLC (OCP) as a public limited liability company. Sometime in early 2002, about 10 years after the incorporation of the OCP (which still had no assets or operations as of that time), KSG invited Dangote Industries Limited (DIL) to take the opportunity of the significant limestone deposit in the State by establishing a cement plant in the State.

 

“Following several engagements and assessment of the viability of the proposed opportunity, DIL agreed that it would establish a cement plant in Kogi State and provide the entirety of the substantial capital required for the investment.

 

 

 

 

“DIL also agreed, following a specific request by KSG, to use the OCP name (albeit only existing on paper as of that time, and without any assets or operations) for the time being, as the vehicle for this investment. On 30 July 2002, KSG and DIL entered into a binding agreement to document their understanding. The agreement was amended in 2003 and remains binding on, and legally enforceable by, the parties to same,” the statement explained.

 

On the issue of an Agreement between Dangote and Kogi State Government, the statement gave a summary. It noted that “it was agreed, inter alia, that: DIL would establish a cement plant with a capacity of 3,500,000 metric tonnes per annum; DIL shall hold 100% of the shareholding in OCP, and source for all the funds required to develop the cement plant; KSG shall have the option to acquire 5% equity shareholding in OCP within 5 years; and KSG shall grant tax relief and exemption from levies and other charges by KSG for a period of seven (7) years from the date of commencement of production.”

 

 

 

 

 

“Consistent with the terms of agreement, DIL sourced for 100% of the funds that was 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 (such as the Benue Cement Company) owned by DIL were merged with OCP to become the enlarged Dangote Cement Plc”, the statement added.

 

On the issues of ‘Execution of the Agreement: The Plant, Taxes, Shares & Dividends’, the statement noted, “DIL assiduously and at significant cost met all the terms of the agreement between it and KSG in relation to OCP. It built the cement factory, much bigger and better than envisaged.

 

 

 

 

“KSG could not meet its financial obligations of contributing to the funding the plant in any form; neither could KSG fund acquisition of 5% equity shares in OCP when it was asked on a number of occasions to exercise the purchase option.

 

“KSG also did not meet its obligations to grant waiver of taxes, charges and levies that it could charge the operations, affairs and activities of OCP. Rather despite being entitled (under the terms of the agreement with KSG) to tax relief and exemption from charges and levies by KSG for a period of seven (7) years from the date of commencement of production, OCP (and now DCP) has paid all due sub-sovereign taxes, levies and charges to KSG since it commenced production in 2007.

 

 

 

 

“KSG does not have any form of investment or equity stake in OCP, so no dividend or other economic and/or shareholding rights whatsoever could have accrued to it from the operations of the company”, the statement added.

 

On the issue of the Acquisition of the Plant Site, the statement noted that, “After the agreement between DIL and KSG in 2002, DIL in 2003, applied to KSG for the acquisition of land for the plant site, and this application was granted with the issuance of three Certificates of Occupancy to DIL. DIL to the knowledge of KSG, paid substantive compensation to Obajana Farmland Owners located within the two (2) square kilometres plant site.

 

 

 

“Subsequently, in September 2004, DIL, in good faith, applied to the State Governor for the statutory consent for DIL to assign the plant site to OCP being DIL’s investment vehicle. This consent request was granted by the State Governor and the appropriate consent fees were paid by DIL”, it added.

 

Shedding more light on the company’s engagement with Kogi State Government, the statement explained that, “The investment of DIL in Kogi State through OCP was at the instance of the duly constituted government of Kogi State, done in accordance with the law of the State and all enabling laws in that regard, and the transaction documents were effectively, lawfully and duly executed by the Governor and Attorney General of the State (at the time), after internal approvals were obtained within the government.

 

 

 

 

“Since the inception of Alhaji Yahaya Bello’s administration in 2016, and regardless that government is a continuum, we have had series of enquiries about the ownership structure of the Dangote Cement PLC as it relates to the alleged interest of KSG; and had several engagements with the officers of the State government including Governor Yahaya Bello. At all of these engagements we have provided all the details and information supported by relevant documents, required by the Government and the State House of Assembly to confirm our lawful investment.

 

“For instance, in 2017, we were invited by the Judicial Commission of Inquiry, and we made our submission to the commission with relevant documents to support our position. We are yet to receive any feedback from the Judicial Commission of Inquiry. While still waiting to hear of the report of the Inquiry, we were invited by the State House of Assembly on the same matter earlier this year, and again, we provided evidence in support of our position that KSG does not have any equity or other interest in OCP or DCP.

 

 

 

 

“On Wednesday 5 October 2022, hundreds of dangerously armed men, other than law enforcement officers, attacked our cement plant in Obajana, Kogi State, destroyed our property, inflicted grievous injuries on many of our employees, and shutdown operations at the plant. KSG has admitted that the armed invaders acted on its instructions, and in furtherance of the recent enquiry by the Kogi State House of Assembly in connection with the ownership of the Obajana Cement Plant.

 

“Curiously, on 6 October 2022, a day after the shutdown of our facility in Obajana on the orders of KSG, Governor Bello addressed the public and announced that a Specialised Technical Committee which was set up as part of the recommendations of the Judicial Commission of Inquiry had just presented its recommendations, which have been accepted by KSG. This statement makes it abundantly clear that the shutdown of DCP’s plant occurred regardless of the Governor’s own confirmation that implementation of the recommendations of the Specialised Technical Committee was still pending”, the statement noted.

 

 

 

 

Focusing on the current state of play, the company said, “Whilst we do not want to speculate on the motivation for the spurious claims being made by KSG in relation to the ownership of the Company, which have resulted in the unfortunate unlawful forcible closure and damage of our plant, and injury of several people, we condemn in strongest possible terms, the unlawful shutdown of our plant by KSG sponsored armed-thugs, the damage to our property (including the looting of large sum of money kept in the office), and grievous injury inflicted on our employees by them.

 

“This disruption of operations at the plant has caused loss of revenue not only to our company and its customers but has also adversely impacted revenue due to both the Federal and State governments. It has also occasioned loss of jobs for the teeming youths who are daily paid workers that throng our plant for their daily sustenance.

 

 

 

 

Appealing for overall peace and calm, the statement noted, “We implore all our stakeholders, namely shareholders, customers, suppliers, employees, and the entire community of Obajana and Kogi State at large to remain calm while we follow the legitimate and lawful process to resolve this matter. We shall keep our stakeholders duly updated whilst we remain confident that the statutory and contractual rights of DIL shall be upheld by these legal processes which we have initiated.”

news

Director General NSC, Bar. Bukola Olopade Extends Christmas Greetings to Christians in Abeokuta South and Across Nigeria

Published

on

Director General NSC, Bar. Bukola Olopade Extends Christmas Greetings to Christians in Abeokuta South and Across Nigeria

Director General NSC, Bar. Bukola Olopade Extends Christmas Greetings to Christians in Abeokuta South and Across Nigeria

 

 

By Solanke Ayomideji Taiwo

 

 

In a heartfelt message, The Director General of the National Sports Commission (NSC), Honourable Bukola Olopade, has extended warm festive greetings to Christians in Abeokuta South, Ogun State, and across Nigeria as the nation embarks on the joyous celebration of Christmas.

 

Director General NSC, Bar. Bukola Olopade Extends Christmas Greetings to Christians in Abeokuta South and Across Nigeria

 

Recognizing the significance of this time of year, Olopade emphasized the essence of unity, love, and gratitude that the Christmas season embodies. He urged citizens to reflect on the virtues of compassion and generosity, which are particularly vital in fostering peace and harmony in communities.

 

 

 

“Christmas is a time for joy, reflection, and togetherness. It reminds us of the values of love and kindness, which are fundamental to our social fabric,” said Olopade. “As we celebrate this festive season, let us remember those in need and extend a hand of support to one another.”

 

 

The Director General of the National Sports Commission (NSC), Honourable Bukola Olopade, acknowledged the challenges that many have faced over the past year, including economic hardships and social unrest, yet he expressed optimism for the future. “In the spirit of Christmas, let us embrace hope and look forward to a brighter tomorrow. Our unity and resilience can overcome any challenges we face.”

 

 

 

Olopade also highlighted the importance of sports in promoting peace and national unity, noting that the NSC is committed to fostering an inclusive environment where all Nigerians can participate in sports and recreational activities. He encouraged communities to engage in sports events during the festive period as a means to strengthen bonds and celebrate togetherness.

 

 

 

As part of his Christmas message, Olopade called on everyone to prioritize the welfare of others, particularly the less fortunate. He urged individuals and organizations to consider charitable acts that can uplift those in need during this season of giving.

 

 

 

In closing, Bar. Bukola Olopade wished all Nigerians a Merry Christmas filled with love, peace, and joy. He expressed hope that the spirit of the season would inspire a renewed commitment to community service and cooperation among citizens.

 

 

 

As the festivities continue, the Chairman’s message resonates with the values of compassion, unity, and hope, encouraging all to celebrate the true meaning of Christmas.

Continue Reading

Business

Dangote Hails Tinubu on Impact of Crude for Naira Swap Deal

Published

on

Dangote Hails Tinubu on Impact of Crude for Naira Swap Deal

 

 

…As Dangote Refinery partners MRS to sell PMS at N935 per litre nationwide at its retail outlets

 

 

Sahara Weekly Unveils That The Foremost entrepreneur and President of the Dangote Industries Limited, Aliko Dangote has commended President Bola Ahmed Tinubu for the positive impact of the naira for crude swap deal on the Nigerian economy, which has led to reduction in prices of petroleum products in the country.

 

Dangote Hails Tinubu on Impact of Crude for Naira Swap Deal

 

To provide succour to Nigerians, Dangote recently reduced the price of Premium Motor Spirit (PMS) from N970 to N899.50 at its Refinery loading gantry and provided generous credit terms to marketers.

 

 

“To ensure that this price reduction gets to the end consumer, we have signed a partnership with MRS to sell petrol from its retail outlets nationwide at N935 per litre” he added. This price has already commenced in Lagos, and it will be offered nationwide from Monday.

 

 

In his statement, he called on other oil marketers such as the NNPC Retail and all other marketers, “to work with us to ensure that Nigerians enjoy high-quality petrol at discounted prices.”

 

 

According to him, “The Dangote Refinery is for the benefit of Nigeria and Nigerians. We will therefore continue to work with various value chain players to deliver high quality petrol at cheaper prices. Our aim is for all Nigerians to have ready access to high quality petroleum products that are good for their vehicles, good for their health, and good for their pockets.

 

 

Recall that in September, the Federal Executive Council (FEC) under the leadership of Mr. President approved the sale of crude to local refineries in Naira and corresponding purchase of petroleum products in Naira. The move, which commenced on October 1, led to reduced pressure on the dollar and ensured the stability of the local currency.

 

 

Dangote thanked Nigerians for their unwavering support and the government for creating an enabling environment for the domestic refining industry.

Continue Reading

religion

Prophecy for 2025: A Year of Vengeance, Harvest, and Divine Shifts By Pro. Kingsley Aitafo

Published

on

Prophet Kingsley Aitafo's Prophecy Fulfilled: Alhaji Muyideen Bello Passes Away

Prophecy for 2025: A Year of Vengeance, Harvest, and Divine Shifts By Pro. Kingsley Aitafo

 

 

Sahara Weekly Reports That Prophet Kingsley Aitafo, under the grace and spiritual leadership of His Eminence Rev. Pastor Samuel Belehou Oshoffa, founder of the Celestial Church of Christ, has unveiled 25 prophecies for the year 2025. These revelations call for vigilance, prayer, and alignment with divine purpose. Below is the detailed list of the prophecies:

 

 

1. A Year of Divine Justice

2025 will be a year of vengeance upon the wicked and a season of abundant harvest for the righteous. This is a time for reflection and spiritual alignment.

 

2. Weather Disasters to Pray Against

The world must unite in prayers against severe weather disasters, including excessive winds, water overflow, floods, earthquakes, and tsunamis. These natural calamities threaten to disrupt lives and properties globally.

 

3. A Major Technological Advancement

WhatsApp is predicted to receive a significant upgrade, potentially integrating email functionalities. This innovation will redefine digital communication.

 

4. Nigeria’s National Football Team

The Nigerian national football team should be prayed for, as a painful defeat could occur.

 

5. A Great Man of God in Danger

One of the most celebrated men of God is at risk of sudden death. Prayers are needed to avert this tragedy.

 

6. Sunday Igboho

The activist should be prayed for to avoid heart-touching news that could cause widespread concern.

 

7. Nnamdi Kanu

Freedom is within reach for Nnamdi Kanu, but prayers are needed to ensure he lives to see it.

 

8. Fire Disasters Worldwide

Serious fire disasters are foreseen and must be prayed against to protect lives and properties globally.

 

9. NYSC and PHCN Reforms

The National Youth Service Corps (NYSC) and the Power Holding Company of Nigeria (PHCN) will be empowered and reshuffled for greater effectiveness.

 

10. Global Police Forces

The police worldwide are warned of potential brutal revolts from the masses. Prayers are needed to prevent such events.

 

11. African Nations and Coups

Several African countries are advised to pray against unexpected coup plots.

 

12. Goodluck Jonathan’s Political Path

Former President Goodluck Jonathan is encouraged to follow God’s leading and refrain from contesting future elections.

 

13. Changes in EFCC

The Economic and Financial Crimes Commission (EFCC) will be more empowered, but significant transformations will occur within the agency.

 

14. Passing of Aged Leaders

Several aged ex-presidents, traditional rulers, and military leaders will pass on in 2025.

 

15. New Religious Leaders

New leaders will emerge in white garment denominations and the Catholic Church, marking significant transitions.

 

16. Churches in Danger of Scandals

Great churches like RCCG, Winners Chapel, Christ Embassy, Mountain of Fire, and COZA are urged to pray against confusion and scandals that could lead to divisions.

 

17. Exposure of False Churches

Churches that operate under the guise of Christ without genuine faith will be exposed.

 

18. Protection of Yoruba Entertainers

Yoruba actors and actresses should pray against strange illnesses, while English-speaking entertainers must pray against sudden deaths.

 

19. Plane Crashes

A major plane crash could occur, causing widespread pain. Prayers are needed to prevent this disaster.

 

20. National Unity in Nigeria

Despite ongoing agitations, Nigeria will remain undivided.

 

21. The Monarch and Pope’s Seat

Prayers are required to prevent sudden vacancies in the monarchy of England and the papal seat.

 

22. Deadly Disease and Global Conflict

A new, more deadly ailment than COVID-19 and the potential of a mini-war loom on the horizon. The world must unite in prayer to avert these crises.

 

23. Rising of True Last-Day Churches

The emergence of last-day churches will bring forth spiritual giants and miraculous powers reminiscent of the apostles of old.

 

24. Business Tycoons in Nigeria

Successful Nigerian business magnates should seek divine protection against untimely death.

 

25. Christ’s Return is Near

Finally, Prophet Kingsley reminds the world that the return of Jesus Christ is near. Embracing holiness and righteousness is the only path to prepare for His coming.

 

Prophet Kingsley’s prophecies serve as a divine reminder for individuals, nations, and institutions to seek God’s guidance and protection. Let 2025 be a year of faith, reflection, and readiness for what lies ahead.

 

Let us watch, pray, and align with God’s will.

Continue Reading

Cover Of The Week

Trending