Facts About Dangote's Fight With Kogi's Government Over Obajana Cement Factory

Facts About Dangote's Fight With Kogi's Government Over Obajana Cement Factory

  • The beef between Dangote Industries and the Kogi State government has been resolved due to the intervention of the Nigerian government
  • The altercation which lasted for 10 days came as a result of a claim by the state government that the Dangote Cement at Obajana plant was not legally acquired by Dangote
  • Dangote said it duly acquired the factory in 2003 and began remitting tax to the state government since 2007

The altercation between the Dangote Group and the Kogi State government over the ownership of the Obajana Cement factory ended as fast as it began.

The 10-day rift had Nigerians watching as Kogi State government led by Yahaya Bello allegedly laid siege to the cement factory, chased workers away and locked the place.

Dangote Cement, Obajana, Kogi State, Obajana
Chairman of Dangote Industries, Aliko Dangote and Kogi State governor, Bello Credit: Bloomberg/Contributor
Source: Getty Images

Back and forth between Kogi and Dangote

There were reports of Kogi State government using its vigilante group to inflict damage on the plant and injuring workers at the site.

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Following the beef, there were allegations that Dangote is not the bonafide owner of the factory as he did not follow due process in its acquisition and, by a resolution of the Kogi State House of Assembly, the factory was seized.

The brickbat between the state and Dangote Cement, owned by Africa’s richest man was brought to an end when President Muhammadu Buhari allegedly intervened and ordered the factory's reopening.

Reports say both parties are yet to reach an agreement but that Dangote had offered the state government 5 per cent equity in the factory which the government is yet to accept.

Dangote stated that the company was legally acquired in 2003 and began its tax remission four years after, a statement the state government refuted.

The facts about the issue

Here are the facts behind the 10-day altercation.

FG’s intervention: The dispute was brought to an end by the timely intervention of the Nigerian government.

Following the order of the National Security Council on Friday, October 14, 2022, the state government ended its claim to the factory.

Biggest employer: According to Business Insider, Dangote Industries is the biggest employer of labour in the state and the second biggest in Nigeria after the federal government. It is also the highest taxpayer to the Nigerian government.

Residents welcome development

Sources at Obajana stated that most residents of the area were opposed to the takeover of the factory by the state government as they were being rendered jobless by the government’s action.

The intervention by the federal government saw residents jubilant and displaying green leaves in solidarity with the government’s decision.

Those interviewed by newsmen showed that the residents were in favour of reopening the factory.

Violence-prone: The potential threats of violence at the plant led to the decision of the National Security Council to have the factory reopened.

The Minister of Police Affairs Mohammed Dingyadi stated that an agreement was reached between both parties to reopen the factory and make sure there is peace in the host communities.

What we know so far about Dangote Cement and Kogi state Debacle

Legit.ng reported that The back and forth between Dangote Cement and Kogi State government is getting messier by the day as both sides refuse to sheath swords over the brawl of the Obajana cement factory.

The crisis deepened on Friday, October 7, 2022, as the state government and the cement company continued to lay claims on the facility.

The Dangote Cement has vowed to take the state government to court over the invasion of the plant and the shooting of employees at the factory by armed men.

Source: Legit.ng

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