Fakoyejo Olalekan
Dangote Cement factory in Obajana, Kogi State, has reopened after it was shutdown by the state government over tax issue and ownership stake in the manufacturing company.
Aliko Dangote’s company had accused Kogi State government of using thugs to attack it workers in a bid to enforce lockdown. This led to some of the company’s workers sustaining injury.
Join our WhatsApp ChannelIn a recent development, following the intervention of the Federal Government, the state government allowed Dangote Cement to continue operation in the Obajana factory.
It was gathered that the factory reopened on Friday, according to a statement released to the investing public and the capital market authority, Nigerian Exchange Limited (NGX) on Tuesday by Dangote Cement.
“Dangote Cement Plc, Africa’s largest cement producer, wishes to notify stakeholders that our 16.25Mt Obajana Cement plant re-opened on Friday, 7 October, 2022, with suboptimal operations.
“It became fully operational from Friday, 14 October, 2022, when the Federal Government ordered the full re-opening of the plant. Production at the Obajana Cement plant is now running at optimal levels.” the statement reads.
However, the dispute is yet to be over, as both parties are still in talks, “The dispute between the two parties, Dangote Industries Limited and Kogi State Government is being resolved.
“We extend our appreciation to all our shareholders and stakeholders who have remained patient with us throughout this incident. We remain committed to promoting inclusive economic growth while supporting the development of communities in which we operate.”
Meanwhile, recall Prime Business Africa had reported that Dangote Cement had denied Kogi State government has any stake in the company, stating that the state failed to finance the stake issued to it when the Obajana factory acquired and began operation.
Dangote Cement had stated that, “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.”
