How we acquired land for Obajana Cement plant – Dangote Group

The management of Dangote Industries Limited yesterday said its acquisition of the land for Obajana Cement in 2002 followed due process, contrary to claims by the Kogi State Government.

It also stated that the company as a responsible corporate organisation had been paying relevant taxes, levies and charges to the state government since 2007 when production commenced in the acquired cement plant. 

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These clarifications were contained in a statement issued on Tuesday by the management of Dangote Industries Limited. 

The statement partly read: “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”.