Obajana Cement Plant: FG, Kogi govt, Dangote reach agreement

The federal government says an agreement has been reached between the Kogi state government and Dangote Group to reopen the Obajana cement plant.

The Kogi government and Dangote Group have been at loggerheads following a move by the state to seal off the cement plant amid an ownership tussle.

On Thursday, the state government insisted that the plant must remain shut after claiming that the purported transfer of the facility to Dangote was not “proper”.

The state government had claimed that available documents showed that the plant belonged to it, a claim refuted by the Dangote industries which claimed that the Kogi State Government had no stake whatsoever in the plant adding that the Kogi state government was not entitled to any dividend in the company.

Dangote on the other hand said its acquisition of the cement plant followed due process contrary to claims by the state government.

However, at Friday’s National Security Council meeting in Abuja, it was agreed that all contentious issues be resolved legally and that the government’s commitment to providing employment was not negotiable.

READ ALSO: Obajana: Kogi government maintains stance

Speaking after the meeting, Mohammed Dingyadi, minister of police affairs, said an agreement has been reached to ensure the re-opening of the plant to give room for peace in the state.

“An agreement has been reached between the Kogi state government and the Dangote Cement in Kogi on the need to re-open the factory and ensure that there is peace in the state,” he said.

“Government is committed to the provision of employment to its citizens rather than closing factories that will make people unemployed and we do hope that the parties involved will respect this agreement and come to terms with the memorandum of understanding signed by the parties involved.”

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The minister said the agreement was reached under the supervision of Ibrahim Gambari, chief of staff to the president.