Dangote tackles Kogi over Obajana Cement acquisition, says state failed to invest – Newstrends
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Dangote tackles Kogi over Obajana Cement acquisition, says state failed to invest

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Dangote Industries Limited says its acquisition of the Obajana Cement Plc in 2002 followed due process, contrary to claims by the Kogi State Government.

According to the company, Kogi State Government has no equity interest in Obajana Cement Plc.

It said the state government could not meet its financial obligations of contributing to the funding the plant in any form; neither did it fund the acquisition of five per cent equity shares when it was asked on a number of occasions to exercise the purchase option.

It also stated that the company as a responsible corporate organisation had been paying relevant state taxes, levies and charges to the 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.’

It read in part, “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.”

It added, “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).”

According to the company, the land on which Obajana Cement plant is built was solely acquired by Dangote Industries Limited (DIL) in 2003.

It said, “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 that after the agreement with the KSG, the DIL applied for and obtained mining leases over the said limestone from the FG at its cost and had complied with the terms of the leases since inception.

It said, “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.”

On the issue of the execution of the agreement, 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.”

 

 

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NCC extends NIN-SIM linkage deadline

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NCC extends NIN-SIM linkage deadline

The Nigerian Communications Commission (NCC) has extended the deadline for the the second phase of SIM-NIN linkage.

Recall that the process to disconnect SIMs not linked to NIN was initiated in stages, with the second phase slated for today, March 29.

The first phase was on February 28, 2024, after NCC directed telecom operators to disconnect millions of subscribers who didn’t link their SIMs to their NINs.

The third phase is slated to commence on April 15, 2024, as previously announced by NCC in December, 2023.

However, the National Association of Telecommunications Subscribers (NATCOMS) said subscriber have been having difficulty linking their SIMs with their NINs, hence it would be unfair to bar them.

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NATCOMS’ President, Chief Deolu Ogunbanjo, therefore, appealed to the NCC extend the deadline scheduled for the disconnection of telephone lines not linked to NIN beyond Friday, March 29, 2024.

Meanwhile, a senior official of NCC said the commission had changed the second phase deadline.

He disclosed that the change, which will now see the deadline extended by one week, was necessitated by the Easter public holiday.

The official, who spoke in confidence with Daily Trust, said the telcos had been directed not to bar any subscriber until after one week, from Friday, March 29.

He explained that, “The telecom operators will not bar any subscriber yet. We will only be talking about barring after a week from tomorrow. Yes, technically, we can say the deadline has been extended by a week.”

Another NCC top staff member who corroborated what the first official told our reporter added that NCC yielded to appeals by some CSOs and telecom right groups calling for deadline extension because of internet glitches experienced in the country two weeks ago

NCC extends NIN-SIM linkage deadline

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30,000 students benefit from Ogun Educash transfer

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Gov. Dapo Abiodun

30,000 students benefit from Ogun Educash transfer

Ogun State said has said 20,000 of its students in tertiary institutions have benefited from Educash transfer of N50,000 to cushion the economic crisis.

Also, it said 10,000 indigent pupils in primary and secondary schools in the state got N10,000 cash transfer.

Commissioner for Education, Science and Technology, Prof. Abayomi Arigbabu, spoke after monitoring the cash transfer to primary and secondary schools at Ogun West Senatorial District.

Arigbabu noted more would benefit from the scheme.

He said everyone captured would be paid.

“I can tell you that for the tertiary institutions, we have done 20,000 as at today, and the total for tertiary institution beneficiaries is a little bit less than 50,000. Hopefully, by end of next week, we will reach half of that, which is about 25,000 beneficiaries.

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“I want to assure those who have not received theirs, for instance, Olabisi Onabanjo University (OOU), a list of a little bit over 12,000 was sent to us. As we speak, we have paid just a little less than 6,000. The same thing at Tai Solarin University of Education (TASUED), where we have a little bit less than 8,000. We have tried to make sure we are targeting between 45 to 50 per cent,” he said.

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Binance Executive drags NSA, EFCC to court, demands public apology

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Binance Executive drags NSA, EFCC to court, demands public apology

Binance executive Tigran Gambaryan has taken legal action against National Security Adviser Nuhu Ribadu and the Economic Financial Crimes Commission (EFCC), alleging violations of his fundamental rights.

In a filing dated March 18 and presented by his lawyer Olujoke Aliyu from Aluko and Oyebode Law Firm, Gambaryan sought redress before Justice Inyang Ekwo, requesting five reliefs.

Similarly, Nadeem Anjarwalla, Binance’s Africa regional manager who escaped custody on March 22, initiated a separate suit before Justice Ekwo.

The News Agency of Nigeria (NAN) reports that Gambaryan and Anjarwalla, in the suits marked: FHC/ABJ/CS/356/24 and FHC/ABJ/CS/355/24, had sued the Office of NSA (ONSA) and EFCC as 1st and 2nd respondents.

Gambaryan, a US citizen overseeing financial crime compliance at the crypto exchange platform, alleged that his detention and the confiscation of his international travel passport violated Section 35 (1) and (4) of the 1999 Constitution, constituting a breach of his fundamental right to personal liberty.

He further requested the court to order his immediate release and the return of his passport. Additionally, he sought an injunction preventing further detention related to any Binance investigations and demanded a public apology from the respondents, along with costs incurred.

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Gambaryan stated that he visited Nigeria on February 26 alongside Nadeem Anjarwalla, representing Binance, in response to invitations from ONSA and EFCC. Despite attending the meeting as requested, both were detained afterward without formal charges.

During the court proceedings, T.J. Krukrubo, SAN, representing Anjarwalla and Gambaryan, informed the court of the respondents’ absence despite being served. Krukrubo also mentioned their notice of withdrawal of legal representation for Anjarwalla, filed on March 26.

Justice Ekwo noted the withdrawal of legal representation and adjourned the matter to April 8 to allow the applicants to seek new representation and give the respondents an opportunity to appear.

In Gambaryan’s case, Krukrubo stated that although the processes were served on ONSA and EFCC, they still had time to respond. He requested an adjournment, indicating that the respondents’ deadline to file their applications would expire the following week.

Consequently, Justice Ekwo scheduled the next hearing for April 8 to continue proceedings.

Meanwhile, the Federal Government will arraign Binance Holdings Limited and its two top officials, Tigran Gambaryan and the fleeing Nadeem Anjarwalla, on April 4 on allegations bordering on tax evasion.

Binance, Gambaryan, and Anjarwalla, listed as 1st to 3rd defendants respectively, are expected to be arraigned before Justice Emeka Nwite of a Federal High Court (FHC), Abuja on a four-count charge.

Anjarwalla, who had been in detention alongside Gambaryan, was said to have escaped from lawful custody. He escaped on Friday from the Abuja guest house where he and his colleague were detained.

Binance Executive drags NSA, EFCC to court, demands public apology

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