Nigeria’s leading cement manufacturer, Dangote Cement Plc, has announced to stakeholders that its Obajana Cement plant re-opened on Friday, 7 October 2022, with sub-optimal operations. The manufacturer further disclosed that full operation in the facility was from 14 October 2022.
This is according to a filing Dangote Cement made with the Nigerian Exchange Group (NGX) on the recent development in the Obajana Cement plant.
The federal government of Nigeria intervened in the issue by ordering the full re-opening of the 16.25Mt cement plant. Meanwhile, the dispute between the two parties–Dangote Industries Limited and Kogi State Government–is being resolved.
The company reaffirmed its commitment to promoting inclusive economic growth while supporting the development of communities in which it operates. The conglomerate also acknowledged the patience of all its shareholders and stakeholders throughout the incident.
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There has been a tussle between the Dangote Cement Plc and the Kogi state government over the ownership of the Obajana Cement Plant.
Rate Captain previously reported that Dangote Cement announced the shutdown of the Obajana cement facility following the invasion and sealing of its premises by vigilantes and thugs from the Kogi state government.
According to Dangote Cement, the incident which took place in the cement plant resulted in several of its staff being injured by these thugs and local vigilantes.
Kogi state said it started the business. Dangote Cement asserted that it owns a 100 percent stake in the company. And Kogi State is asking to show evidence that it paid for its state.
Contrary to claims by the Kogi State government, Dangote Cement Plc has contended that its acquisition of Obajana Cement Plc in 2002 followed due process, stressing that the Kogi state government has no equity interest in Obajana Cement Plc.
About Dangote Cement Plc
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The Obajana Cement Plant is one of the most important drivers of economic activity in the nation, being one of the highest taxpayers, and a vehicle for one of the largest companies invested in by thousands of Nigerian and foreign investors.
The Dangote Cement plant in Obajana, Kogi, is the largest in Sub-Saharan Africa with a 10.25 million tonnes per year capacity across four lines, with a production capacity of16.25Mt. Its total production capacity in Nigeria is 35.3Mta.
Other production plants in Nigeria include the Ibese plant in Ogun State, which has four cement lines with a combined installed capacity of 12Mta, the Gboko plant in Benue state with 4Mta, and the Okpella plant in Edo state having 3Mta.
The Cement manufacturer has an installed capacity of 51.6Mta across 10 African countries. It operates a fully integrated “quarry-to-customer” business with activities covering manufacturing, sales, and distribution of cement.
