THE KOGI/DANGOTE CEMENT TUSSLE   

It is in the interest of all that the issue is resolved amicably  

With the National Security Council (NSC) directive for the reopening of the Dangote Cement Plc in Obajana, Kogi State, an amicable solution to the standoff between the state government and the cement manufacturer may be in sight. The council has asked the parties involved to seek judicial determination of the ownership of the cement plant. While this is a welcome development, it is the option that should have been explored and exhausted rather than the crude tactics deployed by the Kogi State Government to fight for its ‘right.’   

Acting under a purported resolution by the State House of Assembly, Governor Yahaya Bello had deployed armed vigilance groups to seal the cement factory. The action was predicated on alleged non-payment of tax and equity as well as on the ownership of the cement company. Bello claims that Kogi State owns the plant. But the Dangote Group counters that the state has no stake in the company. While this issue will now be resolved through the judicial process, we condemn the forceful shutting down of the company and the attacks on some employees. Such acts of brigandage should never have happened under a democratic government anchored on the rule of law.   

The intervention of the federal government on the crisis is welcome. But the issues involved go beyond the fate of one company. The challenge of the moment is that at a period when the economy is in dire need of private capital, the Kogi State invasion of Dangote Cement bodes ill for the economy and efforts to attract investment. According to the Nigeria Economic Summit Group (NESG), an unfortunate impression has been created that commercial disputes cannot be amicably resolved in Nigeria without resorting to extrajudicial means as demonstrated by the deployment of armed men to disrupt operations at Dangote Cement. “Such actions send inappropriate signals to investors, both domestic and foreign, and could result in an increase in our country’s risk rating,” the NESG stated.   

We align with the position that a state government should protect the interest of its people and no business organisation is above the law. But public officials who are sworn to uphold the law can also not act without restraints, as demonstrated by the governor of Kogi State. The vigilantes, led by some officials of the state government, according to a statement by Dangote Cement Plc, were acting based on controversial tax claims—”claims that the state governor had also contradicted when he said the shutdown was due to an alleged invalid acquisition of the company by Dangote Industries Limited.”   

That Bello was the accuser, judge and jury on this matter raises pertinent questions. Why was the governor impatient in following the dictates of the law until the federal government intervention? Is he unaware that the rule of law, as opposed to that of the jungle, presupposes that anybody or institution accused of an offence is entitled to a fair trial before a competent court of law? Assuming, as claimed, that the state indeed needed to enforce a resolution of the House of Assembly on Dangote Cement Plc, should this not have been done by the police?  

Now that the issue has been referred to the court where the battle ought to have been fought in the first place, we hope that Kogi authorities will shun any further recourse to self-help. In recent years, many companies have exited Nigeria because of the operating environment. And to the extent that the country is in dire need of investment to create jobs, diversify the economy, and improve the welfare of the people, care must be taken not to scare away more businesses from our shores through glaring abuse of power.