Obajana: Court Halts Move to Shut Down Dangote Cement by Kogi Government

Alex Enumah in Abuja

Justice Binta Nyako of the Abuja Division of the Federal High Court yesterday halted the move by the Kogi State government to nullify an agreement it entered with Dangote Cement Plc over the company’s purchase of Obajana Cement.

The court’s intervention followed an application to that effect brought by Dangote Coal Mines Ltd and Dangote Industries Ltd.

Both the Kogi State Government and Dangote Group are currently battling for the soul of the cement factory located in Obajana in Kogi State.

Dangote Cement, originally Obajana Cement Company was established in 1992 and was sole owned by the Kogi State Government.

However, the state entered into agreement with Dangote Industries Limited in 2002 and 2003 “for the purpose of producing cement for the economic benefit of the people of Kogi State.”

In the agreements, the state had transferred 90 percent of its shareholding to Dangote Industries Limited thereby retaining 10 per cent.

However, citing lack of consideration (which is an essential ingredient of a valid contract) in the two agreements, the state last week approached a High Court of Kogi State, Lokoja, to seek nullification of the two agreements.

Before filing the suit on October 18, 2022, the Kogi State Government had on October 13, issued a 48 hours ultimatum to the company to shut down production in compliance with the order of the Kogi State House of Assembly.

The lawmakers had directed that the conglomerates halt production activities until it furnishes them with the requisite documents demanded by them.

Responding, Dangote group had commenced a suit marked: FHC/ABJ/CS/1876/22, at the Federal High Court, Abuja with the Kogi State House of Assembly, Attorney-General and Commissioner for Justice, Federal Ministry of Mines and Steel Development and Mining Cadastre Office as 1st to 4th defendants respectively.

The Dangote group had also filed another suit marked: FHC/ABJ/CS/1877/22, with all the defendants in the first suit, except Corporate Affairs Commission (CAC), were listed as defendants.

Pending the hearing and determination of their suit, the plaintiffs further filed an ex parte motion seeking the court’s order restraining the defendants from interfering with their activities at the cement factory.

The two applications, dated October 13 and filed October 14, were filed by Rickey Tarfa.

Among reliefs sought by the applicants is, “an order of interim injunction restraining the defendants/respondents or any person purporting to act on their behalf from extending the exercise of the defendants’ oversight functions outside the concurrent and residual legislative list and unto the executive legislative list of the 1999 Constitution (as amended) pending the hearing and determination of the motion on notice.”

They also prayed for another order of interim injunction restraining the defendants or any person purporting to act on their behalf from making any resolution or order, disrupting, suspending or shutting down the facilities or activities of the applicants anywhere in the state in contravention of the provisions of Section 4(2) and item 32 of part 1 second Schedule of the 1999 Constitution (as amended).

In addition, the applicants sought an order of interim injunction restraining the defendants from further giving effect to any resolution, declaration or decision purporting to suspend the activities of the applicants in the state in contravention of the 1999 Constitution.

At the hearing of the motions yesterday, applicants’ counsel submitted that the crux of the matter was the restriction of the operations of the applicants, the invasion and disruption of their business by the defendants.

She argued that the closure of the cement factory by the defendants would affect the production of cements in Nigeria and put thousands of jobs at risk.

Okotie-Eboh alleged that the Kogi State House of Assembly and its commissioner for justice disrupted cement production despite the fact that they did not have the power to do so, adding that the commissioner also threatened to invade the company again.

She, therefore, sought an order of the court preserving the res (subject matter) pending the hearing and determination of the substantive suit.

In a short ruling, Justice Nyako granted the reliefs sought and ordered the applicants to serve the defendants with the motions on notice within 14 days and adjourned the matter until Nov 21 for hearing.

The judge also stopped the state government from disrupting or suspending the activities of Dangote Coal Mines Ltd and Dangote Industries Ltd in Okaba, Ankpa Local Government Area and in Olamaboro Local Government Area respectively.