Kogi Government drags Dangote Group to court over Obajana cement plant ownership tussle

The Kogi State Government has filed a suit before a Kogi State High Court in Lokoja against Dangote Industries Limited over the ownership of Obajana Cement Plant.

In the originating summons, according to Daily Independent, the Yahaya Bello-led state government prayed the court to determine whether, upon careful examination and consideration of the agreements made between the Kogi State Government and Dangote Industries Limited on July 30, 2002, and February 14, 2003, it is not apparent that consideration is lacking.

The suit further prayed the court to determine whether, in view of the clear lack of consideration (an essential ingredient of a valid contract), the agreements made between the state government and Dangote Industries Limited on July 30, 2002, and February 14, 2003, respectively, are not null and void.

The state government noted that “in the event that the above questions are answered in the affirmative,” the court should declare that the agreements made between the government and Dangote Industries Limited on July 30, 2002, and February 14, 2003 “lack consideration, which is an essential ingredient of a valid contract”.

It also prayed the court to declare that the clear lack of consideration in the agreements made between the state government and the company on July 30, 2002, and February 14, 2003, render them null and void.

According to the suit, the state government is asking the court for “a declaration that Dangote Industries Limited cannot take any benefit, interest or rights from the incompetent agreements entered into on July 30, 2002, and February 14, 2003, respectively, having failed to furnish any consideration to the Kogi State Government.

“An order nullifying the agreements entered into on July 30, 2002, and February 14, 2003, respectively, for lack of consideration.

“An order of perpetual injunction restraining Dangote Industries Limited, any of its agents or assigns from further utilising and or taking any benefit(s) from the agreement dated July 30, 2002, and February 14, 2003, between the Kogi State Government and Dangote Industries Limited.”

The Secretary to the Kogi State Government, Folashade Arike Ayoade in an affidavit in support of the originating summons said Obajana Cement Company was solely registered in 1992 by the state government.

She deposed that the sole purpose of establishing the cement company was to mine the huge limestone deposit in Obajana and consequently produce cement for the economic benefit of the people of the state.

Ayoade said that the state government and Dangote Industries Limited entered into two agreements on July 30, 2002, and February 14, 2003, for the purpose of producing cement for the economic benefit of the people of the state.

She, however, noted that no benefit by way of consideration was passed from Dangote Industries Limited to the government.

But no date has been fixed for the hearing of the suit.

The state government and Dangote Group have been at loggerheads over the ownership of the cement plant. The government sent security agents to the plant to seal it but it resulted in bloodshed as some staff members of the company were reportedly killed while some others were injured.