Reactions have continued to follow the shutdown of Dangote Cement plants in Obajana, Kogi State, following a clash between the company and the state government on Wednesday.
Sunday Esan, the Dangote Group’s general manager of corporate communications, confirmed the incident and called it an invasion.
Kingsley Fanwo, the state’s commissioner for information, claimed that the closure was caused by the company’s inability to provide valid proof of the land acquisition, though.
An economic analyst has demanded a swift resolution to this dispute while outlining the economic implications.
Prof. Segun Ajibola, a former president of the Chartered Institute of Bankers of Nigeria and an economic expert, responded to the development by predicting that the closure of the Dangote Cement plants in Kogi State could result in an increase in cement prices nationwide.
He said, “If supply dip, while demand remains constant, the natural occurrence is for prices to go up.”
He explained that “cement affects virtually everything man does, construction of roads, building, bridges, houses, the shut down has far-reaching economic implications.
“Dangote Cement is part of the Dangote Conglomerate that has been operating for decades in Kogi State. The Dangote I know will not allow this crisis to linger because of its seriousness.”
He urged both parties to quickly resolve the matter for the betterment of Nigeria’s economy.
Meanwhile, the disruption received knocks from members of the host community in Kogi State.
The spokesman for the Oyo mining host community, David Oluruntoba, disclosed that the action by the Kogi State Government would only spoil the existing good relationship between the company and its host community.
He said, “They called us to join them. But I told them that the company has not offended us. We just signed a Community Development Agreement (CDA) and the company has been helping us and providing us with jobs. What has the government done for us, nothing. There is no basis to support the government.”
WITHIN NIGERIA gathered that cement retails at N3,600 to N4,200 per bag, depending on the brand and location.