The National Association of Chambers of Commerce, Industries, Mines and Agriculture (NACCIMA) has described the closure of the Obajana Plant of Dangote Cement by Kogi state government as shocking and hasty.
A statement by its Director-General, Olusola Obadimu made available to newsmen, said the state government should have trodden a path of caution.
NACCIMA added that its position was based on the impact of the factory’s closure on the economy and thousands of people whose means of livelihood depend on the production activities of the factory.
“It is vital to note that it is a huge production plant that supplies key domestic input (cement) into the economy and employs hundreds of thousands of Nigerians, directly and indirectly. This is aside from its substantial budget for corporate social responsibility outside of taxes.”
“Shutting off the factory does not necessarily help the controversial issue of compliance on tax remittable to Kogi state government. Rather a continuous operation of the plant would more likely facilitate a faster resolution of the dispute,” he said.
Obadimu called on Kogi government to reopen the factory to enable it continue its operations and fulfil its necessary responsibilities.
According to NACCIMA, the issues of tax between the company and the state government should have been resolved without sealing the company.
Similarly, the Lagos and Abuja branches of the Chamber, in separate statements also described the action of the state governor, Yahaya Bello as “disappointing”.
They regretted that while millions of Naira were lost for every day the factory was shut, the reputation of the Kogi State government has taken a negative hit.
The LCCI, in its statement by its Director General, Dr Chinyere Almona said the attack on the cement factory reflected the poor handling of investment protection issues in the country.
The Chamber said it believed there are more decent ways to handle regulatory and legislative matters concerning businesses in Nigeria than resorting to violence.
According to the Chamber, the invasion of the Dangote Cement Factory by youths that led to the shooting of factory workers is unfortunate, ill-construed, and avoidable.
“We advocate a win-win situation for businesses and the government. We will therefore call on all parties to exercise caution and be protective of jobs, assets of production, and government revenues from corporate organisations like Dangote Cement Factory”, she added.
The LCCI boss noted that the Federal Government and Kogi State Government had hitherto benefited from business revenues and social investments.
“It is therefore expected that the government would be interested in creating an enabling business environment that can attract both local and foreign investors. And where there are infractions, handling such should be in accordance with best practices and the rule of law that protect investors’ rights and human lives.”
The body, therefore, called for a meeting of all government agencies connected with the acquisition of the cement plant to resolve any differences thereof.
This process, “Can be taken without necessarily shutting down the factory and endangering jobs, products, and government revenues. This point is critical as wrong handling or unprofessional approaches to resolutions can send negative signals to potential foreign investors.”
The Chamber noted that the growing mining industry in Kogi State has benefitted from the production activities of the Dangote Cement Factory, which offers both infrastructural and Corporate Social Responsibility (CSR) projects to enhance the standard of living in the State.
“We see a role for the Presidential Enabling Business Environment Council (PEBEC), the Bureau of Public Enterprises (BPE), the Nigeria Investment Protection Commission (NIPC), and the Kogi State Government in resolving this issue. We, therefore, expect to see a swift intervention by these agencies toward a win-win resolution”, LCCI advised.
Also, the Abuja Chamber of Commerce and Industry in a statement by its Director General, Ms. Victoria Akai urged the state government to employ dialogue in resolving whatever differences it has with the cement company so as to protect the image of the state as an investment destination.
She said both the state governor and the owner of Dangote Cement Plc, Aliko Dangote are men of peace who should resolve any business dispute through consensus without jeopardizing the multi-billion naira investment and thousands of jobs of Kogi indigenes.
“We therefore call for the immediate re-opening of the factory and commencement of alternative dispute resolution. Dangote Cement is a company with commendable sustainability records. The company has blazed the trail within Nigeria and across Africa.”
“Nothing should therefore be done to truncate the growing business at a time other African countries are opening their doors wide for Dangote investment. The factory has been able to take many out off the street thereby reducing unemployment that has been a major problem in the country.”
“The closure of the factory will further increase unemployment. It is in the best interest of Kogi state to reopen the factory so as not to scare away local and foreign investors”, the statement noted.
