Trade minister warns Governor Bello that his actions against Dangote will drive investors away

TRADE and industry minister Niyi Adebayo has waded into the ongoing dispute between the Kogi State government and Dangote Industries stating that trying to use force to resolve a dispute with an employer could drive investors away from the country.

Over the last week, Governor Yahaya Bello of Kogi State has tried to use force to intimidate Dangote Industries following a dispute over the ownership of Dangote Cement located at Obajana. Furthermore, the dispute has been exacerbated  by the alleged non-payment of taxes and revenues due to the state government by the company.

Last Wednesday, while the dispute is still lingering in court, the Kogi State government sealed Dangote Cement’s factory located in Obajana and several members of staff were shot at. Mr Adebayo, said the manner the Kogi State government was going about the imbroglio was capable of eroding investors’ confidence in the Nigerian economy and could rubbish the federal government’s programme aimed at promoting ease of doing business in Nigeria.

Issa Aremu, a former vice president, Nigeria Labour Congress, also urged the Kogi State government and the Dangote Group of Companies to call a ceasefire in order not to discourage the badly needed investment. Likewise, the Nigeria Employers’ Consultative Association has condemned the force used by the Kogi State government in trying to resolve the matter.

Mr Adebayo said: “You are aware that we do not like situation like this because it makes a mockery of the ease of doing business programme of the federal government. I have no doubt that His Excellency, President Muhammadu Buhari, will reach out to the governor of Kogi State with the view of talking to him.

“The view of the Federal Ministry of Industry, Trade and Investment is basically that if there is a dispute between a state government and any industry within the state, we have the courts of law to deal with the issue. We believe that it is very wrong for state governments to take laws into their own hands to address such situations.

“I understand that there is an original agreement between the state government and Dangote Industries that called for arbitration in the event of a dispute. I believe that all these legal steps should have been taken rather than a state government taking the laws into its own hands as it does not portray Nigeria in good light for sub-nationals to be creating problems for people who have invested money in Nigeria.

“You are aware Mr President just returned from the United States of America where he went to address the United Nations General Assembly. On the sidelines of that visit, there was a business summit where Mr President reached out to foreign investors and was inviting them to come and invest in Nigeria.

“These foreign investors follow the news on events that are happening in Nigeria and if they see that in Nigeria that a sub-national government is treating one of our biggest investors within Nigeria the way that they have done to Dangote Cement in Obajana, it will not portend well for us as a country. Nobody will be interested in coming to invest in Nigeria in such situation, so it is incumbent on us as Nigerians and as governments within Nigeria, especially the sub-nationals, to do things in accordance with the law as opposed to just resorting to self-help in troubled times.”

However, Governor Bello said the Kogi State government was forced to take decisive action due to Dangote Cement's intransigent attitude to resolving the dispute amicably. He added that the state government had tried for nearly six years to meet with Dangote Cement’s management over the vexed issues to no avail.