Obajana: Kogi institutes legal action against Dangote Group

…seeks order restraining Dangote from taking benefits from ‘incompetent agreement’

The Kogi State Government has dragged Dangote Industries Limited to a Kogi State High Court, sitting in Lokoja over the controversial ownership of Obajana Cement Company, now Dangote Cement Plc.

In the originating summons, the state government wants 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, respectively, it is not apparent that consideration (an essential ingredient of a valid contract) is lacking?

The government is also asking 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 Kogi State Government and Dangote Industries Limited on July 30, 2002 and February 14, 2003, respectively, are not null and void?

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

The government is also asking the court to declare that the clear lack of consideration in the agreement made between the Kogi State Government and Dangote Industries Limited on July 30, 2002 and February 14, 2003, respectively, render both agreements null and void.

The state government is also seeking the following reliefs: “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 utilizing 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.”

In an affidavit in support of the originating summons deposed to by the Secretary to the Kogi State Government, Mrs. Folashade Arike Ayoade, she said that Obajana Cement Company was solely registered in 1992 by the Kogi State Government.

According to her, the sole purpose of establishing Obajana Cement Company was to mine the huge lime stone deposit in Obajana and consequently produce cement for the economic benefit of the people of Kogi State.

She confirmed that the Kogi 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 Kogi State.

However, she noted that no benefit by way of consideration passed from Dangote Industries Limited to the Kogi State Government.

No date has been fixed for the hearing of the suit.