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How can others compete when the Federal Government favors an individual over competitive market? I do understand tax wavers to encourage investments but this is not it. Any economists in the house?
quote: According to him, the incentive include the granting of pioneer status to the company in the area of cement production for seven years; the granting of 2.5 per cent duty on all plants, machinery and quarry equipment; exemption from payment of the Value Added Tax (VAT) on all plant machinery and quarry equipment; as well as the payment of five per cent duties on construction materials not available in the country
Dangote Gets Investment Concessions on Cement From Kola Ologbondiyan in Abuja
The Federal Government yesterday granted the Dangote Group investment incentives that would enable the company achieve the establishment of its $850 million cement plants at three locations in the country.
Transport Minister, Chief Ojo Maduekwe, who disclosed this while briefing State House newsmen at the end of yesterday's Federal Executive Council (FEC) meeting said the Federal Government's action would encourage Nigerians to invest locally.
According to him, the incentive include the granting of pioneer status to the company in the area of cement production for seven years; the granting of 2.5 per cent duty on all plants, machinery and quarry equipment; exemption from payment of the Value Added Tax (VAT) on all plant machinery and quarry equipment; as well as the payment of five per cent duties on construction materials not available in the country.
Maduekwe explained that the Dangote Group had requested that it be granted pioneer status for 10 years; exemption from payment of duties on all plants machinery and quarry equipment; exemption from payment of VAT on all plant machinery and quarry equipment; exemption from payment of duties on construction materials not locally available; massive road construction at sites of the plants by the Federal Government; as well as the permission to import five million metric tonnes of bulk cement at maximum rate of five per cent.
Maduekwe said the three plants located in Ibeshe (Ogun State), Obajana (Kogi State) and Odukpani (Cross River State) have the capacity to produce 4.3 million metric tonnes of cement annually by the year 2005.
"We are doing this to serve notice that this government is willing to support companies who are willing to vote with their cheque books. They need to put their money in their country. This is a government that is encouraging the business class. We are ready to do it for other companies as we did to Dangote", he said.
He also disclosed that the council at yesterday's meeting approved a new energy policy for Nigeria while granting the approval of N130.6 million contract for the provision of 2,000 telephone lines and 240 digital lines in Gboko, Benue State.
___________________ Feel me? Ofu onye ana asi unu abia go. - Ednut Igbo-American . www.airamericaradio.com visit her. Posts: 2447 | From: Mother Earth | Registered: Mar 2001
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This virtual handover of the the country's cement industry to Dangote is just one more event in the criminal patronage system that Obasanjo created. A little over two years ago, the cement industry in Benue was targeted by Obasanjo and Dangote, and the people's cry to save Benue Cement Company (BCC) fell on deaf ears, as Obasanjo handed over 40% of the company to Dangote. That was over two years ago in what was supposed to be a major privatization program. Instead of privatizing, what Obasanjo did was to create a corrupt monopoly headed by Alhaji Aliko Dangote. At that time, many thought that it was just us Middle Belt people complaining.
Last month, at the signing ceremony of a contract between Julius Berger and Dangote Industries for the construction of Obajana Cement Company, Kogi State, Dangote boasted that he was about to make Nigeria a cement exporting country. This is coming from a man who has already destroyed BCC and is going around telling the press that he regrets buying BCC. BCC has not exported even one bag of cement.
For those who care, the BCC giveaway was only one part of the grand design to steal many cement industries in Nigeria in the name of privatization. Obasanjo is handing these companies away to Dangote as reward for political contributions. And, if anyone thought that Benue State was the only place where the consequences of this robbery will be felt, the report you posted clearly shows that the targets of this new robbery include the three plants located in Ibeshe (Ogun State), Obajana (Kogi State) and Odukpani (Cross River State).
What happened to BCC is about to happen to them. Don’t say you were not warned.
[ April 28, 2003, 05:22 PM: Message edited by: Daud ]
Posts: 449 | Registered: Mar 2001
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More Truth about the BCC/Dangote/Obasanjo Scam. We now learn that even the involvement of the Benue State government was a fiction cooked up in Abuja.
quote:Benue Govt Washes Hand off BCC Sale By Victor Efeizomor
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Benue State Government has denied allegations that it was involved in the sale of the Federal Government shares in the Benue Cement Company (BBC) to the Dangote Group.
Governor George Akume who denied the allegation in a press statement signed by his chief press secretary, Mr Tahar Agerzua, stated that a newspaper report, not THISDAY, alleged that he endorsed the sale of the Federal Government shares in the state Cement Company to the Dangote group in the national interest.
Refuting the allegation, Akume stated that "I wish to state categorically that the report is completely false in its entirety, mischievous in its objectives, as well as calculated to distort facts, at its best."
The statement further stated that the Governor did not grant any interview to any journalists during which he discussed the issue of the sale of BBC shares, adding that the report was intended to embarrass the government and the people of the state.
"I appeal to the people of Benue State and interested investors to disregard the story, and assure them that the Governor is committed to efforts aimed at resolving the BBC sale impasse in the best interest of all stakeholders to enable the plant regain its glory", the statement said.
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Ojo Maduekwe is a fool, I doubt if the guy even took O' Level Economics in High school. Even a class three student who reads O'Level Economics by Lawal, will know that what Obasanjo just created is a competition killer. How can any other indigenous company enter this industry and have a chance to compete.
Ednut: we don;t even need an Economist to tell us that this is a sweet heart deal. For example look what the breakup of AT&T have done for this country, how many phone companies do we have today?. look at cell phone services, today cellphone services is so cheap, even elementary school kids can afford it with their lunch money. I don;t know if any of you have a project going on in Biafranigeria, Every day the price of cement is going up. December last year a bag of cement was costing N625, today is almost N800, and yet Dangote is talking about making Biafranigeria a cement exporting country.
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In the name of privatization, Obasanjo has killed BCC in order to hand it over to his patron, Dangote. Today, Dangote will take control of BCC and usher in an era of incompetent management. If you expect to see immediate signs that Dangote Industries Limited (DIL) is incompetent, you may be fooled. That is the magic in first killing BCC to make it look unattractive just as Dangote takes over. Now, the babboons at DIL can look like like savvy managers simply by opening the doors of the factory.
quote:Dangote takes over Benue Cement four years after
By Sanya Adejokun
Snr. Correspondent, Abuja
Almost four years after emerging as the core investor for the embattled Benue Cement Company (BCC), Dangote Industries Limited (DIL), will Thursday finally take over the management of the enterprise in Gboko.
This followed the resolution of all contentious issues between the government of Benue State, La Farge and DIL. Dangote emerged as the preferred bidder in BCC in 2000during the first phase of the privatisation exercise, taking over the 35 per cent interest of the Federal Government in the enterprise.
The company paid N918,316,128.20 to the Bureau of Public Enterprises (BPE) to acquire the shares but the indigenes of the area, led by the Benue State Government ,vehemently opposed the arrangement and violently resisted the attempts by DIL to take over control of the company.
The people expressed their preference for Cementia La Farge, which is reputed to be the largest cement and building materials company in the world and also the original technical partner in the company.
Blue Circle Industries, Cementia La Farge and DIL were the three serious contenders for the core investor shares of BCC but Blue Circle later withdrew for La Farge. The two companies were then in serious merger discussions internationally.
Blue Circle later bought La Farge thus becoming the largest cement company in Nigeria having emerged as the core investor in WAPCO and Ashaka Cement in addition to being the technical partners in BCC.
DIL however, out-bided La Farge but the Benue State House of Assembly passed a unanimous resolution rejecting DIL as the preferred bidder.
The Benue State Government is the second largest shareholder in BCC with 22.7 per cent shares while La Farge, some local government councils and certain individuals own the remaining shares.
In 2001, the management of DIL wrote the BPE’s then Director General, Malam Nasir Ahmad el Rufai, demanding a refund of the N918.3 million paid for the shares since it was unable to take possession of the company but the BPE rejected the application. BCC has been in comatose since then. It was first gutted by fire and later, was almost liquidated when it could not repay some bank loans.
BPE’s Head of External Relations, Mr. Charles Odenigbo said in Abuja Wednesday that the handover ceremony will take place at the Government House, Makurdi and this would be followed by a Board Meeting during which representatives of the Federal Government will formally pull out of the company.
It is a sad day for the people Benue State. This a victory for incompetence.
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