MAN condemns Kogi Government’s invasion of Dangote Cement Plant

*The Manufacturers Association of Nigeria frowns on Wednesday’s invasion of the cement plant at Obajana by the Kogi State Government’s Vigilantes, says the ‘totally illegitimate’ move will discourage new investments, potential investors

Isola Moses | ConsumerConnect

The Manufacturers Association of Nigeria (MAN) has strongly condemned the recent invasion of Dangote Cement Plant, located in Obajana, by the Kogi State security outfit, the Vigilantes, on the order of Governor Yahaya Bello.

The manufacturers noted that such an action would discourage new investments in the state in particular and Nigeria in general.

ConsumerConnect had reported that the security agents of the Kogi State Government Wednesday, October 5, 2022, invaded, and subsequently, shut the multinational cement company.

Dangote Group Thursday, October 6, stated Engr. Mansur Ahmed, President of MAN, at a press conference to herald its 50th Annual General Meeting (AGM) scheduled to hold on October 17-19, said the Kogi State action was of great concern.

Ahmed noted it was unimaginable that a state government would take such a drastic action to shut a plant that provides job opportunities and economic activities on a huge scale for the people of the state.

The MAN President also stated: “The action appears to be taken by government, and it is alleged to be an effort for some alleged claim on some alleged payment of taxes that have not been made or recovered from the company.”

Stressing that Kogi State Government’s move was “totally illegitimate”, Ahmed pointed out that if the state government has any issue against any member of its association or corporate citizen, the appropriate thing to do is to take the member to court.

The MAN Chief further said: “You cannot use strong-arm tactics to shut them down, or impose very severe restrictions on their operations simply to force them.

“This is illegal, and I believe that what has happened will not happen in a normal operating environment.”

MAN’s complaints at ITI Ministry

Meanwhile, the Manufacturers Association of Nigeria has disclosed it took up the matter with the Federal Ministry of Industry, Trade and Investment in its bid to help address the anomaly in Kogi State.

Engr. Ahmed said: “We have no reason not to pay taxes to the Kogi State Government as and when due.

“And I am aware that Dangote Industries is one of the highest taxpayers in Nigeria.”

The MAN President further stated: “But, if indeed, for whatever reason that there is a tax for the Kogi State Government on Dangote, it has measures and ways of recovery, and there is no justification to threaten the closure of that industry.

“We are totally opposed to that kind of measure because there are ways to resolve this amicably in a legal manner.”

He also noted “we hope that the relevant authorities in both the federal and state levels would intervene to ensure that this kind of action is not repeated.”

Ahmed, however, stated that the theme of the 50th AGM tagged “An Agenda for Nigeria’s Industrialisation for the Next Decade” is borne out of the need to take stock of the nation’s journey to industrialisation, to ascertain the pains and to highlight the performance limiters; recognise the gains and growth milestones; and to identify the learning curves and hurdles ahead.

According to him, over the years, the performance of the manufacturing sector of the Nigerian economy has been constrained by numerous familiar challenges that are clearly espoused in its numerous presentations and submissions to the government.

Ahmed said it is a matter of great concern to its members that even as the economy continues to experience very slow growth, policymakers at all levels continue to compound the situation by introducing new taxes; further worsening the difficult and high-cost operating environment.

He stated: “In some climes, when the economy slows down, government reduces taxes to encourage businesses to expand, create more jobs and increase economic activities.

“What we are seeing in Nigeria today is not only increasing tax rate but introducing new taxes and turning every public agency into a revenue collector.”

Ahmed as well stated that amid the challenges, “we are resilient and would soldier on with advocacy for a conducive atmosphere for the operation of manufacturing business in Nigeria.

“We will continue to work towards ensuring that Nigeria becomes an environment that promotes competitiveness.”

Speaking at the pre-AGM press conference, Segun Ajayi Kadir, Director General of MAN, also said the 50th AGM is special because manufacturers have survived the turbulence both domestically and internationally.

Kadir stressed that in the last few years, manufacturing has experienced external factors, largely out of its control, impacting negatively the country’s economy.

Imposition of Excise Duty on non-alcoholic drinks

Reacting to the Federal Government’s plan to impose excise duty on non-alcoholic drinks in Nigeria, Kadir said this is the wrong time to implement such a proposal.

The MAN Director-General stated: “What is most painful is that the increase in excise on new products only started this year.

“So, it will amount to changing the goal post in the middle of the game.”

He also said: “We have a three-year plan on the escalation of excise duty; all that was thrown into the dustbin, and a new and higher one was introduced and targeted at killing the industry.

“This should be rescinded immediately and that is the only way this sector can survive.”

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