The Kogi State Internal Revenue Service (KGIRS) has shut down the largest cement business in Nigeria owned by Aliko Dangote, for tax fraud and acquisition controversy.
Kingsley Fanwo, the Kogi State Commissioner for Information, backed the decision, which was supported by the Kogi State House of Assembly.
He stated that the decision was made following an examination into Dangote’s purchase of the Obajana Cement Company.
Mr Fanwo said: “Pursuant to the Constitutional authorities of the Kogi State House of Assembly, and upon petition by the people of Kogi State, an investigation was carried out on the acquisition of Obajana Cement Company by Dangote Company.
“It was found that no valid acquisition took place, as Dangote could not show evidence of what was paid as consideration for the acquisition.
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“The legislators invited the Chairman of the Company, Aliko Dangote, before the house for explanations but he failed to appear before the state assembly, giving excuses.
“The House of Assembly, therefore, ordered the closure of the company pending when they are able to present it with credible evidence of a valid acquisition.”
The cement facility, which has a capacity of 16.25Mt across five manufacturing lines, is the biggest in Nigeria.
