Obajana Plant Crisis: Dangote Cement Shareholders Lost N417.48bn In Eight Days

The dispute between the Kogi State Government and Dangote Cement Plc over the ownership of Obajana Cement Plant has resulted into a loss of N417.48bn by shareholders of the company.

This is following the shutdown of its flagship plant and the largest of three factories in Nigeria at 16.25 metric tonnes per annum capacity across five lines.

The plant which is supported by a fleet of 2,370 trucks was shut down by the state on Wednesday October 5, 2022 following ownership tussle.

But the cement manufacturer has denied any wrong doing, claiming it duly acquired the plant.

Eight days after sealing the plant, the company’s shares which has been stable at N245 per share at market capitalisation of N417trn has suffered a drastic drop.

Investigation by THE WHISTLER reveals that the company’s shares dropped by N24.5 to N220.5 per shares, according to data seen on the Nigerian Exchange Ltd where it is trading.

This has led to drop in its market capitalisation to N3.76trn leading to a N417bn loss by investors.

This is the lowest that the shares of the company will be trading in the last one year.

On May 23 2022, Dangote Cement shares had risen to N300.

Investors are currently apprehensive in dealing on the company’s shares over the closure of its largest cement plant.

The company traded only 1,608 volumes of shares on Thursday.

Dangote is the largest traded company on the NGX followed by MTN Nigeria.

MTN’s share price closed at N199, and it is now the largest company traded on the NGX with a market capitalisation of N4.05trn overtaking Dangote Cement.

The company said that the plant was shut down, “At a time of significant economic challenges that we face as a nation, we believe all must be done to keep our economy running effectively, our people employed, businesses that depend on us thriving and not discourage those who take the risks of needed, lawful and significant investments in our economy.

“The shutdown of our plant has materially jeopardised the economic wellbeing of our country without any regard for its significant consequences.”