Ebonyi people laud President for raising hopes over Nigercem Nkalagu

HOPES of Ebonyi people that the Nigeria Cement Company Nkalagu, will be one day be revived have received a boost,  following the promise by President  Goodluck Jonathan to develop the mineral sector as an alternative to the nation’s over dependence on oil .

 During his residential election rally in Ebonyi, Jonathan  had raised hopes by saying: “Due to the drop in price of oil and the consequent drop in revenue, government will diversify the economy and look into other areas like the solid minerals.

 “Fortunately,  Ebonyi state has a lot of  solid minerals but at  present,  it is only salt and a limestone  for Nigercem  that attempts are being made to mine.

“Ebonyi state will soon be a center of mining and industrial activities and jobs will be created”.

 Speaking to The Guardian, the National President of Igboasa Welfare Association , Chief Peter Mba said the president’s  speech has rekindled  hope among the people of Ebonyi that Nigercem will come to life again. 

  According to him, the state government had tried to reclaim Nigercem from the core investors, Eastern Bulkcem, even as he maintained that, the impasse over Nigercem has not done the state, the people of Igbo Assa clan, the cement plant and the shareholders any good.

 He noted  that the president has given hope to the people of Nkalagu, Ebonyi state and indeed the entire country.

 His Words “Nigercem, the first cement plant ever to be established in Nigeria in 1954, was privatised in 2002. 

Prior to its sale, it was owned by the Federal Government (11 per cent), the five South-Eastern states (65 per cent) and the general public (24 per cent). In order to facilitate its sale, the Federal Government handed over the power of attorney to dispose of its 11 per cent to the five south-eastern states alongside their own stake in the plant which they were willing to sell. 

The transaction led to the emergence of Eastern Bulkcem

Nigeria Limited as the new strategic core investor with a 65 per cent stake in Nigercem. Ebonyi State Government, as the host state in which the planted is situated, was given 10 per cent while the outstanding shares remained in the hands of the public”.

“Unfortunately, Eastern Bulkcem was unable to resuscitate the old

cement factory, which had been lying moribund for well over a decade.

Instead, the new owners resorted to asset-stripping and used its

ownership of the plant to obtain import license for bulk cement, much to the chagrin of its minority shareholders who had hoped that the plant would be brought back to life. Frustrated with the situation, Ebonyi State Government resorted to extra-judicial means by shutting down the plant, revoking Nigercem’s certificate of occupancy and set up a Judicial Commission of Inquiry to investigate the state of affairs in the company.

“In resorting to these means, the state government was unmindful of the Companies and Allied Matters Act, its rights as a minority

shareholder to seek redress at the courts, and the wrong message it was passing to other prospective investors who might want to invest in the state. More importantly, it acted in contravention of the Nigerian Minerals Act, 2011, which vests the “entire property and control of all mineral resources in, under or upon any land in Nigeria, its contiguous shelf and all rivers, streams and water courses throughout Nigeria, in the Government of the Federation for an on behalf of the Nigerian people. 

 “Owing to its inability to access the cement factory and the

revocation of its certificate of occupancy, Eastern Bulkcem sued the Ebonyi State Government and obtained a ruling from the Federal High Court declaring the judicial commission set up by the state as illegal.

 “This was the sorry state of affairs at the plant when Ibeto Cement Company Limited in 2012 acquired Eastern Bulkcem. 

 With the change of ownership, Ibeto Cement now controls 60 per cent of the shares in Nigercem, Ebonyi State Government, 10 per cent, while the public comprising institutions such as NICON Insurance Plc and the public own 30 per cent. But despite all efforts by the new owners – Ibeto Cement– to take possession of the plant and recover the Certificate of Occupancy, the state government has not been able to reach an out-of-court settlement on the issue”.

 Also speaking leader of Igboasa Youth Vanguard , Comrade Kingsley Paul pleaded with the incoming government to sit down with Ibeto Cement and agree to a realistic business plan and capital injection programme that would lead to the reopening of  commencement of cement production.