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Dangote’s Suit Against Ibeto is anti-competitive – FG

By on July 5, 2012

The Federal Government has described a lawsuit brought against Ibeto Cement Company by Dangote Cement as anti-competitive.

In the suit, Dangote is seeking the withdrawal of an import waiver granted Chief Ibeto by the Federal government. The suit also seeks to have Ibeto Cement Company refund billions of Naira to the Federal Government as unpaid taxes and import duties.

Also named as defendants in the suit in which Dangote Cement is the plaintiff are subsidiaries of Ibeto: IBG Investment Limited, Derima Ventures Ltd; Federal Republic of Nigeria, Attorney General of the Federation, Federal Ministry of Finanace, Federal Ministry of Trade and Investment, Board of Customs and Excise, Federal Inland Revenue Service and Nigerian Ports Authority.

In the suit Dangote alleges that Ibeto and his co-defendants colluded to give Ibeto companies an unfair advantage by reducing his tax exposure on bulk cement imports to 5% only. Dangote claims this contravenes a presidential directive issued on July 8th 2010 which ordered importers to pay 20% import duty and 5% Value Added Tax.

The plaintiff asked the court to order the Federal Government to recover the duties and taxes owed by Ibeto and to obtain a further refund of N 7.8 billion paid the company by the government as a result of an earlier court judgement.

The Federal Government in its counter affidavit has asked the court to dismiss the suit stating Dangote’s claims were  “anti-competition and designed to control the entire cement industry and leave Nigerians at the mercy of the plaintiff’s (Dangote’s) price whims and caprices.”

 

One Comment

  1. Emeka Ibe

    July 12, 2012 at 8:53 am

    What is Dangote’s locus standi in bringing such a suit? Is he now a tax agent or advocate? I’m sure if we check d records, we’ll discover that Dangote has enjoyed such concessions from d Govt in d past, especially during military regimes when no one could ask questions on what was going on? Dangote even owns a private getty in Apapa wharf. How did that come about? Isn’t it known that Dangote became Africa’s richest man, so called, not thru hardwork, rather thru sharp practices by way of anti-competition concessions n anti-trust accommodations obtained from Govt.? He’s obviously not d smartest guy around, especially with this kind of suit he has instituted. If d Nigerian business environment was truly level n liberal, nobody would know Dangote 2day!!