TheNewsGuru

Tag: ajaokuta steel company

  • Non-functional Ajaokuta Steel Company gulps N1bn annually in pensions, salaries

    Non-functional Ajaokuta Steel Company gulps N1bn annually in pensions, salaries

    The non-functional Ajaokuta Steel Company Limited (ASCL) is costing the country more than N1 billion annually in pensions, salaries, taxes, and administrative costs.

    Prof. Linus Asuquo, Director-General (D-G) of the National Metallurgical Development Centre, Jos, stated this in his presentation at a panel discussion at the maiden edition of the National Steel Summit on Thursday in Abuja.

    The discussion was titled “Dissecting the Current Policy Framework: Identifying Gaps and Building a Robust Institutional Regulation”.

    Recall that, according to a 2024 report by BudgIT’s accountability platform,  Ajaokuta’s financial burden has continued to grow, with about ₦1.11 billion spent in the past two years.

    The D-G listed the challenges of the steel company to include a huge financial burden, mismanagement, corruption, and a disconnected value chain infrastructure.

    According to him, Nigeria has invested over eight billion U.S. dollars in the Ajaokuta project over a period of more than 40 years.

    He said that persistent mismanagement and policy failures derailed the project, as funds were misappropriated and concessionaire deals failed, citing the Japanese Kob Steel and India-based Global Steel Holdings Limited (GSHL) as examples.

    Asuquo explained that the ASCL was burdened with a disconnected value chain infrastructure, as the iron ore mines at the National Iron Ore Mining Company (NIOMCO) in Itakpe, Kogi, remained non-operational.

    “Rail line for transporting ore from Itakpe to Ajaokuta was delayed, vandalised, it was only completed and inaugurated in 2020.

    “Obsolete technology and degraded equipment because most of the installed machinery has degraded over decades and the plant lacks modern energy efficient steel making technologies.”

    He also noted that local community displacement remains unresolved as 13 villages were displaced when the plant was built.

    According to Prof. Asuquo, the way forward is to rebuild the integrated supply chain and adopt modern mini-mill technologies.

    He recommended shifting from large-scale blast furnaces to compact strip production (CSP), a cheaper, more energy-efficient technology that can be built and made operational more quickly.

    Other recommendations he made included adopting private sector concessions, which entailed a complete shift from government management to strategic private investors with proven expertise.

    “The way forward includes-manufacturing and pulsed revival of the plant, community and civil society engagement through (ESIA) Environmental and Social Impact Assessment.

    “It (ASCL) can be used as an industrial park and free trade zone,“ he said.

    He noted that Nigeria’s key legacy steel assets were mostly underutilised and equipped with obsolete machinery, stating that revitalising them required policy and institutional reforms alongside strategic public-private partnerships.

    The D-G listed other measures to include infrastructure and energy improvements; research, development and innovation; human capital development; raw materials exploration and processing; and sustainable financing mechanisms.

    “Revitalising Nigeria’s legacy steel assets is a national imperative. With political will, coherent policies, private sector collaboration, and sustained investment, the steel sector can become a key driver of industrialisation and economic transformation,“ he said.

    The theme of the summit is  Rebuilding and Consolidating Nigeria’s Steel Industry: Collaborative Action for Sustainable Growth and Global Competitiveness.

  • Moribund Ajaokuta Steel Company owes N2bn electricity bill, yet not producing

    Moribund Ajaokuta Steel Company owes N2bn electricity bill, yet not producing

    Chairman of Senate Committee on Steel Development, Patrick Ndubueze, has disclosed that the moribund Ajaokuta Steel Company was at times indebted to the tune of ₦2 billion in electricity payments, despite not producing.

    Sen. Ndubueze stated this at the maiden edition of the National Steel Summit with the theme “Rebuilding and Consolidating Nigeria’s Steel Industry: Collaborative Action for Sustainable Growth and Global Competitiveness” on Wednesday in Abuja.

    “Once in Ajaokuta I cried for my beloved country. Ajaokuta can produce brake parts, ball bearings, seals, engine blocks and other parts. It is in some time indebted to the tune of over 2 billion in electricity payments, yet not producing, ” he decried.

    According to him, Ajaokuta is a limited liability company, unfortunately the shattered power of Ajaokuta till date is N500, 000 for trillions of naira investment.

    He said there should be corporate governance in Ajaokuta and a review of its status.

    He urged the delegates at the summit to ensure that it becomes a defining moment in Nigeria’s national resolve to harness the full potential of its steel industry.

    Ndubueze added that the deliberations should position Nigeria as a hub for industrial activities in Africa.

    He assured of the Senate’s commitment to work with the executive and all stakeholders to deliver a vibrant, sustainable, and competitive steel industry.

    In his remarks, the Minister of Steel Development, Mr Shuiabu Audu said that though Nigeria was well endowed with steel making raw materials, it was yet to fully exploit its potential for industrial development.

    Audu said that this was  due to the absence of operational integrated Steel Plants as off takers.

    He said that the Federal Government conceptualised the idea of establishing an Iron and Steel Industry in Nigeria as far back as 1958.

    He explained that  initially, the interest was in the establishment of Rolling Mills.

    Audu said that however,  with the growing awareness of the existence of relevant raw materials deposits like iron ore, limestone, coal in the country, emphasis was later shifted to the establishment of integrated Steel Plants.

    According to him, the privatisation policy of the government in early 2000 led to the sale of the inland rolling mills at Oshogbo, Katsina and Jos, Delta Steel Company and Aluminum Smelter Company of Nigeria.

    “I must add that none are in operation as at date. This privatisation policy changed the role of government from operator to regulator cum administrator of the industry, ” he said.

    He said in spite of the ugly history of Steel Development in Nigeria in the past four and half decades, the President Bola Ahmed Tinubu’s administration has shown willingness to address the protracted challenges facing the industry.

    Audu described the steel sector as the critical backbone of an industrialised value chain.

    He said that this was due to it as the essential base material for significant sectors such as construction, automobiles, electronics, shipbuilding, military equipment, and telecommunications.

    He emphasised that iron and steel production would generate employment opportunities and provide capacity for self-sustaining growth, alongside offering a unique opportunity to facilitate a diversified economic base for any nation.

    The minister said that the objective of the summit was to appraise the current status of the industry, explore investment opportunities, identify policy and infrastructure gaps, and provide recommendations.

    He added that the summit was aimed at deepening collaborative partnerships, knowledge exchange between industry players and policy makers, and inclusive dialogue to forge a common realistic direction for a sustainable Nigerian steel industry.

  • How Nigeria imports $8bn steel yearly while Ajaokuta Steel Company rots away

    How Nigeria imports $8bn steel yearly while Ajaokuta Steel Company rots away

    The Minister of Steel Development, Mr Shuaib Abubakar, says Nigeria spends $8 billion to import steel into the country annually, saying it has become necessary for the Ajaokuta steel company to work.

    Abubakar disclosed this during an interactive session with the House of Representatives Committee on Steel Development in Abuja on Thursday.

    According to him, the revival of Ajaokuta steel will cost money, adding that he has written a 10-year document for the revival of the company, which he said would be presented to President Bola Tinubu soon.

    The Minister said it was in his own interest for Ajaokuta Steel to work, adding that he was from Kogi State and must push for such interest.

    He said that the Federal Government paid $500 million dollars to terminate the concessional agreement with Ajaokuta, adding that the ministry was working very hard to find a solution for Ajaokuta Steel.

    “It is a problem that has persisted for 45 years. We have gone to China to come and invest in the steel company, including setting up a new plant, and we have gone to seek financing,” Abubakar said.

    He said that the challenges had changed as new technology had come up, and with innovation and discussion around it, but it had not been finalized.

    “Funding is a big challenge to the ministry of steel development. The steel industry will be the bedrock of industrialization if we have proper funding.

    “I am still at a stage where I need to find a solution for the Ajaokuta steel company,” he said.

    On the $2 billion being requested to revive the moribund steel company, the Minister said it was just a preliminary calculation, adding that the figure might not be up to that.

    According to him, this is an estimate that may not be accurate at the last decimal point.

    “It is just a process that will allow us to arrive at the right destination.

    “The president has asked me to find a solution to Ajaokuta, so the figure will change pending the outcome of the technical audit.

    “It’s clear to Nigeria that for this to happen, we need funding and all the help we can get from the two chambers; this is why we need it. I need all your support to make this a reality,” Abubakar said.

    Rep. Zainab Gimba, the Chairman of the House Committee on Steel Development, urged the ministry to provide it with all the procurement processes and other responses demanded by the committee.

    The committee said that Ajaokuta had remained a nightmare to many, adding that now that the minister had accepted to supervise it, Nigeria expects more from him.

  • 2023: What I will do with Ajaokuta Steel Company – Peter Obi

    2023: What I will do with Ajaokuta Steel Company – Peter Obi

    Mr Peter Obi, the Presidential Candidate of the Labour Party (LP), has promised to resuscitate the Ajaokuta Steel Company if elected Nigeria’s next president in 2023 general elections.

    bring prosperity to all the three senatorial districts of Kogi, with the enormous resources endowed naturally by God.

    Obi made the promise on Tuesday in Lokoja, during the LP presidential rally in Lokoja, Kogi capital.

    He expressed optimism that a functional Ajaokuta steel project, would bring about employment of millions of unemployed youths with economic prosperity, among others.

    “Steel industry is very important to the development of the economy, therefore, we will liase with professionals and experts who know what to do with the Ajaokuta steel company immediately we are sworn in .

    0n security, Obi promised that his administration would secure the country from criminals, save it from collapse and unite its citizens with a view to returning the country to one family it was known years back.

    According to him, the LP governnent will ensure that the rule of law and human rights are rooted firmly in the country, a development where nobody will not be oppressed.

    On the welfare of workers, the LP candidate promised Nigerians to synergise with state governments to clear arrears of their minimum wage and other emoluments to boost their morale and increase productivity.

    On agriculture, the former Anambra State Governor, described Kogi as a geo-political entity that could feed itself, process its endowed agrcultural produce for export to reduce poverty and propel the state to high level of prosperity.

    Obi reiterated his commitment to change Nigeria from consumption to production nation, if elected as the nation’s president come 2023.

    He urged Kogi electorates to do the needful and vote for LP candidates at all levels, assuring them that they would collectively make Nigeria great.

    The labour party presidential candidate urged the people to reject other parties at the polls even if they bring money to buy their votes.

    ”If they give you money, collect it and vote against them, becauae it is your money. Tell them you want to follow those who know the road, that you are tired of being in the wilderness.

    ”2023 election will be about character, competence; who has the capacity and capability to bring prosperity to Nigeria, which required physical and mental capacity, and with your trust.

    ”Tell them that the 2023 election is not about religious or tribe but about the prosperity of our nation,” Obi said.

    In his remarks, Obi’s running mate, Sen. Ahmed Datti, urged electorates to collect their Permanent Voter’s cards (PVCs) and vote for the LP candidates at all levels.

    “It is only the party that can change the narrative, eradicate poverty, hunger, and negative developments in the country.

    ”We will keep our words, hold us responsible for our actions and inactions, if you voted us into power next year.

    “We will move the country out of poverty to wealth, stop the killing and start the healing, Nigerians should trust us with their votes,” Datti assured.

    On his part, the National Chairman of the party, Mr Julius Abure, also advised electorate to vote for the party, assuring them that ”LP is what Nigeria needs to solve her numerous social, economic and political problems.”

    Earlier, the Convener of “Bring Back Our Girls” campaign organisation, Aisha Yesufu, who was on the Presidential campaign train, told the mammoth crowd that “Nigeria needs Peter Obi as he represents fearlessness needed to address the insecurities in the country.

    “We are no longer safe in our own homes, we must vote for somebody we can hold accountable to provide good governance.

    ”Our lives must be made matter, we must vote for someone who can make our lives matter, Peter Obi is the one”.

    “Nigerian youths are tired,of knowing someone before you can gain employment,vote for inclusiveness,let’s give Nigeria a president that is competent and can deliver us”. Yesufu added.

    The rally was attended by party supporters from the 21 local government areas of Kogi, and other members of the society.

  • 2023: What my top agenda will be if elected president – Saraki

    2023: What my top agenda will be if elected president – Saraki

    Sen. Bukola Saraki, a presidential aspirant on the Peoples Democratic Party (PDP) platform has opened up on what he will do in his first year in office if elected president of Nigeria in the 2023 general election.

    TheNewsGuru.com (TNG) reports Saraki made this known when he met with Kogi PDP national delegates on Sunday in Lokoja to seek their support in the party’s upcoming presidential primary election.

    The former Senate President promised to prioritise the resuscitation of Ajaokuta Steel Company in his first year in office as president.

    He gave assurance that apart from the above mentioned, he would concentrate more on the non-oil sector, which according to him, is key to boosting the economy and creating job opportunities.

    “In the first one year of my government, resolving the issue of Ajaokuta will be our number one priority because it is crucial to Nigeria’s economy, as well as mining and agricultural sectors.

    “These are the sectors that could easily help our local industries to grow, our economy is too dependent on oil which is not too good for us.

    “So, steel will be my social contract with Nigeria if I am elected as president. I can assure and promise the people of Kogi State that getting Ajaokuta steel properly running is a major priority.

    “I did not see why it should take seven years to resolve the Ajaokuta issue. As president, I will take charge, bring all the parties together, come up with a lasting solution and Ajaokuta will be running,” he said.

    On security issues, Saraki said it had been of great concern to Nigerians, stressing the need to ensure that new professionalism was brought into the process, provide the necessary equipment, proper training and accountability.

    “With the 21st century, you cannot tell me that we cannot use technology to curb insecurity our country is currently facing.

    “We must have collaborative intelligence, bring technology into play and ensure that people are held accountable.

    “We believe that security is a priority and definitely we will end banditry, we will also ensure we put an end to kidnappings through technology and intelligence sharing, and more importantly we must professionalise the security agencies,” Saraki stressed.

    TNG, meanwhile, reports Saraki, a two term Governor of Kwara State, is the only PDP presidential aspirant from the North Central.

    While appealing to the delegates to cast their votes for him in the PDP presidential primary, Saraki noted that the north central zone hays not produce president since 1999.

    Saraki, a former Chairman of Nigeria’s Governors’ Forum and former Nigeria’s Senate President, said, ”Kogi is like being at home.

    “I am here to seek your support and blessing, collaboration and cooperation, to let us work together and be part of history making to be elected as President of Nigeria and as first President from North Central zone of this country.

    “Today, we are so close to history. I am asking us to support aspirant who has the capacity and most experienced among other aspirants to rule this country.

    “My national delegates, let us go and make history; I am a bridge between the north and the south; Muslim and Christian; and between the young and the old.

    “Every office I have occupied I have left it better as I met it from two term governor to senate and as Senate President.

    “If I can do that as a governor and senate president, I know I will do better when I become the President of Nigeria.

    “I promise you that we will together make this country better,” Saraki said.

  • Nigeria imports N837bn steel despite spending over $8bn on Ajaokuta

    Nigeria imports N837bn steel despite spending over $8bn on Ajaokuta

    Nigeria has imported steel worth over N837 billion despite having spent over $8 billion on Ajaokuta Steel Company Limited.

    Steelmakers are therefore sceptical about the planned concession of Ajaokuta Steel Company Limited after Nigeria imported iron, steel, and metals valued at N837.761bn in the third and the fourth quarters of 2021.
    According to the National Bureau of Statistics, the country brought in basic metals, iron, and steel products with 6000mm in width, rolled, painted, varnished, and coated with plastics within the six-month period.
    The total value of basic metal products imported within the two quarters was N748.529bn, while that of iron and steel was N88.232bn.

    ALSO READ:Ajaokuta: Nig needs between $650m to $1bn to complete phase 1- Minister
    This is happening after the Manufacturers Association of Nigeria estimated that the country had spent over $8bn on the idle steel plant so far.
    Key players in the steel sector are worried about the level of steel imports into the country as well as the lack of functionality of Ajaokuta Steel Company and the Aluminium Smelter Company, located in Akwa Ibom State. The smelter company is supposed to produce ingots for the production of roofing sheets in the country, but it is mired in a legal quagmire.
    A former Chairman of the Manufacturers Association of Nigeria Steel Group and Chief Executive Officer of Qualitec Industries, Engineer Oluyinka Kufile, said, “They should tell us who imported the steel products because some people claim that they are producing but are simply importing.”
    He noted that there was a possibility that the importers did not pay import duties or paid so little to jeopadise the local steel sector.
    He lambasted the Federal Government for keeping Ajaokuta Steel for a long time without handing it over to competent managers, expressing doubts over the planned concession of the steel pmanage

    ALSO READ: Unions compel Buhari to sign Ajaokuta Steel Company Completion Fund Bill
    “Is there anything working in Ajaokuta? Is anyone benefitting from it since it was commissioned? Have they not done any concession before, which did not work? What makes anyone think it will work this time?”
    On the Aluminium Smelter Plant, Kufile noted that Nigeria had not demonstrated enough will power to resolve the lingering issue.
    “If your father created so many problems and you cannot resolve them, then you are not ready to move on,” he further said.
    There has been a tussle between the Bureau of Public Enterprises and a Nigerian-American company known as Bancorp Financial Investment Group Divino Corporation.
    In 2012, the Supreme Court had ruled that BFIG was the preferred bidder for the smelter plant, but the BPE is yet to hand over the plant to the company.
    BFIG President, Reuben Jaja, claims that the BPE is frustrating the company’s attempts to take over ALSCON.
    However, BPE Head of Public Communications Amina Tukur Uthman, in a statement sent to the correspondent recently, noted that the company defaulted in paying the initial 10 per cent of the bid price of $410m within 15 working days as stipulated in the Request for Proposal issued to bidders.
    She said that BFIG also failed to provide the strategic business plan and the Annexure, which was the technical agreement with Daewoo.
    “The transaction was frustrated by BFIG’s non-compliance with the terms of the judgment, mainly, being the bid price and the re-negotiation of the SPA,” she said.
    On Ajaokuta Steel, Export Manager of the Lagos-based Aarti Steel, Okhai Ehimigbai, said that rather than concession Ajaokuta Steel, the government should privatise it completely.
    The Federal Government recently engaged CPCS Transform Consortium for N853 million for consultancy services of Ajaokuta Steel Company, including the National Iron Ore Mining Complex in Itakpe.
    But Ehimigbai said, “We have had this kind of arrangement in the past that did not work. Why not privatise it?”
    He said that the inactivity in Ajaokuta Steel had crippled the steel sector in Nigeria.
    “If Ajaokuta is working, we will not be importing hot-rolled steel for production today,” he said.
    He warned that the plant should not be handed over to a company from countries where iron and steel products were being imported.
    He said, “ If you hand it over the such a company, it will not like Ajaokuta to work, otherwise the country will lose business.”
    Nigeria spent N20.4bn on Ajaokuta Steel Company Limited from 2016 to 2021 despite its idleness.
    Economists, experts suggest unbundling the plant.
    Economists and experts have expressed shock at the level of mismanagement going on at Ajaokuta, suggesting an unbundling of the plant before the concession.
    The Chief Executive Officer of Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said bureaucracy, political interference and corruption were key issues affecting the success of the plant.
    Yusuf said, “I worked there for a few years. They have a massive housing project, a machine shop where machines are fabricated, and a section producing construction materials.
    “There is a need to unbundle Ajaokuta Steel before concession because it is a massive project. Then get the private sector involved, that is, a company with the technical and financial capabilities to manage it. You can decide to concession the power plant, then the machine shop and other segments differently,” he said.
    A professor of Ceramics Engineering, Patrick Oaikhinan, said, “Once the government is taking a big share in any corporation, the leadership is not always straightforward. Who were the experts that have managed Ajaokuta and why wouldn’t Nigeria be importing steel when competent experts are not allowed to manage it?”
    An economist and accountant, who is also the Chairman of Manufacturers Association of Nigeria Export Group, Ede Dafinone, called for 100 per cent privatisation of the plant, rather than the proposed concession.
    “Government can have a golden share, but the management should be free to make decisions on capacity and production issues,” Dafinone said.
    He noted that the failure of Ajaokuta to produce flat sheets, which were strategic in Nigeria’s industrialisation drive, was affecting the Nigerian manufacturing sector negatively.
    A retired General Manager at Ajaokuta Steel, Mr Kunle Aiyedun, said successive governments after late Shehu Shagari lacked the will power to resuscitate the steel plant.

  • We’ll resuscitate Ajaokuta steel company soon – Osinbajo

    We’ll resuscitate Ajaokuta steel company soon – Osinbajo

    The Ajaokuta Steel Complex in Kogi State will soon start working again for the benefits of the people, Vice President Yemi Osinbajo, has assured.

    He gave the assurance at the Civic Centre in the Palace of Attah of Igala, Dr. Michael Idakwo Ameh Oboni, as part of the administration’s campaign for the coming elections.

    Osinbajo said the Federal Government had gone very far on the rivitalisation of the complex. “Unlike the previous government, we have gone beyond our promises. We have come to the point where we are implementing and I am sure that very soon you will see for yourself that Ajaokuta has come to life,” he said

    The vice president said when completed the project will make business activities in the area to be active and many people will be employed.

    According to him, the government has finally completed the Itakpe-Warri Rail road in preparation for the revitalisation of Ajaokuta Steel.

    “Unlike the previous government, President Muhammadu Buhari is not only a honest man, but also a doer that gets things done.

    “You will need to see for yourself that we are going to test-run the Itakpe-Warri rail road in few days time, and you will see everything that is being put in place,” Osinbajo said.

    He said the administration had employed 500,000 youths under the N-Power initiative and would increase the number to one million when re-elected.

    “Our desire is that every Nigerian should live a good life and have the ability to put food on his table,” Osinbajo said, urging the people to come out en masse and vote for Buhari and All Progressives Congress (APC) candidates at all levels in the forthcoming general elections.

    Kogi State Governor Yahaya Bello restated that President Buhari had promised that the Ajaokuta Steel would be resuscitated and would be producing for Nigerians.

    He appealed to the people to get their Permanent Voter Cards (PVCs) and vote massively for all APC candidates, deliver them at all levels and avoid violence.

    The Attah of Igala, thanked the Vice President for coming to Kogi State, especially Igala land.

    “We, the people of Kogi and the entire Nigeria, are very grateful to God for saving your life and that of your crew members. We can see all good works you are doing, and it is left for us to reciprocate it because‘one good turn deserves another.

    “We need to agree and partner with you. Our governor is an indefatigable governor, full of wisdom and very hard working; we promise to support you,” the monarch said.

    Kogi Presidential Campaign Council Director-General, Mr. Edward Onoja, said the state had impacted the lives of the people across the three senatorial districts.

  • House joins bid to raise $500m for completion of Ajaokuta Steel project

    The Speaker of the House of Representatives, Yakubu Dogara on Monday confirmed that the House will join in the bid to raise $500million needed to complete the last phase of the Ajaokuta Steel project.

    He said except the political will is lacking, getting the funds to complete the company should not be an issue, given the importance of the firm to the country’s development.

    Dogara spoke in Kogi State when he led a delegation of lawmakers to the state, which hosts the long-neglected steel firm.

    Dogara said the lawmakers would not support any move to privatize the company because doing so would be tantamount to “concessioning Nigeria’s future”

    The speaker described as “a collective shame to all leaders that the project is yet to be completed after so many years”

    He said the House would consult with stakeholders to work out ways to source for the $500 million adding that leadership problem was responsible for why the project was ledt uncompleted.

    He said there were many ways through which the $500 million could be sourced. He listed the Sovereign Wealth Fund, the Excess Crude Account and the recovered financial crimes loot.

    The Speaker said the House would invite Economic and Financial Crimes Commission (EFCC) Chairman Ibrahim Magu to brief the House on how much his agency had recovered from corruption proceeds that could be pumped into the completion of the project.

    He explained that his determination to ensure that the steel company is revived is borne out of the promises that the company held for Nigeria’s teeming population in the form of power and gas development, economic boost, thousands of jobs creation, development of manufacturing sector, development of infrastructure and investor appeal, among others.

    He said: “Imagine if this plant had been completed in 1986, where Nigeria would be at the moment.

    “Any patriotic Nigerian that visits this place will shed tears irrespective of the part the person is from and for a foreigner that visits here, when he hears people describe this place as a shithole, he will go with the impression that it may be true. We have no reason not to complete that plant.

    “You cannot concession your future, it is never done. I’m yet to see a nation that even concessions its bedrock and still succeeded. If you see one, just tell me. And that’s why previous attempts to concession it were not possible.

    “We keep doing repeating the same things and expecting to get different results. That’s the definition of stupidity and since we are not stupid, we will not repeat it. We can make Nigeria proud so that every black man in the world can beat his chest. Anyone who plans to outsource the completion of this plant will definitely run into problems with us.”

    The team also visited Kogi State Governor Yahaya Bello where Dogara said:

    “We all know the benefits of steel development. You cannot be an industrialised nation without developing the steel sector.

    “Of course, I’ve seen the resolution that was passed and adopted by the Kogi State House of Assembly but I feel that this is just not a Kogi issue, this is a Nigerian issue in view of the major promise that this sector holds for Nigeria.

    “I believe that as soon as we put this plant into operation, immediately there will be 10,000 jobs for engineers and technical staff. That’s even as the level of the first phase and talk about other non-engineering staff, thousands again and other splinter opportunities that will come, that’s a projected two million jobs.

    “We don’t need money, all we need is leadership. Wherever you see development anywhere in the world, it is not money that brought it, but leadership. As a matter of fact, it is even leadership that brings the money.”

  • FG allocates 4.3bn for revival of Ajaokuta Steel Company

    The federal government has allocated over N4 billion for the resuscitation of the Ajaokuta Steel Company. The allocation is contained in the 2017 appropriation budget which was presented to the National Assembly in December by President Muhammadu Buhari.

    According to the breakdown, a total sum of N4,272,797,371 was appropriated, higher than the N3.9 billion budgeted for 2016.

    Minister of Mines and Steel Development, Dr. Fayemi Kayode, had reiterated the commitment of the federal government to settle all litigations between it and Global Steel Holdings Limited, as regards the steel company.

    The company is Nigeria’s leading steel plant, and was intended to be the leading supplier of quality steel products in all the major economic sectors including construction, packaging and wire drawing/nail making industry.

    Since its inauguration in 1983, however, the plant had been embroiled in managerial inaptitude, controversy ranging from allegations of obsolete machines and outdated blast furnace model.

    Despite its initial completion, the plant had suffered years of neglect under successive administrations.

    According to the ministry’s budget, the Nigerian Geological Survey Agency (NGSA) got N3.8 billion, chiefly for the generation of geological data which hadn’t been updated recently.

    The National Metallurgical Development Centre, Jos got N821 million, the Metallurgical Training Institute, Onitsha got N722 million, while the Nigerian Institute of Mining and Geosciences was allocated N472 million.

    About N99 million was earmarked for Artisanal Mines and Registration Mineral Buying Centres.