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Business News

Firm prepares for a showdown with FG over Ajaokuta Steel control 

Global Steel Holdings Limited is reportedly preparing to sue the Federal Government over the control of the Ajaokuta steel mill.

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Ajaokuta steel

Global Steel Holdings Limited is reportedly preparing to sue the Federal Government over the control of the Ajaokuta steel mill. This was was hinted by the Minister of Mines and Steel Development, Olamilekan Adegbite during the inspection of the National Iron Ore Mining Company (NIOMCO) at Itakpe, Kogi State.

Why? The FG was said to have backed out of an agreement which allowed the firm to have concession of NIOMCO after the breakdown of the concession agreement of Ajaokuta Steel to the Indian company for a 10-year period.

[READ MORE: Ajaokuta Steel may commence full operation as it gets N3.79 billion allocation]

Nairametrics understands that both NIOMCO and Ajaokuta Steel Complex are on FG’s agenda as plans to revive the two long-abandoned national assets have kicked off. Also, provisions were made for the iron ore mining company in the 2020 budget.

This was also confirmed when the minister was quoted saying that the ‘concession modification agreement’ with the GSHL did not make any sense, as he vowed that Nigeria would keep both Ajaokuta Steel and NIOMCO.

“As it where, Aladja (steel mill) has already been privatised and sold but Ajaokuta and Itakpe are still in government hands and will produce to the benefit of the people of Nigeria, no matter whose ox is gored.

 “These people (GSHL), they are not our friends, they don’t want Nigeria to produce steel and they have successfully done it over the years.

 “As it were, they are preparing to go back to some court abroad to embarrass Nigeria but I’m sure the country is capable of meeting them at this point and we will not surrender our sovereignty to some individuals,” Adegbite said.

What you should know: The company, Global Steel Holdings Limited is an Indian company which won the concession of the Ajaokuta steel mill. However, the agreement was revoked when the Federal Government accused the firm of asset stripping – a development that led to a court case between the two parties.

To resolve the matter, instead of having Ajaokuta, NIOMCO was reportedly ceded to the GSHL to conclude the remaining period of the concession in line with an agreement reached during mediation talks.

[READ ALSO: Ajaokuta Steel capable of creating not less than 600,000 jobs – NIMMME boss]

Why this matters: There have been talks about the revival of the Ajaokuta steel mill in recent times since the Russian company, MetProm entered an agreement with the Federal Government. There is a possibility that the fresh legal case may affect this agreement between the two parties.

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Chidinma holds a degree in Mass communication from Caleb University Lagos and a Masters in view in Public Relations. She strongly believes in self development which has made her volunteer with an NGO on girl child development. She loves writing, reading and travelling. You may contact her via - [email protected]

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Stock Market

Bamboo’s current rate for buying U.S Stocks weakens to N492/$1

Bamboo is currently offering its users a premium of more than 20% compared to the official exchange rate.

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The fast-rising Nigerian stock broking application, Bamboo, is currently offering an exchange rate of N492 to the dollar.

About two weeks ago,  the Nigerian stock trading app offered an exchange rate of about N484 to $1.

The green-coloured trading app known for allowing local-based Nigerians invest in stocks listed on the world’s biggest stock market (New York Stock Exchange and NASDAQ) is currently offering its users a premium of more than 20% compared to the official exchange rate set by the Nigerian apex bank.

READ: Nigerian Bitcoin P2P surges by 15% since CBN Crypto ban

That being said, other leading fintech platforms reviewed by Nairametrics also presently offer exuberant rates as high as about N519 to a dollar, thereby adding more transaction costs on a significant number of Nigerians hoping to trade such financial assets.

A growing number of Nigerians are currently increasing their exposure to the U.S stock market taking to the current bearish trend that is being witnessed in the Nigerian Equity market and growing urge in hedging against the weakening local currency.

READ: Many Nigerians are trooping into foreign stock markets

Bamboo: It is an investment platform that gives Africans real-time access to invest in or trade over 3,500 stocks listed on the American and Nigerian exchanges right from their smartphones or personal computer.

In partnership with US-based Drive Wealth LLC, Bamboo provides seamless, secure access to US and Nigerian securities.

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Obituaries

Supreme Court Judge, Sylvester Ngwuta reported dead

Justice Sylvester Ngwuta, has been reported dead.

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A Supreme Court Judge, Justice Sylvester Ngwuta, has been reported dead.

He was said to have died in the early morning of Sunday, March 7, 2021, in his sleep at his official residence in Abuja at almost 70 years.

According to a report from the News Agency of Nigeria (NAN), Justice Ngwuta who is from Amofia-Ukawu, Onicha Local Government Area of Ebonyi State, was said to be getting set for his retirement from the Supreme Court on March 30, 2021, upon attainment of the mandatory retirement age.

READ ALSO: The Supreme Court never ordered AMCON to pay Bi-Courtney N132bn

What you should know

  • It can be recalled that Justice Ngwuta was arraigned before the Federal High Court in Abuja in 2017 over money laundering and passport charges after large sums of money were discovered in his residence following a raid by security officials
  • He started his private legal practice at Abakaliki in July 1978 to October 1995, from where he was appointed a judge of the High Court Abia in October 1995 and then promoted to the Court of Appeal on May 22, 2003, was finally sworn-in as Justice of the Supreme Court of Nigeria in May 2011.
  • He was the chairman of a judicial panel of inquiry into the Obegu Enyibichirikwo Disturbance 1997-1998 and has been a member of several Election Petition Tribunal, Governship and legislative House Election Petition Tribunal; Nasarawa State held at Lafia in February 1999, National Assembly Election Petition Tribunal Plateau State held at Jos in April 1999, among others.

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