Nigeria’s President Muhammadu Buhari said the Federal Government began the concession process of the Ajaokuta Steel Complex by first rescuing it from “legal disabilities”.
President Buhari disclosed this in a statement, late Friday evening, after commissioning several projects executed by the administration of Governor Yahaya Bello of Kogi State.
Nairametrics reported earlier that Buhari said the concession process of the Ajaokuta Steel process has cost the Federal Government over $400 million.
Legal rescue: President Buhari stated that the FG is looking for a private investor that fits the ” right profile” after his administration rescued the steel complex from its ‘ legal obligations, he said:
- “I am glad to report that as we begin to round off in office, we can genuinely say that our administration has rescued Ajaokuta from all legal disabilities, and it is now ready for concessioning to a private investor with the right profile, to put it to work for Kogi and Nigeria.”
Commercial disputes: The President revealed the nature of these obligations includes, including “local and international disputes”.
- “Very significant also is the work we have done to resolve all the legal entanglements that had bogged down the progress of the Ajaokuta Steel Complex. We inherited a long-moribund complex burdened by local and international commercial disputes, all of which we have now resolved”.
Infrastructure development: He also noted that Federal Government has “indelible footprints in Kogi State” under his administration, including the Itakpe—Okene bypass; Obajana—Kabba concrete road, built under Presidential Executive Order 7; Itakpe—Warri railway service; and the 614km AKK gas pipeline which traverses the State.
What you should know: Nairametrics reported earlier that President Buhari listed some of the expected benefits of the Ajaokuta concession, which include the creation of over 500, 000 jobs and more than $1.6 billion in annual income to the Nigerian economy. He said:
- ”The process has cost this Federal Government over 400 million dollars so far, but I consider it money well spent as we move closer to achieving our objective of transforming Kogi State into Nigeria’s iron and steel powerhouse.”