The Nigerian Government’s plan to concession the Ajaokuta Steel Company may soon be realised as the final $50 million payment to complete the $496 million settlement is to be paid next month.
Minister of Information, Lai Mohammed, disclosed this in a statement responding to recent claims made by Atiku Abubakar, the presidential candidate of the PDP.
Mohammed explained that the Obasanjo administration, in which Atiku served as a Vice, had agreed to a concession agreement with Global Steel Industry in 2004. But the deal failed to pull through, which is why the Buhari administration agreed to the $496 million settlement.
Failed Promises: Lai Mohammed added that Atiku’s promise to get Ajaokuta working was a failed promise. He said:
- “A little bit of background will show that the former Vice President was deceiving Nigerians when he made that promise. Ajaokuta was concessioned to Global Steel Industry in 2004 by the administration of then-President Olusegun Obasanjo.
- “Who was in charge of that Administration’s privatization program? Alhaji Atiku Abubakar. That concession that turned out to be a mess was terminated by another PDP administration. If the former Vice President had any solution to the Ajaokuta challenge, and he didn’t execute it in 2004, why should Nigerians trust him to do so in 2023, almost 20 years later?”
Need for settlement: He added that Global Steel Industry took Nigeria to court, asking for seven billion dollars and the case lingered for 12 years, which was later settled by the present administration which stepped finally settled for $496 million.
He added FG initially made a bulk payment of 250 million dollars and agreed to pay the balance in five instalments.
- “To date, we have paid a total of 446 million dollars out of the 496 million dollars. We will make the last payment of 50 million dollars next month and Ajaokuta will revert fully to us – ending the shameful and failed concession by the administration in which Alhaji Atiku Abubakar served as the vice president.”
He added that FG is already in talks with companies, over a concession deal once the payment is made, who he says are ready to invest in the steel complex.
What you should know: Recall Nairametrics reported last month that President Muhammadu Buhari said that reviving the Ajaokuta Steel complex through a concession will immensely benefit Nigerians.
Buhari also revealed the concession process of the Ajaokuta Steel process has cost the Federal Government over $ 400 million adding stated that no other project in Nigeria holds the key to unlocking this vast potential as much as the Ajaokuta Steel Complex.
