The newly appointed Minister for Steel Development, Shuaibu A. Audu has revealed his intention to revive the dormant Ajaokuta Steel Company.
He revealed this during a press briefing in Abuja on Monday, August 21.
According to him, there is a need to revive the steel company so Nigeria can produce steel. To this effect, he will work to set a roadmap for the development of the steel sector and aggressively pursue the completion of Ajaokuta Steel.
He also stated that he will work to enact the required bills to regulate the steel sector. He said:
- “Our past leaders recognized the importance of steel development but lacked the political will to achieve its objectives. The steel development is synonymous with the Ajaokuta Steel plant, whose commencement was over 40 years ago.
- “We aim to start the engine and ensure that we produce at least a small sheet of steel within this administration. It is a known fact that steel is the bedrock of any nation’s development; if gotten right, it may be the beginning of our industrial revolution.”
Note that Ajaokuta Steel Company was designed to produce 5.2 million tons of various types of steel products.
Backstory
In November 2022, former President Muhammadu Buhari revealed that a transaction adviser had been appointed to concession the Ajaokuta Steel Company which was developed by the Russians in 1979 but has remained incomplete despite gulping over $8 billion over the years.
At the time, he said his administration was ready to break the jinx and actualize the dream of a vibrant steel industry.
Also, in December 2022, former President Buhari 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.
- “The process has cost this Federal Government over $400 million 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.”
Meanwhile, in May 2023, the Iron and Steel Senior Staff Association of Nigeria (ISSSAN) said the Federal Government’s plans to concession the Ajaokuta Steel and National Iron Ore Mining Companies in Kogi state, did not include stakeholders’ meetings and due diligence on the companies.
They urged the Federal Government to ease the concerns of ISSSAN and its members by making the concession process all-inclusive and inviting stakeholders and relevant representatives adding that anything short of that means the process would be flawed and viewed as a deliberate design to excise stakeholders’ issues and ISSSAN from the process and ignore steel sector employees’ interest.
What you should know
Despite Ajaokuta Steel Company being dormant, pages 950 to 951 in the 2023 appropriation budget bill, state that the sum of N3,717,375,949 had been budgeted for the Ajaokuta Steel Company for personnel costs, overhead costs, allowances, refreshments, purchases, repairs, and other costs.
Meanwhile, N53,538,925 is budgeted for power, water, and security projects at the steel company.
