Tinubu Govt promises to revive Ajaokuta steel

Nigeria’s Minister of Steel Development, Shuaibu Audu, has promised to revive the Ajaokuta steel company.


The minister, who gave the assurance when he assumed office on Monday in Abuja, said there is a need to revive the facility in order to enable the country to produce steel.

He added that he would set a roadmap for the development of the steel sector, aggressively pursue the completion of Ajaokuta Steel, and enact the required bills to regulate the sector.

The steel company, located in Kogi State, was built between 1979 and the mid-1990s, but it has become moribund.

Last September, the Nigerian government agreed to pay $496 million to settle an Indian firm’s claim over the facility. The dispute followed the federal government’s revocation in 2008 of an agreement that handed control of the steelworks and the National Iron Ore Mining Company to the Indian firm. In cancelling the deal, the Umar Yarádua administration said the terms of the concession at the time were not favourable to the country.

In December last year, the government said 11 companies had indicated interest in taking over the steel company on a concession basis. Three of the 11 bidders are Russian companies, the then Minister of Mines and Steel Development, Olamilekan Adegbite, said while listing his ministry’s achievements.

Speaking on Monday, Mr Audu said the past leaders recognized the importance of steel development but lacked the political will to achieve its objectives.

“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,” the minister said.
Peoplesmind 

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