baby124:
So are these people being paid to work in a non functioning steel mine. Is this administrator a reporter or a steel executive? As I don't understand what job he is doing for him to effectively be able to estimate the cost of revival at 80billion.

The minister of state for solid minerals, Abubakar Bawa Bwari, has said that more than 7 foreign firms are jostling for the completion of the Ajaokuta Steel Company Limited.

He said that while the federal government is committed to working with any company serious to revive the steel plant, there is the need for them to be careful as they are inundated with various demands by different companies who had shown interest.

Speaking in an exclusive telephone chat with LEADERSHIP recently, the minister assured that the present government was being careful to avoid past mistakes made in a bid to refurbish and revive the steel complex.

The minister revealed to LEADERSHIP that “more than 7 companies from China, India, and Ukraine, among others, had expressed interest to complete the steel plant, adding that “even Nigerians have come out to say that they have partners and investors interested in completing the project.”

He, however, reiterated that government was being careful not to repeat the same mistake of sinking money into a project that did not yield revenue commensurate to the investment.

“We are being very careful not to make any mistakes and waiting till we are able to vet all proposals before a technical team. Also, we would involve the government of these countries to certify the companies before sitting down to discuss with the firms. This time around we want to be very careful but are willing to associate and discuss with those interested in completing the steel complex,” Bwari said.

He further stated that while the government was being careful in committing to any company, they will also “give conditions and only those companies that are able to meet the conditions will be considered for further discussions.” He lamented that so much had been spent for the revival of plant in the past with nothing commensurate coming out of it.

“The federal government spends N4 billion annually to maintain the steel plants and its workers, but we cannot continue with that,” he said.

Responding to a statement in which the minister, Dr Kayode Fayemi, had said that “government does not have the money to sink into Ajaokuta Steel Complex, the minister of state clarified that what the minister meant was that “with dwindling revenues we cannot put in so much in running Ajaokuta when we have other challenges.”

He assured that the government was being careful to vet and ensure that companies interested in reviving the complex visit it and if their proposals remain the same after the visit, they can then sit and discuss.

The minister assured that it was their intention that before the expiration of their tenure, half or the whole of the company will be working.

“It is our intention is to see that at least half of the Ajaokuta Steel Company will begin to work. When it does, it can generate power,” Bwari stated.

Ukraine already offered $1b-$2.6b to take over . . . I think in a PPP arrangement . . .

OTOH, the Indians took us to court already over the same steel company (claiming ownership of Ajaokuta steel company . . . some fraud from the past admins's stables.

Ajaokuta Steel Company (ASC), worth an estimated cost of $7 billion, was envisioned to be the largest integrated steel company in West Africa.
But the company, which also was to create close to 2.5 million jobs for Nigerians, is now in a sorry state.

The UNION investigations show that the Russian group, known as “TYAZHPROMEXPORT” had on the 25th of December, 2015 written to the Minister of Solid Minerals Development, Dr. Kayode Fayemi, on its intention to key into the current government efforts to find a lasting solution towards reviving the project, after several years of abandonment.

In the said letter, the Russian firm wrote:
“Our Association keeps keen interest and wholeheartedly willing to complete the project that Russian government started with great goodwill and intentions for Nigeria. That it would mean a whole lot for TPE to grace the Honour of commissioning ASCL as a dream for both countries”.
It will be recalled that the organization had negotiated, signed and executed the construction of Ajaokuta Steel, on July 13th, 1979 under the administration of former President Alhaji Shehu Shagari.

The Russian group while tracing the history of the project, noted that “in conformity with the agreement signed on June 4, 1976, between the government of the USSR and Nigeria, about the economic and technical cooperation on July 13, 1979, our association and Nigerian agency on the development of ferrous metallurgy concluded contract no.44-047/04100 for the construction of steel plant with the capacity of 1.3 min. tons of steel per year with production of rolled assortment”.

It said that “by the end of 1993, practically all the construction activities were finalized.

As of October 1,1993, technical plant availability was 98%, 476 units out of 482 were commissioned including three rolling mills. TPP- TBS repairs and service shops that were put into operation”.

However, the firm alleged that with the disintegration of the Soviet Union, the West, led by United States of America and Britain, through International Monetary Fund (IMF) and the World Bank, increased their opposition to the project.

“First, Nigeria’s government proceeded to concession the plant to an American firm, Global Infrastructure Holdings Limited, in 2005 and when this collapsed, Ajaokuta Steel complex was handed over to the Indian firm of GIHL, an arrangement that also collapsed”.
The UNION gathered that as a result of the cancellation of the agreement with GIHL, the firm took the government to a London Court of Arbitration which has been partly responsible for the current state of the ASCL.

A source close to the Solid Mineral Ministry told The UNION that in 2014, it was estimated that $1.1 Billion will be required to fully resuscitate the edifice, while the project can be fully revived within a period of three years.
“You will recall that the challenges facing the Ajaokuta Steel Company did not start with this administration, lack of political will and mismanagement by the past administrations has brought us to where we are now.

“Under former President Olusegun Obasanjo’s regime, the company was concession to Messrs SOLGAS of the United States of America and was later handed over to an India company, called Global Infrastructure Holding Limited (GIHL) to run two of the rolling mills, because of the failure of the American company to turn it around, until it was completely grounded to the state it is now”, The UNION was told.

It was also learnt that the company was vandalized, allegedly, by successive investors in active connivance with their Nigerian counterparts.
There were allegations, which The UNION could not independently verify, that the Indian firm, GIHL took away vital machinery and equipment from the Ajaokuta complex and allegedly moved same to another steel company in Nigeria.

The UNION also gathered that several option are being placed on the table, including an out of court settlement, which would enable the federal government to move in.

Largas:
Hahaha the Russians imported Nigerian oil during the civil war in exchange for war weapons and a steel mill supposed to create employment and provide materials for constrcution.


Those weapons they used to kill civilians during the war will cause the souls of innocent civilians never to let Ajaokuta function.

freeborn76:

should we still be talking about Ajaokuta steel in 2016? abeg that thing should be scrapped and the entire complex turned to a university or some specialised institution. Ajaokuta ko, ajangbadi ni! Better still, let's sell it to Dangote, Otedola or Orji Uzor Kalu, they have proven to be better managers of businesses than our otondo leaders.

Largas:
Hahaha the Russians imported Nigerian oil during the civil war in exchange for war weapons and a steel mill supposed to create employment and provide materials for constrcution.


Those weapons they used to kill civilians during the war will cause the souls of innocent civilians never to let Ajaokuta function.

tonyfrenzy:

How will Nigeria grow in infrastructural development if a repository of iron ore abound and cannot be explored?

Largas:
Hahaha the Russians imported Nigerian oil during the civil war in exchange for war weapons and a steel mill supposed to create employment and provide materials for constrcution.


Those weapons they used to kill civilians during the war will cause the souls of innocent civilians never to let Ajaokuta function.

freeborn76:


We have been committing billions to the project since the 70s to no avail...if it aint working, scrap it. No need flogging a dead horse.

tonyfrenzy:

How will Nigeria grow in infrastructural development if a repository of iron ore abound and cannot be explored?

Now we are talking of nonfunctional refinery, do you think nonfunctional metallurgy is not affecting Nigerians?
I believe we are also importing metals used in reinforcement of buildings into Nigeria and that will be affecting our forex as well.