Good move, more employment,
And we will depend less on imported good

omohayek:

No. It would be better if our private companies bought steel on the international market from the cheapest producers, while we used the little money we have to fix more important things, like our electrical grid and our transport infrastructure. Would you think it better to raise your own cattle and grow your own vegetables, instead of getting a good job that would allow you to buy those things? It's exactly the same reasoning at work here.

you are simply showing a lack of understanding of how economies work. Tell me our politicians will steal the money and I won't argue with you but to say that we should import steel when we halready have a steel plant..no matter how ineffficient and there are Nigerians without jobs, the raw material are here and many industries will feed of it is simply ignorant thinking.

DropShot:

Why are you perpetually bitter and frustrated?

Get it in your skull, this govt is very serious about reviving our moribund industries and has proved it with many actions.

E.g, Abuja Airport, many major federal roads such as East-West road, 2nd Niger Bridge, new fighter jets for the NA, just to mention a few.

You said?

vodutive:


And what is your alternative oh wise one. To continue importing steel that provides no jobs to Nigerians and eats up or forex?

Save your pathetic sarcasm and learn a little basic economics. No country on earth produces everything it needs domestically, and steel is not a particularly valuable or high-tech product; it is a commodity, which is produced by many countries, and currently nowhere at a profit.

Your obsession with "forex" simply betrays your lack of understanding of economics: there is no point in hoarding "forex" if the end result is that you can't produce any export goods to earn more "forex": you might as well hoard your salary at the end of the month and grow your own food, sew your own clothes, etc., that's how misguided your thinking is.

Finally, here's a challenge for you and all the other obstinate defenders of this ridiculous black-hole of a project: seeing as Ajaokuta has never functioned properly in 40 years, let alone managed to make a profit, why do you think it will be different this time?

omohayek:


Unfortunately, the answer is no. Ajaokuta was already an obsolete Soviet relic back in 1982, and steel production technology has moved on since then. Even efficient European and American steel producers are unable to compete with the Chinese, who have a serious domestic overcapacity problem, which they are trying to solve by dumping abroad.

Steel is a low-margin commodity business, and the Nigerian obsession with it just betrays ignorance and an obsession with prestige projects over economic realities. The truth is that the only people who have benefited from Ajaokuta over the last 40 years are politicians looking for an easy way to steal public funds.

you're a wise and knowledgeable person.. unlike the myriad of political e-goons littered around here..exactly what I said in my earlier post..the blueprint of that steel facility was decommissioned as far back as the 1950s..just after the second world war..yet they keep pumping money into it just to steal it back...the previous administration realized this and wanted to sell of that money guzzling obsolete facility but as usual, ignorant Nigerians started screaming foul..

omohayek:

Save your pathetic sarcasm and learn a little basic economics. No country on earth produces everything it needs domestically, and steel is not a particularly valuable or high-tech product; it is a commodity, which is produced by many countries, and currently nowhere at a profit.

Your obsession with "forex" simply betrays your lack of understanding of economics: there is no point in hoarding "forex" if the end result is that you can't produce any export goods to earn more "forex": you might as well hoard your salary at the end of the month and grow your own food, sew your own clothes, etc., that's how misguided your thinking is.

Finally, here's a challenge for you and all the other obstinate defenders of this ridiculous black-hole of a project: seeing as Ajaokuta has never functioned properly in 40 years, let alone managed to make a profit, why do you think it will be different this time?

Like I said you are ignorant, there are many inefficient domestic industries that are kept alive by countries around the world for the simple reason that they have a multiplier effect on the rest of the economy. Tomorrow idiots like you will complain we import toothpicks and nails.

prince9851:
where is d company located??

The company is located in the Town called Ajaokuta in Kogi state.

vodutive:



you are simply showing a lack of understanding of how economies work. Tell me our politicians will steal the money and I won't argue with you but to say that we should import steel when we halready have a steel plant..no matter how ineffficient and there are Nigerians without jobs, the raw material are here and many industries will feed of it is simply ignorant thinking.

You're ridiculous. Here, read the following before making any more silly comments.

https://medium.com/@doubleeph/ajaokuta-the-beginning-b45d2811885d
https://youarenotsosmart.com/2011/03/25/the-sunk-cost-fallacy/
https://wikileaks.org/plusd/cables/03ABUJA2161_a.html
https://www.logicallyfallacious.com/tools/lp/Bo/LogicalFallacies/173/Sunk-Cost-Fallacy

vodutive:



Like I said you are ignorant, there are many inefficient domestic industries that are kept alive by countries around the world for the simple reason that they have a multiplier effect on the rest of the economy. Tomorrow idiots like you will complain we import toothpicks and nails.

It's rich for you to call anyone an idiot while making vague claims about "multiplier effects"! Go ahead and back up your empty talk with some references, I dare you. Find me any credible peer-reviewed studies supporting your delusions - if you even understand what "peer reviewed" means, that is.

omohayek:
So they are going to waste another 4.2 billion on this obsolete white elephant of a project, in a world which is already suffering from a glut of cheap Chinese steel? Yet more proof of the utter cluelessness of this government!

Ajaokuta provides a foolproof method for determining whether one is dealing with an economic ignoramus or not: anyone who supports this stupid money-sink can't have the first clue what he or she is talking about.

What are you perpetually bitter about my friend? Can this government ever do any good in your eyes? When government say they will create x amount of jobs, do you ever pause and ponder where these jobs will come from? Do you know how many jobs that steel complex would create if resuscitated?

omohayek:

It's rich for you to call anyone an idiot while making vague claims about "multiplier effects"! Go ahead and back up your empty talk with some references, I dare you. Find me any credible peer-reviewed studies supporting your delusions - if you even understand what "peer reviewed" means, that is.

at this stage in Nigeria's development, it is better to start with an inefficient industry than to have none at all.

When dealing with foolish adults, don’t be drawn down to their level. Confront them with their own words, and if they will not listen, let them experience life’s unhappy consequences. Do not deliver them from their foolish thoughts and actions.

Buhari is the Boss


Illbliss is just making mouth


First it's National airline (Nigerian airways)

Now it's ajaokuta


God bless Nigeria


God bless Buhari

God guide and protect us

Lautechgossip:
Since its inauguration in 1983, however, the plant had been embroiled in managerial inaptitude, controversy ranging from allegations of obsolete machines and outdated blast furnace model.

Obsolete machines and outdated blast furnaces in 1983...... and we think it's a good development to pump billions into this plant in 2017......34 years later.

i think this is the best news so far since buhari regime,i hope it will be done. That industry can feed the whole west africa.

vodutive:



Like I said you are ignorant, there are many inefficient domestic industries that are kept alive by countries around the world for the simple reason that they have a multiplier effect on the rest of the economy. Tomorrow idiots like you will complain we import toothpicks and nails.

YOU are the ignorant one here...there is NO way that steel plant will see the daylight if they don't overhaul the entire facility, this is because the system on which the plant was built has become outdated/ancient/moribund/archaic/obsolete.....so putting four billion naira into it is a complete waste of fund! for how long will the Nigerian government continue to do 'patch patch work' on that plant? by next year the plant will collapse as usual and they will put in another billion naira for another 'patch patch work' UNA NO DEY TIRE??

Josmila:


What are you perpetually bitter about my friend? Can this government ever do any good in your eyes? When government say they will create x amount of jobs, do you ever pause and ponder where these jobs will come from? Do you know how many jobs that steel complex would create if resuscitated?

I am "bitter" about the fact that Nigeria has wasted 56 years stagnating as other countries have roared ahead in development, I am "bitter" about the fact that income per head in Nigeria is no higher than it was in 1967, and I am "bitter" about the fact that, like you, far too many Nigerians accept corrupt incompetence without complaint, yet wonder why their lives never improve. Only in a basketcase like Nigeria do people assume that "government" is the natural and right answer for creating jobs and establishing industries, a delusion even the Russians gave up in 1990.

Instead of cheerleading for what is by any objective standards a thoroughly incompetent government, perhaps you should learn something about how things are done in other countries first, and see whether you don't become "bitter" too.

Josmila:


What are you perpetually bitter about my friend? Can this government ever do any good in your eyes? When government say they will create x amount of jobs, do you ever pause and ponder where these jobs will come from? Do you know how many jobs that steel complex would create if resuscitated?

Abeg leave the fool taking nonsense, I'm sure left to him we should continue importing petrol because our refineries are outdated....slowpoke!

All these idiots that go to school to regurgitate without thinking.

Originalsly:
Obsolete machines and outdated blast furnaces in 1983...... and we think it's a good development to pump billions into this plant in 2017......34 years later.

my point exactly... kid yourself not, those in the government know that steel plant is past it's usefulness but greed will not allow them do the right thing.. they have been making a killing from putting in funds into that plant year after year...same with most of the nnpc plants, they have become obsolete but greed and the Nigerian politician's knack for playing to the gallery won't allow them do the right thing either.. they keep indulging in a penny-wise pound foolish endeavor.. can someone tell me what happened to the last billions of naira that the present administration supposedly pumped into NNPC? what is the story so far?

omohayek:


Unfortunately, the answer is no. Ajaokuta was already an obsolete Soviet relic back in 1982, and steel production technology has moved on since then. Even efficient European and American steel producers are unable to compete with the Chinese, who have a serious domestic overcapacity problem, which they are trying to solve by dumping abroad.

Steel is a low-margin commodity business, and the Nigerian obsession with it just betrays ignorance and an obsession with prestige projects over economic realities. The truth is that the only people who have benefited from Ajaokuta over the last 40 years are politicians looking for an easy way to steal public funds.

Perfect response!

Every administration that comes uses this Ajaokuta steel project to siphon/steal fund, this govt just identified this and ready to chop there own. God bless my country. DON'T BE SURPRISE 2019 ELECTION FUND JUST BEEN EARMARKED.

How much of that huge allocation will end up in private pockets? That's one thing nobody will like you to know. Those that understand the present regime's approach to fighting corruption would not have to fear any evil because baba is with them.

Guyman02:
If you want to fully resuscitate that plant ask Vladimir Putin for help. The Russians who built it can Complete, Operate and Transfer to us, if only we can dare the west and keep them and their institutions of IMF and World Bank aside who misadvised our military rulers to abandon the project because they were then in a Cold War with the Soviet Union.

The West encouraged Nigeria to buy very cheap steel from their allies and our leaders fell for the deception and abandoned Ajaokuta because they knew little of international politics and scheming between the West and Eastern Blocs.
China had access to cheap steel but still went ahead to develop their steel industry which is now heavily taxed in America to discourage importation from China into US. (Why is America and Britain putting so much tax on Steel, why dont they accept cheap steel from abroad but will rather pay more for locally produced steel? that is the question those trying to condemn this move should ask themselves).
I dont Buhari in political matters but on this one he has my support.

Every great country must have a functioning Steel Industry even if they can get cheap steel from elsewhere, you cant be taken serious when your local manufacturers such as Innoson and small scale producers in Aba, Awka, Kano, Bida, Ijebu etc foundries, imports all their steel needs from abroad or depend on scrap metal from used vehicle and machine parts.

i did not get to read all your write up, but the fact that you mentioned Russia, i agree with all you have said.

omohayek:


I am "bitter" about the fact that Nigeria has wasted 56 years stagnating as other countries have roared ahead in development, I am "bitter" about the fact that income per head in Nigeria is no higher than it was in 1967, and I am "bitter" about the fact that, like you, far too many Nigerians accept corrupt incompetence without complaint, yet wonder why their lives never improve. Only in a basketcase like Nigeria do people assume that "government" is the natural and right answer for creating jobs and establishing industries, a delusion even the Russians gave up in 1990.

Instead of cheerleading for what is by any objective standards a thoroughly incompetent government, perhaps you should learn something about how things are done in other countries first, and see whether you don't become "bitter" too.

Like I said people like you read books without thinking. China is government led, Most of the Chinese companies are still govt owned fpr example, CCECC that is building toads, airports and rail in Nigeria is Chinese government owned. There are certain industries that only the government handle for now, either in the form of subsidies, guarantees or directly. The Russia you are talking about established these industries and then sold them off. You only have to look at power to know that there are certain industries that only govt can do for now. Since we sold the gencos please tell me the nigerian company that has invested anything meaningful in power generation? Nigerian companies do not have the capacity. Many industries in the UK were initially govt owned and then sold off. At the stage of our development, there are some industries that only govt can initiate or only viable with govt help so if you take all your oyinbo man theory of liberisation, you will be waiting forever and in the mean time your market will be a dumping ground and you'll create no jobs...which last time I checked is exactly what has happenned to Nigeria!! Alhaji chukwu Onigbanjo is not going to borrow money @27% from Nigerian banks to establish steel industries that don't provide immediate returns. The only industries where Nigerians can play big are Oil and Telecoms because the payback is relatively quick.

Nigeria needs 40,000MW, if govt were to borrow and build 40,000MW power plants over the next few years and then sell them, the power capacity will be there and cant be taken away irrespective of who owns it and Nigerians will reap the benefit. But if you are waiting for all the new gencos to build capacity, I can promise you in 10 years we will still be under 10,000W and the demand will have grown.
You want to industrialise you build and then you sell or commercialise. Govt has a role, don't just regurgitate everything your textbooks say. The problem is not govt involvement, the problem is corruption.

Who cares if the technology is obsolete, is the steel it produces bad steel? If not what exactly is your point?

make I dust my geology certificate, Fayemi abeg gimme Job for Ajaokuta o.

omohayek:


Unfortunately, the answer is no. Ajaokuta was already an obsolete Soviet relic back in 1982, and steel production technology has moved on since then. Even efficient European and American steel producers are unable to compete with the Chinese, who have a serious domestic overcapacity problem, which they are trying to solve by dumping abroad.

Steel is a low-margin commodity business, and the Nigerian obsession with it just betrays ignorance and an obsession with prestige projects over economic realities. The truth is that the only people who have benefited from Ajaokuta over the last 40 years are politicians looking for an easy way to steal public funds.

Omohayek,
Your comment got me thinking for you to say steel is a low margin commodity I believe you must be an expert in this field,we as Nigerians lack research capabilities and most of our business case analysis don't really paint a true picture of the reality,the Ajaokuta plant really needs a major overhaul of all its activities to determine the profitability of the project , i. Worked in Kogi state in 2004 -2007 and I cannot see any meaningful limprovement in its activities during my stay in the state.

If by your statement steel is a low margin commodity why can't we channel the resources to other high margin commodity-Agriculture and others for the time being and see how we could cut down on the cost element in the plant or invite credible investors for the time being to optimize plant potential for say 3 to 5 years and let's see how it goes

Nice... Looking forward to the revival of that moribund steel company.

Flaghouse1:
[/b]

Omohayek,
Your comment got me thinking for you to say steel is a low margin commodity I believe you must be an expert in this field,we as Nigerians lack research capabilities and most of our business case analysis don't really paint a true picture of the reality,the Ajaokuta plant really needs a major overhaul of all its activities to determine the profitability of the project , i. Worked in Kogi state in 2004 -2007 and I cannot see any meaningful limprovement in its activities during my stay in the state.

If by your statement steel is a low margin commodity why can't we channel the resources to other high margin commodity-Agriculture and others for the time being and see how we could cut down on the cost element in the plant or invite credible investors for the time being to optimize plant potential for say 3 to 5 years and let's see how it goes

he's no expert, he's just another typical Uncle Tom Nigerian who has been educated in regurgitating facts and like to sound informed and knowledgeable but not schooled in critical thinking and application of said knowledge to local conditions. People like Okonjo who messed up our economy speaking english.

vodutive:



Like I said people like you read books without thinking. China is government led, Most of the Chinese companies are still govt owned. There are certain industries that only government handle do for now, either in the form of subsidies, guarantees or directly. The Russia you are talking about established these industries and then sold them off. You only have to look at power to know that there are certain industries that only govt can do for now. Since we sold the gencos please tell me the nigerian company that has invested anything meaningful in power generation? Nigerian companies do not have the capacity. Many industries in the UK were initially govt owned and then sold off. At the stage of our development, there are some industries that only govt can initiate or only viable with govt help so if you take all your oyinbo man theory of liberisation, you will be waiting forever and in the mean time your market will be a dumping ground and you'll create no jobs...which last time I checked is exactly what has happenned to Nigeria!! Alhaji chukwu Onigbanjo is not going to borrow money @27% from Nigerian banks to establish steel industries that don't provide immediate returns. The only industries where Nigerians can play big are Oil and Telecoms because the payback is relatively quick.

Nigeria needs 40,000MW, if govt were to borrow and build 40,000MW power plants over the next few years and then sell them, the power capacity will be there and cant be taken away irrespective of who owns it and Nigerians will reap the benefit. But if you are waiting for all the new gencos to build capacity, I can promise you in 10 years we will still be under 10,000W and the demand will have grown.
You want to industrialise you build and then you sell or commercialise. Govt has a role, don't believe everything your textbooks say. The problem is not govt involvement, the problem is corruption.

Who cares if the technology is obsolete, is the steel it produces bad steel? If not what exactly is your point?

And people like you don't even bother to read books at all, yet you have no hesitation writing lots of nonsense. If you bothered to read a book or two, you'd know that
1. China's economy stagnated between 1949 and 1979, thanks to overwhelming government control. In the meantime, free-market Taiwan's economy boomed.
2. China's economic development since Deng Xiaoping endorsed liberalisation in 1979 has come from the private-sector, not the government-run bodies.
3. China's "state owned enterprises" are massively inefficient, and have run up gigantic debts - http://www.reuters.com/article/china-debt-moodys-idUSL3N1872L0

Anyone trying to use China, of all countries, as an example of how government control is a good thing, is laughably ignorant.

The rest of your write-up is equally ignorant and devoid of factual basis. Perhaps you should try the book-reading thing for a change.

vodutive:


he's no expert, he's just another typical Uncle Tom Nigerian who has been educated in regurgitating facts and like to sound informed and knowledgeable but not schooled in critical thinking and application of said knowledge to local conditions. People like Okonjo who messed up our economy speaking english.

Of course you'd go for name-calling, seeing as you lack even the slightest ability to reason, or anything resembling a foundation of relevant knowledge. Keep indulging your conspiracy theories and insulting people who are internationally recognized for their expertise, instead of finding out something about how the world really works, I'm sure it's a lot less effort.

omohayek:

And people like you don't even bother to read books at all, yet you have no hesitation writing lots of nonsense. If you bothered to read a book or two, you'd know that
1. China's economy stagnated between 1949 and 1979, thanks to overwhelming government control. In the meantime, free-market Taiwan's economy boomed.
2. China's economic development since Deng Xiaoping endorsed liberalisation in 1979 has come from the private-sector, not the government-run bodies.
3. China's "state owned enterprises" are massively inefficient, and have run up gigantic debts - http://www.reuters.com/article/china-debt-moodys-idUSL3N1872L0

Anyone trying to use China, of all countries, as an example of how government control is a good thing, is laughably ignorant.

The rest of your write-up is equally ignorant and devoid of factual basis. Perhaps you should try the book-reading thing for a change.

Firstly i never said govt control is a good thing,it is by definition inefficient. I said if you were to use your brain is that there are some industries that only govt has the capacity to initiate....after which they can sell. Stop trying to be too clever by halves.


Please my friend use your brain and stop wasting your time sending links ....this is common sense. Who is going to establish steel industry in Nigeria if not the govt 2) is an inefficient steel industry that provides jobs not better that expending scarce forex importing nails? 3) do countries all over the world not subsidise their uncompetitive/inefficient industries including steel or protect them? These are the issues.

omohayek:

Of course you'd go for name-calling, seeing as you lack even the slightest ability to reason, or anything resembling a foundation of relevant knowledge. Keep indulging your conspiracy theories and insulting people who are internationally recognized for their expertise, instead of finding out something about how the world really works, I'm sure it's a lot less effort.

any nit-wit can come on the internet making claims about his qualification...you don't know who I am so please stop that nonsense. Let your intelligence and qual;ification be known by the strength of your argument. Anybody that can say it better for Nigeria to import steel deserves to be called a m*ron!