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Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel - Politics - Nairaland

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Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by Omooba77: 6:57am On Oct 16, 2018
The Nigerian government’s 2018 revenue will not be enough to finance its N9.12 trillion budget. Hence, it has been putting different measures in place to address the deficit, including borrowing and selling of assets. Governor of the Central Bank of Nigeria (CBN) Godwin Emefiele says assets sale will continue.

“I am aware, as a member of the National Council on Privatisation, that more are coming and I believe in due course that the Bureau of Public Enterprise (BPE) will make this available to us. I am aware of the situation of Ajaokuta Steel Company of Nigeria. It is also on the cart, first for a total review of the process of privatisation and payment, so that our aluminium sector can eventually come alive,” Emefiele told the Nigerian delegation at the end of the International Monetary Fund (IMF)/World Bank Group meetings in Bali, Indonesia.

Ajaokuta Steel Mill was incorporated in 1979 but has never produced steel. Referred to as the “bedrock of Nigeria’s industrialization”, the project which was started by the Soviet Union under a cooperation agreement with Nigeria, reached 98 percent completion by 1994, with 40 of the 43 plants at the facility completed. Mismanagement and failed attempts at privatisation has seen the mill remain non-operational. But now, the government wants to try again.

President Shehu Shagari visits Ajaokuta Steel Company Ltd. on February 25, 1980.
The steel which has gulped about $80 billion since inception, needs another $652 million for it to be ready for production, money the government does not have.
Nigeria’s House of Representatives had disagreed with the Minister of State for Solid Minerals Development Abubakar Bwari in June, with the lawmakers in favour of the
government completing the project and running it as a state-owned enterprise. But Bwari explained that “with concession, the government will not put more money, but will appoint a reputable transaction adviser to move forward. Right now, the government does not have the funds. It is important that we hand it over to those who have the resources.

“The government is even borrowing to run services. That is to tell you that there is no money.”

Who wants to buy?

Ajaokuta Steel Mill in another country will get investors lining up to make a bid, but Nigeria is not the best place to do business. Investors learn from history and the challenges currently being faced by companies operating in the country. Bi-Courtney Aviation Services Ltd. (BASL) still has a running legal battle with the Federal Airports Authority of Nigeria (FAAN) over a concession agreement for the Murtala Muhammed Airport Terminal 2 signed in 2003, with the Chairman, Resort Group, the parent company of BASL, Dr. Wale Babalakin, saying recently that “If Nigeria wants to encourage private sector participation in the infrastructural development of the country, it must abide by international regulations; government and its agencies must respect and abide by concession agreements”.

Thus, fears about the government respecting concession agreements might make it difficult to find a concessionaire for Ajaokuta Steel Company. More so, some foreign-owned companies are currently not finding things easy in the country. telecommunications giant MTN is still discussing with the central bank on an $8.1 billion the Bank said it illegally took out of the country. There is another $2 billion claim in back taxes by the attorney general’s office.

Also, there other dependencies that an investor/concessionaire will consider which might make the status quo difficult to change. Financial planner Kalu Aja highlighted these in his 19 June 2018 article for local business newspaper Business Day.

Source:
https://thenerveafrica.com/23372/after-spending-80bn-on-a-steel-plant-that-never-worked-nigeria-is-ready-to-sell/

1 Like

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by nototribalist: 6:59am On Oct 16, 2018
Abeg na who get time for we will, we shall, we're about to?

51 Likes 3 Shares

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by izzou(m): 7:05am On Oct 16, 2018
cool
Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by Flets: 7:07am On Oct 16, 2018
Nigerians need to understand that the Chinese loans collected by Buhari was tied to the 60% JV interest of the Nigerian govt in the IOCs.

Meaning in the next few years, Chinese will take over/ run our oil and gas industry because this govt is bent on looting the entire funds.

Nigeria is doomed.

119 Likes 9 Shares

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by Nobody: 7:10am On Oct 16, 2018
Nothing new here , this was probably the plan from the get go .

5 Likes 1 Share

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by forgiveness: 7:15am On Oct 16, 2018
All I have to say is sai Buhari! Atikulation bawo..kolewerk. grin

8 Likes 1 Share

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by Alzirida(f): 7:29am On Oct 16, 2018
Not a good one.
Why not privatise and have 30% stake

1 Like

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by seunmsg(m): 7:46am On Oct 16, 2018
Alzirida:
Not a good one.
Why not privatise and have 30% stake

Selling to private investors is the same thing as privatisation. The percentage of government holding in Ajaokuta that will be sold to private investors is not known yet. I support the privatization of the steel plant.

20 Likes 2 Shares

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by mamaafrik(m): 7:54am On Oct 16, 2018
i prefer it being sold to an experienced mining mogul
Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by richidinho(m): 7:55am On Oct 16, 2018
pls buhari leave our national assets alone oo

you people told us that Gej was corrupt that was why he could not complete that project and a lot more

mr. integrity you are in power now after spending 3bn naira to unveil logo of our national carrier the rest is history

29 Likes 3 Shares

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by Nbote(m): 8:32am On Oct 16, 2018
Isn't dis d same Ajaokuta steel plant Sarrki and his gang of unapologetic zombies were celebrating earlier dis year lol.. Until dis govt starts telling Nigerians d truth and stop playing politics den we are not going anywhere

forgiveness:


The rail has already been laid from Ajaokuta to Itakpe. It remains the stations.

Nevertheless, it will begin operations regardless of the stations before the end of the year.

Mind you, the construction of Ajaokuta to Abuja rail has commenced.


https://www.google.com.ng/url?sa=t&source=web&rct=j&url=https://punchng.com/warri-itakpe-ajaokuta-rail-line-completed-says-minister/amp/&ved=2ahUKEwiCwe2a1oreAhXEqIsKHf5BBrQQFjABegQICRAB&usg=AOvVaw0hfo_VhlqBQwoESUXcXSUM&ampcf=1


Oga those rails have been laid and ready for years.. D Stations haven't been ready becos of d Ajaokuta steel company so don't com and tell us dis govt laid those rails

70 Likes 6 Shares

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by Omooba77: 9:54am On Oct 16, 2018
Nbote:
Isn't dis d same Ajaokuta steel plant Sarrki and his gang of unapologetic zombies were celebrating earlier dis year lol.. Until dis govt starts telling Nigerians d truth and stop playing politics den we are not going anywhere

I tire oo...Even Itakpe rail, nothing has been heard. May God save us again.

11 Likes 1 Share

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by oshe111(m): 10:28am On Oct 16, 2018
seunmsg:


Selling to private investors is the same thing as privatisation. The percentage of government holding in Ajaokuta that will be sold to private investors is not known yet. I support the privatization of the steel plant.
And u castigated jona n atiti for privatisation



U well so?

22 Likes

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by seunmsg(m): 10:34am On Oct 16, 2018
oshe111:
And u castigated jona n atiti for privatisation



U well so?

Really? You have any proof to substantiate your claim?

3 Likes

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by forgiveness: 10:36am On Oct 16, 2018
Omooba77:


I tire oo...Even Itakpe rail, nothing has been heard. May God save us again.

It's 98% executed. I saw it. grin

13 Likes

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by CodeTemplar: 10:38am On Oct 16, 2018
A big shame.

7 Likes

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by Omooba77: 10:40am On Oct 16, 2018
forgiveness:

It's 98% executed. I saw it. grin
Aha... 2% balance nko

7 Likes

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by techstack: 10:45am On Oct 16, 2018
Privatisation is better

Govt should face governance not business

5 Likes

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by forgiveness: 10:47am On Oct 16, 2018
Omooba77:


Aha... 2% balance nko

The rail has already been laid from Ajaokuta to Itakpe. It remains the stations.

Nevertheless, it will begin operations regardless of the stations before the end of the year.

Mind you, the construction of Ajaokuta to Abuja rail has commenced.


https://www.google.com.ng/url?sa=t&source=web&rct=j&url=https://punchng.com/warri-itakpe-ajaokuta-rail-line-completed-says-minister/amp/&ved=2ahUKEwiCwe2a1oreAhXEqIsKHf5BBrQQFjABegQICRAB&usg=AOvVaw0hfo_VhlqBQwoESUXcXSUM&ampcf=1

3 Likes

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by Omooba77: 10:57am On Oct 16, 2018
Why dont we start another steel mill from the scratch with modern technology rather than waste money on this outdated mill
....saw Seun on the checking list earlier..

3 Likes

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by Omooba77: 12:16pm On Oct 16, 2018
forgiveness:


The rail has already been laid from Ajaokuta to Itakpe. It remains the stations.

Nevertheless, it will begin operations regardless of the stations before the end of the year.

Mind you, the construction of Ajaokuta to Abuja rail has commenced.


https://www.google.com.ng/url?sa=t&source=web&rct=j&url=https://punchng.com/warri-itakpe-ajaokuta-rail-line-completed-says-minister/amp/&ved=2ahUKEwiCwe2a1oreAhXEqIsKHf5BBrQQFjABegQICRAB&usg=AOvVaw0hfo_VhlqBQwoESUXcXSUM&ampcf=1


Hmmm, but Ajaokuta cant function as it is now. Not a pessimistic though.

2 Likes

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by forgiveness: 12:20pm On Oct 16, 2018
Omooba77:


Hmmm, but Ajaokuta cant function as it is now. Not a pessimistic though.

Well, I don't know anything about Ajaokuta but I know people will use it as a safe means of traveling within that area.

The speed of the Train is 120 km per hour.

1 Like

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by Omooba77: 2:16pm On Oct 16, 2018
forgiveness:


Well, I don't know anything about Ajaokuta but I know people will use as a safe means of traveling within that area.

The speed of the Train is 120 km per hour.

120km/hour ke!!!!
Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by kaluxy007(m): 2:34pm On Oct 16, 2018
What exactly is Buhari's Blueprint?

I want to know

10 Likes

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by Omooba77: 3:36pm On Oct 16, 2018
kaluxy007:
What exactly is Buhari's Blueprint?

I want to know
Ask lalasticlala

7 Likes

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by Andyblaze: 4:35pm On Oct 16, 2018
J
Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by BruncleZuma: 4:35pm On Oct 16, 2018
grin grin grin grin

They'll still bless MB for something he and his gang of military thieves engineered to squander resources just like his Kaduna refinery.

Russian design that became obsolete almost immediately after the first phase.

6 Likes

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by AutoSpaNg: 4:35pm On Oct 16, 2018
oitueyt
Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by oladele00(m): 4:35pm On Oct 16, 2018
God bless PMB

2 Likes

Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by AutoSpaNg: 4:36pm On Oct 16, 2018
lkiujtfhd
Re: Nigeria To Sell Ajaokuta Steel Company After Spending $80bn On A Moribund Steel by chrisxxx(m): 4:36pm On Oct 16, 2018
Chai watin we do Buhari?

7 Likes

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