Ihuoma Chiedozie, Abuja

There were indications on Thursday that Global Steel Holdings Limited, the company involved in the botched concession of Ajaokuta Steel Company Limited, was preparing for a fresh legal battle with the Federal Government over the control of the Nigeria’s steel mill.

The Minister of Mines and Steel Development, Olamilekan Adegbite, dropped the hint of the impending legal battle while inspecting the National Iron Ore Mining Company at Itakpe, Kogi State.

NIOMCO was reportedly ceded to the GSHL after the breakdown of the concession of Ajaokuta Steel to the Indian company for a 10-year period.

There are signs that the Federal Government has also backed out of the renegotiated concession agreement which allowed the GSHL to retain NIOMCO, as provisions were made for the iron ore mining company in the 2020 budget.

Also, Adegbite inspected NIOMCO and Ajaokuta Steel Complex on Thursday as part of plans by the Federal Government to revive the two long abandoned national assets.

The Federal Government recently entered a fresh agreement with Russia for the completion of Ajaokuta and stakeholders in the steel industry believe that the steel complex cannot function without NIOMCO.

Speaking during the inspection on Thursday, the minister declared that the ‘concession modification agreement’ with the GSHL did not make any sense, and vowed that Nigeria would keep both Ajaokuta Steel and NIOMCO.

He insisted that Nigeria would not surrender her sovereignty to ‘individuals’.

Although he did not mention the GSHL, he said the company did not want Nigeria to produce steel.

Disclosing that the company was preparing for another legal battle with Nigeria in a foreign court, he said the Federal Government was prepared for the fight.

The minister said, “As it where, Aladja (steel mill) has already been privatised and sold but Ajaokuta and Itakpe are still in government hands and will produce to the benefit of the people of Nigeria, no matter whose ox is gored.

“These people (GSHL), they are not our friends, they don’t want Nigeria to produce steel and they have successfully done it over the years.

“As it where, they are preparing to go back to some court abroad to embarrass Nigeria but I’m sure the country is capable of meeting them at this point and we will not surrender our sovereignty to some individuals.”

It would be recalled that Global Steel Holdings Limited, an Indian company, won the concession of the Ajaokuta steel mill for 10 years but the agreement was revoked when the Federal Government accused the firm of asset stripping, a development that led to a court case between the two parties.

To resolve the matter, NIOMCO was reportedly ceded to the GSHL for the remaining period of the concession in line with an agreement reached during mediation talks.

It is not yet clear whether a fresh legal battle would affect the new agreement entered between the Federal Government and Russia for the completion of Ajaokuta.

Earlier on Thursday, while showing the ministers of Mines and Steel Development around the company’s facilities, the acting Sole Administrator of NIOMCO, Augustus Nkechika, had stressed that Ajaokuta could not work without the iron ore mining company.

Source: https://punchng.com/ajaokuta-global-steel-fg-prepare-for-fresh-legal-battle/

“These people (GSHL), they are not our friends, they don’t want Nigeria to produce steel and they have successfully done it over the years.

“As it where, they are preparing to go back to some court abroad to embarrass Nigeria but I’m sure the country is capable of meeting them at this point and we will not surrender our sovereignty to some individuals.”

Lol its never Nigeria fault. Its always a global conspiracy. We'll see if Nigeria can beat them in court or just factor then into plans. Their concession well expire eventually.

Bump

It's now becoming clear how foreign investors, some selfish Nigerian and so international countries connived to stunt the growth of the country. Now, Nigeria is suffering from protein energy malnutrition(neither kwashiorkor nor marasmus, more like both). The shoddy deals of our fathers is now tormenting everyone. Education, health,food security,energy,mining and steel are the barn for developing a nation.