₦airaland Forum

IMASTEX:
They need visible result not the usual futuristic promises

Tonnierichy:
Its not a futuristic promise

Its a move, inspired by an effort to diversify the economy.

And the government is desperate to make it work out

IMASTEX:
I agree with you and i pray it works out. But as a realist, the Nigeria politicians have taught me to only believe what I can say and touch. Not some imaginal/
promises. However, the same effort should be extended to the agricultural sector. Nigeria have no excuse for food import.

ibkgab001:
Another Halliburton

Tonnierichy:
Certainly.
Efforts are already being made for that

For the 1st time in a long, I'm actually having trust in this present administration

Its just sad many people are out to frustrate it's efforts

Lush100:
[s]A lot of folks who do not know the genesis of Ajaokuta steel will call this "great news".

if u can take the time to search & read the history if Ajaokuta via Facebook. u will "weep".
but I can delve too much into story and or details.

what I can conclude is that " nothing meaningful will emanate from this deal. I am 99% sure of that.
For anything good to materialize, the original deal agreed by the "Best" steel company in the world-a Russia company is the way to go.
do u know how many times the Nigerian/Indian have negotiated this deal on this same ajaokuta.
like @Vendoor said "it has been designed to fail".
my candid opinion[/s]

ibkgab001:
And who are the people out there to make the effort frustrated?

sinkhole:
This country na dead meat o, every scavenger just dey chop am anyhow! Russians don chop chop don tire, Ukrainian, Chinesse etc, now na Indian turn reach to chop!

Easyruns:
Nigerian I want to bring to your remembrance that the Delta Steel company in Ovwian Aladja in Delta State is still in ruins and the Warri sea port and railway lines running from the stellar plant to connect other states is abandon and yet the government is planning to bring back Ajakuta steel plant?
My people time out time to visit the Delta Steel plant and you will know that Ajakuta plant is learning.
I did my IT there in 1998 and I wept bitterly when I saw massive infrastructure been wasted.
For your information the Delta Steel plant is close to sea for easy export and was build to manufacture cars, engine blocks etc....and many Nigerians was sent abroad for training but many of them came back wasted away and even died without seeing the aim of the steel plant achieve.
This marginalization of the south south should stop. Planning to waste our resources to find oil in lake chad is foolishness of the highest order but all of you should remember that what goes around comes around.
Long live the Golden Hen of the Nigeria's economy..The Niger-Delta

whizzler:
In as much as reviving the steel complex is a happy news but why Indians with their cheap labour and slavery mentality. It's high time this NA promulgated laws that set standard for wages. It's annoying the way Indians, Lebanese and Chinese make a mockery of us

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.

whizzler:
In as much as reviving the steel complex is a happy news but why Indians with their cheap labour and slavery mentality. It's high time this NA promulgated laws that set standard for wages. It's annoying the way Indians, Lebanese and Chinese make a mockery of us

Tonnierichy:
Certainly.
Efforts are already being made for that

For the 1st time in a long, I'm actually having trust in this present administration

Its just sad many people are out to frustrate it's efforts

fulanimafia:
Finally this huge national asset we possess is being revived, and in a few years we would resume our export of steel and other allied products. Ajaokuta Steel Plant is a testament of the various failed administration's we have been plagued with, particularly the last one which had so much money (which it senselessly looted) due to the cash windfall from the oil price boom, that it failed to recognize the need to resolve the Ajaokuta crisis thereby helping Nigeria to prepare for the rainy days we are experiencing today.

This is a step in the right direction considering the focus of this administration in restoring Nigeria's exporting country status which will earn us the much needed forex that will further strengthen the Naira; and a continuation of the government's efforts to diversify the economy as promised.

With the exploration of oil in Lake Chad scheduled to commence soon, the current production of oil in the SW, the building of Dangote's mega refinery and petrochemical plant, and renewed aggressive focus on agriculture in core northern states, the 'awa oyel' criers are in a for a rude shock very soon.

Kudos to the current administration, as the change we seek is now evident and our glory days are approaching. God bless Nigeria.

Izonpikin:
regionalism would help this administration achieve the above rapidly...now the question is:: why can't the buhari administration do the right thing and foster development in all regions...If a particular state was to create revenue solely from the ajao okuta steel I assure you it wouldn't have gone defunct in the first place....

If no be longer throat and laziness wan finish ya people ona for Don embrace federalism to achieve development...

Nigeria can grow if states explore and exploit what they have vigorously...

Izonpikin:
What niger deltans should ensure is that buhari does not use proceeds from the crude sales in the Niger delta for his exploration in the Chad basin...The north should use proceeds from yam and tomatoe sales to fund that project...nonsense...

Easyruns:
Nigerian I want to bring to your remembrance that the Delta Steel company in Ovwian Aladja in Delta State is still in ruins and the Warri sea port and railway lines running from the stellar plant to connect other states is abandon and yet the government is planning to bring back Ajakuta steel plant?
My people time out time to visit the Delta Steel plant and you will know that Ajakuta plant is learning.
I did my IT there in 1998 and I wept bitterly when I saw massive infrastructure been wasted.
For your information the Delta Steel plant is close to sea for easy export and was build to manufacture cars, engine blocks etc....and many Nigerians was sent abroad for training but many of them came back wasted away and even died without seeing the aim of the steel plant achieve.
This marginalization of the south south should stop. Planning to waste our resources to find oil in lake chad is foolishness of the highest order but all of you should remember that what goes around comes around.
Long live the Golden Hen of the Nigeria's economy..The Niger-Delta

Tic4tac:
Very good

fulanimafia:
Finally this huge national asset we possess is being revived, and in a few years we would resume our export of steel and other allied products. Ajaokuta Steel Plant is a testament of the various failed administration's we have been plagued with, particularly the last one which had so much money (which it senselessly looted) due to the cash windfall from the oil price boom, that it failed to recognize the need to resolve the Ajaokuta crisis thereby helping Nigeria to prepare for the rainy days we are experiencing today.

This is a step in the right direction considering the focus of this administration in restoring Nigeria's exporting country status which will earn us the much needed forex that will further strengthen the Naira; and a continuation of the government's efforts to diversify the economy as promised.

With the exploration of oil in Lake Chad scheduled to commence soon, the current production of oil in the SW, the building of Dangote's mega refinery and petrochemical plant, and renewed aggressive focus on agriculture in core northern states, the 'awa oyel' criers are in a for a rude shock very soon.

Kudos to the current administration, as the change we seek is now evident and our glory days are approaching. God bless Nigeria.

fulanimafia:
Imagine a Bayelsan/Ndeltan of all people calling others lazy ... keep yapping yourself into irrelevance.

The 'long throat' and 'lazy' ones are the ones building mega refineries no Niger deltan has ever built, prospecting for new sources of oil revenue which no Niger deltan has ever done, and rapidly developing agriculture which no Niger deltan can ever do thanks to your polluted soil and rivers.

Let that sink in.