The federal government has allocated over N4 billion for the resuscitation of the Ajaokuta Steel Company. The allocation is contained in the 2017 appropriation budget which was presented to the National Assembly in December by President Muhammadu Buhari.

According to the breakdown, a total sum of N4,272,797,371 was appropriated, higher than the N3.9 billion budgeted for 2016.

Minister of Mines and Steel Development, Dr. Fayemi Kayode, had reiterated the commitment of the federal government to settle all litigations between it and Global Steel Holdings Limited, as regards the steel company.

The company is Nigeria’s leading steel plant, and was intended to be the leading supplier of quality steel products in all the major economic sectors including construction, packaging and wire drawing/nail making industry.

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the plant had been embroiled in managerial inaptitude, controversy ranging from allegations of obsolete machines and outdated blast furnace model.

Despite its initial completion, the plant had suffered years of neglect under successive administrations.

According to the ministry’s budget, the Nigerian Geological Survey Agency (NGSA) got N3.8 billion, chiefly for the generation of geological data which hadn’t been updated recently.

The National Metallurgical Development Centre, Jos got N821 million, the Metallurgical Training Institute, Onitsha got N722 million, while the Nigerian Institute of Mining and Geosciences was allocated N472 million.

About N99 million was earmarked for Artisanal Mines and Registration Mineral Buying Centres.

http://www.kikiotolu.com/2017/01/fg-allocates-43bn-for-revival-of.html

Lalasticlala Mynd44 seun Dominique

Ok

Great

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 support Buhari in many 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.

d

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.

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!

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.

where is d company located??

same old stories

That is a good development, I pray it works out.

Sounds good

[s]

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!

[/s]

This is GoodNews!

The Ajaokuta steel company have remained a financial bottomless hole where every administration of this Nation hide our scarce resources with no measurable results.

Can this administration prove different?

INTERESTING!

Since dey born me government dey revive this steel company.

Well let's see it's good tho

good development

That will be excellent... Passing through Kogi state and seeing all those abandoned industries makes me wanna cry... A plus if this government does it

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!

it would be even better if we produced ours, don't you think?

avenue to tief another tief

Avenue for more looting

Let's hope it works this time...

It's always been a basis for embezzlement...

I hope it won't result to the case of our refineries.

NNVanguard:
The Ajaokuta steel company have remained a financial bottomless hole where every administration of this Nation hide our scarce resources with no measurable results.

Can this administration prove different?

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:
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.

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


The obsession with it is that no nation industrializes without steel!

Ibj50:
it would be even better if we produced ours, don't you think?

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.

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.

Our problem is that our leaders are myopic and less open to global research findings and technology.

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.

many will think you're just "hating"..the fg has marked out billions of naira for this very obsolete facility, and those funds will still be siphoned back by the cronies in the government... the very blueprint of that facility was decommissioned after the second world war for Pete sakes!

omohayek:
[s]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![/s]

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.

Comments like the above was what destroyed Ajaokuta, the Western countries and their IMF/World Bank who were in a cold war with the Soviet Union who built the Ajaokuta Steel Mill advised Nigeria to rather buy cheap steel from places like Australia instead of spending more money to fully complete it and let the Russians have a foothold in Nigeria, our military rulers who did not understand much of international politics quickly bought their idea and get the project in a comatose situation.
The coupists failed to consider the long term benefits of having a vibrant steel industry, now another ignoramus here is advising us again to go to China and buy cheap steel again. The thunder wey go fire you still dey wear singlet.