prince9851:
where is d company located??

vodutive:

Seconded I remember one PDP petroleum minister that said it is cheaper to import fuel than refine locally . can anybody remember that idiots name? This guy is just like that minister I guess they both read same books and went to same school and graduated as idiots. The industrial and technological base of any economy is steel industry. Only idiots import what they have.
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!

muhammad72:
Some people are so funny. If this government abandons the ajaokuta steel project you will say they've abandoned it. Now that they are working on it you are here saying they can't compete with China at pricing.

What I want all of you to understand is simple. Yes we can't compete with China but how is importing steal from China helps us with jobs? Exchange rates are what they are today largely because of Nigeria's inability to get more from crude sales that they normally do. We virtually export nothing but crude. We import everything; food, cloth, building materials, TOOTHPICK, petrol (after we sell our crude oil), drinks, etc.

We will never move forward as a nation economically to improve infrastructure and the well being of our own people until we manufacture our own. Steel may be expensive at the beginning but with time more steel companies will come on board which will bring about competition in the steel market in the long run. That will force the price of steel down.

This government is not all about what they can get. I believe the APC and PDP led governments are all corrupt but the APC are more passionate to moving Nigeria in the positive direction than the PDP.

Boko Haram menace almost over, agricultural sector is bn revived now we eat our own rice. Aliko Dangote's refinery to come on board in 2018 which will force down the price of petrol, now the steel company which I think the government after working on it will raise taxes on steel importation to force you buy our own steel which is good (more money in the economy and more jobs), a now functioning mining sector, which I believe in 10 to 15 years from now we will be able to sell what's not crude oil to other countries.

Even though we are marching slow, I believe as the citizen of Nigeria that we are marching in the direction that's best for me and you. We are marching on the right direction. And I believe president Muhammadu Buhari will not put his own interests ahead of the interest of almost 200 million people. We should all be patient as patience is key.

God Bless The Federal Republic of Nigeria
God Bless Us All.

AZeD1:

The money quoted here cannot get Ajaokuta to a working state, so it's scarce resources down the drain.

The government should give Ajaokuta out for free to the original builders.

omohayek:

Because too many ordinary Nigerians are obsessed with steel as if it were a magic ingredient, ignorance the political class are more than willing to exploit to loot. By far the biggest return investments the Nigerian government could make would be in roads, railways and electricity, all of which would improve economic conditions for all sectors of the economy, but these areas don't have the strange sex appeal steel seems to hold for a lot of ignorant people.

The strangest thing about the steel obsession is that if you look at the fastest-growing and most profitable sectors in the global economy, none of them are based on knowledge of steel at all! AI, biotechnology, drug development and software development have no direct connection to steel, but a single tech firm like Facebook or Google makes more profit in a year than the world's entire steel industry has probably made in the last decade. The steel worshipers seem to be stuck in a 1930s time warp.

Nalikedis:
The main reason Ajaokuta has never worked was because the main blast furnace has never being fired. I think a more disciplined leadership with a resolve can get it to work. Companies like Aladja and Osogbo that were supposed to be subsediaries had worked and stop working because the Ajaokuta blast furnace that was suppose to be the Heart refuse to work. Steel making is not rocket science...infact we can build another blast furnace from the scratch and a designated power grid. Any amount spent to make "succesfully" make it work...will be peanuts compared to trillions that will be shipped out to import steel for our bridges, roads, buikdings, rail and refineries

Emekamex:


This is not entirely true, the problem is the government isnt following the right steps; before building industries, the precursors or raw materials should be readily available. At the moment govt is not mining iron ore or allowing private companies to do so. Doing so will bring in the needed investors into the steel industry. The simple fact being even if this govt eventually make this steel industry functional, there will be a great problem of availability or raw materials which in turn mean the revitalized steel industry will remain dormant again pending the availabilty of iron ore through mining.

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.

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.

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 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.

Nalikedis:
My brother Quite unfortunate. Imagine people requesting government to invest into better roads, rails, infracstructure etc yet they are advocating against steel. They failed to realize that 80% of whatever investment government put into rail would be shipped to Ukraine or china or wherever the buikding steel came from. They ignorantly look at steel as a business comodity instead of industrial revolution comodity. I dont think they are playing politics with their position, it is a simple reflection of what is being thought in most bussiness schools all around. The same ideas that is turning US into an import nation with $19 trillion debt from $5 trillion less than 10 years ago. A country that is loosing high profile jobs in drift but churning out millions of restaurants jobs. They fail to explain why US debt profile is growing despite boom in profit of comoanies like Apple, facebook, google and the rest of tech jobs. They fail to realise that California despite hosting all these tech companies is the most indebted state in US. They want Nigeria to start creating our own google and facebook because fixation with steel is stucking in the 1930s... They forgot that 1930s was when companies like ford, general motors, Boeing, Mercedes etc experience their boom. They forgot that 1930s was when cities like Detroit and the likes were built. They forgot that our society and infracstructures are still stucked in the 1700s... Bad roads and poor electricity. We cant even feed ourselves. Companies like facebook are social medias... I dont think we deserve fun or socializing when we are suppose to be building our nation out of 1700s. Anybody with a logical mind should know the fate of companies like Apple, Facebook, google etc if they were indigenous Nigeria company...we cant even launch satelites, infact the ones they helped us with had gone missing...we have Nairaland sha... We like deceiving ourselves...we are comparing ourselves with country where departments in tiny universities have launches multiple satelites. I want to admonish Mr AIs and bio tech... That we cant jump from 1700s to 2000s just like that... We have to follow same route as others before us china india brazil singapore name it... Industrial and agric revolution first before tech revolution...

AZeD1:

There's a glut of Chinese steel in the market, steel mills are closing in Europe because they can't compete.

bayelsaowei:
lies...those in apc were in the pdp so your thoughts of apc moving in a better direction not only sounds foolish but sentimental...

How is an administration that has immersed every single one except cronies of the Admin in abject poverty and recession...

Are you listening to yourself talk or type

omohayek:


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?

jazinogold:


same old stories

Nalikedis:
why compete with anybody sef? We are talking about producing our own steel for own roads rail machinery instead of shipping scarce money to china and ukraine for imported steel. If China is producing cheap steel why cant we produce our own cheap steel? Meanwhile most of our imported steel billets are imported from ukraine and not china. China glut is in reference to the US... Not to the world in General...thanks to Havard economists that believe US should close down their coal mine and steel plant because china is shipping in cheap steel... All this will likely reduce under Trump. Countries like india, Ukraine and russia are not complaiing about china glut

Nalikedis:
Bros I dont know if Itakpe sound familier? You can read about it.

Multi-billion contract fraud rocks Itakpe Iron Ore Mining Company
The Moribund Ajaokuta steel company which was expected to derive raw material supplies from NIOMCO, Itakpe
The Nigerian Iron-Ore Mining Company (NIOMCO) at Itakpe in Kogi State was established to meet the raw materials need of the Ajaoukuta Steel Company Limited (ASCL) as well as the one located at Ovwian/Aladja in Delta State. But investigations by Daily Trust on Sunday has shown that fraudulent award of contracts through the parent ministry over the years had rendered NIOMCO a mere conduit pipe.

The National Iron Ore Mining Company (NIOMCO) located at Itakpe near Okene in Kogi State had been reduced into a conduit pipe for the award of fraudulent contracts that were never executed over the years, leaving the company in a sorry state, investigations by Daily Trust on Sunday have revealed.

http://www.dailytrust.com.ng/news/investigation/multi-billion-contract-fraud-rocks-itakpe-iron-ore-mining-company/107652.html

Nalikedis:
why compete with anybody sef? We are talking about producing our own steel for own roads rail machinery instead of shipping scarce money to china and ukraine for imported steel. If China is producing cheap steel why cant we produce our own cheap steel? Meanwhile most of our imported steel billets are imported from ukraine and not china. China glut is in reference to the US... Not to the world in General...thanks to Havard economists that believe US should close down their coal mine and steel plant because china is shipping in cheap steel... All this will likely reduce under Trump. Countries like india, Ukraine and russia are not complaiing about china glut

4Play:


If there was a business case to produce steel in Nigeria, the private sector would have invested in this already. If the private sector don't see such a venture as viable, what makes you think our government possesses the expertise to invest wisely in this project? This country is 57 years old this year: can you name one single government run/funded business venture that has proved profitable - NITEL, Nigeria Airways, NEPA, the refineries, e.t.c.

The staggering thing about discussion with Nigerians is the triumph hope over evidence. No matter the weight of contradictory evidence, Nigerians continue to invest futile hope on government officials.

AZeD1:

One bottle for you.
You can now 3D print steel yet people are making a case for reviving a 30 year obsolete plant with outdated technology.

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 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.

LordAdam7:
Let me chip in something, since we r actually having a decent conversation here.

I've listened to both sides of the argument. Both sides are compelling, truth be told.

Until then, you guys are just building castles in the sky, because like the refineries, this steel industry revamp will fall flat. Only a fool does the same thing over and over again yet expecting a different result. If the Federal Government can't have strong independent institutions that can checkmate fraud, graft, and other vices of corruption, then the government has no business running any business (yes, the pun was intended).

-Lord

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?

Blue3k:


Masterful response to the topic. It almost brought a tear to my eye to much sense in one spot. Nigeria accounting records are so spotty you can't make heads or tails of anything. Lets look at the popular arguing topic of Lagos being successful because of port duties. I wanted to make a topic ending discussion ounce and for all time but you can't find any fiscal documents.

The states are not transparent in least bit. In texas I can access to see how tax documents are spent. How the revenue was generated which sources are highest. In Lagos the don't list anything. I can't tell how they raise their revenue or which source brings then most money.

Blue3k:
Lol you guys should stop arguing with omohayek. Half of you dont read enough to come up with anything that's a reasonable counter to the cynical but logical critiques. Let me give it a crack for yall.


The government suck at running industry. It's complete ineptitude is why this plant and mining industry are abysmal shape. It would be better in private hands but the lack of cheap reliable energy needed for this intensive industry is not there and location isnt competive. Personally I think he's right about being cynical about Nigerian government ability to run plant.

Counter arguements why Nigeria could develop a vibrant steel industry if right inputs are there. We have access to cheap energy sources being hydroelectricand natural gas, there's lots of pet coke (if refining capacity is maxed), we can also use dormat coal sitting at low opportunity cost, we have iron ore and ecowas partners who export lots cheaply, there's also importation from other sources.

Let's talk about energy. Since its biggest hindrance to private sector taking crack at industry. This is also why Akwa Ibom aluminum plant is also not in operation. (Aluminum takes more energy than steel). Nigeria produces energy at low marginal cost cimparted to our neighbors. We have potential for Direct reduced iron plants as well. Thanks to natural gas availability.


I see there's plenty of competition to be had with China depending how we go about it. We could imports or we could allow industry to flourish with private investment.
There's still big challenges Nigerian government hasn't done as in fix non sexy issues like infastrure being transport, electricity, and business environment.

Ps: 1st picture is Steel exports by country, 2nd pictures is Stainless steel, 3rd picture is iron or exports by country.


Sources: https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.worldsteel.org/en/dam/jcr:1be0ae12-d2f2-4925-b610-2d1152260e65/fact_raw%2Bmaterials_2016.pdf&ved=0ahUKEwiR6Jaj-bTRAhXk54MKHZN2AD0QFggaMAA&usg=AFQjCNHWki6KkZ_ejVu6daZIXkyxQA3_Zg

https://www.worldcoal.org/coal/uses-coal/how-steel-produced

http://atlas.media.mit.edu/en/profile/hs92/7225/

https://www.google.com/url?sa=t&source=web&rct=j&url=http://www.mckinsey.com/~/media/McKinsey/Global%2520Themes/Americas/US%2520game%2520changers/MGI_US_game_changers_Executive_Summary_July_2013.ashx&ved=0ahUKEwi-r73xhbXRAhUC74MKHaTnBJoQFggcMAE&usg=AFQjCNGwXXqQBvfv99eXTAnJ2whHvvWFyQ

SIRTee15:
Lord Adam.....
I dont think anybody here disagrees on ajaokuta being a corruption conduit pipe for public officials.......
The arguement here is whether Nigeria should engage in indigenous steel production or embrace the concept of steel importation since the latter is more convenient.......

If we agree on the latter, then how do we as a nation achieve industrialization and create massive job with good wages thereby moving millions of people from poverty to middle class status........
How do we embark on massive infrastructural development that's been a bane of industrialization in this country.....
I'm yet to see any emerging n industrialised economy without viable steel production......
Some said industrial Revolution is a technology of the past, rather we should focus on high-tech Industrialization or agricultural revolution.......
I simply conclude they don't know what they re talking about.......

Ajaokuta or not, nigeria needs a viable steel sector.....

muhammad72:



But you should remember what am just going to tell you right now. This same people in the PDP that you are saying are in the APC are under a different control. The major leaders of the APC are not ex PDP men, Muhammadu Buhari and Tinunbu. Apart from Saraki there is no ex PDP man at the apex of decision making. The PDP guys that are in the APC now are acting under commands.

And the second thing, am not here to fight you over party politics. What I crave for is a one Nigeria moving in the right direction. And a sensible person will confirm that we are well off in this government than that of the PDP concerning decision making.

The third thing is we are under a topic concerning the reviving of the ajaokuta steel company not PDP or APC. We are talking about jobs to be created. We are talking about growing the Nigerian economy, we are talking about putting nigeria on the Map, boy.

Am not going to let you push me into a fight on APC or PDP. So, am sorry, I think you are the one who sounds foolish and bn sentimental.

eduj:

I think that the claims of competition with China is greatly over exaggerated. The federal government is usually the greatest steel consumer in a country so,if the steel factory is working its just a case of the federal government patronising it and setting up taxes to mitigate the influx of "cheap Chinese steel".Brazil is gradually getting their along with India which is predicted to become the second biggest world producer of steel by 2020. The reason Africa is inept in the infrastructural department is because of dormancy in our steel economics.For instance assuming ajekouta steel industry wasn't moribund,i bet the Lagos light rail project would have been done and dusted and many more states would be in the process of building theirs.if that steel mill was functional, high rise buildings and skyscraper's wouldn't have been the norm in only Lagos and abuja .moreover,most of our bridges and flyovers can be cheaply and more expediently built using mostly steel beams.
It is also estimated that about1000 people are employed per million ton of steel produced ,hence an active steel industry is a great employer of labour. That being said,I think it better that the government first of all put down a definite plan on ajeokuta steel resuscitation rather than headlessly pouring money down the drain.The can borrow a leaf from the fastidious manner hongxing steel is using to build their factory at aba.

eduj:

I think that the claims of competition with China is greatly over exaggerated. The federal government is usually the greatest steel consumer in a country so,if the steel factory is working its just a case of the federal government patronising it and setting up taxes to mitigate the influx of "cheap Chinese steel".Brazil is gradually getting their along with India which is predicted to become the second biggest world producer of steel by 2020. The reason Africa is inept in the infrastructural department is because of dormancy in our steel economics.For instance assuming ajekouta steel industry wasn't moribund,i bet the Lagos light rail project would have been done and dusted and many more states would be in the process of building theirs.if that steel mill was functional, high rise buildings and skyscraper's wouldn't have been the norm in only Lagos and abuja .moreover,most of our bridges and flyovers can be cheaply and more expediently built using mostly steel beams.
It is also estimated that about1000 people are employed per million ton of steel produced ,hence an active steel industry is a great employer of labour. That being said,I think it better that the government first of all put down a definite plan on ajeokuta steel resuscitation rather than headlessly pouring money down the drain.The can borrow a leaf from the fastidious manner hongxing steel is using to build their factory at aba.