₦airaland Forum

Okoroawusa:
You are among the people that think that Buhari is a magician


Keep your votes. Buhari doesn't need it to win 2019 election

Yea because he's def going to rig it like they always do. What happened to the Ogoni clean up that they made us believe they were about to commence in 2015..,oh nooo,it was a sham. All of a sudden,they're starting stuff which they'll abandon immediately the elections have been conducted and won.

buhariguy:
But the legislootors want to be an obstacle to the progress. you are now reasoning like human being .

You are back, iv been waiting for you.

OMEGA009:
No Nigerian can visit Ajaokuta Steel Company ASC, see investments of more than $8b rotting in the African sun and not cry. i went there, I cried. what exactly is the problem? if I have written severally on this topic, but today let me do a comprehensive post.

Ajaokuta Steel Company is massive, she has 68km road network, 24 housing estates on the project. Some of the estates have over 1,000 homes, a seaport, a 110mw power generation plant, there are 43 separate plants in Ajaokuta alone. It is estimated that if Ajaokuta becomes operational, it will create 500,000 jobs.

There is no industrialized nation on earth that does not have a steel sector it’s that simple. A report by the Central Bank of Nigeria shows that Nigeria currently imports steel, aluminum products and associated derivatives of approximately 25 metric tonnes per annum estimated at $4.5bn, this figure will continue to rise, and the Nigerian economy continues to expand. Ajaokuta is an integrated steel company, it was designed by the Russian to be self-sufficient to get all its inputs from Nigeria and make steel. Ajaokuta strength is also its weakness, Ajaokuta can only work with all inputs available.



this will be a slightly technical post, but please try and follow.



Steel is an alloy of iron and carbon amongst other things, iron is the base metal in steel, to make steel, you need Iron Ore, Coke from Coal, Limestone as main components. these components are mixed in a blast furnace to produce liquid steel which can be long steel for rail lines or flat steel for automobile making etc

To give a simple example, look at steel as making jollof rice, iron ore is the rice, the limestone and coke are the pepper and salt the pot is the blast furnace. At a steel plane the blast furnace is ONLY turned on when the steel company is ready to make steel. Blast furnaces operate continuously and are never shut down. The raw material to be fed into the furnace is divided into several small charges that are introduced into the furnace at 10- to 15-min intervals. this means everything must be in place BEFORE the blast furnace is turned on, the iron ore, the coal, the limestone, everything, why? Because you do not switch off a blast furnace for another 10 years or however its campaign life is.



Nigeria has blessed with all the major raw materials needed to produce steel including iron ore in Kogi, coal and limestone in Enugu.

Nigerian iron has very low iron concentration. Agbaja has the largest iron ore deposit in Nigeria with about 2 billion tonnes but the Agbaja iron ore has a high phosphate content. Phosphate can cause brittleness in steel making it to fracture, thus Agbaga was abandoned for Itakpe. Itakpe iron ore has no issues with phosphate but has low iron content, thus to make steel with Nigeria iron ore, a process called “beneficiation” has to be done to process the Itakpe ores to raise its iron content to meet the required standard for steel production.

Coal? Most of the coal found in Nigeria is non-coking, thus, unsuitable for steel production. coal deposits in Enugu, have no impurities but are non-coking. The good news? Nigeria has abundant deposit of limestone and we have natural gas to provide power



So back to Ajaokuta, what really happened? why can Nigeria not make steel anytime soon? let’s link up the elements

Policy Failure: The Ajaokuta contract was signed between the Nigerian government and the Soviet state-owned company, Tiajpromexport (TPE) the company was scheduled for completion in 1986. In 2012, the Federal Government launched her backward integration policy. Going forward import licenses for steel products was only granted to companies producing steel locally. TPE to ensure they could import steel parts for Ajaokuta simply went ahead and built the rolling mills in Ajaokuta before the actual steel plant was completed, they imported billet from Ukraine to accomplish this. Thus, Ajaokuta was producing steel before the actual steel plant was started. Thus, amazingly Ajaokuta has a functional rolling mills but no operational blast furnace, Ajaokuta cannot produce steel from basic iron ore found in Nigeria in her blast furnace.…this is the definition of cart before the horse.


NIOMCO Factor: The iron ore in Nigeria earmarked for Ajaokuta is from Itakpe, it has low iron content thus the FG built National Iron Ore Mining Company (NIOMCO) a 2.15 metric tonnes beneficiation plant designed to process the low-quality iron ore from Itakpe to iron ore suitable for Ajaokuta Steel. Simply put, if NIOMCO does not operate, Ajaokuta CANNOT operate (unless Ajaokuta uses imported iron ore.) as at today, June 17th 2018, NIOMCO is not operational




Railway: 15m tonnes of iron ore cannot be moved by road, as it will destroy the roads, thus a railway was to be built from Itakpe to Ajaokuta to take iron ore from the beneficiation plan in Itakpe to the Ajaokuta. The. Itakpe to Ajaokuta by rail is just 52km, the rail line was to be delivered by March 2019, but the Minister of Transportation Rotimi Amaechi revised the delivery date to June 2018 and converted the purely commercial railway to also carry human passengers. These changes meant the cost of the project and delivery dates had to change as passenger wagons and train stations had to be built. To achieve this, 12 new passenger stations and 12 access roads had to be designed and built. The Itakpe to Ajaokuta (IA) has two stations. As at June 2018, The station IA1 – Eganyi to Itakpe, is still under design. Station AW1 – Ajaokuta (standard station) (zero per cent work done). Thus the railways are not functional


Blast Furnace: The furnace in Ajaokuta is the heart of Ajaokuta, it is the pot where the jollof rice will be cooked, however it has never been turned on, why? because there has never been any time Ajaokuta has had raw materials available to ensure continuous day in day out production for 5 years. Why has there never been materials? Because there is no rail way to take iron ore from Itakpe to Ajaokuta. Why is there no railway from Itakpe to Ajaokuta? Because NIOMCO in Itakpe is moribund and no functional and cannot convert Nigeria iron ore to high grade ore for the furnace in Ajaokuta.


So, it follows that for Ajaokuta to work, we MUST have three key critical paths



NIOMCO must be functional
Itakpe to Ajaokuta Railway line must be functional
Blast Furnace operational
All three are not functional, so its clear Nigeria cannot make steel in Ajaokuta. Nothing however stops a corrupt government official from importing billets and running them in the rolling mills to deceive tax payers. So, when anyone tells you Ajaokuta will soon work ask them, can a steel plant work without NIOMCO, railways and a blast furnace?



All is not gloom, Kayode Fayemi as Minister was able to secure an out of court about Ajaokuta, we must build on this



In closing, Ajaokuta is the only steel plant in the world built by the USSR, sold to Americans, then to Indians, all these teams have come and gone with their own technical style, there have even been accusations of asset stripping by the Indians.



So why this post? because I am a patriot, I will not sit by and watch scarce resources be wasted in a grand deceit. Probably some corrupt folks have told Mr President that Ajaokuta can produce economically viable steel if “small” dollars are spent. You can already see how the critical rail line delivery dates was moved back to ensure it is done in time for 2019 elections, yet it is still in design stage. Ajaokuta is Nigeria and probably Africa biggest failure. It has failed. Can it be made to work yes but the cost to integrate Ajaokuta with her mines and rails can be used to build new smaller modern turn key functional steel mills. The government should get out of Ajaokuta, sell the place and allows the private sector capital and expertise restructure and own it.



If you want to make jollof rice and there is no rice the solution is not to keep boiling water without rice but to go and get rice.

hmmmm....................... bleeping educating and eye opening. thanks for this piece

hunter21:
what about the trains, are they working?

They are working on the tracks first

alhassanyusuf29:
inyamuri flat.head jew won't like this,instead of them to query ekweremadu for turning a blind on Senate reduction of Niger bridge allocation,but they rather masturbate on afonja matter...bunch of ritualist,skull miners and prostitutes!

o
You are a tribal bigot. may sense fall on you.

Jaqenhghar:
Thats because there is nothing positive to celebrate. Name one positive thnbg in this shithole. Just one thing that works

Oga, go see a doctor.
I can't help your blindness.

Ovamboland:
I thought they said he did not commission any project when he was head of state?

Anyone can commission,he wasn't the initiator.

BTW after commsioning, did it work?

FriendNG:
You dey mind the haters. They must have something to wail about.

The Op is taken side already.... I doubt d authentic of dis news..

Lala, next!

Jiang:
So what you want us to do, let it continue to rot so you can import steel for us from China abi, Why can't you people be patriotic for once. let me tell you, even if it's 10% more costly I go buy from my own country instead of foreign made scrap.

Go screw ur self Mr "obsolete technology" metchew, you just spoil ma mode

exactly! These ones have no solution , it’s to just complain ! As far as they are concerned we should all just give up and go home - hopeless,
Useless people !

shekauvsbuhari:
when will u guys stop all these falsehood n propaganda? Fayemi n apc govt had alteady concluded to give ajaokuta for concessioning to a foreign company b4 the reps waded in n stopped them. Why did de reps pass a vote of no confidence on fayemi? Was it not bcs of ajaokuta when he boycoted de hearing meant to stop de indirect sale of ajaokuta? If any organ of govt is to be praised for ajaokuta, it is de reps.apc exco govt said no money to go ahead. And BTW production has not started yet and may not start soon. A lot are being sorted out yet, especialy funding n de foreign partner to engage. Whether to go back to de original builder, de russians or not. PRODUCTION IS NOT STARTING VERY SOON. THIS IS APC PROPAGANDA. and when it eventualy does, thank de house of reps that took de bull by de horn. Buhari is indifferent so to say about ajaokuta.

the jobless aggressive lazy idiotic pigs of biafra make me laugh.

Don't you see how they reduce the budget of this very project to number nonsense?.
If production did not start before the end of this year,
That means buhari till 2023 will not be easily be achieved,
And the legislootors must pay for it.

No production yet. Just like starting an old generator doesn't mean light will enter the house. Full function or stop lying

Born2Breed:
Anyone can commission,he wasn't the initiator.

BTW after commsioning, did it work?

were u born den Madam? How come u knw dis all...

OMEGA009:
No Nigerian can visit Ajaokuta Steel Company ASC, see investments of more than $8b rotting in the African sun and not cry. i went there, I cried. what exactly is the problem? if I have written severally on this topic, but today let me do a comprehensive post.

Ajaokuta Steel Company is massive, she has 68km road network, 24 housing estates on the project. Some of the estates have over 1,000 homes, a seaport, a 110mw power generation plant, there are 43 separate plants in Ajaokuta alone. It is estimated that if Ajaokuta becomes operational, it will create 500,000 jobs.

There is no industrialized nation on earth that does not have a steel sector it’s that simple. A report by the Central Bank of Nigeria shows that Nigeria currently imports steel, aluminum products and associated derivatives of approximately 25 metric tonnes per annum estimated at $4.5bn, this figure will continue to rise, and the Nigerian economy continues to expand. Ajaokuta is an integrated steel company, it was designed by the Russian to be self-sufficient to get all its inputs from Nigeria and make steel. Ajaokuta strength is also its weakness, Ajaokuta can only work with all inputs available.



this will be a slightly technical post, but please try and follow.



Steel is an alloy of iron and carbon amongst other things, iron is the base metal in steel, to make steel, you need Iron Ore, Coke from Coal, Limestone as main components. these components are mixed in a blast furnace to produce liquid steel which can be long steel for rail lines or flat steel for automobile making etc

To give a simple example, look at steel as making jollof rice, iron ore is the rice, the limestone and coke are the pepper and salt the pot is the blast furnace. At a steel plane the blast furnace is ONLY turned on when the steel company is ready to make steel. Blast furnaces operate continuously and are never shut down. The raw material to be fed into the furnace is divided into several small charges that are introduced into the furnace at 10- to 15-min intervals. this means everything must be in place BEFORE the blast furnace is turned on, the iron ore, the coal, the limestone, everything, why? Because you do not switch off a blast furnace for another 10 years or however its campaign life is.



Nigeria has blessed with all the major raw materials needed to produce steel including iron ore in Kogi, coal and limestone in Enugu.

Nigerian iron has very low iron concentration. Agbaja has the largest iron ore deposit in Nigeria with about 2 billion tonnes but the Agbaja iron ore has a high phosphate content. Phosphate can cause brittleness in steel making it to fracture, thus Agbaga was abandoned for Itakpe. Itakpe iron ore has no issues with phosphate but has low iron content, thus to make steel with Nigeria iron ore, a process called “beneficiation” has to be done to process the Itakpe ores to raise its iron content to meet the required standard for steel production.

Coal? Most of the coal found in Nigeria is non-coking, thus, unsuitable for steel production. coal deposits in Enugu, have no impurities but are non-coking. The good news? Nigeria has abundant deposit of limestone and we have natural gas to provide power



So back to Ajaokuta, what really happened? why can Nigeria not make steel anytime soon? let’s link up the elements

Policy Failure: The Ajaokuta contract was signed between the Nigerian government and the Soviet state-owned company, Tiajpromexport (TPE) the company was scheduled for completion in 1986. In 2012, the Federal Government launched her backward integration policy. Going forward import licenses for steel products was only granted to companies producing steel locally. TPE to ensure they could import steel parts for Ajaokuta simply went ahead and built the rolling mills in Ajaokuta before the actual steel plant was completed, they imported billet from Ukraine to accomplish this. Thus, Ajaokuta was producing steel before the actual steel plant was started. Thus, amazingly Ajaokuta has a functional rolling mills but no operational blast furnace, Ajaokuta cannot produce steel from basic iron ore found in Nigeria in her blast furnace.…this is the definition of cart before the horse.


NIOMCO Factor: The iron ore in Nigeria earmarked for Ajaokuta is from Itakpe, it has low iron content thus the FG built National Iron Ore Mining Company (NIOMCO) a 2.15 metric tonnes beneficiation plant designed to process the low-quality iron ore from Itakpe to iron ore suitable for Ajaokuta Steel. Simply put, if NIOMCO does not operate, Ajaokuta CANNOT operate (unless Ajaokuta uses imported iron ore.) as at today, June 17th 2018, NIOMCO is not operational




Railway: 15m tonnes of iron ore cannot be moved by road, as it will destroy the roads, thus a railway was to be built from Itakpe to Ajaokuta to take iron ore from the beneficiation plan in Itakpe to the Ajaokuta. The. Itakpe to Ajaokuta by rail is just 52km, the rail line was to be delivered by March 2019, but the Minister of Transportation Rotimi Amaechi revised the delivery date to June 2018 and converted the purely commercial railway to also carry human passengers. These changes meant the cost of the project and delivery dates had to change as passenger wagons and train stations had to be built. To achieve this, 12 new passenger stations and 12 access roads had to be designed and built. The Itakpe to Ajaokuta (IA) has two stations. As at June 2018, The station IA1 – Eganyi to Itakpe, is still under design. Station AW1 – Ajaokuta (standard station) (zero per cent work done). Thus the railways are not functional


Blast Furnace: The furnace in Ajaokuta is the heart of Ajaokuta, it is the pot where the jollof rice will be cooked, however it has never been turned on, why? because there has never been any time Ajaokuta has had raw materials available to ensure continuous day in day out production for 5 years. Why has there never been materials? Because there is no rail way to take iron ore from Itakpe to Ajaokuta. Why is there no railway from Itakpe to Ajaokuta? Because NIOMCO in Itakpe is moribund and no functional and cannot convert Nigeria iron ore to high grade ore for the furnace in Ajaokuta.


So, it follows that for Ajaokuta to work, we MUST have three key critical paths



NIOMCO must be functional
Itakpe to Ajaokuta Railway line must be functional
Blast Furnace operational
All three are not functional, so its clear Nigeria cannot make steel in Ajaokuta. Nothing however stops a corrupt government official from importing billets and running them in the rolling mills to deceive tax payers. So, when anyone tells you Ajaokuta will soon work ask them, can a steel plant work without NIOMCO, railways and a blast furnace?



All is not gloom, Kayode Fayemi as Minister was able to secure an out of court about Ajaokuta, we must build on this



In closing, Ajaokuta is the only steel plant in the world built by the USSR, sold to Americans, then to Indians, all these teams have come and gone with their own technical style, there have even been accusations of asset stripping by the Indians.



So why this post? because I am a patriot, I will not sit by and watch scarce resources be wasted in a grand deceit. Probably some corrupt folks have told Mr President that Ajaokuta can produce economically viable steel if “small” dollars are spent. You can already see how the critical rail line delivery dates was moved back to ensure it is done in time for 2019 elections, yet it is still in design stage. Ajaokuta is Nigeria and probably Africa biggest failure. It has failed. Can it be made to work yes but the cost to integrate Ajaokuta with her mines and rails can be used to build new smaller modern turn key functional steel mills. The government should get out of Ajaokuta, sell the place and allows the private sector capital and expertise restructure and own it.



If you want to make jollof rice and there is no rice the solution is not to keep boiling water without rice but to go and get rice.

My brother, thanks for your elaborate post, though it's lengthy, I took out time to read every line.
Judging From video in the post, its obvious that nothing meaningful is happening there.l am a process engineer, and have worked in a steel plant

laffwitmi:
You have my vote already,i changed my mind...

Are you so easy to deceive? What kinda citizens do we have in this country?

There is no Niomco, blast furnace or efficient railway system to make Ajaokuta work. Why are Muslims always excited about anything that concerns Buhari? Is he an Islamic cleric?

One thing I give to this Government is its propaganda department headed by Lai Mohammed. They know how to capture the attention of the millions of illiterates in Nigeria. I just pray for God to bless me so I can leave this country. No country with 20 million or more Muslims ever prospers.

IbnAbdullah1:
Oga, go see a doctor.
I can't help your blindness.

Better blind than dumb. you havent asnwered my question you are talking of doctor.

OMEGA009:
No Nigerian can visit Ajaokuta Steel Company ASC, see investments of more than $8b rotting in the African sun and not cry. i went there, I cried. what exactly is the problem? if I have written severally on this topic, but today let me do a comprehensive post.

Ajaokuta Steel Company is massive, she has 68km road network, 24 housing estates on the project. Some of the estates have over 1,000 homes, a seaport, a 110mw power generation plant, there are 43 separate plants in Ajaokuta alone. It is estimated that if Ajaokuta becomes operational, it will create 500,000 jobs.

There is no industrialized nation on earth that does not have a steel sector it’s that simple. A report by the Central Bank of Nigeria shows that Nigeria currently imports steel, aluminum products and associated derivatives of approximately 25 metric tonnes per annum estimated at $4.5bn, this figure will continue to rise, and the Nigerian economy continues to expand. Ajaokuta is an integrated steel company, it was designed by the Russian to be self-sufficient to get all its inputs from Nigeria and make steel. Ajaokuta strength is also its weakness, Ajaokuta can only work with all inputs available.



this will be a slightly technical post, but please try and follow.



Steel is an alloy of iron and carbon amongst other things, iron is the base metal in steel, to make steel, you need Iron Ore, Coke from Coal, Limestone as main components. these components are mixed in a blast furnace to produce liquid steel which can be long steel for rail lines or flat steel for automobile making etc

To give a simple example, look at steel as making jollof rice, iron ore is the rice, the limestone and coke are the pepper and salt the pot is the blast furnace. At a steel plane the blast furnace is ONLY turned on when the steel company is ready to make steel. Blast furnaces operate continuously and are never shut down. The raw material to be fed into the furnace is divided into several small charges that are introduced into the furnace at 10- to 15-min intervals. this means everything must be in place BEFORE the blast furnace is turned on, the iron ore, the coal, the limestone, everything, why? Because you do not switch off a blast furnace for another 10 years or however its campaign life is.



Nigeria has blessed with all the major raw materials needed to produce steel including iron ore in Kogi, coal and limestone in Enugu.

Nigerian iron has very low iron concentration. Agbaja has the largest iron ore deposit in Nigeria with about 2 billion tonnes but the Agbaja iron ore has a high phosphate content. Phosphate can cause brittleness in steel making it to fracture, thus Agbaga was abandoned for Itakpe. Itakpe iron ore has no issues with phosphate but has low iron content, thus to make steel with Nigeria iron ore, a process called “beneficiation” has to be done to process the Itakpe ores to raise its iron content to meet the required standard for steel production.

Coal? Most of the coal found in Nigeria is non-coking, thus, unsuitable for steel production. coal deposits in Enugu, have no impurities but are non-coking. The good news? Nigeria has abundant deposit of limestone and we have natural gas to provide power



So back to Ajaokuta, what really happened? why can Nigeria not make steel anytime soon? let’s link up the elements

Policy Failure: The Ajaokuta contract was signed between the Nigerian government and the Soviet state-owned company, Tiajpromexport (TPE) the company was scheduled for completion in 1986. In 2012, the Federal Government launched her backward integration policy. Going forward import licenses for steel products was only granted to companies producing steel locally. TPE to ensure they could import steel parts for Ajaokuta simply went ahead and built the rolling mills in Ajaokuta before the actual steel plant was completed, they imported billet from Ukraine to accomplish this. Thus, Ajaokuta was producing steel before the actual steel plant was started. Thus, amazingly Ajaokuta has a functional rolling mills but no operational blast furnace, Ajaokuta cannot produce steel from basic iron ore found in Nigeria in her blast furnace.…this is the definition of cart before the horse.


NIOMCO Factor: The iron ore in Nigeria earmarked for Ajaokuta is from Itakpe, it has low iron content thus the FG built National Iron Ore Mining Company (NIOMCO) a 2.15 metric tonnes beneficiation plant designed to process the low-quality iron ore from Itakpe to iron ore suitable for Ajaokuta Steel. Simply put, if NIOMCO does not operate, Ajaokuta CANNOT operate (unless Ajaokuta uses imported iron ore.) as at today, June 17th 2018, NIOMCO is not operational




Railway: 15m tonnes of iron ore cannot be moved by road, as it will destroy the roads, thus a railway was to be built from Itakpe to Ajaokuta to take iron ore from the beneficiation plan in Itakpe to the Ajaokuta. The. Itakpe to Ajaokuta by rail is just 52km, the rail line was to be delivered by March 2019, but the Minister of Transportation Rotimi Amaechi revised the delivery date to June 2018 and converted the purely commercial railway to also carry human passengers. These changes meant the cost of the project and delivery dates had to change as passenger wagons and train stations had to be built. To achieve this, 12 new passenger stations and 12 access roads had to be designed and built. The Itakpe to Ajaokuta (IA) has two stations. As at June 2018, The station IA1 – Eganyi to Itakpe, is still under design. Station AW1 – Ajaokuta (standard station) (zero per cent work done). Thus the railways are not functional


Blast Furnace: The furnace in Ajaokuta is the heart of Ajaokuta, it is the pot where the jollof rice will be cooked, however it has never been turned on, why? because there has never been any time Ajaokuta has had raw materials available to ensure continuous day in day out production for 5 years. Why has there never been materials? Because there is no rail way to take iron ore from Itakpe to Ajaokuta. Why is there no railway from Itakpe to Ajaokuta? Because NIOMCO in Itakpe is moribund and no functional and cannot convert Nigeria iron ore to high grade ore for the furnace in Ajaokuta.


So, it follows that for Ajaokuta to work, we MUST have three key critical paths



NIOMCO must be functional
Itakpe to Ajaokuta Railway line must be functional
Blast Furnace operational
All three are not functional, so its clear Nigeria cannot make steel in Ajaokuta. Nothing however stops a corrupt government official from importing billets and running them in the rolling mills to deceive tax payers. So, when anyone tells you Ajaokuta will soon work ask them, can a steel plant work without NIOMCO, railways and a blast furnace?



All is not gloom, Kayode Fayemi as Minister was able to secure an out of court about Ajaokuta, we must build on this



In closing, Ajaokuta is the only steel plant in the world built by the USSR, sold to Americans, then to Indians, all these teams have come and gone with their own technical style, there have even been accusations of asset stripping by the Indians.



So why this post? because I am a patriot, I will not sit by and watch scarce resources be wasted in a grand deceit. Probably some corrupt folks have told Mr President that Ajaokuta can produce economically viable steel if “small” dollars are spent. You can already see how the critical rail line delivery dates was moved back to ensure it is done in time for 2019 elections, yet it is still in design stage. Ajaokuta is Nigeria and probably Africa biggest failure. It has failed. Can it be made to work yes but the cost to integrate Ajaokuta with her mines and rails can be used to build new smaller modern turn key functional steel mills. The government should get out of Ajaokuta, sell the place and allows the private sector capital and expertise restructure and own it.



If you want to make jollof rice and there is no rice the solution is not to keep boiling water without rice but to go and get rice.

Can all pro-Buhari elements just take time to read and digest this piece?

Kai, university education is a waste in this country. I am really tired of the citizens of this country.

OMEGA009:
No Nigerian can visit Ajaokuta Steel Company ASC, see investments of more than $8b rotting in the African sun and not cry. i went there, I cried. what exactly is the problem? if I have written severally on this topic, but today let me do a comprehensive post.

Ajaokuta Steel Company is massive, she has 68km road network, 24 housing estates on the project. Some of the estates have over 1,000 homes, a seaport, a 110mw power generation plant, there are 43 separate plants in Ajaokuta alone. It is estimated that if Ajaokuta becomes operational, it will create 500,000 jobs.

There is no industrialized nation on earth that does not have a steel sector it’s that simple. A report by the Central Bank of Nigeria shows that Nigeria currently imports steel, aluminum products and associated derivatives of approximately 25 metric tonnes per annum estimated at $4.5bn, this figure will continue to rise, and the Nigerian economy continues to expand. Ajaokuta is an integrated steel company, it was designed by the Russian to be self-sufficient to get all its inputs from Nigeria and make steel. Ajaokuta strength is also its weakness, Ajaokuta can only work with all inputs available.



this will be a slightly technical post, but please try and follow.



Steel is an alloy of iron and carbon amongst other things, iron is the base metal in steel, to make steel, you need Iron Ore, Coke from Coal, Limestone as main components. these components are mixed in a blast furnace to produce liquid steel which can be long steel for rail lines or flat steel for automobile making etc

To give a simple example, look at steel as making jollof rice, iron ore is the rice, the limestone and coke are the pepper and salt the pot is the blast furnace. At a steel plane the blast furnace is ONLY turned on when the steel company is ready to make steel. Blast furnaces operate continuously and are never shut down. The raw material to be fed into the furnace is divided into several small charges that are introduced into the furnace at 10- to 15-min intervals. this means everything must be in place BEFORE the blast furnace is turned on, the iron ore, the coal, the limestone, everything, why? Because you do not switch off a blast furnace for another 10 years or however its campaign life is.



Nigeria has blessed with all the major raw materials needed to produce steel including iron ore in Kogi, coal and limestone in Enugu.

Nigerian iron has very low iron concentration. Agbaja has the largest iron ore deposit in Nigeria with about 2 billion tonnes but the Agbaja iron ore has a high phosphate content. Phosphate can cause brittleness in steel making it to fracture, thus Agbaga was abandoned for Itakpe. Itakpe iron ore has no issues with phosphate but has low iron content, thus to make steel with Nigeria iron ore, a process called “beneficiation” has to be done to process the Itakpe ores to raise its iron content to meet the required standard for steel production.

Coal? Most of the coal found in Nigeria is non-coking, thus, unsuitable for steel production. coal deposits in Enugu, have no impurities but are non-coking. The good news? Nigeria has abundant deposit of limestone and we have natural gas to provide power



So back to Ajaokuta, what really happened? why can Nigeria not make steel anytime soon? let’s link up the elements

Policy Failure: The Ajaokuta contract was signed between the Nigerian government and the Soviet state-owned company, Tiajpromexport (TPE) the company was scheduled for completion in 1986. In 2012, the Federal Government launched her backward integration policy. Going forward import licenses for steel products was only granted to companies producing steel locally. TPE to ensure they could import steel parts for Ajaokuta simply went ahead and built the rolling mills in Ajaokuta before the actual steel plant was completed, they imported billet from Ukraine to accomplish this. Thus, Ajaokuta was producing steel before the actual steel plant was started. Thus, amazingly Ajaokuta has a functional rolling mills but no operational blast furnace, Ajaokuta cannot produce steel from basic iron ore found in Nigeria in her blast furnace.…this is the definition of cart before the horse.


NIOMCO Factor: The iron ore in Nigeria earmarked for Ajaokuta is from Itakpe, it has low iron content thus the FG built National Iron Ore Mining Company (NIOMCO) a 2.15 metric tonnes beneficiation plant designed to process the low-quality iron ore from Itakpe to iron ore suitable for Ajaokuta Steel. Simply put, if NIOMCO does not operate, Ajaokuta CANNOT operate (unless Ajaokuta uses imported iron ore.) as at today, June 17th 2018, NIOMCO is not operational




Railway: 15m tonnes of iron ore cannot be moved by road, as it will destroy the roads, thus a railway was to be built from Itakpe to Ajaokuta to take iron ore from the beneficiation plan in Itakpe to the Ajaokuta. The. Itakpe to Ajaokuta by rail is just 52km, the rail line was to be delivered by March 2019, but the Minister of Transportation Rotimi Amaechi revised the delivery date to June 2018 and converted the purely commercial railway to also carry human passengers. These changes meant the cost of the project and delivery dates had to change as passenger wagons and train stations had to be built. To achieve this, 12 new passenger stations and 12 access roads had to be designed and built. The Itakpe to Ajaokuta (IA) has two stations. As at June 2018, The station IA1 – Eganyi to Itakpe, is still under design. Station AW1 – Ajaokuta (standard station) (zero per cent work done). Thus the railways are not functional


Blast Furnace: The furnace in Ajaokuta is the heart of Ajaokuta, it is the pot where the jollof rice will be cooked, however it has never been turned on, why? because there has never been any time Ajaokuta has had raw materials available to ensure continuous day in day out production for 5 years. Why has there never been materials? Because there is no rail way to take iron ore from Itakpe to Ajaokuta. Why is there no railway from Itakpe to Ajaokuta? Because NIOMCO in Itakpe is moribund and no functional and cannot convert Nigeria iron ore to high grade ore for the furnace in Ajaokuta.


So, it follows that for Ajaokuta to work, we MUST have three key critical paths



NIOMCO must be functional
Itakpe to Ajaokuta Railway line must be functional
Blast Furnace operational
All three are not functional, so its clear Nigeria cannot make steel in Ajaokuta. Nothing however stops a corrupt government official from importing billets and running them in the rolling mills to deceive tax payers. So, when anyone tells you Ajaokuta will soon work ask them, can a steel plant work without NIOMCO, railways and a blast furnace?



All is not gloom, Kayode Fayemi as Minister was able to secure an out of court about Ajaokuta, we must build on this



In closing, Ajaokuta is the only steel plant in the world built by the USSR, sold to Americans, then to Indians, all these teams have come and gone with their own technical style, there have even been accusations of asset stripping by the Indians.



So why this post? because I am a patriot, I will not sit by and watch scarce resources be wasted in a grand deceit. Probably some corrupt folks have told Mr President that Ajaokuta can produce economically viable steel if “small” dollars are spent. You can already see how the critical rail line delivery dates was moved back to ensure it is done in time for 2019 elections, yet it is still in design stage. Ajaokuta is Nigeria and probably Africa biggest failure. It has failed. Can it be made to work yes but the cost to integrate Ajaokuta with her mines and rails can be used to build new smaller modern turn key functional steel mills. The government should get out of Ajaokuta, sell the place and allows the private sector capital and expertise restructure and own it.



If you want to make jollof rice and there is no rice the solution is not to keep boiling water without rice but to go and get rice.

Thanks so much for this enlightening post.

mankand:
False story, nothing of such is happening. Follow Natasha Akpoti in Facebook and twitter to see for yourself that it's all propaganda. I wonder why the regime come so low q by playing politics on this

And you think Al-Jazeera will identify with such? wake up man pls

buhariguy:
the jobless aggressive lazy idiotic pigs of biafra make me laugh.

Don't you see how they reduce the budget of this very project to number nonsense?.
If production did not start before the end of this year,
That means buhari till 2023 will not be easily be achieved,
And the legislootors must pay for it.

FYI, ajaokuta was not included in 2018 budget by de federal govt. State facts, not sentiments and propaganda. I am replying you not bcs I support any party or politician but to share de few truth I know with others. Dnt give out false information bcs U want to launder de image or drum up support for ur prefered politician.

zaltman:
And you think Al-Jazeera will identify with such? wake up man pls

Al-Jazeera identifies with anything Islamic. It won’t be hard for them to lend a helping hand
to Buhari who’s an influential Muslim in Nigeria.

Go check Al-Jazeera website and see how they rail against Israel and the USA all day, every week. They are very anti-Christian and anti-Semitic. I believe they lied on this Ajaokuta issue.

Oyinbo worst pass Africans

otokx:
Oyinbo sef like egunje, shame on AJ, will stop watching them.

Well if this news is correct then it should be the best thing APC has done.

LANDLORD72:
Well if this news is correct then it should be the best thing APC has done.

It’s pure propaganda. Above is a detailed report of the Ajaokuta conundrum, and what it will take to fix Nigeria’s steel deficit.

We have not even scratched the surface yet. A solution to the problem will outlive Buhari’s administration.

This is a hatchet job done by the Federal Ministry of Information in collaboration with Al-Jazeera network.

yemmight:
Me I know Buhari really mean well for the nation if not for the likes of Saraki and co.

Is that why Buhari budgets billions and billions for Aso Rock clinic more than all Teaching hospitals combined yet has no paracetamol and the Looter-in-Chief is always going to London for treatment after banning government officials from doing the same?
Buhari really means to wreck our country.
Buhari is a monumental error of gargantuan proportions that must be corrected in 2019!

resurgent2019:
It’s pure propaganda. Above is a detailed report of the Ajaokuta conundrum, and what it will take to fix Nigeria’s steel deficit.

We have not even scratched the surface yet. A solution to the problem will outlive Buhari’s administration.

This is a hatchet job done by the Federal Ministry of Information in collaboration with Al-Jazeera network.

The “above” is missing please.
Thanks.

Kingspin:
How many times will it come back to life like the refinery?

I forgot about the refinery sef.
Buhari and APC are demonic liars.

Paperwhite:
This will be a commendable development of the APC government if Ajaokuta can not only roar back to life but recommended steel production.
This project have been a haven of monumental corruption all along.

Looks like you have allowed yourself to be scammed by Lienus Mohammed, Buhari and APC liars.
Redeem yourself quickly please.

seguno2:
The “above” is missing please.
Thanks.

What I meant by above is that lengthy report about Ajaokuta steel complex.

resurgent2019:
What I meant by above is that lengthy report about Ajaokuta steel complex.

Now I see it. Thanks

time will tell let's wait and see

Alhamdulilah for Sai Baba

CSTR1003:
The technology there is obsolete.

Your hypocrisy is stenchy .

CSTR1003:
[
I hope they improve on them and get that shitt running again churning out millions of tons of steel.

I am not optimistic about it though. I have zero confidence in the buhari administration.

in one fold, it's obsolete. In another , you want it to run. Again , you don't trust Buhari. Wailer, we know why the technology is obsolete - it's because you guys abhor good news.