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How Miscommunication Hampered Completion Of Ajaokuta Steel Complex

Bode Gbadebo
— Apr 18, 2016 6:20 am | Leave a comment

Startling details have emerged as to reasons why the Original Builders of Ajaokuta Steel Complex have not yet been considered as probable technical partners for the completion of Ajaokuta Steel Mill.

Speaking at a book presentation, “Whither Nigeria” and birthday dinner to mark Prof. Pat Utomi’s birthday in Lagos, the minister of Solid Minerals Dr. Kayode Fayemi explained why he had to look for solutions away from the original builders of Ajaokuta Steel Complex, TyazhPromExport (TPE) of Russia.

He said the Russians were his first choice of contact, but on approaching the Russian Ambassador, he was told that the Russians were only interested in offering consultancy services towards Ajaokuta.

This, he believed, was largely due to the effects of the breakup of the Soviet Union as some part of the company now falls in Ukraine and other former Soviet states.

He expressed concern over the urgent need to diversify the economy and promised his best to look for a solution even as the Russians are not an option.

Also speaking on the occasion, Barr. Natasha Akpoti , the founder of Builders Hub Impact investment programme, an initiative which agitates judicious revival of Nigeria’s abandoned and local industries, drew the attention of the minister to the misconception of intention and technical capacity of the original builders.

She threw light on the error of information and spoke on the fact that TPE were interested in the total reconstruction of the plant and not mere consultancy services.

“There was definitely a breakdown in communication and understanding between the minister, Ambassador and TPE,” she said.

She appreciated the minister’s expertise in considering the Russians as the first option by reaching out to the Russian Ambassador for assistance.

“All the government needs to do is arrange for a meeting to negotiate path forward,” Barr. Akpoti added.

Ajaokuta steel company was conceived by former President Shehu Shagari in 1979 to become the bedrock of Nigeria’s industrialisation.

TyazhPromExport of Russia was contracted to build to life Africa’s largest integrated steel plant.

In 1983, Ajaokuta under TPE reached 84% completion, but the coup which ushered President Buhari slowed down the project.

The completion date of 1986 was dragged until 1994 when the Russians were frustrated out of Nigeria due to lack of funding.

Under President Obasanjo, Ajaokuta was given our as concessions to SolGas Energy in 2002 headed by Mr. Seun Oyefeso and Global Infrastructure Nigerian Limited in 2003 headed by Mr. Pramod Mital.

TPE is currently embarking upon the modernisation of Helwan Steel Company Egypt which TPE built in 1973.

Helwan Steel is Egypt’s largest steel plant and part of the Suez Canal Industrial zone project Russia has commenced in Egypt.

This Industrial Park in Egypt has Russia developing not only many iron and steel factories and related minings, but industries of medicine, vaccines and agriculture.

“We have built over 40 plants all over the world; Ajaokuta is the only one we never commissioned. It hurts us watch Nigeria miss her chance towards industrialisation.”

We are committed to work with Nigeria grow out of poverty and into her deserved development,” a TPE representative in Moscow said.

The founder Builder Hub Foundation, Barr. Natasha Akpotio has appealed to President Muhammadu Buhari to revive the Ajaokuta Steel industry, saying that the steel plant tagged: “Bedrock of Nigeria’s industrialization” would help cut the unemployment figures amongst young Nigerians.

Ajaokuta steel is the home of the multi-billion dollar Ajaokuta Steel Rolling Mill. The multifaceted mill is meant to be used to generate important upstream and downstream industrial and economic activities that are critical to the diversification of the Nigerian economy into an industrial one.
Speaking during an interactive section with news men in Abuja, Akpoti lamented that Nigeria continues to suffer unquantifiable and monumental losses from the multibillion dollar investment, due to asset depreciation, brain drain of man power that were trained in Russia, Bulgaria, and India for the steel plant.

She said copies of the letter recently addressed to the Permanent secretary, Mines and Steel Development, copied to the presidency pointed out that the gigantic steel company is in need of resuscitation to revamp the multibillion dollar steel plant company to serve its purpose.

She said, ‘’Across Nigeria, current economic realities have had dramatic impacts on the challenges of her young people. Unemployment statistics amongst this significant population class has steadily grown to unattractive heights, reversing projected trend of declining youth unemployment rates which experts had earlier put out.’’

‘’This industrial complex can manufacture stone crushers and any other industrial components, both for telecommunications infrastructure, spares for excavators, tractors, cars, ships, military hardware and steel of all sizes and shapes.

‘’Ajaokuta can produce over 110MW of electricity, to meet its own local consumption needs and puts the rest into the national grid adding the revival of this complex which has a Metallurgical Training Centre that can train over 3000 youths in Technical Craftsmanship, every year in over 37 different programmes,’’ she said.

She said “The vision was to make Ajaokuta Steel Plant the bedrock of Nigeria’s Industrialization. Regrettably it has been left abandoned for decades and is fast becoming a national tragedy. There have also been reported cases of theft of some of the light equipment and facilities of the steel plant especially during the sham called concession carried out in the past.

She stated that it will be a total disgrace if our nation fails to get Ajaokuta working adding that Nigeria is in desperate need to truly diversify the economy due to the dwindling revenue accruable from crude oil.

“This government spearheaded by President Muhammadu Buhari led APC administration pledged to put this country on a sound economic footing and in realisation of the “change” that they promised Nigeria and Nigerians, there is an urgent need for the Ajaokuta Steel Company and Itapke Iron Ore Mining Project, where the raw material (iron ore) for the steel plant is sourced to be fully put on track and 100% operational.”

She said noted that the Ajaokuta Steel Complex is at over 90% completion since 1994, out of 43 plants, 40 are 100% and is ready for operation; workers are equally ever eager to start production saying that notwithstanding the long years of abandonment.

“It is estimated that to awaken the complex needs an investment of around $500 million dollars. Such funds can be sourced internally in order to realise the potential of the project. With private public partnership agreement and guarantee from government, the complex can start operation immediately and as quickly as within the next two years and can begin to gain full operational capacity and industrial revolution.”

She expressed confidence that the revitalisation of the steel plant alone can bring about these “changes” to a great extent and urged President Buhari to ensure the completion, commissioning and continuous operation of Ajaokuta Steel Plant.

She said that if the federal government was genuinely interested in building the economy, providing jobs for the youths and instigating an industrial revolution in Nigeria, the government have no choice but to revive the steel industry.

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Located in the high brow area of Lekki phase 1.
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Located in the high brow area of Lekki phase 1.
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