Finally, FG Moves To Revitalize The Steel Sector

The agreement, which took place at the State House, Abuja on Monday and is aimed at revamping the Ajaokuta Steel Company in Kogi state, was signed by Vice President Prof Yemi Osinbajo, Minister of Solid Minerals Development, Dr Kayode Fayemi, on behalf of the government, and Chairman of GSHL, Prammod Mittal on behalf of the company.

Also sealing the agreement was the Minister of State for Solid Minerals Development, Hon Abubakar Bwari; the International Mediator, Mr Phillip Howell-Richardson, and top officials of the Ministries of Justice and Solid Minerals.

By the new agreement, Ajaokuta Steel Complex has now reverted to the Federal Government, effectively freeing the entity from all contractual encumbrances that had left it uncompleted and non-functional for decades, while GSHL retains NIOMCO.

Speaking at the occasion, which took place in his office, VP Yemi Osinbajo said steel production was essential to the development of the Nigerian economy, which is in line with President Muhammadu Buhari’s vision for the steel sector.

He assured Nigerians that the country will soon commence the production of steel locally, as part of government’s diversification drive.

“Everybody in Nigeria talks about what we can do with steel. It is such an important requirement and we spend so much on it. But I think that this is possibly the first concrete step towards ensuring that all of our complaints are dealt with and that we are able to at least say that in not too long time from now, we will be able to at least produce our own steel,” he said.

He accused the past administration for slowing the smooth take off of the Ajaokuta Steel Company, which according to him incurred losses for the country.

He was optimistic that the current administration is focused on resuscitating the company.

“It’s very clear that this is one of those failures of basically getting things done over the years. Somehow, one way or the other, we let the ball drop and we just couldn’t get it back on track. Unfortunately it has cost us a lot but it’s a good thing that we are now able to recover from all that and get on the path of getting things right and resuscitating Ajaokuta,” the Vice President noted.

Dr Fayemi, who led the Federal Government side in the mediation process, described the agreement as a development that would help the diversification plans of the current administration.

He said the agreement with NIOMCO will kick-start the process of taking over Ajaokuta and ensure it is given to a proven and capable operator.

Fayemi said: “It is our expectation that we would accomplish two things- bring NIOMCO to full function and start the process of retaking Ajaokuta and then give it to a new operator.

“With this, we will move from being just a mineral nation to a mining nation.

“Once the first phase of the agreement is accomplished, it is the intention of the FGN to quickly move into accomplishing the objectives of concessioning the Ajaokuta Steel Plant to the most competent operator who meets the requirements of credible track record, technical capacity and financial competence.”

Speaking also, the GSHL Chairman, Mr Mittal, assured the government of its readiness to commence operation, according to him, his organisation was committed to the objectives of the agreement and guaranteed supply to Ajaokuta plant and Delta Steel Company.

He said in the next two years Nigeria would begin to produce steel.