Stakeholders oppose concession of Ajaokuta Steel Company
The National Online Ng reported that experts in the Mining Sector have said that any attempt by the Federal Government to concession Ajaokuta would lead to corruption and mortgaging the security of Nigeria. Some of the experts and stakeholders in the mining sector commended the decision of the House of Representatives for standing with one voice to oppose the concession of Ajaokuta steel.
A bill to stop the Minister of Mines and Steel Development, Dr Kayode Fayemi, from initiating or concluding any concession plan on Ajaokuta steel, recently passed second reading in the House of Representatives.
The bill titled, “A Bill for an Act to Amend the Public Enterprises (Privatisation and Commercialisation) Act, Cap. P38, Laws of the Federation of Nigeria, 2004 to Review the List of Enterprises to be Privatised, and for Related Matters.”
The lawmakers also seek to establish a fund to complete the Ajaokuta Steel Company Limited.
A bill for an Act to establish the fund passed second reading at the House and 301 out of the 360 members of the House are in support of the two bills.
Speaker Yakubu Dogara said that it was a collective shame to all leaders that the project was yet to be completed after so many years,.
The speaker made the statement when he led members of the House Committee on Steel to Ajaokuta Steel in Kogi recently. He said the House would consult with stakeholders to work out ways to source for the 500 million dollars needed to complete the last phase of the project, adding that raising the fund would not be a problem.
He said that there were many ways through which the money could be sourced, including from the Sovereign Wealth Fund, Excess Crude Account and recovered financial loots.
Prof. Benjamin Adewuyi, the past President, Nigerian Metallurgical Society, said that reconcessioning the plant at its infant stage would result to putting the future and security of Nigeria in the hands of foreigners.
Adewuyi commended Mr Speaker and the House of Representatives for speaking the minds of Nigerians, especially stakeholders in the sector that had long been canvassing that Nigerian government should revive and complete the steel plant.
“Our stand over the years is that government should invite the original erector, the builder of the plant, called TPE, a Russian company, to come and rehabilitate and complete the project both internally and externally.
“The TPE should complete the project, run the steel plant and carry out necessary test required; there are some perimeters needed in steel plant which must be put in place during testing.
“When all of these are completed including the dredging of Escavo, rail system from Ajaokuta to Onne, rehabilitation of the conveyor belt, cables among others, government can then decide if the plant should be concession or privatised.
He said that “Nigeria has the money to rehabilitate and complete the steel plant, if there is right leadership, will-power and policy towards the project. What Nigeria is spending on importation of iron and steel is far more than what will get if the government should complete the steel plant.”
He added that Ajaokuta steel has the capacity to produce ammunition, rail lines rod for building and construction, armor vehicles among others.
According to him, Ajaokuta is an integrated plant that should not be unbundled.
Source : The Nation Online Ng