Ajaokuta Steel Revival among Nigerian Presidential Poll
Strategic Research Institute
Published on :
16 Jan, 2023, 6:05 am
Nigerian media has reported that PDP Presidential Candidate Mr Alhaji Atiku Abubakar in his February Presidential poll promises has made revival of ailing Ajaokuta Steel Complex as focal point. Mr Atiku Abubakar made the pledge while addressing a mammoth crowd at the Kogi Confluence Stadium, venue of the PDP Presidential Campaign rally in Lokoja, by saying “If Kogi people would vote for him in the February Presidential poll, the Ajaokuta Steel Complex and other challenges of the people would be solved and made history. If you vote for me this time, the comatose Ajaokuta Steel Complex and other challenges of yours will be things of the past.”
Nigerian media had reported in December that eleven overseas investors are locked in a bid to win the concession for the Ajaokuta Steel. The new arrangement is coming 12 years after a concession agreement for the steel plant was fought in an international court. Already, the Federal Government has begun payment of USD 496 million to Indian firm, Global Steel Holding, the initial concessionaire of the plant that won the concession during the administration of former president. The concession which was for 10 years was, however, revoked after the Global Steel Holding was accused of asset-stripping by the Federal Government. The cancellation of the agreement, had led to litigation before it was resolved, through arbitration.
A feasibility study for the production of steel was first awarded to the British, and later undertaken by the Soviet Union under a cooperation agreement with Nigeria. In 1967, Soviet experts recommended prospecting for iron ore in Nigeria, as the known deposits were of poor quality for steelmaking. In 1973, iron ore of the required quality was discovered in Itakpe, Ajabanoko, and Oshokoshoko. The multibillion-dollar Ajaokuta mill, on 24,000 hectares, was built by the Soviets between 1979 and the mid-1990s, but has never produced steel as the project was never completed. It was also mismanaged and remains incomplete 40 years later. Three-quarters of the complex have been abandoned, and only the light mills have been put into operation for small-scale fabrication and the production of iron rods.