Why FG can’t put exact date on Ajaokuta Steel coy’s take off – Minister

.Says President Buhari has given full support to Steel ministry to continue negotiations between Nigeria, Russia

The Federal Government has again expressed commitment to the rehabilitation and effective operation of the Ajaokuta Steel Company located in Kogi State.

Minister for Solid Minerals and Steel Development, Architect Olamilekan Adegbite, raised the hope in his Abuja office while interacting with the management of Folio Communications Plc, publishers of Daily Times titles.

The Minister said President Muhammadu Buhari has given full support to the Ministry to continue with the ongoing negotiations between Nigeria and the government of Russia, adding that a bilateral agreement would be signed in January 2020.

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According to the minister, the process leading to the commencement of operations at the plant site may be slowed a little due to bureaucracy and protocols as relevant ministries and agencies of Russia are going through the papers of the agreement with a view to bringing all stakeholders on board towards an enduring agreement that would stand the test of time as well as avoid mistakes of the past that have constituted stumbling block to the progress of the project.

Architect Adegbite therefore said there was no need mentioning specific date for the commencement of operations at project site, adding however that Ajaokuta will surely come back to life in the life of President Buhari’s administration.

The foundation stone for Ajaokuta, designed to be the largest integrated steel company in black Africa was laid in 1980 by then President Alhaji Shehu Shagari. So far, the project is estimated to have gulped nearly $5 billion but its development has been hindered by maladministration and corruption as budgetary allocation by various governments were allegedly diverted to private coffers.

The administration of former President Olusegun Obasanjo however concessioned the company to SOLGAS Energy, a US company in collaboration with Nigerian investors. Following the failure of SOLGAS to operate the company, Obasanjo terminated their concession and entered another agreement with Global Infrastructures Nigeria Limited, a company promoted by an Indian Steel making family called Mittal which carried out rehabilitation of the plant and commenced the production of steel products as well as took over the payment of the over 3,500 workers of the company.

But the concession was terminated by late President Umaru Musa Yar’Adua following allegations that the operators were not able to meet the target of the government in terms of volume of operations as well as accusations that it stripped assets of Ajaokuta steel company.

But the management of the concessionaire denied allegations of asset stripping, saying it received full approvals from the supervising ministry to borrow some consumables from Ajaokuta to Delta Steel which at that time was privatised to them.

On allegations that it failed to meet level of operations as spelt out in the agreement with government, the company said the Federal Government failed to carry out its own obligations that would have helped it attain the expected level of success including completion of rail lines, dredging of Escravos river in Warri, among others and therefore dragged Nigeria to the international court of arbitration in London where the case is pending.

Efforts by the administration of President Buhari to reactivate the steel company in his first four-year term could not see the light of the day caused partly by the litigations over the concession termination.

Since he assumed office as Minister of Mines and Steel, Architect Adegnite has continued to give assurances that the days of Ajaokuta’s dormancy is over and many stakeholders in the industry have said that with his track record of achievements, he has the capacity to break the ice.