In a bid to draw up fresh concession plans for the Ajaokuta Steel Company, the Federal Executive Council ( FEC) on Wednesday approved the engagement of transaction advisors for consultancy services for its concession.
The consultancy services contract which also includes the National Iron ore mining company, in Itakpe, was awarded to CPCS Transform Consortium in the sum of N853,266, 644.4 inclusive of 7.5percent VAT.
Minister of Information and Culture, Lai Mohammed, briefing State House Journalists after the weekly Federal Executive Council meeting presided over by President Muhammadu Buhari, said the contract for the consultancy services were awarded to Nigerian companies.
“The council has approved that consultants be engaged to concession out Ajaokuta steel complex and Itakpe iron ore.
“I don’t think the war between Russia and Ukraine has anything to do with this. To the best of my knowledge, I went through this memo and all the consultants are Nigerian companies”
Mohammed recalled that the history of Ajaokuta Steel complex is replete with several failed efforts to get it off the ground.
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“The contract was first awarded 1979 to a Russian company called TPE. By the end of 1983, the contract had reached advanced stage, regrettably, since then it has been suffering and by 1994, TPE demobilized from site and 1996, the contract was determined. Subsequently, various administrations have tried to revive the Ajaokuta steel complex without much success”
“You will recall that Mr. President was on a state visit to Russia on the 22nd and 24th October 2019 and here it was resolved that Ajaokuta steel complex on which the Federal Government has made massive investment must be resuscitated.
He noted that COVID-19 also contributed to slowing down the efforts of the Ministry of Mines and Steel to bring this to fruition.
“ Today however, the council has approved the award of contract not just for Ajaokuta but for the iron ore in Itakpe”
Mohammed however expressed the confidence that with this development, the government has made “significant steps in bringing back to life both the Ajaokuta and the iron ore company in Itakpe and moving forward the industrial revolution of Nigeria”.
“When these two complexes begin to function, then, not only are we going to save money in terms of foreign exchange, but we are going to see a lot of industrial development and also technology transfer,” Mohammed said.
He disclosed that the new government move has “ no bearing to do with Russia or the war between Russia and Ukraine”.
