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Labour tasks Buhari on completion of Ajaokuta Steel company

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Organised labour has called on President Muhammadu Buhari to demonstrate sufficient political will to resuscitate the moribund Ajaokuta Steel Company Limited, located in Kogi State.

Bello Itopa, President, Iron and Steel Senior Staff Association of Nigeria (ISSSAN) told BusinessDay that, out of the 43 component units, 40 units have so far been completed through government funding.

“Out of 43 component units, 40 units are completed. This, in one way or the other enhance revenue and employment generation and also assist FGN in diversification of her economic policy and poverty alleviation.

“The Original Builder of Ajaokuta Steel Project should be invited and renegotiate with, by the FGN, to complete the remaining two percent (the Blast Furnace, the Coke Oven and the Steel Making Shop) of the project and commission it.

“What the Federal Government needs to accomplish this vision and mission is the strong political and economic will.

“The 2010 Technical Audit on ASP, estimated that the sum of $513 million will be required to rehabilitated and complete the project while the sum of $700 million will be required for both internal and external infrastructure and the installation and the state of machines and equipments are intact,” the ISSSAN president urged.

Itopa stressed the need for the present administration to follow through the “expiration of the performance guarantee test period and successful operation of the plant before going into any form of privatization.

“The management of Ajaokuta Steel Company should be encouraged to put into operation the completed units of the plant by creating enabling environment and providing the required fund.

“Power utility must be made available and affordable.
Transportation linkage by road and rail to the location of the raw materials should be provided as a matter of urgency. Okene-Ajaokuta dual carriage road should be habilitated.

“The metal industry especially the Steel subsector like Ajaokuta Steel Plant is too strategic and capital intensive to be left solely in the hand of private sector.
The original builder of Ajaokuta Steel Plant should be negotiated with, by the Federal Government to complete, commission it and the guarantee test period to be observed before the handing over,” he stressed.

In fulfilment of his promise during the working visit to Ajaokuta penultimate week, Speaker Yakubu Dogara on Sunday, confirmed that the House will on Thursday, 28th February, 2018 resume its sectoral debates, with special focus on the steel sector, with the view to find lasting solution to the resuscitation of the moribund Ajaokuta Steel Company in Kogi State.

Top players in the sector and major stakeholders are expected to attend the sectoral debate which will be televised live from 11am to 3pm, including ministers, top government bureaucrats, members of the Ajaokuta community, experts and other stakeholders.

The Minister of Solid Minerals, Mines Development, Kayode Fayemi, his State counterpart, Bawa Bwari, minister of Finance, Kemi Adeosun, Ohinoyi of Ebira land, Ado Ibrahim, chairman of Ajaokuta Local Government, representatives of workers’ union, experts in mines and steel as well as other stakeholders will be present in the House chamber.

The session will be broadcast live on NTA and will also be streamed live via House of Representatives Facebook page and YouTube channel between 11am to 3pm.

Sectoral Debate is an initiative of the 8th House of Representatives encapsulated in the Legislative Agenda introduced by Speaker Yakubu Dogara with the aim of reviving Nigeria’s economy.

The first phase of the debates held in May 2016 and was attended by Ministers in the chambers of the House with a view to making them more efficient and effective.

Recall that the Speaker and members of the House of Representatives had during the working visit to Ajaokuta, frowned at the proposed plan by Federal Government to concession the company despite the failure of three previous concessionning, marred with destruction, cannibalization and illegal removal of equipments under the guise of borrow and un-returned, which eventually landed in arbitration/mediation.

Governor Yahaya Bello of Kogi State and who spoke during the visit, also informed the Speaker that about $500 million.

While expressing opposition for the proposed concessioning, Speaker Dogara and Governor Bello during the visit had urged President Buhari to deploy some of the recovered looted funds by Economic and Financial Crimes Commission (EFCC) into the resuscitation of Ajaokuta Steel Company Limited.

 

KEHINDE AKINTOLA, Abuja

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