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Russia firms, other bids Ajaokuta Steel Plant

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By Okunloye Abiodun Segun

The Buhari administration couldn't revive the steel plant due to complications.

Due to the country’s various challenges, the Nigerian government has stated that it will not be feasible anymore to resume the Ajaokuta steel plant before the Buhari administration term ends next year. Despite this, eleven other companies have expressed interest in the possibility of acquiring the plant on a concession basis. Olamilekan Adegbite, minister of mines and steel development, mentioned that 3 of the 11 bidders are from Russia when outlining his ministry’s accomplishments at President Muhammadu Buhari’s 9th edition scorecard series in Abuja.

The Soviets began construction on the steel company in Kogi State in 1979 and continued through the middle of the 1990s. However, the project was never finished, so the steel plant had yet to produce any steel. Additionally, it was mismanaged. Mr. Adegbite noted that one of the most significant impediments over Ajaokuta was the concession that had been made to Messers Global Steel Industries during the presidency of Olusegun Obasanjo. When things got out of hand, they decided to sue the country. The lawsuit lasted for nearly 12 years, but it was successfully resolved with the help of a passionate Nigerian lawyer working in the UK.

A revoke of an agreement with an Indian firm led to a lawsuit.

While Global Steel initially demanded $7 billion, the attorney was able to spot flaws in their argument, resulting in a $496 million settlement. The verdict was in Nigeria’s favor, according to Mr. Adegbite. To resolve a dispute with an Indian company on Ajaokuta steel, the Nigerian government consented to pay $496 million in September. In 2008, the federal government revoked a deal that had given the Indian company Global Steel Holdings Limited ownership of the steel plant and the National Iron Ore Mining Company, setting off the conflict. In cancelling the agreement, the Umar Yarádua administration claimed that the conditions of the concession at that period were not good for the country.

The minister stated the COVID-19 outbreak jeopardized the government’s goal of making the Ajaokuta steel mill operable by 2022. The procedure is now underway. Although he vowed in 2019 to launch Ajaokuta Steel before leaving office, but COVID-19 made that impossible. They commenced the processing in October 2019 when they travelled to Sochi, Russia, for a summit with Mr President, he stated. They engaged with the Russian administration, led by President Vladimir Putin, on the grounds of a bilateral meeting and President Muhammadu Buhari and the delegate asked them to assist them in reviving Ajaokuta Steel. Since the Soviets constructed it, they agreed.

COVID-19 impedes the reviving plans for the steel plant.

After the meeting, they returned to Nigeria, and he presented their plans to revive the Ajaokuta steel, stating that they would make all efforts to ensure that the idea was successful. They were to begin by doing the technical audit, during which they were to determine what was faulty, what required to be done, what required to be repaired, and so on. According to Mr Adegbite, this is the purpose for which the technical audit was designed.

Speaking further, he explained that the Russians were scheduled to arrive in March 2020 to initiate the three-month technical audit. They came to an agreement on the cost, and everything has been wrapped up and made available by the Nigerian government, but they were unable to complete the technical audit due to COVID-19 Outbreak. It was placed on hold. This continued throughout the years 2020 and 2021 without stopping. After that, they suggested that they take a different approach.

Concession would be reached to further the advancement of the plant.

At the moment, the country now engages with eleven foreign entities, and three of them are Russians. The minister asserted that investors are eager to invest their money in the company and see that it is successful. In the following two years, if they invested the right amount of money, they would begin steel production. The minister affirmed that the procedure was still in progress and that before they left the office, they would concession Ajaokuta to those who would contribute money and see to it that it functioned.


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Admin
9 months ago

Russia firms, other bids Ajaokuta Steel Plant – The Buhari administration couldn’t revive the steel plant due to complications. – Express your point of view.

Adeolastan
Adeolastan
Member
9 months ago

It is very sad and unfortunate that after promising heaven and earth,this Buhari government can’t revive Ajaokuta iron company which provided thousands of jobs to the citizens sometimes ago and billions of Naira budgeted for the revitalisation went down without accountability.

SarahDiv
SarahDiv
Member
9 months ago

Ajaokuta Steel plant should have been a source of revenue to Nigeria now but because of several factors listed above it was hurt. They are some political forces playing behind the scenes. God will help us in this country.

Abusi
Abusi
Member
9 months ago

This Ajaokuta steel plant if it can be revived it will help contribute so much to our economy. I hope the government looks for the right bidders to get it done. We need to be a producing nation.

jdpumping
jdpumping
Member
9 months ago

I don’t know what our problem is we allowing firms from other countries bid for Ajaokuta steel,ac t we resuscitate it and put it into operations.

theApr
theApr
Member
9 months ago

Three of the eleven foreign firms with which the nation now conducts business are Russian. According to the minister, investors are willing to put money into the business and see that it is successful.

Kazeem1
Kazeem1
Member
9 months ago

The Nigerian government has said that it is not possible to reopen the Ajaokuta steel plant before the conclusion of the Buhari administration term. This is because of the country’s many problems.

Chibuzor
Chibuzor
Member
9 months ago

In spite of this, eleven other businesses have reportedly shown interest in the potential of purchasing the facility on a concession basis, which is something that we ought to be aware of.

Ultra0711
Ultra0711
Member
9 months ago

The Ajaokuta steel factory needs to be revitalize in order to harness it great potential that can make a significant contribution to our national economy. I really hope that the government searches for the most qualified bidders to do the task.

Adesanyaj72
Adesanyaj72
Member
9 months ago

On the other hand, the prior steel project was never finished, and as a result, the steel plant had never produced any steel before.

Christiana
Christiana
Member
9 months ago

Nigeria lost money from Ajaokuta Steel Plant due to numerous issues. Political forces operate behind the scenes. God will support us in this country.

Tolaniiii
Tolaniiii
Member
9 months ago

There are currently eleven foreign companies doing business with the country, and three of those are Russian. The minister claims that financial backers are eager to back the venture.

Godsewill Ifeanyi
Godsewill Ifeanyi
Member
9 months ago

The agreement given to Messers Global Steel Industries under Olusegun Obasanjo’s administration was a major obstacle hanging over Ajaokuta.

Bola12
Bola12
Member
9 months ago

The Ajaokuta steel production cannot be restarted before Buhari’s term in office ends, according to the Nigerian government. The numerous issues facing the country are to blame.

Taiwoo
Taiwoo
Member
9 months ago

It is quite encouraging to see that potential investors are interested in putting their money into the company and seeing its growth.

Haykaylyon26
Haykaylyon26
Member
9 months ago

This ajaokuta steel will have been another source of revenue that our country will generate from it really sad it couldn’t be revive I hope this kind of project is not abandon and be revive by new government

Nwachukwu Kingsley
Nwachukwu Kingsley
Member
9 months ago

They know that the first step was to conduct the technical audit, during which they would identify problem areas, determine what needed to be done, and prioritize the repairs.

Hassan Isa
Hassan Isa
Member
9 months ago

The process was ongoing, and before they departed the office, they planned to grant Ajaokuta to donors who would ensure the project’s success through financial contributions.

Tonerol10
Tonerol10
Member
9 months ago

What a failed administration. What a failed APC government. This country has really go back due to very bad government of Nigeria
This corrupt government has failed in all ramifications
Government that can not manage Ajaokuta Steel plant

Iyanu12345ogg
Iyanu12345ogg
Member
9 months ago

According to the minister, investors are willing to put money into the business and see that it is successful. Well, I really hope that the government searches for the most qualified bidders to do the task.

DimOla
DimOla
Member
9 months ago

Something must be wrong about the Ajaokuta Steel project. Different successive government have tried to construct it but failed. What is happening might be political.

Remi1
Remi1
Member
9 months ago

If the steel plant in Ajaokuta can be restored, it will have a huge impact on our economy. I sincerely hope the government seeks for qualified bidders to complete the job. We must be a productive country.