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.
Related Link
MMSD: Website
The content on AskNigeria.com is given for general information only and does not constitute a professional opinion, and users should seek their own legal/professional advice. There is data available online that lists details, facts and further information not listed in this post, please complete your own investigation into these matters and reach your own conclusion. AskNigeria.com accepts no responsibility for losses from any person acting or refraining from acting as a result of content contained in this website and/or other websites which may be linked to this website.
Fact-Checking Tool – Snopes.comSnopes.com
Russia firms, other bids Ajaokuta Steel Plant – The Buhari administration couldn’t revive the steel plant due to complications. – Express your point of view.
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.
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.
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.
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.
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.
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.
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.
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.
On the other hand, the prior steel project was never finished, and as a result, the steel plant had never produced any steel before.
Nigeria lost money from Ajaokuta Steel Plant due to numerous issues. Political forces operate behind the scenes. God will support us in this country.
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.
The agreement given to Messers Global Steel Industries under Olusegun Obasanjo’s administration was a major obstacle hanging over Ajaokuta.
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.
It is quite encouraging to see that potential investors are interested in putting their money into the company and seeing its growth.
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
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.
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.
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
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.
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.
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.