The Federal Government of Nigeria is working towards resurrecting the Ajaokuta Steel Company Limited (ASCL) in kogi State as part of efforts to diversify the country’s economy.
The government, on Monday in Abuja, inaugurated a 13-man Ajaokuta Presidential Project Implementation Team (APPIT) to help push the economic diversification agenda of President Muhammadu Buhari’s administration forward.
While inaugurating the committee, the Secretary to the Government of the Federation (SGF), Boss Mustapha, who also doubles as the Chairman of the team, expressed the government’s desire to create opportunities for the development of national global capacity, especially in the area of industrialization.
“The Ajaokuta Steel plant has languished in economic unproductivity for about four decades and previous efforts at reviving it had proved abortive.
“This has resulted in avoidable massive foreign exchange losses at intolerable opportunity cost to the country.
“The pressing need to redress these avoidable challenges has necessitated this Presidential intervention at this time.
“This is further underscored by difficulties being witnessed with present challenges in the global oil industry,” Mustapha said.
The Chairman stressed the importance of the Ajaokuta steel plant to the country and explained that it presents a unique opportunity to make it become West Africa’s largest fully integrated producer and most importantly, to accelerate industrialisation in steel related industries.
According to him, the government places a lot of value on the diversification of the economy, hence, President Buhari’s participation at the Russia/Africa summit in Sochi, Russia, where he discussed the resuscitation of the Ajaokuta steel plant with its Russian counterpart, President Vladimir Putin.
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The SGF said the Ajaokuta Steel Project is; ‘’to be resuscitated on the basis of a Government-to-Government agreement with funding from the Afrexim Bank and the Russian Export Centre.
“However, one of the key issues discussed by the parties was the Technical Audit, Upgrade, Completion and Operation of the Ajaokuta Steel Company.
“Inauguration of the Ajaokuta Presidential Project and Implementation Team (APPIT) is therefore meant to kick start the process of re-directing the activities of the steel plant with the aim of bringing the steel project back to life for the growth and economic development of our dear nation.”
Terms of reference
The SGF listed the Terms of Reference (TOR) to include; to engage in all bilateral negotiations as shall be necessary on behalf of the Federal Government of Nigeria leading to the execution of the Government-to-Government Agreement with the Russian Federation and the Afreximbank and to provide all relevant technical and other inputs necessary to close the Government-to-Government negotiations.
The team is also to ensure that the best extreme possible, all relevant raw materials are sourced locally, bearing in mind the local content provisions and the Presidential Executive Order 005.
Besides, it is to scrutinize and assemble Nigerian Content Engineering, Procurement and Construction (EPC), Special Purpose Vehicle Contractors which will embody the Co-Concessionaire representing Nigeria’s interest in the Build-Operate-Transfer (BOT) Concession.
It is also to ensure the resuscitation of the Ajaokuta Steel Plant (ASP) based on the original design; and ensure timely commissioning of the plant within a reasonable period to be agreed upon by the parties to the agreement and recommend primary tenure of a Build-Operate-Transfer (BOT) Concession.
Members of the APPIT
The members of the team are Secretary to the Government of the Federation, Chairman; and Minister of Mines and Steel Development as the alternate chairman.
Other members are; Permanent Secretary, Ministry of Mines and Steel Development; Permanent Secretary, Ministry of Finance; Solicitor-General of the Federation/Permanent Secretary Ministry of Justice, Mr. Gabriel Aduda; Sole Administrator of Ajaokuta Steel Company Ltd, Sole Administrator of National Iron Ore Mining Company, Engr. Vincent Dogo (Industry Expert); Prof. Elegba S.B. (Industry Expert); Dr. Godwin Adeogba (Industry Expert); Director-General, ICRC; and Director, Steel MMSD.
About Ajaokuta Steel Company Limited (ASCL)
Ajaokuta Steel Company Limited (ASCL), popularly known as Ajaokuta Steel Mill, is a steel mill in Nigeria, located in Ajaokuta, Kogi State, Nigeria.
The project was undertaken by the Soviet Union under a cooperation agreement with Nigeria.
Built on a 24,000 hectares (59,000 acres) site starting in 1979, it is the largest steel mill in Nigeria, and the coke oven and byproducts plant are larger than all the refineries in Nigeria combined.
However, the project was mismanaged and remains incomplete 40 years later.
Three-quarters of the complex have been abandoned, and only the light mills have been put into operation for small-scale fabrication and the production of iron rods.
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