Mohammed Shosanya

The Civil Society Organisations for The Revival of Ajaokuta Steel Company,say the Federal Government is losing track on the revival of the project.

Specifically,the coalition attributed the development to policy flip flop that greeted the project lately.

The group conveyed their concerns in a joint statement by,Mohammed Bougei Attah National Coordinator, Procurement Observation and Advocacy Initiative,Otunba Dele Ajayi-Smith,President, African Citizens Development Foundation, and Barrister Clifford Thomas Executive Director, Foundation for Civic Education, Human Rights and Development.

According to the group,the recent disclosure by the Minister of Steel Development, Prince Shuaibu Abubakar Audu at the State House Abuja, that President Tinubu has approved the setting up of an Inter-Ministerial Committee on the execution of three Steel development projects, including the revival of Ajaokuta Steel Company leave much to be desired and has taken the public by surprise.

The coalition expressed concern that an Inter-Ministerial Committee on steel development or Ajaokuta revival comprising of Federal Ministeries of Finance, Industry, Trade and Investment as well as Solid Minerals without the inclusion of Federal Ministry of Science, Technology and Innovation, where raw materials, research and development are major component, does not imply the government understands the policy issue on Ajaokuta.

The coalition maintained that the mandate of the yet-to-be inaugurated inter-ministerial committee is unclear and lack adequate capacity without the inclusion of the private sector, professionals and monitors, especially non-state actors, for effective policy drive.

The coalition added:”In a similar outing, the Minister, Prince Shuaibu Abubakar Audu said on a live television program monitored through Channels Television interview of Monday January 15, 2024 that the Ministry is considering a Public-Private-Partnership (PPP) to invite foreign firms for the revitalization of some units at the Plant in addition to production of military hardware for the country.

“Further, he said the Ministry is considering an investment in building new Steel Plants by Jindal Steel Company from India and Luan Steel Company from China. About $1.6m will be required for this engagement and the Steel plants to be situated in Calabar or some other states in the southern part of the country. He also said that about ten (10) financiers have contacted the Ministry with interest. It is on record from recent audit that to revive several units of the ASCL today, including the power plant, gas plant, light steel plant and others will not require up to $1.6 US Dollars as proposed.

“So many questions are being asked about these developments. First, is the Ministry aware of the history of the steel plants in Nigeria with India and Chinese firms? When did Ajaokuta Steel Company moved from negotiation with government to government to government and firms negotiations? We are aware that Ajaokuta is a national strategic project, and declared as emergency under previous administration where the Federal Government of Nigeria is a principal stakeholder.

” Indeed, Ajaokuta Iron and Steel is a national design and planned as a national security project which should be under the direct supervision of the Presidency. The talk of regional factors that we all know it’s negative effect on our developmental struggles should be kept under the table if the country is to have any meaningful result with the plant.

“Recall also that at the inception of this administration, the Vice President, Senator Kashim Shettima, the team from the federal Ministry of Mines and Steel Development (before the separation) visited Russia on the directive of President Bola Ahmed Tinubu with hopes, and aspiration that the foundation and policy direction on Ajaokuta laid by the previous administration will be sustained. Till date, we have not heard any further information or report of that engagement and trip to Russia.

“The recent appearance of the Ministry and her agencies at the Budget Defense at the National Assembly Joint Committee of the Senate and House of Representatives is another area that Nigerians are worried about.

“Apart from the claim by the Ministry that Ajaokuta will need about 2-5bn US Dollars to be functional, the failure of the Legislators to approve the request for sum of N401bn in the 2024 budget is a big setback for the plant, an approval of that request by the Legislators would no doubt have created opportunities to raise funds internally rather than shopping for foreign loans to revive some units at the plant”.

The coalition said the conspiracies against the revival of Ajaokuta Steel Company are due to inadequate flow of information on the revival plan.

The coalition lamented that the system seems to lack those with the requisite will and understanding to appreciate the value, essence and role of the Ajaokuta project, not only in development of the plant, but in nation building even after 40 years of wandering in the desert of indecisions and windfall act of self-destruct.

They advised President Tinubu to immediately take a review of the ongoing process and invite key stakeholders that will review existing policy and make recommendations on the way forward.

The coalition added:” It should be noted that technology cannot be transferred by mere importation of substandard steel products from Asian countries, China and India for examples; rather, it is done by building and running ones industries. We are of the opinion that due consultations with subject matter experts (SME) or another tour of the steel plant by the legislators, as proposed during the December 2023 Budget Defence, will give a better assessment of the plant’s true state of affairs.

“The result of these consultations and visit will give the opportunity for verifiable audit reports, and this would be a direct assignment for the Minister and his team, the Inter-Ministerial Committee and other major stakeholders, instead of shopping around for China, India and among other unknown investors to produce iron rods which again may lead to cannibalization of some parts of the steel plant”

Mohammed Shosanya

A non governmental organization, NGO, has upscaled advocacy to persuade Nigerian Government to constitute debt recovery structure in the case of huge sums of money paid to an Indian firm to resuscitate a key national asset.

An Indian firm has been found to have received a significant payment to revive the Itakpe Iron Ore Company but failed to do so.

The National Coordinator of Transparency Group Network (TGN) an NGO, based in Port-Harcourt the River State capital, Comrade Uche Michael, while speaking with the media, on Tuesday, implored the Senate President, Godswill Akpabio, to order the probe of the sum of $496million paid by the Federal Government to an Indian firm which failed to revitalize the Itakpe Iron Ore Company after many years of work engagement.

Michael, noted that the Federal Government should respect the opinion of over 250 million Nigerians by halting any further transaction on the revitalization of Ajaokuta Steel Rolling Mill which is aimed at transferring to foreigners through the back-door contrary to the national interest of protecting the heritage of the nation and national Assets.

He expressed worries over the poor system of governance adopted by the federal government through its relevant agencies such as the Federal Ministry of Steel Development and Ministry of Industry, Trade and Investment among agencies of the government.

He further lamented that despite the presence highly intellectual personalities such as University Professors, Industrialists, members of national assembly, seasoned administrators, captains of Industries, technical and financial consultants among others, “It is unfortunate that our leaders still allow foreigners to fool the entire nation with unrealistic proposals and non-achievable business plans.”

The group commended the National Assembly Joint Committee on Steel Development for passing a resolution to probe the $496million paid by the Federal Government to an Indian firm which failed to revitalize the Itakpe Iron Ore Company even after many years.

It noted that preference should be given to national companies who can run such plants, ensure employment generation, reducing imports and do away with siphoning out much needed forex and mineral resources.

Michael said: “The Global Infrastructure Holding Ltd., GIHL took over the National Iron Ore Mining Company, NIOMCO, Itakpe, Kogi State in 2016 and got its agreement terminated in 2019 due to non performance.

“GIHL dragged the Federal Government to court for breach of contract and it was awarded damages to the tune of $496million which had been paid by FG”.

“We are outrightly against the way the federal government is deliberately and ignorantly selling out its national heritage without recourse to the yearnings and agitation of Nigerians especially at this crucial period when the nation is battling with economic stability among other challenges.

“Almost five decades of lost opportunity towards strengthening large scale Steel Production in Nigeria, failed attempts without proper road map. It is also on record that Russians and Ukrainians supplied already obsolete technology then in 1970s.

“We urge the FG and it’s concerned Ministries to carefully dig deep into their Detailed Project Report, Elaborated Business Plan, Capital Outlay and Cash Flow Projections by involving independent agencies and champions of business here in Nigeria. We are quite sure that the so-called 5B investment from Jindal is a faux pass and outrightly exaggerated number that will put Nigeria, her assets, resources and general public in total mess again.”

The TGN helmsman added that, “Another blunder was committed by handing over Ajaokuta, Itakpe mines with all the infrastructure and Delta Steel plants to GLOBAL INFRASTRUCTURE HOLDING LTD GHIL, India. They took over the plant and siphoned out all the resources from country and eventually country did not get any benefit.

“GIHL was never serious in running the plants and mines at Ajaokuta Steel Company Limited, Delta Steel Company and Itakpe. Later, GHIL sold its stakes in Delta Steel Company to Stallion Group under a SPV to Premium Steel & Mines Limited This acquisition was also a marvel of financial engineering by PSML to hide black money generated and siphon out of country through their other businesses.

He,however,stressed that, “When stallion did not get support from the former President Muhammadu Buhari-led government, they had to shutdown the PSML Warri business around 2020. Sadly, for the third time, the Federal Government is trying to bring in Chinese and Indian companies to loot the resources from Ajaokuta, Delta steel plants and Itakpe mines.

“Interestingly, the immediate past government had paid the sum of $496million to GIHL as compensation even despite massive public outrage, wherein, these investors are merely looking at Itakpe mines to cater their offshore companies at much cheaper rate of iron ore supplies.”

The CSO maintained that Jindal-India has been asked to work out takeover proposal back-door without public notice knowing well that several injunctions have been in different Courts of Law even as it warned the federal government to understand that Ajaokuta and Delta Steel Company are obsolete technologies and any company claiming to run and earn profit is just misleading the nation with nefarious intentions.”

Mohammed Shosanya

A civil society group,the Civil Society Coalition on Sustainable Development (CSCSD),has suggested measures Nigeria should take to stop the spate of insecurity in the country.

Prof. Mrs Olubunmi Ashimolowo ,Chair, Think-Do Tank Group, CSCSD,and National Coordinator of the group,who gave the suggestions in a statement on Tuesday,deplored widespread Insecurity in the East and West,spate of abductions in Abuja, kidnappings by Fulani militants and bandit attacks and military vulnerability.

The group implored the government to allocate additional resources for the training, equipping, and welfare of security forces.

It also suggested that immediate action is necessary to enhance their capacity to respond effectively to emerging threats.

According to the group,government should Invest in advanced intelligence-gathering technologies and foster collaboration between intelligence agencies to preempt criminal activities.

The coalition emphasizes the need for community-based surveillance programs to encourage citizens’ active involvement.

The group emphasized the need to Implement comprehensive poverty alleviation and job creation programs to address underlying economic factors contributing to insecurity.

It maintained that these interventions should particularly focus on regions most affected by violence,just as the coalition advised the government to strengthen the legal framework to ensure swift and fair prosecution of criminals,thereby deterring potential offenders.

The statement quoted that there is need for collaboration with the judiciary to expedite the adjudication of cases related to insecurity is crucial.

Government,the coalition said,should initiate a national dialogue involving all stakeholders to address the root causes of ethnic and religious tensions contributing to insecurity.

It added:”Open discussions on national security policies are essential for fostering a sense of collective responsibility. CSCSD reiterates its commitment to working collaboratively with the government and other stakeholders to address the escalating insecurity in Nigeria.

“Urgent and decisive actions are imperative to restore confidence in the nation’s security apparatus and ensure the safety and well-being of all Nigerians”