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”
