The Sole administrator of the Ajaokuta Steel Company, Sumaila Abdul-Akaba, Wednesday said the size of the asset and quality of equipment installed in it can generate up to $6 billion should Nigeria decides to liquidate the company by selling them as scraps.
Mr. Akaba disclosed this while appearing before the House of Representatives Committee on Mines and Steel.
He said:”The steel complex is a massive infrastructure and the Russians who built it gave us the best of technology and enough spare parts to maintain it for many years”.
He said privatization of the asset is the best option to revitalize it and make it useful as government doesn’t have the resources to complete the outstanding phase for full operationalization.
“Privatization of the asset t is the best way to go if done the right way. Government doesn’t have the resources to complete it and run it as required, which is why private sector participation either through consessioning or partnership agreement would be a good development.
According to him, while the complex generates it’s own power which is sustainable, it hasn’t explored the idea of selling same to the national grid because it’s a management decision that requires board approvals.
Lawmakers had grilled the Sole Administrator as to why the company is not maximizing its electricity generation potentials, as well as other products despite posting huge wage bills on personnel, security and maintenance activities.
Mr Akaba said the amount spent on personnel for security and maintenance of equipment was justifiable,adding that before the engagement of the security personnel, equipment worth billions of naira were stolen from the facility.
He added that the amount utilized for the payment of some staff who are not in the Integrated Personnel Payroll Information System was meaningful owing to the services they offer.
He said:”Anytime you look at the personnel cost, most of the question people ask is why you are keeping these personnel, Ajaokuta investment is within six billion to eight billion dollars and if you look at the amount we are spending to keep the plants, I don’t think that is too much. Aside that, one of the basic thing we should go to later, if I finish the details of this performance is the security issues. We have spent a lot of money also in security. As at today, we have over two hundred and twenty security guards that are officially not on the payroll of IPPIS”
He disclosed that the company engaged the Federal Fire Service and the Military, Department of State Services and that the company sees to their welfare.
He advocated the need for the removal of bureaucracies for the company to commence immediately.
He said:”If Ajaokuta project is initiated and completed, fund won’t be a problem but one of the problem is bureaucracy.I can assure you that if that company become fully operational today, it will pay itself and recoup money invested within 10 years.”
He maintained that Nigeria is not doing enough to utilize the Ajaokuta Steel to change the fortunes of the country.
The Chairman of the Committee, Abdullahi Ibrahim Halims emphasized that the place of steel industry in the development and industrialization plans of the industry is non existent, adding that Nigeria must be proactive to revive the mines and Steel industry.
Some members of the committee raised key questions on how long Nigeria will continue to play around the issue of industrialization without making serious effort on Ajaokuta Steel.
Hon Bem Mzondu alleged that there are a lot of “international conspiracy” militating against the realization of the Ajaokuta dream, which according to him stakeholders were not ready to look in that direction.
Also, during the session, the Executive Director of the National Metallurgical Development Centre Jos, Professor Linus Asuquo said the sum of N718. 3 million has been proposed for capital as seven projects have been earmarked for execution.
Professor Asuquo solicited more funds to address some shortfalls out sourcing of some services, as well as carry out its key objective of research and development.
Similarly, the Sole Administrator of the National Iron Ore Mining Company Limited, Itakpe, Mr Augustus Nkechika decried the N60 million allocation to the company for overhead expenditure.
He said the company sits on tens of thousands of acres of land does a lot of mining prospecting with a view to discovering more areas of mineral deposits for explorations.
