Business
Nigeria will save $3.5bn annually if Ajaokuta Steel is revived –Fayemi
If Nigeria is able to bring back the Ajaokuta S teel Industry, the country will be saving at least $3.5 billion spent on importation of steel products, annually, so said the Minister of Mines and Steel Development, Dr. Kayode Fayemi.
Addressing newsmen, after a meeting with stakeholders in the mining sector in Lagos, on Saturday, he stated that the final process of having the complex back on stream would be through in September 2017, when the expression of interests by investors for the Ajaokuta Steel Complex is billed to be completed.
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He said: “In Nigeria, we utilise about seven million metric tonnes of steel on an annual basis; we produce less than three million from scrap metal, and even the scrap is being depleted now.
“So, we run the risk of depending almost solely on importation. We spend over $3.5bn importing steel products into Nigeria annually. So, you can see the opportunity cost and the importance of ensuring that Ajaokuta Steel comes on stream.”
“Government is determined to ensure that the litigation around Ajaokuta Steel would be resolved, to enable those with the technical knowledge and financial capacity to intervene and bring the industry back to life.
“Our expectation is that liquid steel can be produced from our own iron ore endowment and then be made available to rolling mills across Nigeria for direct steel production.”
“The timeline for the expression of interest is going to happen within the next six months, as we have already had a number of players, both local and foreign, that have shown interest; they come to us independently and unsolicited saying, ‘Look, we want to do this'”.
He confirned that the Federal Government had would sell the Ajaokuta Steel Complex to a private sector operator with the capacity to turn around the fortunes of the beleaguered company.
Reports say the stakeholders’ meeting was part of the ongoing moves aimed at persuading a Russian-based company which in alliance with some Nigerians with interests in the sector emerged the preferred bidder in the privatisation programme in 2010.
The firm has not been able lift the steel company from its comatose state it found itself since 2004 when government planned to resurcitate the moribund complex.
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seyi jelili
March 19, 2017 at 12:08 pm
Ajaokuta is a pure colossal waste and shame to Nigeria. The day I got there, I wept when I saw how natural resources and edifices capable of providing millions of gainfully employment for the youths are left dejected and under utilised. Sincerely federal government needs to focus on Ajaokuta steel company and resuscitate it again. Enough of talk without action on it.
yanju omotodun
March 19, 2017 at 12:15 pm
What is killing kogi state generally is their state government. How I wish ajaokuta was to be in Lagos, the state government would have revived the company especially when they know its economical benefits. But kogi state has no functioning governors that are ready to serve the people. Well I hope Mr sweet mouth Fayemi will persuade the federal government to include ajaokuta resurrection in 2018 budget.
JOHNSON PETER
March 19, 2017 at 12:23 pm
I am not sure the people of that state are educated and rational because they themselves are the architects of their problems . They don’t make their political leaders accountable to them. The day I passed through their state capital called LOKOJA, it is of no different than Iyana ipaja in Lagos.
Roland Uchendu Pele
March 19, 2017 at 2:43 pm
We’ve been on this same matter for a really long time now.
How we keep talking about one thing over and over again is something that has ept us in the dark for years.
Less talk and more action will get us far!
Anita Kingsley
March 19, 2017 at 5:22 pm
Before the year runs out magic will happen. Let us hope it will be properly managed to serve good purposes, because of the ability to manage the industry properly.
Agbor Chris
March 19, 2017 at 5:07 pm
A country blessed with everything it needs to flourish -Nigeria, now hustling to get its resources in order because of the government’s selfishness and greed! Ajaokuta Steel will save us huge money and create employments. Our leaders are blind to things that will benefit the citizens