The Nation Newspaper

Category: Energy

  • NCDMB met all 2017 targets, says Wabote

    NCDMB met all 2017 targets, says Wabote

    The Nigerian Content Development and Monitoring Board (NCDMB) accomplished all the targets set for 2017, the Executive Secretary, Simbi Wabote, has said.

    He spoke at the 2017 Practical Nigerian Content (PNC) workshop held at Uyo, Akwa Ibom State. He confirmed that both the objectives set by industry stakeholders at 2016 PNC and the ones set internally at the beginning of the year were met. “We have gone through all of them and we ticked the boxes.”

    Wabote who also clocked one year in office, recalled that he promised to drastically cut contract award cycle, with a directive in November 2016 that operating companies can assume they have received approval for any project if they did not get feedback from the Board within 15 working days.

    He asserted that this target was also met. “We have streamlined our internal processes such that NCDMB is now positioned to review contracts within 100 days, provided submitted documents are in line with the NOGICD Act. We have demonstrated this in the last one year as evidenced in the unprecedented completion time of tendering process for the Agip’s Zabazaba project.”

    Further evidence is that the board jointly developed and signed a Service Level Agreement with the NLNG – a first by any government agency. “We have written to the Oil Producers Trade Section (OPTS) to jointly draw up similar agreements to ensure NCDMB’s role in contracting process is clear and transparent in line with the Executive Order on Ease of Doing Business,” he added.

    Wabote said the board had expanded its operations to the midstream and downstream sectors of the oil and gas industry. “We are now part of NLNG business activities. We visited Dangote refineries where we agreed on steps to involve more Nigerian companies with capacities in the development of the project to meet cost and schedule timelines.

    “A compendium of ancillary businesses required to sustain operation of the refinery is under development to support the operational phase of the huge 650,000 barrels per day refinery,” he stated.

    He reiterated that the $200million Nigerian Content Intervention Fund had been launched for oil and gas service providers that are contributors to the Nigerian Content Development Fund. “The intervention fund has all-in single digit interest rate of eight percent for loans extended to Nigerian oil and gas service providers and all-in single digit interest rate of five percent for loans extended to community contractors.

    The NCDMB chief also reported that the Board signed the Research and Development Guidelines with key industry stakeholders earlier in the year. “We also held the highly successful research and development (R&D) Fair and Conference two months ago and we are building on that momentum to set up a R&D Steering Committee to guide our R&D Implementation plan. Other initiatives such as R&D Centres of Excellence, ‘Adopt a Faculty’ Programme, and others are also being progressed.”

    On sectorial linkages, he said the Board is at the forefront of advocacy for the utilization of in-country capacities beyond the oil and gas industry. “We have local capacities in manufacturing of pipelines, cables, paints, among others, that can be utilized in the construction and power sectors of the economy.

    “Our service providers are also being encouraged to venture into the construction sector to utilise their equipment and project delivery expertise.”

    Other achievements according to him include the launch of the upgraded NOGICJQS platform so that transactions such as applications for expatriate quota, Nigerian Content equipment certificates, Marine vessel categorisation and several other requests could be carried out online.

    Giving further details of the Board’s performance in the last one year, Wabote said the Nigerian Oil and Gas Parks Scheme was being progressed in five oil producing states. He stated that “one key progress we have made in the last one year is to put in place a firm arrangement for provision of 24/7 power supply to the industrial parks as they materialise. This is a core enabler for domiciliation of manufacturing in-country.”

  • Why govt gave N701b loan to power sector, by Fashola

    Why govt gave N701b loan to power sector, by Fashola

    The Federal Government has given reason for the N701 billion loan given to the power sector.

    The Minister of Power, Works and Housing, Babatunde Fashola, SAN, said the loan was given to save the sector from collapse  under heavy debts.

    The aim was to assist Bulk Electricity Trading Plc (NBET) to meet its debt obligations to power generation companies (GenCos) and by extension the gas suppliers and the financing banks.

    Fashola in an exclusive interview with The Nation, explained why government took the decision it did. He said: “The N701 billion is not a loan to the privatised power sector. It is a loan by government to one of its own agencies – Nigerian Bulk Electricity Trading Plc (NBET).

    “When the power sector was privatised in 2013, one of the companies created was NBET to buy bulk power from the generation companies (GenCos) in order to create a market situation. NBET entered into power purchase agreement (PPA) with any GenCo that puts power into the national grid. NBET uses the Transmission Company of Nigeria (TCN) to transport that power to the distribution companies to sell under another contract called “vesting contracts.” Go and do this retail business.

    “DisCos are supposed to make a profit of about 30 per cent, return the bulk money to NBET just like any retail business – you buy wholesale, retail and send the money back to the manufacturer. So there are two contracts here – a contract by NBET with the power producers, and a contract with DisCos to vend the power. The assumption was that NBET will pay from what it collects from the DisCos in order to discharge its contract with the GenCos. But some many things happened.

    “The economy tumbled and tariff increase was halted in court. There was a big gap in collection. So from collections of about 56-58 per cent dropped to about 25-29 per cent and NBET became a debtor to the GenCos. The GenCos, the thermal power plants that use gas, were owing their gas suppliers and their gas suppliers were owing their banks. In this situation, we said to the government “you are the debtor here because NBET is a 100 per cent government owned company.”

    “ Before the N701 billion, NBET had tried to raise a bond of N301 billion when parliament stopped it. That was why government got the N701 billion and said to NBET go and discharge your contract. The decision was taken for many reasons, one it was a contractual obligation and NBET is a 100 per cent government company, so you must pay. This is one of the liquidity issues in the sector, so if government defaults, there will be no power sector. Secondly, don’t let this debt spiral the gas and banking sectors, otherwise, it will spiral into the entire economy. Because it was critical, Federal Executive Council approved it because it is a no-go-area. That doesn’t mean you write-off the debts owed by the DisCos because they are two separate contracts.

  • NERC presents eligible customer regulation to Fashola

    NERC presents eligible customer regulation to Fashola

    •Minister urges speedy work on meter regulation 

    Minister of Power, Works and Housing Babatunde Fashola (SAN), has received  the regulations guiding Eligible Customer policy in the electricity sector, with an appeal to the public to take seriously the consultations and stakeholder notices issued from time to time by the Nigerian Electricity Regulatory Commission (NERC).

    After the presentation of the Eligible Customer Regulations 2017, to him by the NERC Vice Chairman,  Sanusi Garba, Fashola said such consultations were necessary as decisions taken thereafter would affect members of the public and consumers as well as stakeholders.

    Citing the Eligible Consumer Regulations, Fashola, who noted that the regulations came by consulting with as many people as possible, who will be affected by it and the declaration which he made, pointed out that while the DisCos would be affected in terms of potential revenue impact, consumers would be affected with regards to how they could possibly build distribution assets and how they would get compensated.

    “Members of the public must, therefore, understand that whether it is tariff setting, whether it is Eligible Customer declaration, NERC works, first by consultation, before it makes decisions so that all interests are carried as much as possible,” he said adding: “I want to use this opportunity to say that whenever consultation notices, stakeholder notices are issued by NERC, members of the public should take them seriously.”

    Describing the regulations as “a very important rule”, Fashola, who said it has been much awaited, added: “It will help us to improve the capacity for electricity distribution to consumers, who need them. Consumers, who are willing to make investments in providing distribution assets in a way that it then helps them to recover their costs and so on and so forth.

    “But I will like members of the public to know that the process of making these rules did not come by sitting in the office. It came by consulting with as many people as possible, who will be affected by the regulations and by the declaration that I have made; and I know that DisCos will be affected in terms of potential revenue impact and I believe that this has been taken care of in the regulation,” he said.

    The Minister, who also described the Eligible Customer Regulations as one of the steps in furtherance of the Power Sector Recovery Programme (PSRP), declared: “This will assist the distribution end when it becomes implementable, the metering programme when the regulations come, when approved, the settlement of DisCo debts, MDA debts and solving the liquidity problem,” adding that everything being done in response to the power value chain was a step to the furtherance of the PSRP.

    Commending the NERC management for its efforts in the production of the regulations, the Minister expressed delight at the presentation, promising to familiarise himself with the document and appealed to the Commission to upload the document on its website for the benefit of the public as well as share with the Ministry “so that all the agencies of government can help you to propagate and advertise this”.

    He, however, called on the Commission to speed up work on the regulation on meter, adding: “Much as we welcome this (Eligible Customer Regulation), I think the regulation that everybody is waiting for is the regulation on Meter. It will be a good thing if you can complete that before this month is over and let us see then how quickly that can stimulate licensing of meter suppliers.”

  • Burrows: OML 29 not for sale

    Burrows: OML 29 not for sale

    Aiteo Group has said the appointment of Mr. Bruce Burrows as Global Group Chief Financial Officer (CFO) is not part of any plan to sell the firm’s oil mining lease (OML) 29.

    Burrows was employed to report to the Executive Vice-Chairman, Global Group, Aiteo. The company said it noticed that some hired fraudsters were running a syndicated report, suggesting that a portion of the shareholding of the company, that holds the asset, OML 29, had been put up for sale to repay a loan.

    It said: “For the avoidance of doubt, Aiteo has neither considered, initiated nor announced the commencement of any plan to sell off any of its stakes in OML 29. Since the takeover of the asset, we have successfully quadrupled production that it would be commercially inept to consider a disposal of any sort now.

    “Secondly, there are several legitimate entities that constitute ownership of the oil block, such that it would be practically impossible for us to unilaterally consider disposing of the asset. As such, we urge the public to summarily disregard these unsavoury and fabricated reports in their entirety.

    “The claim that Bruce Burrows’ recent appointment as our Chief Financial Officer is aimed at finding a buyer for part of Aiteo’s assets is spurious and demonstrates that the publishers’ understanding of the commercial realities in the operation of assets such as OML 29 is shallow. All of our stakeholders familiar with our strategic vision can attest that Aiteo continues to invest in the right people to deliver on that vision. Mr. Burrows’ appointment is simply to further strengthen our financial discipline as one of the most innovative, reliable and diverse oil and gas companies operating in Nigeria today. Mr Burrows joins a team of highly trained, experienced and world-class talent that currently guide the day to day activities of Aiteo.

    “For the record, OML 29 was indisputably, legitimately and transparently secured in an internationally conducted divestment by the private entity, Shell. The funding of this acquisition was made possible through a syndicated loan involving several Nigerian banks. Since then, we have continued to meet our financial obligations as and when due, like every other responsible, global conglomerate of our stature.

    “Aiteo is professionally run with strong corporate governance practices very actively in place and within a structure that insulates the company from the vagaries that typify the Nigerian one-man entity. As we have repeatedly asked, we wish to be allowed to continue to prosecute the drive and vision that we have committedly pursued to place ourselves and the country at the cutting edge of the Oil Industry, worldwide.  Those who seek to distract us from this objective will find that we will defend our position and integrity with the same application and commitment as we continue to demonstrate in the success we have achieved.”

    According to the Senior Manager, Corporate Communications,Aiteo Group, Ndiana Matthew, Bruce brings a wealth of experience from different parts of the world in the oil & gas, power, mining, manufacturing, consumer products, finance and public service sectors. Most recently, he held CFO roles at Lekoil and Seven Energy respectively. Both are oil and gas exploration and production companies with a focus on Nigeria and West Africa. Prior to those roles, Bruce was for 14 years the Finance Director of JKX Oil & Gas Plc, a London-listed exploration and production company with interests in Ukraine and Central/Eastern Europe.

  • DisCos not paid N25b, says ANED

    The N25billion which the Federal Goverment said it has paid to the eleven lectricity distribution companies (DisCos), is yet to get to them, it was learnt. The government claimed it has paid N25billion out of the money owed DisCos by the Ministries, Departments and Agencies (MDAs) of government.

    Director of Research and Advocacy, Association of Nigerian Electricity Distributors (ANED), Dr. Sunday Oduntan, said it was untrue that the money had been paid.

    In an interview with The Nation, Oduntan said the firms have not received any money either from the Federal Government or through the MDAs, adding that  the government paid the N25billion to Nigeria Bulk Electricity Trading Plc (NBET), and not the DisCos.

    Oduntan said: “What the Federal Government has done was to net off the MDAs debts. The government has used the debts owed the energy distribution companies to pay NBET, which is the company  buying electricity from the firms. “How can you explain a situation, whereby your debtor paid the debt it owes you to another company, and yet claims it has paid part of the debt that it owes you? This is wrong, hence the decision by the Association to let Nigerians know that the distribution companies have not received anything from the government,”he said.

    According to him, the government and its agencies are yet to fulfill their obligations of paying their debts either in full or in part.

    “The debts owed the power firms by the MDAs are still intact. The government is not precise on when the debts would be paid. The inability of the Federal Government to pay the debts accumulated over the years from unpaid electricity bills, is affecting the operation of the companies. However, we are not complaining. We only want to put the record straight that we have not been paid,” he added.

    The firms, he said, are facing two critical problems in the industry because they are unable to service their debts while at the same time finding it difficult to shop for funds for operation.

    The development, Oduntan said, is making it difficult for the firms to purchase equipment needed for their growth. He observed that many of the DisCos are using obsolete equipment such as transformers, meters, and others, adding that the issue is affecting service delivery in the sector.

    He said the firms’ inability to garner enough funds for operation has resulted in poor skills and job losses, adding that many firms are sacking workers, rationing equipment and recording debts due to the problems in the power sector. He said the country would have improved electricity supply to its citizens if the firms have got enough money for adequate operation.

  • ‘Attaining 2.5mbpd output futile without oil exploration’

    The efforts to attain 2.5 million barrels per day (mbpd) in crude oil production by the Federal Government will be unrealistic if aggressive exploration is not encouraged.

    This was the view of experts during a panel session at the 55th Business Anniversary of the Oil Producers Trade Section (OPTS), an arm of the Lagos Chamber of Commerce and Industry (LCCI), in Lagos.

    Industry operators, including the  Chairman/CEO, Waltersmith Petroman Oil Limited, Abdulrazaq Isa; Managing Director, Financial Derivatives Company Limited, Bismark J. Rewane; Lead Consultant to Senate Committee on Petroleum Industry Bill (PIB) and former Director, Department of Petroleum Resources, Austin Olorunshola; Boston Consulting Group Miguel Pita, and Leader, McKinsey Oil and Gas Practice, Europe, Middle East and Africa, and Chairman, Energy Insights and McKinsey Energy Think-Tank, OccoRoelofsen, among other members of the OPTS, spoke at the  event.

    The panel session entitled: “Competitive fiscals: Challenges, solutions and way forward”, examined how the Nigerian oil and gas space would be able to attract the quantum of investments that will drive government’s aspirations in oil reserves and production growth targets, especially in the face of the growing competition for capital from existing and emerging oil producing African countries.

    They noted that there are very competitive fiscals from other African countries and capital moves to an environment where they are welcome. Therefore, Nigeria should not foot-drag in its determination to maximise value from its hydrocarbon deposits.

    They said if there is no dependable plan to replace used reserves, even with the attainment of 2.5 million barrel daily, the production will drop abysmally with time because it is not sustainable.

    According to them, some new oil firms do not have exploration departments as required, such companies are only interested in production. “The Department of Petroleum Resources (DPR) is giving licences for petroleum refining, this is good but where is the oil? For instance, if Dangote Refinery takes 650,000 what else remains? It is important that government encourages exploration with competitive fiscals to enable oil companies take risk in oil search,”they said.

    “Government should quicken the completion and implementation of its new reforms to bring in fresh investments into the oil and gas sector. The government should also apply simplicity, transparency and enforceability in the new reforms,” they added.

    OPTS Chairman and Shell Petroleum Development Company(SPDC) and Chairman, Shell Companies in Nigeria, Mr. Osagie Okunbor, said:”We are talking about sustainability and that is a key thing to worry about. The Federal Government through its Economic Recovery Growth Plan (ERGP) eyes 2.5 million barrels per day, which is about a billion barrels a year.

    “The nation’s legacy reserve base has not been increased in the last 20 years. With 30 billion barrels reserves base and one billion barrels per year depletion, in 30 years the reserves base will be zero. The broad policy is around a replacement ratio of one to one and I don’t see a billion barrels coming into the reserves every year from the reality on ground.

    “The reality is that OPTS consists a significant proportion of what our economy represents, therefore, anything  that  impacts the oil and gas industry will have tremendous effect on the livelihood and meaningfulness of life of the average Nigerian.”

    According to Rewane, the upstream oil and gas sector should be optimised on one hand and continue to significantly aid the development of the country. “So, how do we incentivise this sector to the level of optimisation? We need to correct some misperceptions. There is this rhetoric about diversification, which is misinterpreted to mean ‘kill oil.’

    “In spite of all that have been said, we have not done so well as a country, but because we are in an era of politics where political expediency overrides economic reality. Over dependence on oil in the last 20 year period, even though activities have been diversified, the dependence has actually become more concentrated. Let’s not deceive ourselves as a country, we need to nurture this particular asset, the investors in these assets.

    “Because of the natural state of attrition, the politicians and policy makers have no control over the market. We cannot control OPEC, the glut in the international market, the thing we can control are the incentives we can offer investors,”Rewane said.

  • Senate to pass PIB this quarter

    Senate to pass PIB this quarter

    The Senate will pass into law the remaining three parts of the Petroleum Industry Bill (PIB) this quarter.

    Chairman, Senate Committee on Petroleum Resources (Upstream), Senator Tayo Alasoadura, said this at an oil and gas industry forum in Lagos.

    Alasoadura said:“We have successfully passed the Petroleum Industry Governance Bill into law. The remaining three – Petroleum Industry Administration Bill, Petroleum Industry Fiscal Bill Petroleum Industry Host Community Bill have gone through the second reading. We expect to get the report back from the committees and will pass them into law within the next quarter.”

    According to him, the conference on research and development (R&D)organised by the Nigerian Content Development and Monitoring Board (NCDMB) is apt, especially when some major oil consuming countries have set deadlines to discontinue the use of petrol and diesel starting from 2030.

    “The last few years have demonstrated to us the importance to us in indigenising our R&D capabilities. The impact of a drastic reduction in oil price and the subsequent recession has taught us painful lessons. It has shown us how and why we need to be more resilient. To be resilient, we need to innovate and to innovate we need to make significant investment in R&D. That also means investing in our educational institutions so that we produce the graduates that will drive the economy.

    “This means investing continuously in the education of oil and gas sector professionals, improving our ability to develop the technology, systems and processes that will improve the deficiency of the sector’s operations. It is for this reasons that capital flight is so huge.

    “However, our major role as the legislative arm of government is to provide clear and sustainable legal frameworks that will provide a stable environment for businesses, allow for investment in infrastructure and manpower and facilitate businesses as well.”

    He noted that the current 8th Assembly came on board when the economy was challenged by low oil price and recession. The situation didn’t discourage us from attending to priority bills that the nation needed to boost the economy and small and medium enterprises (SMEs).

    “It is for this reason that we decided to break the jinx over the PIB after being on the table for over a decade. We needed to break it into four parts for easy passage. We have successfully passed the Petroleum Industry Governance Bill into law and remaining three will be passed soon,”he said.

    He added: “The PIB establishes clear roles, regulations, procedures and institutions for efficient administration of petroleum industry in Nigeria, so it was key for us. It also stipulates guidelines for operations in upstream, midstream and downstream sectors.”

  • Govt eyes 50% tariff cut for IOCs, others

    The federal Government is targeting between 40 per cent and 50 per cent reduction in non-statutory tariffs paid by International Oil Companies (IOCs) and other investors in the oil and gas free trade zones, it was learnt.

    The government plans to achieve this by next month, to mitigate the cost of operation of investors in the zones.

    The zones are Onne Oil and Gas Free Zone, Port Harcourt, Rivers State; Ibaka Oil and Gas Free Zone, Ibaka, Akwa-Ibom State; Warri Oil and Gas Free Zone, Delta State; Lagos Oil and Gas Free Zone and others.

    The Oil and Gas Free Trade Zones Authority (OGFTZA) Head, Legal Department, Mr.Wasiu Sule, in an interview with The Nation, said the non-statutory tariffs are levies and other charges, which operators are paying in the zones.

    He said the government frowned at the charges because they are exorbitant, adding that the development informed its decision to reduce them to 40 per cent and 50 per cent to foster growth.

    Sule said: “OGFTZA, in line with its goal of regulating the zones, has taken some steps to review the tariffs downward. For instance, the tariffs that are currently being implemented by Intels Nigeria Limited are non-statutory and are therefore, illegal. The agency, on behalf of the Federal Government, began the process of reviewing the tariffs around May and June this year. The government is planning to conclude the exercise by December.

    “To achieve results, the government is consulting with relevant stakeholders in the industry, as well as proposing between 40 per cent to 50 per cent reduction in the tariffs for investors operating in the zones.”

    Sule, whose department is charged with the responsibility of handling the exercise, said the consultation is in line with the government’s goal of ensuring transparency and further achieve its goal of developing the oil and gas and allied sectors of the economy.

    According to him, the government is reducing the tariffs in order to make the zones more business friendly to local and foreign investors.

    Also, the OGFTA’s Managing Director, Dr.Umana Okon Umana, said multinational oil companies, the OGFTZA, National Petroleum Investment Management Services (NAPIMS), among others, are going back to the drawing board with a view to provide new tariff structure that would take care of operators.

    Umana, who spoke during an interaction with investors in Onne, Port Harcourt, Rivers State, said the need to cushion the effects of the harsh economy on the investors and further make them improve their productivity, informed the decision to review the tariffs.

    He said the plans followed protests by some licensees on the issue, adding that the licensees have kicked against the implementation of the current tarrifs regime in the industry, known as Industry Wide Standard Tariffs (IWST).

    Federal Government, early this year, expressed its desire to reposition operations of the agency for quality service delivery. It also launched its roadmap, marketing brochure and website at Onne, Rivers State. The roadmap seeks to measure economic and social progress in the oil and gas free trade zones.

    Others are enhancing service delivery, improvement on the ease of doing business and automation of its operation in order to create an enabling environment for operators and further sustain their investments.

  • 100 pupils receive SNEPCo’s scholarships

    More than 100 pupils from the six geo-political zones have been awarded full-board six-year secondary school scholarships by the Shell Nigeria Exploration and Production Company (SNEPCo) in the third edition of the NNPC/SNEPCo National Cradle-to-Career (NC2C) programme, designed to give top quality education to bright, but indigent youths.

    The latest awards bring to 267 the total sponsorship since the  NNPC/SNEPCo NC2C was introduced three years ago. The beneficiaries have joined the other recipients, who are enrolled in six leading private schools – Lead Forte Gate College, Lagos; Premiere Academy, Abuja; Nigerian Tulip International College, Kaduna; St. Francis Catholic Secondary School, Lagos; Top Faith International Secondary School, Akwa Ibom State; and Grundtvig International Secondary School, Anambra State.

    During the award at Lead Fort Gate College, Lekki in Lagos, Lagos State Deputy Governor Dr Idiat Adebule, commended SNEPCo for the success of the NC2C which she said had achieved its purpose by helping to bridge educational inequalities resulting from socio-economic differences.

    Represented by the Permanent Secretary, Ministry of Education, Mr. Adesina Odeyemi, the deputy governor added, “SNEPCo has kept faith with the commitment of supporting indigent Nigerian youths to attend some of the best secondary schools in the country and helping to reduce the number of school dropout before completion of basic education.”

    SNEPCo’s Managing Director, Mr. Bayo Ojulari, who was represented at the award ceremony by the General Manager Exploration, Mr. Dayo Adewuyi, said the educational initiative contributes towards the actualisation of the UNESCO ‘Education for All’ goal.

    He said: “We also do this because, to us in SNEPCo, education is key to national development. In the three years of the programme, we are already seeing signs of success. Last year, for instance, one of the scholars was awarded a scholarship by the implementing school because of her exceptional academic performance. So, I expect that this set will settle for no less.”

    The award recipients emerged through a competitive process starting with an aptitude test which was open to graduating pupils in public primary schools in the 36 states of the federation and the Federal Capital Territory (FCT). They then underwent a two-week orientation programme with introductory courses in academics, character and psychology to prepare them for a seamless integration into their new learning environment.

    The NC2C scholarships are just one of the many programmes in SNEPCo’s social investment portfolio in Nigeria. Other programmes include the equipping and donation of information technology and communication centres in many primary, secondary and tertiary institutions and hosting of health outreaches in different parts of the country. SNEPCo had recently signed a Memorandum of Understanding (MoU) for the construction of a multi-million naira eLibrary for the Niger Delta University, Bayelsa State, and the company signed another MoU last week for the construction of a centre of excellence in Geoscience at the University of Lagos.

  • Over $4.5b investment in Ajaokuta Steel ‘ll be recovered, says DG

    Ajaokuta Steel Company Director-General Sumaila Abdul-Akba has said the over $4.5 billion investment in the company would be recovered as efforts are being made to ensure that the plant becomes  fully operational soon.

    He expressed concern that the steel company had been lying fallow for a very long time, adding that the government is determined to resucitate it.

    Abdul-Akba told The Nation in Abuja that about N10 billion worth of steel and allied products were imported yearly. This development, he said, calls for the revival of the steel plant.

    The United Nations (UN) data estimates that every $1 invested in the Ajaokuta Steel Company will yield about $8. Abdul-Akba corroborated this, saying the plant was viable.

    Minister for Solid Minerals Development Dr. Kayode Fayemi said at a forum that the legal impediments surrounding the steel company had been resolved.

    “I believe the development would speed up the plant’s recovery process,” Abdul-Akba said, adding that the plant will go into the commercial stage, which would involve Public-Private Partnership (PPP).

    He added: “It is going to be a public affair. It is going to be as transparent as possible, and we will be looking for investors both locally and internationally. Those that have the right competence and also the financial strength to get the Ajaokuta steel company to where it is supposed to be.

    “So, the government has good intention, and what I intend to do as the Chief Executive is to first of all stabilise the environment, bring my experience and ensure that the governance system within the company is right and also to ensure that this commercial stage we are going into, all due process would be observed, the best practices would be strictly adhered to.”

    Experts, however, said one major problem confronting the nation’s industrialisation drive, especially in solid minerals and obtaining maximum value from them, was insufficient accreditation laboratories in the country where samples could be analysed. This, they said, had hampered their acceptability  outside the country.

    They noted that there are only three accredited laboratories in the country, adding that there is need for samples to be analysed for them to be more authentic and that information on them will based on the authentic report.

    Abdul-Akba said Ajaokuta’s management will be looking at all the challenges and how to fashion a notable roadmap, which will yield the maximum benefit accruable from the steel company in addition to the benefits derived from mining.