The Nation Newspaper

Tag: Ajaokuta Steel

  • Chinese firms indicate interest in Ajaokuta steel

    A Chinese group of firms have indicated interest to the Federal Government in acquiring Ajaokuta steel company.

    The group of companies which is into mining, exploration, financing, provision of technologies, commodity exchange and minerals product beneficiation, have indicated their interest to the Minister of State for Solid Minerals, Hon. Abubakar Bwari.

    Bwari who met with the group yesterday in his office stated that the government is ready to woo investors into the solid minerals sector.

    A statement endorsed by Assistant Director (Press) Ministry of Solid Minerals Development, Rhoda  Iliya explained that Bwari restated the Federal Government’s determination to encourage and partner with genuine local and foreign investors to develop the solid minerals sector in the country.

    He said government was ready to assist and cooperate with any investor in the solid minerals sector and necessary enabling environment has been provided for the smooth operations in the sector. He told the group who indicated interest in investing in the sector to submit a detailed presentation on areas of interest for the benefits of the parties involved.

  • Fed Govt takes over Ajaokuta steel

    The Federal Government  has taken over the ownership of the Ajaokuta steel plant.

    Also, the government yesterday took a major step in its plan to revitalise the steel sector as it signed a renegotiated concession agreement with Global Steel Holdings Limited for the Nigerian Iron Ore Mining Company (NIOMCO), Itakpe.

    With the new agreement, Ajaokuta Steel Complex has now reverted to the Federal Government, effectively freeing the entity from all contractual encumbrances that had left it uncompleted and non-functional for decades, while GSHL retains NIOMCO.

    Senior Assistant Media to Minister of Solid Minerals,  Yinka Oyebode, who  made the disclosure in a press statement, said  the new agreement, which came after four years of negotiation, was signed at a short ceremony presided over by the Vice President, Prof YemiOsinbajo, yesterday at the Villa.

    He said, “Minister of Solid Minerals Development, Dr KayodeFayemi, signed on behalf of the government, while Chairman of GSHL, Prammod Mittal signed on behalf of the company.

    “The Minister of State for Solid Minerals Development, Hon AbubakarBwari;  the International Mediator, Mr Phillip Howell-Richardson, and top officials of the Ministries of Justice and Solid Minerals Development  also witnessed the signing ceremony.

    “Speaking at the event, Prof Osinbajo hailed the mediation process that led to the resolution of the problem that have made it impossible for the two national assets to be functional for years.

    “ It is one of the cases of failures. It is a tragedy of immense proportion that we have both Ajaokuta Steel Complex and NIOMCO and couldn’t get anything out of them for years”, said Vice President Osinbajo.

    “The Vice President who said making the entities to work was a top priority of the administration, urged GSHL to keep to the various timelines in the agreement in the spirit of mediation.

    “He added that it was important the concession work “so that Ajaokuta can take off too”.

    “Dr Fayemi, who led the Federal Government side in the mediation process, said with the new agreement on NIOMCO, the next step is to commence the process of taking over Ajaokuta and ensuring that it is given out to a serious operator with proven technical and financial capacity.

    Fayemi said: “It is our expectation that we would accomplish two things- bring NIOMCO to full function and starts the process of retaking Ajaokuta and then give it to a new operator.

    “With this, we will move from being just a mineral nation to a mining nation.

    “Once the first phase of the agreement is accomplished, it is the intention of the FGN to quickly move into accomplishing the objectives of concessioning the Ajaokuta Steel Plant to the most competent operator who meets the requirements of credible track record, technical capacity and financial competence.

    “Overall, we are confident that this landmark settlement is a pointer to what to expect in the Government’s determination to fix the Nigerian mining sector. This is one of the key milestones in the Road Map for the growth and development of the Nigerian mining sector and I want to thank our team from the Federal Ministries of Justice and Solid Minerals for their hard work and also thank GSHL for sticking to the provisions of the laws in seeking resolutions to the problem”

    “Fayemi described the settlement as a landmark development that would help the diversification plans of the President Muhammadu Buhari administration.

    “The GSHL Chairman, Mr Mittal, said the company waited for eight years to achieve this amicable settlement.

    “He said his organisation was committed to the objectives of the agreement and guaranteed supply to Ajaokuta plant and Delta Steel Company, after which it will sell what is left to other interested parties.

    “He assured the government of its readiness to commence operation soon, adding that in the next two years Nigeria would begin to produce steel.

  • Aviation pensioners oppose planned concession of airports 

    Aviation pensioners oppose planned concession of airports 

    • Urges interested players to take up unviable airports

    Nigeria Union of Pensioners (NUP), the Federal Airports Authority of Nigeria (FAAN) branch on Wednesday said that they are opposed to plans by the Federal Government to concede or privatise four viable airport terminals in Lagos, Abuja, Kano and Port Harcourt.

    The pensioners said it is against national interest to concession the four major airports as the persons or company to be contracted to handle these international airports could be hired or compromise to allow weapons into the country.

    Speaking at a briefing in Lagos, National Chairman of NUP, FAAN, branch Comrade Rasak Ope and the Administrative Secretary, Comrade Emeka Njoku said previous attempts by government to achieve any form of concession in the aviation sector has been fraught with controversies.
    They said rather than concession the airports, FAAN, should be allowed to run existing airports without interference.

    They said the last administration excluded FAAN from privatisation or concession based on security implications.

    They urged the Federal Government to give more priority to unviable airport rather than its planned privatalisation or concession of the viable airport terminals.

    They said since the minister of aviation, Capt Hadi Sirika  is determined to make the airports profitable, he should concentrate on unviable airports and make them viable.

    They explained that airports across the world represent a cardinal posture of any country’s sovereignty, hence handling them to individual or group of people pretended danger to the country.

    They said previous attempts to privatise some government entities, including PHCN, Ajaokuta Steel, NITEL and the Nigeria Airways did not yield the desired results.

    “How can we give out our national heritage to individuals to operate, thereby undermining Nigeria sovereignty, losing sight of security implications, which is supposed to be paramount in every sphere of any nation.

    “Therefore, airports should not be seen as buying and selling ventures, where profit should be the yardstick.

    “Airports represent public interest such as economic, social activities and international connections, from country to country and state to state,” they said.

    They further said: “Contracting airports to a person or company to handle the four major international airports could be dangerous as they interested parties could be  hired or compromise to  allow weapons into the country including people of in question unable characters in the world.

    “They can use this laxity to flock into the country and former trouble which can lead to barrage deaths of citizens or unrest.

    “Not at the time when Nigeria is still battling with Book Haram, agitation of state Biafra and militancy. Therefore, we should not open more ways for trouble in the name of ‘we want our airports to be more viable and put Nigerians into danger,” it said.

    “Who will be responsible for the assets and liabilities of FAAN?, Has the Act establishing FAAN been abrogated or amended by the National Assembly before such transformation take place?” It said.

    The union noted that FAAN had tried such concession in the past with Maevis on revenue collection and its experience was unpalatable.

    “We are strongly convinced that the same ventures are back with the same convincing proposals to the Ministers and at the end of the day, the concessionaires will disappoint and legal battle will commence.

    “The staff and pensioners will suffer while infrastructure will continue to dilapidate the more, passenger will groan,” they said.

    Meanwhile, the Federal Airports Authority of Nigeria, (FAAN) has taken over Hometel Car Park close to the international wing of the Lagos Airport following what would seem like an unwillingness of the current concessionaires to remit funds collected on the authority’s behalf.

    This development came to light when the unions, last Thursday  took over the management of the car park from its concessionaire over allegations of non-remittance to FAAN for over two years.

    The unions also accused the management of the car park of lack of proper concessioning agreement with FAAN, saying that it signed and violated part of the Memorandum of Understanding, MoU, with the FAAN management, by unilaterally raising the car park fee from N200 to N500 per car without informing FAAN.

    It was learnt that Managing Director of FAAN, Engr. Saleh Dunoma on Monday backed the industry unions in its takeover of the Hometel Car Park due to the level of indebtedness and has ordered authority’s Legal Department to take a look at the Memorandum of Understanding, MoU, it signed with the owners of the company.

    The meeting to discuss the takeover of the car park held at the headquarters of FAAN in Lagos.

    On the side of the management were the Ag. Director of Commercial, Mr. Toyin Okpaise, General Manager, Rentals, FAAN, Deputy General Manager, Corporate Communications, FAAN, Mr. Onyekpere Nnaekpe and other directors in the agency.

    The unions were led by the President of Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), Comrade Benjamin Okewu, Secretary-General of National Union of Air Transport Employees (NUATE) Comrade Olayinka Abioye, Chairman and Vice-Chairman of NUATE, FAAN Branch among many others.

    At the meeting, which ran till evening on Monday, the unions specifically said that it would not allow the concessionaire to continue to render the service on behalf of the agency, describing it as a “chronic debtor.”

    Acting General Secretary of NUATE, Comrade Olayinka Abioye confirmed the development.

    Abioye revealed that the agency had ordered its legal department to look at the naughty areas in the MoU between the two parties, stressing that since its takeover, the staff had been generating enough revenues that would make the payment of salaries easier at the end of the month.

    He said, “We have resolved the matter and FAAN staff have taken over the control of the car park from Hometel. At the meeting, the Managing Director of FAAN, ordered the legal department to critically look at the MoU with the owners of the company.

    “The management supported the takeover of the car park. If you have a concessionaire that is not generating revenue as supposed to you, what will you do with such a company? It was a very reassuring meeting. We will generate enough revenues that will be enough for us to pay salaries at the end of the month.

  • Audu: I’ll partner Buhari on Ajaokuta Steel

    Audu: I’ll partner Buhari on Ajaokuta Steel

    Former Kogi State Governor and All Progressives Congress (APC) governorship aspirant, Prince Abubakar Audu, has promised to partner President Muhammadu Buhari to complete the Ajaokuta Steel Company.

    Audu, who spoke in Abuja, said President Buhari was determined to resuscitate the company.

    The former governor said the President made the pledge during his campaign in the state.

    He noted that only the Buhari administration could make Kogi State realise its dream of completing the steel company because of the President’s honesty and dedication to the nation’s development.

    Audu added that when completed, the steel company would generate jobs for the nation’s teeming youths and create wealth for Kogi State and other parts of the country.

    He said: “We thank God for giving us President Buhari at this challenging time in our history. He will govern the nation with humility, probity and transparency.”

    Audu urged Nigerians to be patient with the President, adding that he remains focus to deliver dividends of democracy.

    On why he is running again, the former governor said the people urged him to rescue the state from the visionless Peoples Democratic Party (PDP), which he said had governed the state for 12 years.

  • Ajaokuta Steel for fresh privatisation

    Plans are underway to commence a new process to priva-tise the Ajaokuta Steel Company Limited (ASCL) in Kogi State, Head, Public Communications, Bureau of Public Enterprises (BPE), Mr. Chigbo Anichebe, has said.

    In a statement, Anichebe quoted the Director-General of the bureau, Mr. Benjamin Dikki, as saying that the Federal Government is exploring amicable resolution of encumbrances with the former investor in the company.

    He said when all ties between Ajaokuta Steel and Global Infrastructure Nigeria Limited (GINL), the former core investor, had been severed, the privatisation would begin. He added that the Federal Ministry of Justice was driving the process and was making steady progress on behalf of the Federal Government in resolving the agreement with GINL.

    The multi-billion naira integrated steel plant was handed over to GINL by the Federal Government through the Ministry of Mines and Steel under a concession agreement. The deal was, however, revoked following allegations of non-performance and asset stripping by the Indian firm.

    But GINL waged a prolonged legal battle with the Federal Government challenging the revocation.

    Dikki said allegations that the initial privatisation of the steel plant failed because of interference by influential persons in the country was untrue.

    According to him, all transaction processes followed laid down procedures and was in tune with world best practices.

    He said the bureau had proposed the setting up of a Privatisation Tribunal to handle cases of privatised enterprises and that the matter was receiving the attention of the Attorney General of the Federation (AGF).

    “When approved, it would quicken the dispensation of justice in the over 200 cases the bureau had in regular courts,” he said.

  • ‘Ajaokuta Steel key to industrialisation’

    The Minister of Trade and Investment, Dr Olusegun Aganga has said the Ajaokuta Steel Company is key to the current administration’s industrial revolution.

    The minister who along with his counterpart in the Mines and Power Ministry, Mohammed Sada, was yesterday conducted round the facility, located in Kogi State, dismissed insinuations in some quarters that the steel company had become obsolete.

    He said the facilities in Ajaokuta are no different from those obtainable in other steel developed nations.

    Said Aganga: “Those who are saying that the facilities in this steel company are obsolete are not saying the truth. In fact, with what I saw today, it is a great asset for the country.”

    Sada on his part said the administration of President Goodluck Jonathan is determined to revitalise the steel industry in Nigeria, stressing that the drive toward industrialisationcan could only be achieved with steel development.

    He maintained that the company will begin operation soon.

    He further said there will be change of strategy, through active involvement of private sector players, to speed up completion of the steel industry.

    Earlier in his welcome address, the Sole Administrator of Ajaokuta Steel Company, Mr. Isah Onobere said between $5 million and $13 million will be required to complete the steel project, the government having spent N4.66 billion on its construction.