The recent statement
from the Minister of Solid Minerals, Dr Kayode Fayemi, about the decision of the present administration to revamp the Ajaokuta Steel Company Ltd., is inspiring and promising.
Industrialists opine that the completion of the moribund plant will accelerate the desire of Nigeria to become one of the 20th economies of the world by 2020.
They recall that the idea behind a steel project in Nigeria started in 1958 when the colonial administration inaugurated a feasibility study on iron ore deposits in the country.
In 1967, a United Nations Industrial Development Organisation survey identified Nigeria as a potential steel market which led to the signing of a bilateral agreement between the defunct Soviet Union and Nigeria.
Further to this, in1971, an extra-ministerial agency — the Nigerian Steel Development Authority —was established by Decree No.9 to actualise the establishment of a steel plant in the country.
The actual work on the Ajaokuta Steel Company began in 1979 during the administration of Alhaji Shehu Shagari and as at 1983 the work on the plant had reached 95 per cent completion.
In spite of this level of completion, the plant had suffered years of neglect under successive administrations.
Although former President Olusegun Obasanjo’s conceded the plant to Global System Steel Holdings Ltd., an Indian firm, the concession failed to revive the company.
The present status of the plant notwithstanding, Fayemi said that the Buhari’s administration was passionate about the completion of the steel project.
He spoke after a fact finding tour of facilities at the company and the National Iron Ore Mining Company (NIOMCO), Itakpe, Kogi State, assuring the public that the Federal Government would soon unveil a comprehensive blueprint for the completion and rehabilitation of the two companies.
He said that the administration was taking a holistic look at the steel plant project to ensure its completion for the benefit of Nigerians.
“I want to let you know that the president is very passionate about the Ajaokuta Steel Company; we will take a look at the company holistically to make it work for the benefits of Nigerians.
“We are looking at the entire steel complex. We are not going to segment the plant. We are told that the captive power plant has been reactivated,’’ Fayemi said.
He said that government’s decision had become imperative due to dwindling fortunes of the oil sector.
According to him, the government will come up with realistic decision that will enable it to turn around as a foundation for future industrialisation of the country.
Fayemi said that government had obtained necessary information about the two companies from relevant stakeholders, noting that the facility tour was to authenticate the information.
The minister said that government was studying the experiences of steel producing countries to chart a way forward on Ajaokuta Steel Company.
“We are studying how these countries succeeded in building several plants many years after we have started our own.
“What did they do right and what we did wrong to find ourselves at the present situation; the plant will work, President Buhati is very passionate about it,’’ he said.
Irrespective of the minister’s speech, Mr Joseph Ononere, the Sole Administrator of Ajaokuta Steel Company Ltd., urged the government to call for expression of interest from experts for the rehabilitation, completion and inauguration of the steel plant.
He observed that no significant progress was made to turn around the fortunes of the company since 1994 when the Russians, being the original designers of the plant, pulled out of the project.
He pleaded with the Federal Government to ensure timely completion of the plant, saying that the minister’s visit after few months in office was a clear demonstration of government’s good intention to complete the project.
At Itakpe, NIOMCO Sole Administrator Yau Ibrahim solicited the support of the minister in the completion of some ongoing projects in the complex which he said were critical to the survival of the plant.
He stressed the need for the Federal Government to bring the case involving Ajaokuta Steel Company and NIOMCO at the Industrial Court of Arbitration in London to early conclusion.
He said that iron ore deposit at Itakpe was about 197 million tonnes which he observed would be sufficient to support production of steel at Ajaokuta Steel Company for 35 years.
“Beside the iron ore deposits at Itakpe, there is also iron ore reserve of about 60 million tonnes at Ajabanoko which is only six kilometres away from Itakpe,’’ he said.
Mr Bello Itopa, a representative of the Iron and Steel Senior Staff Association of Nigeria and Steel and Engineering Workers Union of Nigeria, pleaded with the Federal Government to act fast in revamping the company.
He said that no nation could attain economic stability and real industrial and technological advancement without massive investment in the steel sector.
To revamp the company, Mr Sanusi Mohammed, Secretary-General, African Iron and Steel Association, observed that about 1.1 billion dollars would be required.
“If the fund is released, Ajaokuta rehabilitation can be completed within three years including the external infrastructure.
“If 300 million dollars could be released from the amount required, it could be used to rehabilitate part of the company for mini production to begin,’’ he said.
He noted that 43 smaller companies with different areas of specialisation were located in Ajaokuta complex.
“If government can invest 300 million dollars for a start on Ajaokuta Steel Company, at least 25 out the 43 companies will begin operations on materials for producing cars.
“Some will produce railway steel, flat sheet and bitumen, among others. The fund generated by these 25 companies could be used to complete Ajaokuta Steel Company,’’ he said.
He recalled that the challenges facing Nigerian steel companies could be traced to lack of political will and mismanagement by the past administrations.
But Fayemi insisted that the Federal Government would not allow “international conspiracies to hinder the revamping of Ajaokuta and other steel industries in Nigeria.
“I do not want to believe that Ajaokuta cannot be viable if money is spent on it.
“International conspiracy did not stop China from becoming steel giant and India from advancing its steel industry; nothing can stop the revamping of Nigeria steel industries.
“We are the architect of our own misfortune; no international conspiracy can stop a determined nation from realising its visions and objectives’’.
He said the amount quoted to revive Ajaokuta Steel Company was exorbitant that Nigeria would need financial support to be able to produce liquid steel and other steel products.
He also said that if Nigeria began the production of steel, it would reduce foreign exchange being spent on steel importation and also create jobs locally.
He insisted that the president had saddled his ministry with the responsibility of reviving the steel industries in the country.
All in all, industrialists plead with the current administration to incorporate the original designers of the plant in its renewed efforts to revamp the company.
According to them, if the present administration revamps the steel plant, it will boost the country’s revenue.
Adamu writes for News Agency of Nigeria.
Crude Hits Seven-Year High On Recovery Hope … Equity Rally Runs Out
Crude oil hit a more than seven-year high yesterday on optimism that the global recovery will ramp up demand.
However, concerns about the end of long-running central bank support and rising Treasury yields saw most equity markets reverse early gains.
After an almost uninterrupted rally from the early days of the COVID-19 pandemic, world markets are showing signs of levelling out as global finance chiefs shift from economy-boosting largesse to measures aimed at reining in inflation.
Still, there is an expectation that equities will enjoy further gains this year as countries reopen and people grow more confident about travel, especially as studies suggest the more prevalent Omicron coronavirus variant appears to be milder and as vaccines are rolled out.
Analysts are also watching the corporate earnings season that is underway, with hopes that firms can match their stellar performances last year.
But while Asian markets started the day brightly after Monday’s travails, traders returned to selling, with US Treasury yields surging on expectations the Federal Reserve will have to unveil several interest rate hikes to tackle a worrying spike in inflation. Wall Street was closed Monday.
Tokyo, Hong Kong, Sydney, Seoul, Singapore, Taipei, Mumbai, Bangkok and Jakarta all fell.
There were gains in Shanghai in hopes of fresh economy-boosting measures, while Wellington and Manila also edged up.
London, Paris and Frankfurt all fell at the open.
But oil built on its early promise, with Brent climbing to $88.13 a barrel and WTI hitting $85.74, both levels not seen since October 2014.
The gains came thanks to demand optimism as the world reopens and concerns about Omicron ease. The loosening of travel restrictions in several countries has seen jet fuel costs soar.
Hopes for more monetary easing by major consumer, China, to reinforce its stuttering economy were also seen as key support for the oil market.
NPA, MWUN, Others Synergise On Labour
President General of Maritime Workers Union of Nigeria (MWUN), Comrade Adewale Adeyanju, has reaffirmed commitment to ensuring smooth working relationship with management, Tin Can Island Port Complex (TCIPC) of the Nigerian Ports Authority (NPA) on labour related issues.
Adeyanju, who made the commitment during a working visit to the Port Manager, TCIPC, Mr. Buba Jubril, in Lagos, noted that the union will continue to promote industrial peace and harmony in the operational activities at seaports.
Noting that synergy among all the maritime stakeholders was key for port efficiency, he hinted that the union has changed the narrative from being tagged as hooligans to a more responsible and civil Institution in the maritime industry.
Earlier, the Port Manager, TCIPC, Buba Jubril, thanked the PG of MWUN for the systematic approach on labour related issues at the port level
Disclosing that the PG has been instrumental to the existing peace in port operations, Jubril assured on the existing synergy the port authority and all the unions.
Jubril further said that “ Myself and the President General MWUN has come a long in the industry.
“I have known him (PG) for over 33years and that will tell you that he is my friend and friend to management of the Nigeria port authority”, he said.
Osinbajo Wants More Stakeholders’ Involvement In Blue Economy … Inaugurates Committee
Vice President Yemi Osinbajo has sought for wider participation of relevant stakeholders in the blue economy project to deepen participation and benefits of Nigerians from the country’s marine resources.
Making the call at the inaugural meeting of an Expanded Committee on Sustainable Blue Economy in Nigeria at the Presidential Villa yesterday, the Vice President said “a viable blue economy project will offer vista of opportunities not only for littoral states where there are bodies of waters, but for the entire country”.
He identified areas to be exploited to include ports, terminals, fishing, training, environment, tourism, power,oil and gas.
While identifying possible challenges of sustainability, the VP urged all the ministries, departments and agencies to strengthen their collaborations in an atmosphere of inter ministerial working groups and advised all members to attend the meetings faithfully for maximum results.
Osinbajo , who formally inaugurated the expanded committee, identified the need for a legal framework that will be more robust than other international maritime conventions on blue economy, which Nigeria has been signatory to.
He said the scope and participation of the committee will be further improved upon to accommodate more members from government agencies and relevant private sector stakeholders
“There is no doubt that the blue economy is a new frontier for economic development and a means of diversifying the economy through the use of resources from oceans, seas, rivers and lakes for the well being of the people.
“It also provides positive contribution to the achievement of the Sustainable Development Goals(SDGs) 2052 Africa Integrated Maritime Strategy (2052AIM) and the UN 2030 agenda
“This concept for economic diversification is promoted by the international community and provides friendly means of livelihood in line with this administration’s agenda on job creation’, he said.
He continued that “the ocean economy as an emerging economic frontier applies to ocean-based industry activities and the assets, goods and services of marine ecosystems.
“Countries have to define the scope of their blue economy based on their priorities. For example, in Bangladesh, the ocean economy consists of the following broad and growing economic sectors; living resources, minerals, energy, transport, trade, tourism and recreation, carbon sequestration and coastal protection.
“These industries and ecosystem services do not develop in isolation, but rather interact as an economic ecosystem”, the VP said.
Earlier in his remark,Transportation Minister, Rotimi Amaechi said the blue economy is capable of improving government revenue, create employments and grow the gross domestic product of Nigeria.
Amaechi, who was represented by the Permanent Secretary of the ministry, Dr Magdalene Ajani, also expressed optimism in the benefits derivable from a well exploited marine environment
Speaking at the event, Dr. Paul Adalikwu, Secretary General of Maritime Organisation of West and Central Africa (MOWCA) lauded the initiative of the expansion while recommending inclusion of financial institutions such as the Central Bank of Nigeria (CBN) and African Development Bank (AfDB), as well as key financial institutions that will contribute meaningfully to realizing Nigeria’s Blue Economy objective.
In addition to maritime agencies such as the Nigeria Ports Authority, Nigerian Maritime Administration and Safety Agency, and Maritime Academy of Nigeria, the expanded committee also include ten state governors.
They the Governors of Rivers, Lagos, Delta, Akwa Ibom, Borno, Ogun, Ondo, Cross River, Bayelsa and Edo States.
Other members are Ministers of Foreign Affairs, Power, Finance, Environment, Trade and Investment, Agriculture and Water Resources , Chief of Naval Staff, Comptroller General of Customs, Lake Chad Basin Commission, Nigeria Economic Summit Group, etc.
By: Nkpemenyie Mcdominic, Lagos
Oil & Energy4 days ago
NLNG Approves Supply Of LPG To Nigerian Market
Oil & Energy4 days ago
Lawmaker Applauds Wike On Curbing Oil Theft, Illegal Refineries
Business4 days ago
Customs Intercepts N6, 974m Worth PMS
Business4 days ago
SON Set To Check Hackers, Cyber Crimes In Nigeria
Oil & Energy4 days ago
Can OPEC+ Meet Production Quotas In 2022?
Oil & Energy4 days ago
FCMB Boosts Modular Refinery
Business4 days ago
NCS, Apapa Records N870,39bn Revenue Boost
Focus4 days ago
Wike’s Pragmatic Offensive Against Illegal Bunkering