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Ajaokuta Steel Turn Around: Matters Arising

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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.

 

Sani Adamu

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NCDMB, Dangote Refinery Unveil JTC On Deepening Local Content

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The Nigerian Content Development and Monitoring Board (NCDMB) and the Dangote Petroleum Refinery and Petrochemical Company have inaugurated a Joint Technical Committee (JrefineryTC) aimed at advancing local content implementation during the operational phase of the 650,000 barrels per day  plant.
A statement from the Directorate of Corporate Communications of the Board noted that the inauguration ceremony took place at the Dangote Free Trade Zone, Ibeju-Lekki, Lagos State.
The statement also said the inauguration marks a pivotal moment in fostering strategic collaboration between the both institutions, and was a significant move to reinforce local content development in the oil and gas sector.
Presided over by the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe, and the Group Vice President, Oil and Gas, Dangote Group, Chief Edwin Devakumar, the event featured the formal sign-off of the Committee’s Terms of Reference (ToR), a guided tour of the refinery, other critical facilities, and the official commencement of the JTC’s responsibilities.
According to the Board, the visit also featured the presentation of the certificate of the Nigerian Content Downstream Operator of the Year Award won by the Dangote Petroleum Refinery and Petrochemical Company at the inaugural ‘Champions of Nigerian Content Awards’ held recently in May.
The NCDMB’s boss made the presentation to the President of the Dangote Group, Alhalji Aliko Dangote, who expressed delight at the recognition, noting that he would display the certificate proudly at his office.
Ogbe congratulated the Dangote Group on the successful development and commissioning of the largest single train refinery in the world, as well as petrochemical and fertiliser plants, describing the projects as a historic milestone not for Nigeria alone, but for the entire continent.
He emphasized that the Dangote Refinery stands as a testament to the success of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010 and the transformative potential of Nigerian-led industrial projects.
“At an optimal daily production capacity of 650,000 barrels, this refinery will significantly enhance Nigeria’s energy security and contribute to the supply of refined petroleum products across West Africa.
“Nigerians, have to own the plant, we have to make sure that the plant works well. We have to secure it, we have to maintain it. The NCDMB would continue to collaborate with Dangote Petroleum Refinery”, Engr  Ogbe said.
Highlighting the need to ensure more value retention in the sector, as mandated by the Nigerian Oil and Gas Industry Content Development Act (NOGICD) 2010, the Board’s helmsman demanded compliance with Sections 32 and 33 of the NOGICD Act, with particular reference to local manpower utilization and requirements for NCDMB’s approval prior to the engagement of expatriates.
“The NOGICD Act stipulates that no expatriate can be employed in any organization in the oil and gas industry without the prior approval of the NCDMB. We will work with you, We’ve to protect jobs for Nigerians. It’s critical to job creation, skills development, and national capacity building in line with the ‘Renewed Hope Agenda’ of President Bola Ahmed Tinubu”, he said.
He commended the firm for training and employing Nigerian engineers, saying the collaboration will ensure that qualified Nigerians were given opportunities across all operational roles, while also urging the Dangote Petroleum Refinery and Petrochemicals to support the Board’s initiative which aims at developing oil and gas industrial parks across the country to foster local content and manufacturing in the sector.
He noted that the Nigerian Oil and Gas Parks Scheme (NOGaPS) seeks to create an enabling environment for Small and Medium Enterprises in the sector.
“NOGaPS was conceived by the Board to develop facilities close to oil fields where manufacturing of oil and gas components, as well as research and development, can be carried out.
“We would like Dangote to support one of our major activities, which is the oil and gas industrial parks scheme. The parks are aimed at creating an enabling environment for SMEs in the industry to do fabrications and create more jobs for Nigerians”, the NCDMB’S boss stated.
In his welcome address, the Dangote Group Vice President, Devakumar, highlighted that the refinery project and NCDMB have been working together, promoting local content development during the construction stages of the project.
“We can’t say we have achieved everything, because there is opportunity to do more. We’re grateful to the NCDMB for all their support and advice.  As entrepreneurs, we’re trying to optimise costs. It’s a Nigerian company, it’s also an entrepreneur-driven company. As a Nigerian company, the focus will be on Nigerian content. As an entrepreneur-driven company, it will be cost-focused”, he noted.
Devakumar underscored the long-standing commitment of the Dangote Group to national development and capacity building, saying that the Group’s vision is to grow Nigeria’s industrial landscape.
High points of the visit, according to the Corporate Communications Directorate of the NCDMB, was the inauguration of the Committee members.
The statement from the NCDMB further added that the committee is to ensure the implementation of local content in the refinery’s operations, while its core objectives include promoting the use of Nigerian skilled manpower, services, and locally sourced materials in compliance with Section 3 of the NOGICD Act.
The Tide learnt that the committee will also support Dangote Refinery in aligning its operational procedures with the Act’s requirements.
In his acceptance remarks, Director of Corporate Services at NCDMB and Chairman of the Committee, Mr. Abdulmalik Halilu, expressed gratitude to the leadership of both organizations, reiterating the Committee’s dedication to upholding the highest standards of local content enforcement and fostering measurable outcomes that will benefit the nation’s economy.
Ariwera Ibibo-Howells, Yenagoa
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Food Security: NDDC Pays Counterpart Fund  For LIFE-ND Project

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The Managing Director of the Niger Delta Development Commission (NDDC), Samuel Ogbuku, says the commission has paid its counterpart fund for the Livelihood Improvement Family Enterprise Project to ensure food security in the region.
The LIFE-ND project is an agriculture intervention project sponsored by the Federal Government, the International Fund for Agricultural Development, and the NDDC to boost food security in the region.
Mr. Ogbuku disclosed this while fielding questions at the commission’s 25th anniversary world press briefing  in Asaba, Delta State.
He stated that the commission has equipped and trained farmers in the region on best practices, adding that it has also established Niger Delta Chambers of Commerce with a commitment of N30 billion, but has released N5 billion to encourage commerce and entrepreneurship in the area.
According to him, agriculture is among the next phase of the commission’s programmes aimed at addressing food security in the region.
“Our target is to use agriculture to fight criminalities in the Niger Delta region”, he said.
The NDDC boss said the commission would hold a retreat to marshal plans to enhance the cultivation of rice, oil palm, cassava, and maize for industrialisation.
He also disclosed that its fund allocation from the Federal Government has improved, adding that funding from International Oil Companies has also increased, with greater compliance.
Ogbuku revealed that although its revenue has improved, the commission had thought it wise not to borrow but to deploy the surplus to execute more projects.
According to him, the commission has gone digital in its documentation and data generation to address its human capital development projects, ensuring the even deployment of resources, which allows people to take turns being trained in their chosen profession.
He stated that the NDDC was committed to addressing environmental challenges in erosion-prone areas in Edo, Delta, and other states, contingent upon the availability of funds.
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Replace Nipa Palms With Mangroove In Ogoni, Group Urges FG, HYPREP

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A concerned group of stakeholders under the auspices of Khana Coastal Communities has made a passionate appeal to the Federal Ministry of Environment and the Hydrocarbon Remediation Restoration Project (HYPREP) to include the removal of Nipa palms which has taken over the positions of mangroves in the area as part of the ongoing Ogoni Clean Up Exercise.
The group, which decried the invasive and destructive effects of Nypa fructicans, commonly known as Nipa palms, on the ecosystem of the affected communities, made their appeal in a Press Statement issued shortly after the  inspection and survey of the creeks and coastlines of  affected communities.
The communities are Kwiri, Kereken, Kaa, Gwara, Sii, Kpean, Tehnnama, Bane, Kalaoku, and Opuoku, all in Khana Local Government Area of Ogoni, Rivers State.
Signed on behalf of the affected communities by comrades Emmanuel Goteh Bie, Raymond Nwibani, and Chief Barineka Tonwe, the statement emphasized the need for urgent intervention to clear the Nypa fructicans and replace them with mangroves which provided sustainable habitat for aquatic species in the affected communities.
The group commended the Federal Ministry of Environment and HYPREP for their commitment to the Ogoni cleanup process and urged all stakeholders involved in the process not to renege on their complementary roles.
The statement read in part: “As you have seen, the Nypa fructicans has taken over our creeks, displacing native mangroves and aquatic life. The impact on our communities has been severe, with many of our people struggling to make a living due to the depletion of fish and other aquatic resources.
“We commend the Hydrocarbon Pollution Remediation Project (HYPREP) for its efforts in restoring native mangroves in Ogoni, particularly in the Bomu Community. However, we are alarmed by the unintended consequences of removing invasive Nypa fructicans, which has led to the disappearance of fish and aquatic life, threatening the livelihoods of our coastal communities.
“We believe that the removal of Nypa fructicans and replanting of native mangroves will help revive our aquatic life and sustain the livelihoods of our people.”
The group passed a vote of confidence on the Minister of Environment, Balarabe Abbas, and HYPREP Coordinator, Prof. Nenibarini Zabbey, for what it described as their unwavering efforts in ensuring the success of the Ogoni cleanup exercise.
They  called on the Federal Government to release their counterpart funding to HYPREP without delay to sustain the pace of progress recorded in the clean up process.
“The cleanup exercise is commendable, and any delay in funding could stall the progress and undermine the efforts of all stakeholders. We urge the government to prioritize the Ogoni cleanup exercise and provide the necessary support to ensure its success”, they stated.
They also used the opportunity to caution against the antics of self-inflicted activists or bodies that might attempt to hijack the cleanup agenda and create unnecessary agitation, and assured the total support of the affected  communities to HYPREP’s activities to enhance the holistic success of the Ogoni clean up exercise.
Bemene Taneh
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