Business
‘Operate Ajaokuta Steel On PPP Arrangement’
Stakeholders in the steel industries have urged the Federal Government to operate Ajaokuta Steel Company on Public Private Partnership model.
Some of the stakeholders that spoke with newsmen in Abuja, yesterday, said that government should not attempt to commercialise or privatise the steel company.
They described the Ajaokuta steel company as the major key asset that Nigerians could boast of.
However, some of the stakeholders said that government should complete the remaining two per cent of the plant and renovate the asset to have more value.
They said that it would make the PPP arrangement, commercialisation or privatisation an easier task.
The Federal Government is considering running Ajaokuta company on PPP model, private entity or outright sales.
Former National President, Iron and Steel Senior Staff Association of Nigeria, Mr Otori Saliu advised the Federal Government to erase privatisation option from its plans.
Saliu said that no privatisation had favoured or worked in Nigeria, adding that power sector that was privatised was a total failure.
He said that the steel plant was 98 per cent completed, urging the Federal Government to complete the remaining two per cent and test run the plant for few years before involving the private companies as PPP arrangement.
He said that government should invite the private company, the TP Russian, that built the plant for the completion of the remaining two per cent.
According to him, the steel company is made up of 43 different units; 40 have been completed and the three that are yet to be completed should be given to TP Russian Company to complete them.
He also suggested that government could un-bundle the units to different companies to run them while it manages the water and power units to generate funds for the company.
“Concessioning some of the units to private companies does not mean that government is not in charge; of course, government cannot operate Ajaokuta alone, but it must involve private companies.
“What government wants to do now is to commercialise uncompleted plant that will reduce the value of the plant.
“Government should, therefore, complete and operate the steel company for years before involving private companies,” he said.
National President, Nigeria Metallurgical Society, Prof. Benjamin Adewuyi said that the voice of the society was that the Federal Government should not sell the steel company in its current uncompleted position.
Adewuyi said that an uncompleted asset like Ajaokuta should not be sold because it would go as peanuts.
“Ajaokuta is remaining two per cent to be completed; governments need to complete the infrastructure and test run the company before involving private partnership as PPP arrangement.”
He alleged an India Company that the steel plant was concessioned to, cannibalised and destroyed some of the equipment in the company.
Secretary-General of the African Iron and Steel Association, Dr. Sanusi Mohammed also called on government to complete the plant to operate it for two years before involving private companies.
“The government should complete the steel plant and operate it for two years; during this period, there will be lots of interest from private companies.
“The best option is that government should run the steel plant on PPP arrangement.
Mohammed said that government should complete the external infrastructure such as road, rail and dredge the River Niger, as they were the only means the company would transport materials needed for making steel and export the finished products.
Also, Mr Isah Onobere, sole administrator of the steel company, said that the Federal Government had consulted a firm to look into best option that should be adopted on the steel company to become viable again.
Onobere said government had set up a committee to look into the option as soon as the consultant finished and submitted it suggestions.
He said that the ministries of mines and steel development; finance; Bureau of Public Enterprises (BPE), ICRC and others were in the group set up to look into the consultant’s recommendations.
The Tide source reports that the foundation laying of Ajaokuta was made in 1980 by the former President, Alhaji Shehu Shagari.
The company is located on 24,000 hectares of sprawling green-field landmass built on 800-hectares of land over three decades ago.
In 2004 and 2005, former President Olusegun Obasanjo’s administration concessioned it to Global Holding Infrastructure Limited (GHIL) an india company.
However, the Indian firm did not live up to expectations in managing the company and the government, under the late Umaru Musa Yar’Adua’s administration, revoked the contract in April, 2008.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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