Business

‘Operate Ajaokuta Steel On PPP Arrangement’

Published

9 years ago

May 10, 2017

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.

Business

Customs Seek Support To Curb Smuggling In Ogun

Published

3 days ago

February 13, 2026

The Tide

The Nigeria Customs Service(NCS), Ogun 1 Area Command, has solicited support in fighting smuggling and other economic crimes at the Nations border.

The Area Comptroller, Olukayode Afeni made the appeal in an interview with Newsmen in Idiroko, Ogun.

The comptroller stressed the need for the public to provide timely and reliable information to the Service, saying noting that fighting smuggling is a collective effort

“I urge the general public to join hands with NCS by providing timely and credible information that would help toward suppressing smuggling and other economic crimes.”

“Together, we can build a prosperous nation where compliance is the norm, and criminality has no place,” he said.

Afeni reiterated the command’s commitment to combat smuggling, and facilitating legitimate trade, as well as generate revenue for national development.

Chinedu Wosu

Business

IFAD: Nigeria Leads Global Push For Youth, Women Investment In Agriculture

Published

3 days ago

February 13, 2026

The Tide

The 49th Session of the International Fund for Agricultural Development (IFAD) Governing Council has concluded in Rome, with Nigeria taking a prominent leadership role in advancing global agricultural development priorities, particularly strategic investment in youth and women.

The biennial meeting, themed “From Farm to Market: Investing in Young Entrepreneurs,” underscored the growing recognition of young people as critical drivers of job creation, innovation, and inclusive economic growth across global food systems.

The session opened with the election of Nigeria’s Minister of Agriculture and Food Security, Senator Abubakar Kyari, as Chairperson of the IFAD Governing Council.

Having previously served as Vice Chair, his emergence as Chairperson reflects the strong confidence reposed in Nigeria by Member States, recognising the country’s constructive engagement and leadership in promoting global food security.

In his acceptance remarks, Senator Kyari expressed deep appreciation to Member States for the trust placed in him, pledging to serve with humility, diligence, and a strong commitment to improving the livelihoods of rural women and men across the world.

Addressing delegates during the session, the Chairperson emphasised that prioritising youth and women in agriculture is key to unlocking economic opportunities, accelerating innovation, and driving inclusive growth.

He noted that such investments would ultimately strengthen global food systems while helping to reduce hunger and poverty.

Senator Kyari also commended President Bola Ahmed Tinubu for placing food security at the centre of Nigeria’s national priorities.

He noted that Nigeria’s leadership role at IFAD aligns with the President’s directive to boost agricultural productivity, expand economic opportunities for youth and women, and build resilient food systems capable of withstanding climate and market shocks.

The Minister further praised the IFAD Nigeria Country Office, led by Country Director Ms Dede Ekoue, for translating global development commitments into measurable outcomes for rural communities.

He highlighted the office’s role in strengthening agricultural value chains, empowering youth and women, and improving resilience among smallholder farmers nationwide.

Business

Expert Tasks FG On Food Imports To Protect Farmers

Published

3 days ago

February 13, 2026

The Tide

The Federal Government has been urged to balance consumer protection with farmers’ sustainability by ensuring timely food imports, input subsidies expansion and price stabilisation mechanisms to secure investments across the agricultural value chain.

An agriculture expert, Dr Fatai Afolabi, gave the advice at a forum organised by the Plantation Owners’ Forum of Nigeria (POFON), in collaboration with the Oil Palm and Other Oil Seeds Value Chain, themed ‘Current Government Food Strategy, the Concomitant Effects and Implications for Food Security in Nigeria’, and held in Lagos, Wednesday.

Afolabi cautioned that the recent food import policies, while easing consumer prices, could undermine local farmers and long-term food security if not carefully managed.

He noted that Nigeria’s food system was navigating an exceptionally difficult period, marked by inflationary pressures, climate variability, insecurity in major food-producing regions, and rising energy and logistics costs.

He said the Federal Government’s decision to temporarily relax restrictions on selected food imports was understandable, noting that the market had responded swiftly with a reduction in prices of major staples.

However, the convener observed that while the policy had brought much-needed relief to consumers, it posed significant challenges for local farmers and agriculture value chain investors.

“While output prices have fallen, the cost of producing food in Nigeria remains stubbornly high.

“Farmers continue to contend with expensive fertilisers, rising transport costs, costly improved seeds and agrochemicals, limited access to affordable credit, poor electricity supply, weak road infrastructure, and inadequate storage and processing facilities, which result in significant post-harvest losses.

“This situation, where farmers sell produce at declining prices while production costs remain elevated, has created widespread distress across agricultural ecosystems,” he said.

Afolabi said the effects were being felt across all segments of agriculture, with rice farmers among the hardest hit.

He said reports from producing states indicated that about 3,500 rice farmers were considering exiting rice cultivation after incurring estimated losses of over N93 billion.

He added that cassava farmers were selling produce at prices that barely covered harvesting costs, leaving them unable to recover their investments.

According to him, vegetable and edible oil producers are also under pressure as imported vegetable oil brands reduce demand for locally processed alternatives.

He added that cocoa farmers continue to battle price volatility in international markets amid rising domestic labour and maintenance costs.

Afolabi noted that tree crops such as oil palm and cocoa, which require long gestation periods, were particularly vulnerable to sudden market disruptions that undermine investor confidence and discourage new investment.

He said the effects extended downstream to agro-processing and value addition, with soybean farmers supplying vegetable oil processors experiencing reduced demand and lower prices.

He said the development threatened not only farm incomes but also rural employment and agro-industrial growth, raising concerns about national food security.

According to him, sustained losses could force farmers out of production, increasing Nigeria’s dependence on food imports and exposing the country to global supply shocks, foreign exchange pressures and long-term vulnerabilities.

Afolabi cited India and the Netherlands as countries offering useful lessons in balancing consumer protection with farmer sustainability.

He said India deploys food imports strategically during shortages, while complementing them with strong domestic support systems.

He added that the Netherlands, despite being one of the world’s leading agricultural exporters, supports farmers through input subsidies, tax incentives, affordable energy, strong cooperatives, and close integration with research and extension services.

He said agricultural students in both countries also benefit from subsidised tuition, transportation and meals, as well as grants and start-up support for farm enterprises.

“This approach ensures generational continuity and innovation in the agricultural sector,” he said.

Afolabi said Nigeria’s current food import policy could play a stabilising role if complemented by deliberate measures to protect local producers.

He recommended carefully timed imports to avoid peak harvest periods, strengthened price stabilisation mechanisms, aggressive subsidies for critical farm inputs, and support for agro-processors to remain competitive.

He also called for clear communication of policy intentions to reassure farmers that import measures were strategic and temporary.

“Food imports should function as a strategic shock absorber rather than a permanent market feature.

“Government should develop and publish a national crop production and harvest calendar for major staples and align import decisions with documented supply gaps.

“Affordable food and profitable farming are not mutually exclusive goals. With thoughtful coordination and sustained support for farmers, Nigeria can achieve both,” he said.