Business

Sole Administrator Tasks FG On Ajaokuta Steel

Published

6 years ago

June 6, 2018

The Sole Administrator of Ajaokuta Steel Company Ltd., Mr Sumaila Abdul-Akaba, has urged the Federal Government to complete the construction and equipping of the company before putting it up for re-concession.
Abdul-Akaba told newsmen in Ajaokuta that completion of the plant would raise its value at concession.
He said that a Technical Audit Committee had already been constituted by the Federal Government to ascertain the real cost of completing the plant.
According to him, we are not against the concession of the company but there is the need to complete the plant as this will place high value on it.
On the state of infrastructure and equipment at the plant, Abdul-Akaba said that another committee would be set up to determine their conditions, and explained that the equipment were not obsolete, “but still very intact’’.
Similarly, some stakeholders said that any attempt by the government to re-concession the steel plant would lead to corruption and mortgaging security of the country.
The Tide source recalls that former Minister of Mines and Steel Development, Dr Kayode Fayemi, had in March said that Federal Government would no longer “spend a penny to revive the plant’’.
Fayemi said this while reacting to a ‘Vote of No Confidence’ passed on him by the House of Representatives.
He said that government would not incur further expenses to put the plant to use, but would rather concession it to a capable company with good history of competence and financial buoyancy.
Fayemi had said that a Technical Audit of the Plant, which had gulped about 80 billion dollars since its inception, was ongoing and would soon submit its report.
According to him, after completion of the audit, the ministry will declare it open for concession and only a competent bidder will be allowed to operate the company.
“The position of the government is clear on Ajaokuta; only a company that is verifiable, competent and financially buoyant will get the concession on Ajaokuta after the Technical Audit is completed.
“The rumour going on that Ajaokuta is at 90 or 98 per cent completed is not true; that is why the Technical Audit is going on to ascertain its level of completion and other information needed,’’ he had said.
However, following the former minister’s declaration, the House of Representatives came up with a Bill to stop him from initiating or concluding any concession plan on the steel plant.
The Bill and another, to establish a fund to complete the Plant, have passed second reading at the lower chamber, with 301 members out of the 360 members, supporting both.
It would be recalled that Speaker of the House of Representatives, Mr Yakubu Dogara, said recently that the National Assembly would resist any move to concession the plant.
The speaker spoke after he led members of the House’s Committee on Steel on a visit to the steel complex and said that concession of the company would amount to mortgaging Nigeria’s future.
“You cannot concede your future; it is never done. I am yet to see a nation that even conceded its bedrock and still succeeded. If you see one, just tell me. And, that’s why previous attempts to concede it were not possible.’’
He said it was a collective shame to all leaders that the project was yet to be completed after several decades.
“Our determination to ensure that the Steel Plant is revived is born out of the promises that the company holds for Nigeria’s population in terms of job creation, gas development and economic boost.’’
Dogara assured that raising funds to complete the project would not be a problem.
The Ajaokuta Steel Plant was first given on concession to Global Infrastructure Holding Ltd., which later metamorphosed to Global Infrastructure Nigeria Ltd. (GINL).
But, GINL was said to have compounded issues at the company and lowered its furtunes.
Following the development, late President Umaru Yar’Adua in 2008, terminated the concession of Ajaokuta and Itakpe Iron Ore Mining Company to GINL.
This was sequel to a report of the committee set up by the late president to check the concession process and the state of the steel complex, which indicted GINL of “asset stripping’’.
Ajaokuta Steel Plant is sited on 24,000 hectares of land in Ajaokuta, Kogi, about 38 kilometres from Lokoja, the state capital.
The Plant was conceived and steadily developed with the vision of erecting a Metallurgical Process Plant/Engineering Complex with other auxiliaries and facilities.
The company is meant to generate important upstream and downstream industrial and economic activities that are critical to the diversification of Nigeria’s economy to an industrial one.
The Plant dubbed “Bedrock of Nigeria’s Industrialisation’’ is also designed to produce iron and liquid steel from Iron Ore Mines at Itakpe, also in Kogi, about 52 kilometres from Ajaokuta.

Business

Fuel Scarcity: IPMAN threatens shutdown over bridging claims

Published

2 days ago

May 3, 2024

The Tide

The Independent Petroleum Marketers Association of Nigeria (IPMAN) Depot Chairmen Forum, has exonerated its members from the current fuel scarcity in the country.

According to IPMAN, this is caused by its inability to source petroleum products.

The IPMAN Depot Chairmen Forum also threatened to withdraw its services over non-payment of N200 billion bridging claims by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to its members, since 2022.

Alhaji Yahaya Alhassan, the Chairman, of the Forum said this while briefing newsmen in Abuja, yesterday.

Alhassan said the Nigerian National Petroleum Company Limited (NNPC Ltd.) was the sole importer of the product, but the marketers could not source products from NNPC Ltd. deport, rather from the private depots at high rate.

“We cannot buy fuel from the private depots at N950 and transport the product from Lagos to the North and other parts of the country with N2 million and still sell it at N900 or N1, 000.

“It is expedient for us to state that we are more pained by the non-availability of petroleum products in the country, which has given rise to another round of untold hardship for Nigerians.

“Contrary to claims that IPMAN members are hoarding Premium Motor Spirit (PMS) known as fuel, we would like to categorically state that PMS scarcity is wholly triggered by inability to get fuel from NNPC and not IPMAN,’’ he said.

Meanwhile, the NNPC Ltd. Chief Corporate Communications Officer, Olufemi Soneye said the disruption was due to logistical issues which had since been resolved.

“We currently have an availability of products exceeding 1.5 billion litres, which can last for at least 30 days. Unfortunately, we experienced a three-day disruption in distribution due to logistical issues, which has since been resolved.

“However, as you know, overcoming such disruptions typically requires double the amount of time to return to normal operations.

“Some folks are taking advantage of this situation to maximise profits. Thankfully, product scarcity has been minimal lately, but these folks might be exploiting the situation for unwarranted gain,’’ Soneye said.

He however, said the lines would clear out soon.

On the non-payment of bridging claims, the IPMAN forum said it was distressed and depressed by the laidback attitude of the NMDPRA towards the survival its member’s businesses, arising from its refusal in paying the claims.

“It is with deep frustration that we have assembled here today as the IPMAN Depot Chairmen Forum. It is also disheartening to note that some of our members have completely shut down businesses and retrenched employees.

“As businessmen and women, our members acquired bank loans to keep their fuel retail outlets running on a daily basis across the nooks and crannies of Nigeria in order to serve the teeming population of Nigerians,’’ Alhassan said.

He recalled that Sen. Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), at a stakeholders meeting in February mandated the NMDPRA management to clear the entire debt in 40 days.

“However, today, we have crossed the 40 days’ time lapse given to the NMDPRA to clear the debt, and it is shameful to state that only the paltry sum of N13 billion has been paid, ignoring minister’s directive.

“We are not happy with the indiscriminate increment in the issuance and renewal of Sales and Storage Licence, by the NMDPRA, and the subsequent delays in acquiring the licence, which our members are recently subjected to.

“We are also calling on President Bola Tinubu to look into this unwholesome figure which is highly detrimental to our business and reverse it forthwith, as it is bound to impact negatively on the masses.

“We are poised to take far reaching decisions that may cripple the supply and sales of petroleum products across Nigeria if our demands are not met within the shortest period of time.

“We are collectively prepared to withdraw our services, shut down every single outlet, and suspend lifting of products forthwith till our demands are fully met, and the consequences will be terrible.

“We call on our members to however remain resolute and law abiding, even as we draw close to the immediate ultimatum for our demands to be met by the NMDPRA,’’ the chairman said.

Reacting to the IPMAN’s claims, the Acting Head, Corporate Communications, NMDPRA, Seiyefa Osanebi said the bridging claims payment was ongoing.

“The bridging claims payment is always an ongoing process,” she said.

Maritime

Shippers’ Council Registers 160 Port Operators

Published

6 days ago

April 29, 2024

The Tide

The Nigerian Shippers Council (NSC) says it has registered 160 Port stakeholders into its Regulated Port Service Provider and Users platform since the initiative began in 2023.
Executive Secretary, NSC, Mr Pius Akutah, made the disclosure on the sideline of a sensitisation programme by the commission for port operators in Lagos, with the theme, “Regulated Port Service Provider and Users”.
Represented by the Director, Consumer Affairs, Chief Cajetan Agu, Akutah emphasised the significance of the programme for stakeholders.
He said the sensitisation programme was the second edition after its commencement during the last quarter of 2023.
The Secretary said the 160 registered port operators consist of agencies, terminal operators, shipping companies, individual port users as well as service providers.
“We invited the ports stakeholders for enlightening them on the processes for online registration of Regulated Port Service Provider and Users.
“We have demonstrated to them how to register and how to make payment and we were able to present before them the various categories of the registration.
“The rate of payment is also in the registration. The payment of each group depends on the operation. A shipper pays N30,000, terminal operators and shipping companies pay N300,000, truckers also pay N30,000, while some pay N50,000 and N100,000.
“The Council was able to intimate them on the benefits, because port users benefit more as we help to interface on reducing port charges from time to time”, Akutah said.
He said that there was a need to continue to work with port operators to stop delays and eliminate high costs to make the port efficient.
Also speaking, the Deputy Director, Stakeholders, Service, NSC, Mr Celestine Akujobi, said “the sensitisation exercise was important for the council to enable us bring all the port stakeholders together”.
According to him, this is to avoid challenges during the implementation of the council’s responsibilities.
“By the time we introduce sanctions on defaulters, no operators will complain that he or she is not aware of the registration.
“I’m happy with the turnout of this sensitisation. This shows that the operators are well informed of the statutory friction of the council as the port regulator.
“The final implementation will commence as soon as we discover that all the operators have keyed into the portal.
“We are engaging other ports across the country and we’re hopeful that before the last quater of 2024, the council will implement sanctions on defaulting operators”, Akujobi said.
Earlier, Vice Chairman, National Association of Government Approved Freight Forwards (NAGAFF), Dr Ifeanyi Emoh, said port challenges were enormous, adding that they originated from some of the government agencies.

Emoh urged the council to look into regulating other government agencies, so that there could be a window through which they can collect port charges collectively instead of indiscriminately.

By: Chinedu Wosu