The Ajaokuta Steel Project was conceived to be bedrock of Nigeria’s industrialisation. As an integrated steel plant, it was expected to lay the foundation for Nigeria’s industrial drive. Since 1979 to date, however, the project has not distilled anticipated liquid steel.
Despite gulping billions of dollars, the prodigal venture has been mired in high stake politics, monumental corruption and stuck in the mud. For past administrations and those to come, the Ajaokuta sob story will be retold with new promises of how to awaken a giant that never was. FEMI ADEKOYA writes.
Russia’s Tyazhpromexport built the plant, which was incorporated in 1979. The steel mill reached 98 per cent completion in 1994, with 40 of its 43 plants having been built before it got stuck, with the remaining two per cent for external infrastructure like waterways and viable ports. In July 2021, however, the minister of mines and steel development, Olamilekan Adegbite, said that the steel complex would function to capacity before 2023, when Buhari’s term ends.
“We are in talks with a reputable company in the United States and by God’s grace Ajaokuta will very soon come back to serve the people of Nigeria. The total value of basic metal products imported between July and December 2021 was N748.529 billion, while that of iron and steel was N88.232 billion. Insiders familiar with the state of the Steel Complex told The Guardian that the primary units comprising of the Raw Material Handling Plant, Sinter Plant, Coke Oven and By-products Plant, Iron Making Plant and the Steel making Plant, require a technical auditing to determine the state and quality of asset being concessioned considering the years of neglect of the assets.
He explained that the way forward is to completely decouple the steel company and its sister iron ore company from the politicians and the bureaucrats. Whereas 150Kg is the global average of steel consumption per capita, in Nigeria, steel consumption per capita is at 10kg lower than the African average consumption per capita of 35kg. This is one of the indications of the level of industrialisation in Nigeria.
Despite the obvious failure of leadership, policy and actions, the Ajaokuta Steel Project continues to gulp the nation’s funds. Data collated from the appropriation bills available on the website of the Budget Office of the Federation showed that N295.1m was allocated to Ajaokuta in 2016, with N135.2m released by October of that year. In 2017, the total allocation was N4.3bn, with recurrent expenditures at N3.9bn and capital expenditures at N354.1m.
President Muhammadu Buhari and his Russian counterpart, Vladimir Putin.PHOTO: Mikhail METZEL / SPUTNIK / AFP Jamiu Danga, in a research on ‘Leadership and crises of steel development in Nigeria: Wither Ajaokuta Steel Project?’ stated that worse still, GIHL did not inject the needed fund that the project needed but rather allegedly embarked on the cannibalization of the company by moving critical spare parts to their private holdings. The workers of Ajaokuta Steel Project had to constitute themselves into vigilantes to prevent further removal of critical spare parts from the company.
This development confirms what was already viewed as a shady deal with GIHL which some have speculated were brought to rip the country through their connections in high places. The objective was to direct the iron ore in Itakpe to DSC, which is owned by GIHL from the concession processes. They eventually succeeded in obtaining NIOMCO till the initial agreements wound down.
“When a problem crystallises, the government must come together to resolve it. The matter itself also is subjudice, at least, when you are talking about the ownership, all the settlement arrangements around Ajaokuta, Delta Steel, and of course the Itakpe and they are all connected. All of those infrastructure and facilities are connected.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Remembering Nigeria’s controversial legend Emmanuel Ifeajuna | The Guardian Nigeria News - Nigeria and World NewsEmmanuel Ifeajuna is without question one of the most controversial names in Nigerian history. His achievement in sports won him the adulation of Nigerians. His later activities in the military, however, enraged some Nigerians so much that they no longer want to hear ...
Read more »
Old story | The Guardian Nigeria News - Nigeria and World NewsThe Latest news in Nigeria and world news. The Guardian Nigeria Newspaper brings you the latest headlines, opinions, political news, business reports and international news.
Read more »
My administration will move Osun forward, says Adeleke | The Guardian Nigeria News - Nigeria and World News• Inaugurates committee to review Ilesa varsity • Says previous govt politicised project • Group urges Oyetola, APC to accept loss, try in 2026 Osun State Governor, Ademola Adeleke, has affirmed his administration’s commitment to move the state forward in spite of the challenges inherited. He said that he would put in place necessary policies […]
Read more »
Immigration sacks 4, sanctions 36 others | The Guardian Nigeria News - Nigeria and World NewsThe Nigeria Immigration Service, (NIS), dismissed four of its personnel while sanctioning thirty-six others for various corruption-related offences as it intensifies efforts to rid the service of corrupt elements in furtherance of the federal government’s anti-corruption drive. Comptroller General of the Service, Isah Jere, in a communique yesterday in Abuja, said the agency has dismissed […]
Read more »
List of Key Golden Globe Winners | The Guardian Nigeria News - Nigeria and World NewsHere are the winners in key categories for the 80th Golden Globe Awards, which were handed out on Tuesday.
Read more »
NATO, EU look to protect critical infrastructure | The Guardian Nigeria News - Nigeria and World NewsNATO and the EU on Wednesday announced a 'joint task force' aimed at bolstering the protection of critical infrastructure in the face of threats from Russia.
Read more »