The Ajaokuta Steel Company Limited (ASCL), which went into oblivion for several years, was specifically in early February this year, regained public attention, following a decision by the Speaker of the House of Representatives, Yakubu Dogara, to lead a team of his colleagues on a special visit to the complex. Joshua Egbodo writes
Insightful oversight
Dogara and members of the House Committee on Steel Development, after a harrowing tour of the massive complex were later informed by in-house experts that at take-off if completed, the company had the capacity to instantly engage over 10,000 Nigerian engineers, and several thousands of other workers. It was, therefore, a source of concern to many, that a company with such capacity could be forgotten or better put, abandoned for years.
Straight from the on-the-spot assessment tour, the House held a special sectoral debate with key stakeholders at plenary, where so many speakers objected to the repeated failed concession of the company, as well as the then ongoing call, to yet follow the same path under the current government. The firm; Global Infrastructure Nigeria Limited, to which the ASCL was last concessioned was accused of rather than adding any value to it, attempted to strip the assets.
No to concession
Dogara on the visit and during the special session, lamented that concession of Nigeria’s key enterprises were always done in a manner that favour the supposed investors who he said were rather “assets strippers”, and to the detriment of the country, describing the long-term abandonment of the ASCL as “a national shame”. The House at the end resolved to kick against all processes of any fresh concession attempt.
The Speaker also faulted government’s position that it was unable to fund the completion of the project due to paucity of funds, and blamed the abandonment on lack of political will. True to the Speaker’s pledge to ensure a framework to ensure the completion would be instituted, the House immediately followed with the introduction of a Bill for an Act to authorize the withdrawal from the consolidated revenue fund of the federation, the sum of $1 billion for the completion of the Company, which it passed and transmitted to the Senate for concurrence, though not much was heard on its progress so far.
Special ad hoc committee
Besides the Bill, the House also raised a special Ad hoc committee to look into issues surrounding non-completion of the Company, which experts said was already about 98 percent ready. The committee which went into work later laid its report on November 22, 2018, which the larger House considered and adopted at plenary last Thursday.
The earlier efforts of the House’ championed by the Speaker had received accolades from critical stakeholders in the steel sector, and especially the Kogi State House of Assembly, which passed a resolution commending Speaker Dogara over the interest on the company.
“The Assembly resolved that in recognition and appreciation of your determination and bold initiatives in bringing together the Hon. Members of the House in an effort to revitalizing the Ajaokuta Steel Company, do herewith and accordingly forward to your good office its commendation for your personal and official roles in making Ajaokuta Steel Company work again”, a message to the Dogara from the Kogi legislature after the visit then stated.
The House’s Ad hoc committee in its recommendations unanimously adopted by members last week stated; “That the Federal Government should demonstrate a strong political will, just like the United States President did recently in steel sector, to resuscitate the Ajaokuta Integrated Steel plant by direct sourcing and disbursement of about $2b needed to revamp and complete the 2% external aspects of the Integrated project (to wit, revival of Ajaokuta Steel Company and the National Iron Ore Manufacturing Company, Itakpe, completing the various external rail track system and access roads linkages; the development and optimal functioning of the various mining sites for steady supply of raw materials to guarantee an uninterrupted steel production when the blast furnace would be started.);
“That the Federal Government should, as a matter of national interest and security, annul and terminate the recent reconcession agreement entered into with Global Infrastructure Nigeria Ltd (GINL) of 1st August 2016, as there is still an extant Federal Government indictment against the company (GINL).
“That the Federal Government should cease from any further thought of concessioning and/or reconcessioning of the Nigerian Steel Companies as Nigeria has capable hands under the services of the Federal Republic to manage the integrated plants when properly funded.
Need to rekindle old love
“That the Federal Government should revive relations with the original builders of the Company (TPE of Russia) towards wooing them back to continue and complete the good work they started alongside the current Management Team of indigenous Sole Administrators who have shown expertise and practical knowledge in the integrated steel plants management and production.
“That since it is known that most of the Abacha loot was gotten from the debt by back deal involving Ajaokuta, then the recovered loots which are still flowing into Nigeria should be used to supplement the funding of the completion of the Ajaokuta integrated steel plant;, and the Economic and Financial Crimes Commission (EFCC) should heed the Presidential directive of late President Yaradua in 2008, to prosecute all the collaborators of Global Infrastructures Nigeria Ltd as economic saboteurs;
“That both the Company, Global Infrastructures Nigeria Ltd and all indicted local collaborators should be made to pay damages to the host communities that suffered loss of lives when the Company used brutal force against the workers (most of whom were community youths) who tried to stop the Company from stripping and vandalizing the assets of the concessioned plants;
“That the Company, Global Infrastructures Nigeria Ltd and its associates be banned from further doing any business in Nigeria as its track record has been marred by duplicity and fraud; and that accelerated legislative work must be done by both Chambers of the National Assembly to ensure that both the Ajaokuta Steel Company and the National Iron Ore Manufacturing Company, Itakpe, are removed from the Privatization List”.
Commendation
A commendable move by the House of Representatives, according to followers of all the moves so far made. Concerns were hinged on the repeated attitude of those with the powers to execute such recommendations, of always looking the other way as resolutions of this nature were usually seen as “merely advisory”.
Questions are yet being raised on whether the executive will follow these through; as now that the House has presented its recommendations, what next?
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at owned the vast expanse of land where the Enyimba Economic City is located.
