Ajaokuta steel company and necessity of completion

Again, the need for the completion of the abandoned Ajaokuta Steel Company has continued to attract attention. OYIBO SALIHU in this report examines some of the calls for the resuscitation of the project.

Ajaokuta Steel Complex is the largest steel industry in West Africa when completed and put to use by the federal government. The complex was established over 30 years ago with plans by its founding fathers to industrialise the nation.

However, the complex sitting on 800 hectares of land in the Central Senatorial District of Kogi state is capable of producing 1.3 million tonnes of steel per annum, being an integrated and well-planned steel industry.
Surprisingly, between 1979 and 1983, former President Shehu Aliyu Shagari, of blessed memory, started and took the complex to 86 per cent completion. Regrettably, eight successive administrations abandoned the project due to lack of political will and over- dependence on crude oil.
Already, the federal government, sole owner of the complex, according to available records, had committed over 5.2 billion dollars on the project which, according to analysts, invariably necessitates completion instead of abandonment or concession as erroneously suggested by some Nigerians who have never took their time to visit the project.
Sadly, despite several appeals in the media and from traditional rulers as well as groups and associations both in the state and outside to convince the federal government on the need for its revitalisation, still suffer total neglect as a result of poor funding and lack of political will on the side of successive administrations since 1983 and especially now.
According to available records, the project, if completed and operational, is capable of employing over 10,000 staff at the first phase of its commissioning. Besides, the upstream and downstream industries that would evolve can engage more than 500,000 skilled and unskilled workers aside the huge revenue it will generate for the nation.
However, despite these potential, successive administrations after former President Shagari only paid lips service to the completion of the complex.
In spite of the hues and cries by Nigerians who have the opportunity to visit the steel complex in recent times, the federal government is no longer interested in the project. This was proved recently by President Muhammadu Buhari’s outright rejection of the national assembly bill that seeks to commence the completion of the steel complex.


President Buhari needs to show commitment to project – Public affairs analyst
Commenting on the refusal of the president to assent to the bill, a public affairs analyst, Mr Mohammed Andah Usman, lamented that the rejection of the bill for the release of one billion dollars for the completion of the project had clearly shown that the federal government is not in any way sensitive to the plight of Nigerians.
“President Buhari-led administration keeps telling Nigerians that he will create one million jobs annually for the teeming unemployed youths but refused to prioritise the project where enormous jobs can be created.
“Whatever is the president’s reason against the bill, we are appealing to him to consider another option for its completion in the interest of Nigerians who are living in penury while a giant steel industry capable of changing their lives remained in comatose,” he said.

Bad leadership bane of the project – Osike
Also speaking, the national liaising officer, Licence Electrical Contractors Association of Nigeria (LECAN), Chief Ahmed Haruna Osike, said lack of good leadership and political will on the part of leaders is the major problem that had hindered steel development in Nigeria. 
“It is unfortunate that our leaders after the exist of President Shehu Shagari heeded international politics and conspiracy against Ajaokuta steel company otherwise Nigeria and Korea kick-started steel development the same year, but today Korea is producing cars and various steel products while ours remained uncompleted and un-operational because our leaders bought the international community’s idea that the complex should be killed, concession or used as a research institute.
“It is piteous and unheard of that Nigerian leaders have concluded that the country should be a consumer of steel from other countries while we have the same project lying fallow in the country.
“If Ajaokuta Steel Complex is operating today, other steel rolling mills in the country would commence production and this would add value to our economy and as well generate lots of jobs for Nigerians.
“The oil boom is gone and by now Nigeria as a country is supposed to be enjoying iron boom but the lack of willingness on the side of our leaders pushed us to the level we are today for no reason.
“For now and in the future, the steel complex is the hope and survival strength of Nigerian youths and it is time for the federal government do the needful in the interest of the country.”
Osike, who suggested that government can even inject money and complete a section of the plant and make it operational, noted that the funds generated from it can be used to complete other sectors such that the issue about lack of fund would be tackled.
“The federal government should support the new sole administrator of the steel complex, Engr Abdul-Akaba Sumaila. He is a competent engineer who has worked and gathered experiences from different multi-national companies. Also the sole administrator is an indigene of Ajaokuta local government and the zeal and interest for the actualizsation of the steel development is in him. I am optimistic that he will perform wonders, if given the required support by the government and other relevant stakeholders.”
He urged Nigerians to continue appealing to the federal government for the release of funds for the completion of  the steel complex because the industry holds a lot of potential for the youths.
“It is unfortunate that the  people of Kogi state don’t know what God has given to them. If they do, they would be protesting to the presidency on a daily basis for the reactivation of Ajaokuta steel complex.

“This is the time we should cry out to the federal government to see the reason for the completion of the complex. It is only this government that seems to have interest in bringing the steel company back to life.”

Also, sources in the company told Blueprint that the outcome of an audit conducted by Nigerian and Ukrainian experts in April 2018 indicated that the plant is 95.7 per cent completed while a total of $652m is required to make it operational.
ASCL is bedrock of Nigeria’s industialisation – Sole administrator
Commenting on the technical audit, the sole administrator, Engr Abdul-Akaba Sumaila, said by virtue of the audit, the company still remains the bedrock of Nigeria’s industrialisation. 
“Without fear of contradiction, Ajaokuta Steel Company is the hope of Nigeria’s industrialisation and from what I have seen, I can confidently tell Nigerians that the Buhari administration will resuscitate Ajaokuta Steel Company. 
“Apart from the fact that President Muhammadu Buhari is a very honest man, the effort on ground further convinces me that the company will begin operations very soon.
Also commenting,  a human rights activist and the executive director, Conscience  for Human Rights and Conflict Resolution based in Lokoja, Mr Idris Miliki Abdul, appealed to President Buhari to develop the political will for the completion of the project, saying the steel complex has suffered enough neglect.
Abdul said, “If former President Shehu Shagari funded the project to 98 percent completion as it is being stated and after 30 years no administration can summon courage to complete it, then we have to ask ourselves some questions.
“Especially now that what is needed to complete Ajaokuta steel is known to be 652 million dollars as revealed by the last year technical audit, the federal government should source for the funds and come out with a serious policy and plan to make Ajaokuta steel project operational in the interest of Nigerians,” he said.

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