The Coalition for Revival of Ajaokuta Steel Company has appealed to President Bola Tinubu to bring in key stakeholders to fast-track the review of the existing policy on the revival of the Steel Plant.
This was contained in a statement jointly signed by the National Coordinator, Procurement Observation and Advocacy Initiative, Abuja, Mohammed Bougei Attah, the President, African Citizens Development Foundation, Lagos, Otunba Dele Ajayi-Smith and the Executive Director, Foundation for Civic Education, Human Rights and Development, Uyo, Barr. Clifford Thomas during the week.
The stakeholders from over 50 Civil Society Organisations (CSOs) across Nigeria and beyond, decried public information as regards current affairs of the Ajaokuta Steel Company Limited (ASCL) and the present circumstances under President Ahmed Bola Tinubu-led administration.
They expressed concern over recent disclosure by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, at the State House Abuja, that President Tinubu has approved the setting up of an Inter-Ministerial Committee on the execution of three Steel development projects, among others.
They therefore urged President Tinubu to immediately take a review of the ongoing process and invite key stakeholders that will review existing policy and make recommendations on the way forward.
The CSOs stated, ”The recent disclosure by the Minister of Steel Development, Prince Shuaibu Abubakar Audu at the State House Abuja, that President Tinubu has approved the setting up of an Inter-Ministerial Committee on the execution of three Steel development projects, including the revival of Ajaokuta Steel Company leave much to be desired and has taken the public by surprise.
“We are concerned that an Inter-Ministerial Committee on steel development or Ajaokuta revival comprising of Federal Ministries of Finance, Industry, Trade and Investment as well as Solid Minerals without the inclusion of Federal Ministry of Science, Technology and Innovation, where raw materials, research and development are major component, does not imply the government understands the policy issue on Ajaokuta.
“We believe that the mandate of the yet-to-be inaugurated inter-ministerial committee is unclear and lack adequate capacity without the inclusion of the private sector, professionals and monitors, especially non-state actors, for effective policy drive.
“In a similar outing, the Minister, Prince Shuaibu Abubakar Audu said on a live television program monitored through Channels Television interview of Monday January 15, 2024 that the Ministry is considering a Public-Private-Partnership (PPP) to invite foreign firms for the revitalization of some units at the Plant in addition for production of military hardware for the country.
“Further, he said the Ministry is considering an investment in building new Steel Plants by Jindal Steel Company from India and Luan Steel Company from China. About $1.6m will be required for this engagement and the Steel plants to be situated in Calabar or some other states in the southern part of the country.
“He also said that about ten (10) financiers have contacted the Ministry with interest. It is on record from recent audit that to revive several units of the ASCL today, including the power plant, gas plant, light steel plant and others will not require up to $1.6 US Dollars as proposed.
“So many questions are being asked about these developments. First, is the Ministry aware of the history of the steel plants in Nigeria with India and Chinese firms? When did Ajaokuta Steel Company moved from negotiation with government to government to government and firms negotiations? We are aware that Ajaokuta is a national strategic project, and declared as emergency under previous administration where the Federal Government of Nigeria is a principal stakeholder.
“Indeed, Ajaokuta Iron and Steel is a national design and planned as a national security project which should be under the direct supervision of the Presidency. The talk of regional factors that we all know it’s negative effect on our developmental struggles should be kept under the table if the country is to have any meaningful result with the plant.”
The CSOs recalled that that at the inception of the present administration, the Vice President, Senator Kashim Shettima, the team from the federal Ministry of Mines and Steel Development (before the separation) visited Russia on the directive of President Bola Ahmed Tinubu with hopes, and aspiration that the foundation and policy direction on Ajaokuta laid by the previous administration will be sustained.
“Till date, we have not heard any further information or report of that engagement and trip to Russia.
“The recent appearance of the Ministry and her agencies at the Budget Defense at the National Assembly Joint Committee of the Senate and House of Representatives is another area that Nigerians are worried about.
“Apart from the claim by the Ministry that Ajaokuta will need about 2-5bn US Dollars to be functional, the failure of the Legislators to approve the request for sum of N401bn in the 2024 budget is a big setback for the plant, An approval of that request by the Legislators would no doubt have created opportunities to raise funds internally rather than shopping for foreign loans to revive some units at the Plant,” they stated.
On the way forward, the Coalition said, ”We are worried about recent media articles that dominated the social space titled “The Intrigues of the US and IMF and their Western Collaborators in Orchestrating the Non-Completion of Ajaokuta Steel Company, the Punch Newspaper editorial of Tuesday January 16 titled ‘Ajaokuta Fundraising Plan Misses the plan” as well as the Daily Trust editorial of Sunday January 21 titled “The Boring Songs of Ajaokuta” are all in our views the results of inadequate flow of information on the Ajaokuta revival plan.
“It is evident that the conspiracies against Ajaokuta are no doubt a default value. Clearly, the system seems to lack those with the requisite will and understanding to appreciate the value, essence and role of the Ajaokuta project, not only in development of the plant, but in nation building even after 40 years of wandering in the desert of indecisions and windfall act of self-destruct.
“President Tinubu should as part of his New Hope Agenda, immediately take a review of the ongoing process and invite key stakeholders that will review existing policy and make recommendations on the way forward.”
They noted that technology cannot be transferred by mere importation of substandard steel products from Asian countries.
“China and India for examples; rather, it is done by building and running ones industries. We are of the opinion that due consultations with subject matter experts (SME) or another tour of the steel plant by the legislators, as proposed during the December 2023 Budget Defence, will give a better assessment of the plant’s true state of affairs.
“The result of these consultations and visit will give the opportunity for verifiable audit reports, and this would be a direct assignment for the Minister and his team, the Inter-Ministerial Committee and other major stakeholders, instead of shopping around for China, India and among other unknown investors to produce iron rods which again may lead to cannibalization of some parts of the steel plant,” the CSOs stated.
