AFTER 40 YEARS, PRESIDENT BUHARI TAKE GIANTY MOVE TO BRING BACK AJAOKUTA

President Muhammadu Buhari has taken a bold step towards reviving the Ajaokuta Steel plant which had been abandoned for over 40 years by previous administration.

The Federal Government has inaugurated the Ajaokuta Presidential Project Implementation Team (APPIT) led by the Secretary to the Government of the Federation Boss Mustapha.

PRESIDENT MUHAMMADU BUHARI

Since assuming office in 2015 President Muhammadu Buhari has been making frantic effort toward diversifying the Nigeria economy from been crude oil dependent and one of his administration focus was the Ajaokuta Steel plant which was constructed during the General Yakubu Gowon military administration but was left abandoned due to several legal tussles with the Russian companies that handled the project, it too several effort by President Muhammadu Buhari to overcome the legal battle in 2018, not also stopping there the President also signed an agreement with the Russian government in reviving the Ajaokuta Steel plant and also during the Russian/Africa summit in Sochi, top of President Muhammadu Buhari agenda with the Russian President Vladimir Putin was the resuscitation of Ajaokuta Steel plant.

AJAOKUTA STEEL 

The Nigeria government took back control of the Ajaokuta Steel plant in 2016 after several failed attempts by the previous administration to privatise the steel plant, the Itakpe-Warri railway line that was constructed along with the Ajaokuta Steel plant has also fall into disrepair until 2018 when the federal government awarded contracts to the China Civil Engineering Construction Corporation and Julius Berger to repair and complete the railway, the railway line was supervised by Minister of transportation Rotimi Amaechi and the project is near completion.

The revival of Ajaokuta steel plant will be funded by the Afrexim bank and the Russian Export Center, the Ajaokuta Presidential Project Implementation Team (APPIT) will ensure timely completion of the project, sourcing of material locally and implement a Build-Operate-Transfer concession transfer of the plant.

NATASHA HADIZA AKPOTI AT THE NATIONAL ASSEMBLY DEFENDING AJAOKUTA STELL COMPANY

FG Committee on Ajaokuta

The Chairman stressed the importance of the Ajaokuta steel plant to the country and explained that it presents a unique opportunity to make it to become West Africa’s largest fully integrated producer and most importantly, to accelerate industrialisation in steel related industries.

He noted that the government places a lot of value on the diversification of the economy, hence, President Buhari’s participation at the Russia/Africa summit in Sochi, Russia, wherefore, the resuscitation of the Ajaokuta steel plant with its Russian counterpart, President Vladimir Putin.

According to the Chairman, the Terms of Reference (TOR) include the following;

i. Engage in all bilateral negotiations as shall be necessary on behalf of the Federal Government of Nigeria leading to the execution of the Government-to-Government Agreement with the Russian Federation and the Afreximbank;

ii. Provide all relevant technical and other inputs necessary to close the Government-to-Government negotiations;

iii. Ensure that the best extreme possible, all relevant raw materials are sourced locally, bearing in mind the local content provisions and the Presidential Executive Order 005;

iv. Scrutinize and assemble Nigerian Content Engineering, Procurement and Construction (EPC), Special Purpose Vehicle Contractors which will embody the Co-Concessionaire representing Nigeria’s interest in the Build-Operate-Transfer (BOT) Concession;

v. Ensure the resuscitation of Ajaokuta Steel Plant (ASP) based on the original design; and

vi. Ensure timely commissioning of the Ajaokuta Steel Plant (ASP) within a reasonable period to be agreed upon by the parties to the agreement and recommend primary tenure of a Build-Operate-Transfer (BOT) Concession.

The membership of the Ajaokuta Presidential Project Implementation Team (APPIT) include:

i. Secretary to the Government of the Federation: Chairman

ii. Hon. Minister of Mines and Steel Development: Alt Chairman

iii. Permanent Secretary, Mines and Steel Development Member

iv. Permanent Secretary, Ministry of Finance Member

v. Solicitor-General of the Federation/

Permanent Secretary Ministry of Justice Member

vi. Mr. Gabriel Aduda Member

vii. Sole Administrator, Ajaokuta Steel Company Ltd Member

viii. Sole Administrator, National Iron Ore Mining Co. Member

ix. Engr. Vincent Dogo (Industry Expert) Member

x. Prof. Elegba S.B. (Industry Expert) Member

xi. Dr. Godwin Adeogba (Industry Expert) Member

xii. Director-General, ICRC Member

xiii. Director, Steel; MMSD Member

THE IRON WOMAN ON FIGHT FOR REVIVAL OF AJAOKUTA STEEL

Earlier, the Minister for Mines and Steel Development, Olamilekan Adegbite, gave the background to the resuscitation of the Ajaokuta steel project and noted that the series of event has been long in coming but emphasised that “it is better later than never.”

Adegbite who is also the Alternate Chairman of the Team, praised the SGF for his hard work in ensuring that the Ajaokuta project sees the light of day.

In a vote of thanks, the Permanent Secretary, Ministry of Mines and Steel Development, Mr. Edet Akpan, expressed appreciation to the President for his interest and support in the resuscitation of the Ajaokuta Steel Project and pledged the readiness of the members of the team to live up to expectation of government in delivering on the project.

He noted that when completed, the project will lead to the production of tons of millions of liquid steel would be produced to enhance the nation’s economy.

MEMBERS OF THE COMMITTEE 

Diversifying of the Nigeria economy can not come at a better time than now when the price of crude oil which is Nigeria's highest source of revenue generation has been on an all time low, diversifying into other source of revenue generation is the best move any reasonable government will delve into at this critical period.

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Captain Akaaba 

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