Tuesday 26th September, 2017
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Russia, others show interest in Ajaokuta Steel Plant

Russia, others show interest in Ajaokuta Steel Plant

Federal Government has confirmed receipt of over 10 unsolicited expression of interest from Russia and other international and local investors for the concession of Ajaokuta Steel Complex, Kogi state.

Official of Federal Ministry of Mines and Steel Development who disclosed this at the House of Representatives during a public hearing held at the instance of the House Committee on Steel, also confirmed plans for the selection of Transaction Adviser for the Ajaokuta Steel complex in collaboration with Infrastructure Concession Regulatory Commission (ICRC).

Some of the stakeholders who converged at the hearing expressed displeasure over whooping sum of $4.5 billion spent yearly on importation of basic metals and aluminium products and 25 million tonnes of steel imported into the country annually.

While applauding ongoing efforts by the Muhammadu Buhari’s administration to revive the company, the ministry noted that the concession agreement between Federal Government and NIOMCO was terminated due to several breaches of the agreement, unfulfilled promises and unethical engineering practices by GINL.

“Following the passage and assent of the 2017 budget appropriation, the Ministry in collaboration with ICRC is preparing for the selection of a transaction adviser for the concession of Ajaokuta Steel complex.

“The work of the transaction adviser will include but not limited to ensuring that nothing short of international acceptable best practices are allowed from call for expression of interest to the final handover of the complex to a proven competent investor.

“Experience of the past failed transactions on Ajaokuta Steel plant (ASP) clearly showed that it was the failure if Federal Government of Nigeria to follow the international best practices that held the country bound since 2003”.