Tuesday, 22 December 2015

Nigerian govt to reactivate Ajaokuta and Aluminium Smelter Company of Nigeria

The Minister of Solid Minerals, Kayode Fayemi, has described the current status of both the Ajaokuta Steel Company and Aluminium Smelter Company of Nigeria as symbols of collective shame and embarrassment for all Nigerians.
With Nigeria currently spending over N3 trillion annually on importation of steel and aluminium products, government established the two complexes to help the country save the huge losses through local production of the commodities.
However, both multi-billion dollar projects have been entangled in dubious and corrupt privatisation arrangements and subsequently abandoned to waste.
But speaking in Abuja at his inaugural media briefing on the state of the country’s solid minerals sector, the Minister said the Federal Government has resolved to turn the companies’ fortunes around and give value to Nigerians.
“Not many things have had a sobering effect on me as what I have seen in the solid mineral sector since I took up this assignment,” the minister said.
“It is a collective shame for all Nigerians for two massive projects as Ajaokuta Steel and ALSCON to be allowed to remain moribund in spite of the resources invested and their immense potentials,” he added.
Although Mr. Fayemi said the cost of reactivating Ajaokuta in particularly was not one for the government alone to bear, he said President Muhammadu Buhari was so disturbed by the matter that he would be willing to approve a joint financing arrangement for the project.
He assured that before the end of the first quarter of 2016, government would have a direction, whether to take over and run Ajaokuta, or look for an alternative arrangement, after the lingering legal issues surrounding the company may have been resolved.
Government, he said, was willing to hold discussions with the relevant interested parties to disentangle the company and its affiliates to agree on the best way forward.
The discussions, the minister explained, would involve the Ministry of Solid Minerals, with its Justice counterpart; Bureau of Public Enterprises, and other interested players, particularly Global Infrastructure Nigeria Limited.

No comments: