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Obaka Abel Inabo
The latest news as regards Ajaokuta Steel Complex (ASCL) is that Nigeria has struck a major deal with Russia on the completion of the gigantic steel plant, unarguably the largest in Sub-Saharan Africa. It is part of the agreements reached during a meeting between President Muhammadu Buhari and his Russian counterpart, Vladimir Putin in Sochi, Russia, last month. The agreement was brokered during a bilateral meeting held on the sidelines of the recently concluded Russia-Africa Summit. This is cheering news, considering the unpalatable history of the steel plant, almost neglected and abandoned by previous governments. Mr. President, Sir, thank you for this great initiative. History recalls that Shehu Shagari and Leonid Brezhnev led Nigeria and Russia when the two countries first started to build the Ajaokuta steel rolling mill in 1979. The zeal and tempo Shagari put into ASCL would have seen its completion on schedule if his government was not interrupted by the military. It is on record that some completed sections of the steel plants were put into commercial operations as early as 1983, with hot iron rods rolled out of the plant then!
Indeed, Ajaokuta steel plant is a great opportunity for the Nigerian nation to get quickly industrialized as rightly stated by former military President, Rtd. Gen. Ibrahim Babangida during his working visit to the plant in the eighties. Gladly, the present management of ASCL ably led by Engr. Sumaila Abdul-Akaba, FNSE, who is the sole administrator is determined to ensure that it does not miss the great opportunities this steel plant has for Nigeria. It is indeed gratifying to note that Ajaokuta is 98% technically ready in terms of equipment erection. Completed are the rolling mills (actually produced iron rods and sold), thermal power plant (generated electricity to national grid), an imposing modern administrative block, housing estates and access roads. Also completed is the Engineering Works Complex, which is made up of Equipment Repair Shop, Forge and Fabrication Shop (repaired huge Equipment for PHCN and NNPC), Foundry and Pattern Making Shop, Machine and Tools Shop, and Rubberizing and Vulcanizing Shop.
As aptly put by the Dean, Faculty of Social Sciences, NOUN, Ass. Prof. Ganiyat Adesina-Uthman, “The development of the iron and steel industry is a key ingredient for the modernization of societies. The lack of material resources to develop this industry, which is capital-intensive, is a constraint to industrialization of many countries in the developing world.” Adesina-Uthman, who is widely travelled and has presented research papers at international conferences in Zimbabwe, Kenya, Malaysia, USA, Germany, Niger among others, posited that the completion of ASCL is a necessity for the industrialization take-off of Nigeria.”
Lending a voice to the debate, Comrade Didi Adodo, former General Secretary of Iron and Steel Senior Staff Association of Nigeria (ISSSAN) who is now General Secretary, United Labour Congress(ULC) argues that “The idea to get the Russians to complete the Steel plant is a welcome development. Without completing Ajaokuta, we are wasting time in saying that we want to be a developed nation. No nation develops without development of its iron and steel sector. While the Russians are working to complete it, the sections that are completed already can be running through what they call backward integration. If we take just one billion dollars from our sovereign wealth funds, Ajaokuta steel will be completed. When completed, it can employ up to 100,000 workers directly and over 500,000 workers indirectly.” The veteran trade unionist concluded that, “Any govt that has the political will to do that will be writing its name in gold. It will cater for the manufacturing implements including tractors for the agricultural revolution. Flat sheets will be available for the motor industry. Ajaokuta by just producing generates electricity for the national grid etc.”
Another leading voice is Comrade Otori Saliu Maliki, former National President of ISSSAN and National Auditor of ULC:“First and foremost I will like to appreciate Almighty Allah for taking us this far. I also say Kudos to President Muhamadu Buhari for his bold decision in the recent Russia- Africa economic development summit where some vital sectors of the economy were discussed, particularly ASCL. Giving it to the original builder TPE of Russia has been our stand. To us this is the best decision on diversification of the economy. For no nation can develop without Iron and Steel. The completion of Ajaokuta steel company will give birth to 10,000 engineers and the up and down stream sector will give employment of 500.000 workforce. Technologically, Nigeria will be self-sufficient and this will generate a lot of revenue to the growing GDP. ASCL at completion will serve as raw material to in land rolling mills and other private steal sector in the country. If the previous governments had taken this bold step we would have gone far.” The eloquent and highly influential trade unionist concluded:“We, the critical stakeholders are solidly behind the Federal government decision so far.”
Again, another labour leader, Comrade Bello A. Itopa, National President, ISSAN says, “I wish to appreciate the President of Federal Republic of Nigeria President Muhammadu Buhari (GCON) for his initiative and acceptance in completing ASCL and National Iron Ore Mining Company Itakpe (NIOMCO). I also appreciate the Hon Minister of Mines & Steel Development and the State Minister for the bilateral talk between Nigerian/Russian Governments for the completion of ASCL/NIOMCO.” Comrade Itopa added that, “The potentials of its completion in the Steel Sector is very critical to our national development because of its catalytic role and linkage effect on the other sectors of the national economy; e.g. ASCL if completed can employ direct technical staff of 10,000 to 15,000, while indirect jobs in the downstream & upstream industries and services associated with Steel production can employ 500,000 to 600,000 workers. This will translate to improved living standard, peace and security of the nation.” Comrade Itopa urged the FG early implementation and transparency on the completion of ASCL/NIOMCO.
Also, Comrade Musa Ahmed Tijani, Chairman, ISSSAN, ASCL Ajaokuta branch.: “Let me first and foremost congratulate the whole Nigerians on behalf of the entire workforce of Ajaokuta Steel Company and members of our great union ISSSAN for the bold step taken by President Muhammadu Buhari (GCON) to have bilateral talk with Russian government recently on the completion and running of Ajaokuta Steel Company, and NIOMCO. I call it a bold step because there is need to expand and diversify the revenue base of the country through the holistic targeting of steel sector as the bedrock of Nigeria economic development because of its catalytic role and linkage effect on other sectors of the national economy.”
Obaka, an Economist is a Lecturer at NOUN, Jabi
