•Calls for stakeholders’ involvement
By Merit Ibe, [email protected]
The Ajaokuta Steel Company has been in the eye of the storm for decades for the wrong reasons. But it seems respite is underway as a concession plan by the Federal Government is ongoing.
While some pundits are kicking against the concession of Ajeokuta steel company and the Nigerian Iron Ore Mining Company, Itakpe, considered huge national assets, the Manufacturers Association of Nigeria (MAN)is saying that the idea of government running businesses is no longer in vogue and rather outdated.
The association has therefore advised that the right stakeholders should be involved at all the stages of the bidding stressing that the job should be given to the right persons for the good of all.
The Ajaokuta Steel Company which was envisaged to serve as the bedrock of Nigeria’s industrialisation, is yet to rise, as the steel company has gulped trillions but yet to produce.
The idea of having a steel industry was conceived in 1958 by the Federal Government, but till date, the industry remains moribund and stagnated.
For most Nigerians, the non-completion of the complex is a major contributor to the economy’s continued backwardness in terms of infrastructure, manufacturing, job creation and export.
Ajaokuta steel, a project that was expected to be a game changer for Nigeria, as no country can industrialise without steel complex, is still a dream yet to come through.
In over three decades, the project has remained uncompleted but gulping dollars, budget allocations from one administration to the other.
Sometime in November 2022, Vice President, Yemi Osinbajo, said government’sconcession plans for Ajaokuta Steel Complex and Itakpe mining company were ongoing.
He said the fully-developed mines and steel sector would stimulate industrial growth as a local source of raw materials, improve export earnings and also create lucrative jobs and opportunities for many Nigerians.
“To this end, a transaction adviser has been appointed to concession the Ajaokuta Steel Company and the Nigerian Iron Ore Mining Company, Itakpe. The selection process is ongoing. Our commitment is to break the jinx and actualise the dream of a vibrant steel sector,” he said.
However, recently, there were some newspaper advertorials calling for bids for the concession of the two assets.
Reacting, Chairman, MAN Apapa branch, Frank Onyebu, in his view noted that the absence of a functional iron and steel industry is responsible for the stunted industrialization efforts of the country.
“In fact it is practically impossible for any nation to industrialise without a functional steel mill. Unfortunately, the Ajaokuta and other steel plants did not take off as expected after humongous amounts were expended on them. Why?
“The reason is obvious: because they were conceived and are being managed as government companies. I can’t think of any government company that has been properly managed since our independence.
“So, I’m really at a loss as to why anyone would be fighting against the concession or even the privatisation of these companies. I totally support the concession. I have never supported the idea of governments running businesses.
“They have never been good at it. Possibly, some governments in some developed world could, but certainly not the Nigerian government or any of its agencies.
“These companies have been huge drainage pipes of corruption over the past several decades. They have swallowed whatever resources that have been pumped into them without generating anything.
“Iron and steel are very important to our economy. So, I think this should proceed without delay.”
He, however noted that the concern was the process of selection.” We should be concerned about who the government is planning to concession the companies to and whether they have the competence, the capacity and the experience to turn the companies around.
The process should be devoid of corruption. We should avoid a repeat of the DISCOS. Whoever gets the concession should be in a position to hit the ground running.”
For Chairman, Non Metalic Mining Group of MAN, Afam Mallinson Ukatu, concessions are the best that can happen to every economy and any government that expects growth.
“The issue now is that the concession should go to the right people and the real stakeholders who are already into the business.
“It should not be to favour some persons against others. It must be open and transparent.
“The value of the project is a known benchmark.
But a closed door concession, where stakeholders are not aware of the deal is wrong and not a concession.
Stakeholders should be involved in all the stages of the deal.
The steel and iron ore industries are a lifeline for building, construction and other sectors too, so,it should not just be given away anyhow. If the right thing is done, we will not have issues. Concession will move the economy forward faster, so it should be done in a standard way. “People have not been happy with the way the Ajaokuta steel project and others have been or with what has transpired over the years. For such a huge investment to gulp that huge money yet nothing to show for it, is sad.”
Meanwhile, a civil society group, Social Integrity Network (SINET), has asked Senate President, Ahmad Lawan, to set up a committee to look at the ongoing plan to concession Ajaokuta Steel Company Limited and Itakpe Iron Ore Company.
In a communique, SINET urged the Senate president to ensure the process is halted, reversed and handed over to the incoming administration for proper scrutiny and consideration for national interest.