Business
Ajaokuta Steel: Senate probes $496m paid as settlement to contractor
Ajaokuta Steel: Senate probes $496m paid as settlement to contractor
The Senate has set up a committee to investigate the $496m paid by the Federal Government to the Chairman of Global Infrastructure Holdings Limited (GINL) in September 2022 as settlement for the contractual disputes on Ajaokuta Steel Company Limited (ASL).
The Senate also directed the committee to look into the affairs of Ajaokuta Steel and the National Iron Ore Mining Company (NIOMCO) from 2008 to date.
It resolved to summon relevant Ministries, Departments, and Agencies (MDAs) and other critical stakeholders in the steel sector, especially those with interest in Ajaokuta Steel Manufacturing Plant and NIOMCO “to obtain relevant information and submit a comprehensive report to the Senate regarding the affairs of the two plants between 2008 to date”.
The Senate asked the Federal Government to review extant policies and laws on steel development in the country.
These came following the adoption of a motion, titled: “Urgent need to investigate alleged incidences of corruption and inefficiency at the Ajaokuta Steel Company Limited and the National Iron Ore Mining Company (NIOMCO) located in Kogi State,” sponsored by Senator Natasha Akpoti-Uduaghan (PDP, Kogi Central).
She expressed optimism that the investigation would uncover the circumstances that led to the re-concession of NIOMCO.
The Kogi central senator said the initial concession agreement was validly terminated by the Umar Musa Yar’Adua administration.
According to her, the Federal Government set up Ajaokuta Steel and NIOMCO in the late 1970s to establish Nigeria as a leading steel exporter but have been inoperative for decades due to a lack of political will and bureaucratic corruption.
Akpoti-Uduaghan recalled that since 1994, when the Tyazhpromexport (TPE) exited the Ajaokuta Steel over allegation that Nigeria did not discharge fully its financial obligation to the agreement, the Ajaokuta Steel was reportedly at 98 per cent completion yet has remained inoperative.
The Kogi Central senator also said that sometime in 2001, Nigeria’s hope to have the Ajaokuta Steel Plant completed and put into operation was rekindled, following the signing of a bilateral agreement between Nigeria and the Russian Federation.
She said the hope was dashed, following the surreptitious concessions of NIOMCO and ASCL in June 2003 to “unqualified” Solgas Energy Limited, a company she described as lacking the financial and technical expertise to handle the project.
She said it was discovered that the company had never been in the ore and steel business.
Akpoti-Uduaghan said the concession of ASCL and NIOMCO complexes contradicted the recommendation of the House fo Representatives Committee on Steel in 2004.
She said, “After reviewing the Inuwa Magaji Administrative Panel of Enquiry Report on the late President Yar’Adua, the Federal Executive Council (FEC) unanimously terminated the concession agreement on April 2, 2008.
“The termination was due to the operations of ASCL, NIOMCO, and Delta Steel mills, as well as breach of agreement and unwholesome practices.
“Additionally, the concession agreement was found to be unpatriotically skewed in favour of GINL.
“The House of Representatives had conducted an investigation into the Iron and Steel sector in 2018 with far-reaching resolutions aimed at resuscitating the ASCL and NIOMCO steel mills.
“However, the Federal Government either ignored these resolutions or has not implemented them yet. Many steel-producing countries are disturbed by the $253 million organised economic crimes in India.
“Additionally, GSHL’s Pramod Mittal is notorious for engaging in questionable business activities, such as embezzlement and asset-stripping in countries like Bulgaria, the Philippines, Libya, Bosnia, Zimbabwe, Montenegro, Serbia, and many more.
“In Bosnia, Pramod Mittal, who is associated with GSHL, was arrested and charged with organised crime. Additionally, GSHL’s management workers were jailed for economic crimes.
“However, it seems that Nigeria has fallen victim to Mittal’s sharp contract fraud yet again, in relation to the payout of $496 million in 2022.
“This is not the first time, as Nigeria previously conceded NIOMCO to the same GINL in August 2016. Unfortunately, these fraudulent activities are facilitated by unpatriotic Nigerians who hold trusted government position.”
She also said, “It is disheartening to note that Nigeria is currently spending approximately $3.3 billion annually on importing steel, despite having abundant natural ore resources.
“This is because the Ajaokuta and Delta Steel plants, which could have served as valuable assets to the nation, are in a state of disrepair. These plants have become channels for the misappropriation of public funds, which is a huge burden on Nigerian taxpayers.
“I am concerned about the management structure at the Ajaokuta Steel Complex. It appears that a Sole Administrator has been making all decisions regarding the company’s affairs for the past 12 years without any input from others.
“This has led to increased inefficiencies at the company. Recently, President Bola Tinubu questioned the N33 billion electricity debt.”
Deputy Senate President Barau Jibrin gave the ad hoc committee four weeks to submit its report.
Railway
Lagos Rail Mass Transit part of FG free train ride – NRC
Lagos Rail Mass Transit part of FG free train ride – NRC
The Nigerian Railway Corporation (NRC) has disclosed that the Lagos Rail Mass Transit (LRMT) trains are included in the Federal Government’s free train ride initiative for the Christmas and New Year celebrations.
The LRMT, which currently includes the Phase 1 Blue Line Rail and the Phase 1 of the Red Line Rail, operates under the Lagos Metropolitan Area Transport Authority (LAMATA).
This announcement was made by Ben Iloanusi, the Acting Managing Director of the NRC, during an interview on NTA News TV on Friday, following the launch of the initiative earlier that day.
While Iloanusi stated that Phase 1 of both the Blue Line and Red Line Rail projects are part of the program, LAMATA has yet to confirm this inclusion.
READ ALSO:
- Nigeria denies alleged plot to destabilise Niger Republic
- Navy arrests 19 Nigerians attempting to reach Europe by hiding on ship
- Troops arrest four Ambazonian rebels in Taraba
Iloanusi outlined the other routes benefiting from the scheme, which include the Lagos-Ibadan Train Service, Kaduna-Abuja Train Service, Warri-Itakpe Train Service, Port Harcourt-Aba Train Service, and the Bola Ahmed Tinubu Mass Transit in Lagos. Notably, little was previously known about the Bola Ahmed Tinubu Mass Transit service until this disclosure.
“Let me mention the routes where this free train service is happening. We have the Lagos-Ibadan Train Service, we have the Kaduna-Abuja Train Service, we have the Warri-Itakpe Train Service, we have the Lagos Rail Mass Transit trains, we have the Port Harcourt-Aba Train Service, and we have what we call the Bola Ahmed Tinubu Mass Transit, which is also in Lagos,” he stated.
Iloanusi provided operational updates, stating that passengers nationwide can access free tickets online or, for those unable to do so, at train stations where they will be profiled and validated.
He noted that passengers using NRC-managed services (excluding the Lagos Rail Mass Transit) should reserve tickets via the official website, www.nrc.gov.ng, with a valid ID required. He also advised travelers to plan, arrive on time, and bring valid identification.
Lagos Rail Mass Transit part of FG free train ride – NRC
Business
NNPC denies claim of Port Harcourt refinery shutdown
NNPC denies claim of Port Harcourt refinery shutdown
The Nigerian National Petroleum Company Limited (NNPCL) has denied claims in media reports that the newly refurbished Port Harcourt refinery has shut down.
The national oil company denied the claim in a press release issued by its Chief Corporate Communications Officer, Olufemi Soneye, on Saturday.
Soneye said the claim was false and urged Nigerians to disregard it. He stressed that the Port-Harcourt Refinery is fully operational.
READ ALSO:
- Like Ibadan, stampede claim 10 lives for Abuja Catholic church, 17 in Anambra
- Marketers react after NNPCL slashes petrol price to N899 per litre
- Electricity: We installed 184,507 meters, issued 50 licences in Q3, says FG
The statement read, “The attention of the Nigerian National Petroleum Company Limited (NNPC Ltd.) has been drawn to reports in a section of the media alleging that the Old Port Harcourt Refinery which was re-streamed two months ago has been shut down.
“We wish to clarify that such reports are totally false as the refinery is fully operational as verified a few days ago by former Group Managing Directors of NNPC.”
He noted that preparation for the day’s loading operation is currently ongoing, and added that claims of the shutdown are “figments of the imagination of those who want to create artificial scarcity and rip-off Nigerians.”
NNPC denies claim of Port Harcourt refinery shutdown
Business
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).
The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).
This move, detailed in a circular dated December 19, 2024, is designed to meet seasonal retail demand for FX during the holiday period.
The circular was signed by T.G. Allu, on behalf of the Acting Director of the Trade and Exchange Department.
The arrangement will be in effect from December 19, 2024, to January 30, 2025.
Under the directive, BDCs may purchase FX from a single Authorized Dealer of their choice, provided they fully fund their accounts before accessing the market.
Transactions to occur at the prevailing NFEM rate
The transactions will occur at the prevailing NFEM rate, and BDCs are required to adhere to a maximum 1% spread when pricing FX for retail end-users.
READ ALSO:
- Badenoch’s negative portrayal of Nigeria Police unfair-PCRC
- Bitcoin price crashes to $95,000 as market continues to react to Federal rate cuts
- Bauchi high court dismisses blasphemy, cybercrime charges against Rhoda Jatau
All transactions conducted under this scheme must be reported to the CBN’s Trade and Exchange Department.
The circular read in part:
“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a temporary access for all existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only).
This window will be open between December 19, 2024 to January 30, 2025.
“BDC operators can purchase FX under this arrangement from only one Authorized Dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange department, and a maximum spread of 1% is allowed on the pricing offered by BDCs to retail end-users.”
The CBN assured the general public that PTA (Personal Travel Allowance) and BTA (Business Travel Allowance) remain available through banks for legitimate travel and business needs.”
These transactions are to be conducted at “market-determined exchange rates” within the NFEM framework.
This initiative reflects the CBN’s strategy to stabilize the FX market and manage seasonal surges in demand.
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
-
metro1 day agoCourt stops customs from seizing imported rice in open market
-
metro2 days agoFG transfers electricity market regulatory oversight in Lagos to LASERC
-
metro1 day agoAfe Babalola: Court grants Dele Farotimi bail, barred from media interviews
-
News1 day agoAdebayo Ogunlesi, 2 other Nigerians make Forbes 50 wealthiest Black Americans list 2024
-
metro1 day agoIbadan stampede: Tinubu orders probe as death toll hits 40
-
metro2 days agoAbuja demolition: Soldiers attack FCTA officials, seize vehicles
-
metro1 day agoNAFDAC seizes N5bn fake rice, seals factory in Nasarawa
-
metro1 day agoUnsolicited messages: Appeal Court fines MTN N15m