FG paid $500m to terminate Ajaokuta Steel contract – Minister

FG paid $500m to terminate Ajaokuta Steel contract – Minister

The Minister of Steel Development, Alhaji Shuaib Abubakar on Thursday disclosed that the Federal Government paid the sum of  $500 in order to terminate the concession agreement on Ajaokuta Steel Company.

The minister, who disclosed this during an interactive session with the House of Representatives Committee on Steel Development in Abuja said the government was working assiduously to find a solution to the Ajaokuta Steel imbroglio.

He said, “It is a problem that has persisted for 45 years. We have gone to China to come and invest in the steel company including setting up a new plant and we have gone to seek financing”.

According to him, the challenges had changed as new technology had come up and there had been innovations and there had been discussions around it but it had not been finalised.

“Funding is a big challenge to the Ministry of Steel Development. Steel industry will be the bed rock of industrialization if we have proper funding.

“I am still at a stage where to find a solution to the Ajaokuta Steel Company.

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On the $2 billion being requested to revive the moribund steel company, the minister said it was just a preliminary calculation, adding that the figure might not be up to that.

According to him, this is an estimate that may not be accurate at the last decimal point. It is just a process that will allow us to arrive at the right destination.

“The president has asked me to find a solution to Ajaokuta, so the figure will change pending the outcome of the technical audit.

“It’s clear to Nigeria that for this to happen we need funding and all the help we can get from the two chambers, this is why we need. I need all your support to make this a reality.”

Abubakar also disclosed that the nation spends $8 billion annually to import steel into the country, saying that it is in the best interest of Nigeria for the Ajaokuta Steel Company to work.

He noted that the revival of Ajaokuta Steel will cost money, and we have written a 10 year document for the revival. We will present the document to Mr President.

He said that it was in his own interest for Ajaokuta Steel to work, adding that he is from Kogi State and must push for such interest

Chairman, House Committee on Steel Development, Hon. Zainab Gimba, the urged the ministry to provide it with all the procurement process and other responses demanded by the committee

The committee said that Ajaokuta had remained a nightmare to many, adding that now that the minister had accepted to superintend over it, Nigeria expected more from him.

FG paid $500m to terminate Ajaokuta Steel contract – Minister