So, here’s the scoop on how Pramod Mittal, the big boss of Global Steel Holdings Ltd (GSHL), managed to snag a whopping $496 million from the Nigerian government. It’s like a real-life drama, folks! GSHL, based in the United Arab Emirates, swooped into the Nigerian steel industry back in 2004, scooping up five major deals and share purchase contracts during the time of Olusegun Obasanjo. The plan was to take over the Ajaokuta Steel Company Limited, but things got messy in 2008 when the government accused them of stripping assets. Fast forward to 2016, and the Muhammadu Buhari administration gave the green light for a modified concession agreement with GSHL, letting them keep the Nigerian Iron Ore Mining Company (NIOMCO) in Itakpe. But then, the Buhari administration backed out, and it turned into a legal showdown. Finally, in September 2022, the government announced that they had settled the long-standing dispute with GSHL over the Ajaokuta Steel Company Limited and the NIOMCO concessions. The big question is, why did the government decide to fork out $496 million for the settlement? That’s a whole lot of cash, right?
But wait, there’s more! Pramod Mittal, the brother of billionaire Lakshmi Mittal, has a track record of abandoned projects and unpaid debts. Five years ago, Global Steel went bust owing a whopping $167 million to Moorgate Industries Ltd. And get this, a UK court was even considering declaring Pramod bankrupt! But then, along comes Nigeria with a fat cheque, and suddenly, Pramod’s financial troubles seem to vanish into thin air. It’s like a plot twist in a movie, isn’t it?
Pramod’s steel dreams took him all over the globe, from Nigeria to Bosnia, Bulgaria, Libya, Zimbabwe, and the Philippines, racking up nearly a billion dollars in debts along the way. Talk about a wild ride!
Now, here’s where it gets really interesting. Pramod had struck deals with the Nigerian government in 2014 and 2016, but here’s the kicker – no payout was on the cards. But then, in a surprising turn of events, GSH’s Nigerian unit, now owned by a company called Luminous Star Ltd, suddenly becomes the lucky recipient of a massive settlement. And get this, Pramod’s son is still on the board of the Nigerian firm. It’s like a family affair, right?
In the midst of all this, the government shelled out a cool $446 million to GSH’s local unit in multiple instalments. And guess what? A chunk of that money found its way back to GSH’s account. It’s like a money merry-go-round!
And just when you thought the rollercoaster ride was over, the minister of steel development announced that the government is all set to finish up the Ajaokuta steel company. What a whirlwind of events, folks! It’s like a real-life soap opera, with twists and turns at every corner. Stay tuned for the next episode of ‘The Pramod Mittal Chronicles’!