Concerns Raised Over Ajaokuta Steel Mill Revitalisation

The Social Integrity Network (SINET), a prominent non-governmental organisation, has expressed its concerns regarding the federal government’s plan to revive the Ajaokuta steel mill. During a recent gathering in Kaduna, Ibrahim Issah, the national coordinator of SINET, urged the government to reconsider its decision, citing potential issues related to ‘back-door contracts’ and the potential impact on the nation’s economy.

Issah emphasised the importance of prioritising national companies in the revitalisation process, with a focus on creating employment opportunities for local communities and minimising the need for imports. The group raised apprehensions about the potential exploitation of Nigeria’s mineral resources and the adverse effects of excessive forex siphoning due to foreign involvement.

Of particular concern is the previous agreement with Global Infrastructure Holding Ltd. (GIHL) regarding the National Iron Ore Mining Company (NIOMCO) in Itakpe, Kogi State. The termination of the agreement in 2019, following non-performance, led to a legal battle in which GIHL was awarded damages totalling $496 million. This development has raised questions about the government’s handling of foreign investment in critical national assets.

The SINET further highlighted historical setbacks and questionable technology acquisitions related to Ajaokuta steel mill, underscoring the need for a comprehensive examination of the project’s viability and its potential impact on the country’s long-term economic interests. The group’s call for thorough due diligence on the part of the federal government and relevant ministries underscores the need for an inclusive and transparent review process.

The reference to a $5 billion investment from Jindal, in particular, has drawn skepticism from the SINET, which has urged for a more thorough evaluation of the projected investment and its likely impact. The potential ramifications of misjudged and exaggerated investments have been underscored, particularly in relation to the overall welfare of the nation and its citizens.

In light of these concerns, the SINET has called for an independent and rigorous assessment of the proposed revitalisation plan, urging the government to engage established local business leaders and agencies to ensure a comprehensive review. The emphasis on transparency and inclusive assessment reflects a collective interest in safeguarding the nation’s strategic assets and minimising the risk of detrimental outcomes.

The SINET’s interventions highlight the critical need for responsible stewardship of national assets, emphasising the potential ramifications of ill-conceived revitalisation plans on the country’s economic prosperity. As the federal government contemplates the future of the Ajaokuta steel mill, the insights and recommendations offered by the SINET serve as a constructive and necessary contribution to the ongoing discourse.