The Future of Ajaokuta Steel: A Call to Protect National Heritage
The Social Integrity Network (SINET) recently convened an emergency meeting in Kaduna, during which the group issued a strong advisory to the Nigerian government, urging a reconsideration of its plans to transfer the Ajaokuta Steel Rolling Mill to foreign investors. Comprised of distinguished and intellectually astute members, SINET expressed apprehension regarding the governance decisions made by government bodies in the course of the revival efforts.
Emphasizing the preservation of national heritage and the paramount importance of prioritizing the best interests of the Nigerian populace in all decision-making processes, SINET made reference to the resolution of the National Assembly Joint Committee on Steel Development to investigate a government payment of $496 million to an Indian firm. This payment was intended to revitalize the Itakpe Iron Ore Company, a venture that proved unsuccessful over a span of three years.
The organization underscored the necessity of affording priority to indigenous companies in the administration of such facilities, with a specific focus on employment generation, import reduction, and the prevention of foreign exchange and mineral resource siphoning. Additionally, concerns were voiced regarding the performance record of foreign enterprises, notably citing the unsuccessful acquisition of the National Iron Ore Mining Company in 2016, resulting in significant financial losses for the nation.
SINET urged the government to meticulously evaluate proposals from foreign entities and to solicit input from impartial agencies and business leaders within Nigeria. Transparency and due diligence were emphasized as critical components of the decision-making process, intended to forestall further financial losses and depletion of resources.
Cautions were raised against the utilization of outdated technology and the potential exploitation of Ajaokuta and Delta Steel Company by foreign investors. The imperative for exhaustive review of comprehensive project reports, business plans, and financial projections to safeguard the welfare of the Nigerian populace was adamantly stressed by SINET.
In conclusion, SINET issued a resolute caution to the government against hastily entering into agreements with foreign investors without thorough evaluation and contemplation of the long-term consequences. Protecting Nigeria’s assets and resources from exploitation was deemed crucial, with a call for the government to prioritise the well-being of its citizens in all decision-making processes relating to the Ajaokuta Steel Rolling Mill.
