An Urgent Plea for the Protection of Ajaokuta Steel Company
The Social Integrity Network (SINET) has strongly urged the Federal Government to reject the proposal to hand over the struggling Ajaokuta steel company to foreign entities in the name of revitalization. This plea is rooted in deep concern for the national interest and the protection of an essential part of the country’s heritage.
In a press statement released to the Nigerian Tribune after an emergency meeting in Kaduna, SINET reiterated the necessity of protecting national assets, citing the recent probe by the National Assembly Joint committee on steel development regarding the $496 million paid to an Indian firm for the revitalization of the Itakpe Iron Ore company, which ultimately did not produce the desired results after three years.
The civil society organization expressed disappointment at the government’s willingness to entertain unrealistic proposals and business plans from foreign entities, despite the availability of highly qualified Nigerian professionals and companies capable of running and revitalizing such national projects.
SINET highlighted the importance of preserving national ownership of companies like Ajaokuta steel to ensure employment opportunities, reduce imports, and prevent the depletion of foreign exchange and mineral resources. The organization also condemned the previous failed attempts at privatizing similar companies, such as the National Iron Ore Mining Company, which resulted in significant financial losses for the government.
Furthermore, SINET denounced the reported actions of the Global Infrastructure Holding Ltd. (GIHL), which took over the National Iron Ore Mining Company, Itakpe, and the subsequent termination of their agreement in 2019 due to non-performance. The organization expressed concern over the government’s decision to repeatedly engage with international companies that have not shown a genuine commitment to the development and success of these national assets.
In light of these events, SINET called upon the Federal Government and relevant ministries to exercise caution and diligence in their decision-making process, particularly regarding the participation of foreign companies in the revitalization of Ajaokuta and Delta Steel Company. The organization insisted on the thorough examination of detailed project reports, business plans, and financial projections to ensure the protection of national assets and the public interest.
With these considerations in mind, SINET emphatically cautioned against hasty and ill-advised decisions that could further jeopardize the country’s economic stability and erode its vital resources.
The urgent plea from SINET underscores the necessity of prioritizing national interests and preserving the integrity of essential industries for the benefit of the country and its citizens. The government’s response to this plea will undoubtedly carry significant implications for the future of Ajaokuta steel and similar national assets.
