<p><em>The intervention of the Senator Saraki led 8<sup>th</sup> Senate which passed the Ajaokuta Steel Company Completion Fund Bill and requested Buhari to make available $1 billion from the Federal Government’s share of Excess Crude revenue for the immediate completion of the project may just be a scratch. Buhari did not only refuse to sign it into law, citing budgetary constraint and other competing demands as reasons, his body language does not indicate he is willing to reconsider the bill. But can Ahmed Lawan, who moved for the bill concurrence, now Senate President, be able to persuade Buhari to do the needful in the true spirit of “Next Level”?</em> </p>



<p><strong>Osisanya Dare reports</strong></p>



<p>One
of the bills passed by the ; Bukola Saraki
led eight Senate but rejected by Buhari was the Ajaokuta Steel Company
Completion Fund Bill.</p>



<p>However,
the rejection of the Ajaokuta Steel Company Completion Fund Bill ; by President Muhammadu Buhari has expectedly
sent tongues wagging as to whether the project will ever be completed. </p>



<p>Established
through decree No. 60 on September 18, 1979, Ajaokuta Steel Company was
conceived and steadily developed with the vision of erecting a metallurgical
process plant cum engineering complex with other auxiliaries and facilities.
The complex is meant to be used to generate important upstream and downstream
industrial and economic activities that are critical to the diversification of
Nigeria’s economy into an industrial one. Ajaokuta steel plant is therefore
aptly tagged as the bedrock of Nigeria’s industrialization. </p>



<p>The
project was embarked upon as a strategic industry, a job creator and a foreign
exchange saver and earner. It was envisaged that the project would generate a
myriad of socio-economic benefits and increase the productive capacity of the
nation through its linkages to other industrial sectors. It would provide
materials for infrastructural development, technology acquisition, human
capacity building, income distribution, regional development and employment
generation. </p>



<p>While
the project was expected to directly employ about 10,000 staff at the first
phase of commissioning, the upstream and downstream industries that were to
evolve all over the nation thereafter were to engage not less than 500,000
employees. </p>



<p>Ajaokuta
Steel, in the estimation of ; analysts,
Abah Adah, is unarguably the largest integrated steel complex in the
sub-Saharan Africa. Yet, Nigeria has been unable to take the lead in steel
production in Africa even in her illusory claim of being the giant of the
continent.</p>



<p>At
the moment, South Africa and Egypt produced 6.7 and 5.2 million tons of steel
respectively in 2018 based on data provided by the World Steel Association
(WSA). While South Africa is the 22nd on the list of countries by steel
production, Egypt is the 27th. Nigeria did not make the list because only
countries with annual production of crude steel of at least 2 million metric
tons were included. China, the world’s largest steel producer, topped the chart
with a production of 808.4 million metric tons which represents about 50 per
cent of the global steel output for 2016. Japan and India produced 104.8 and
95.6 million metric tons of crude steel to maintain the 2nd and 3rd position on
the list respectively. </p>



<p>Both
China and India ; were nowhere in terms of
steel production in the 19th century and at the start of the 20th century. But
they worked hard to advance their steel industries and ; they have overtaken even the G8 (forum for
the world’s major highly industrialised countries) members like US, Britain and
Germany that were hitherto leading the pack in the manufacture of steel. </p>



<p>By
1994, under late General Sanni Abacha regime, the plant ; was reckoned to be at 98 per cent completion
in terms of equipment erected. Some completed units of the plant operated at
different times but had to shut down due to non-availability of fund. </p>



<p>With
the return to democratic rule in 1999 after a military interregnum, the hope
was that the people’s government would surmount the challenges of corruption,
lack of political will, international conspiracy and policy summersaults/inconsistencies,
among others, that have continued to hamper the completion of the project
capable of changing Nigeria’s status from underdeveloped. But nothing
significant happened. </p>



<p>But
the coming of Buhari in 2015 signaled a ray of hope and revival of the
industrial giant with the announcement of plans to diversify Nigeria’s oil
based economy by prioritising the development of key sectors, which include
agriculture, mines and steel, to rekindle hope in the Ajaokuta project. </p>



<p>This
probably ignited ; the intervention of the
Senate which passed the Ajaokuta Steel Company Completion Fund Bill to make
available $1 billion from the Federal Government’s share of Excess Crude
revenue for the immediate completion of the project. </p>



<p>The
Senate resolution followed the adoption of the bill for concurrence by Senate
Leader, Senator Ahmed Lawan. On March 28, 2018, the House of Representatives
had approved a similar report of a bill seeking to establish a fund for the
completion of the Ajaokuta Steel Company. The report was considered and
approved in the Committee of the Whole, making a clear provision that the
Federal Government should complete the plant as against then-plan to concession
it. </p>



<p>In
the letter rejecting the Ajaokuta Company Completion Fund Bill, Buhari
explained that appropriating $1 billion from the Excess Crude Account for
funding the project as stipulated in the bill was not the best strategic option
for Nigeria at this time of budgetary constraints. He stressed that Nigeria
could not afford to commit such an amount in the midst of competing priorities
with long term social and economic impact that the funds can be attentively
deployed towards. </p>



<p>As
a remedy, many have advocated a total concessioning of the plant to experts, a
development that would earn government huge sum as well as creating the
expected number of jobs. But others see it differently.</p>



<p>According to Izedomi Ohirein, a public affairs analyst, “the
idea of Nigerian government completing Ajaokuta before concessioning it out, is
being advanced by those who want to loot the process. Government should lease
Ajaokuta out, bought as seen. The lessee should have the knowhow and financial
capacity to get the plant working within a specified time or loose the
contract.”</p>



<p>Gabriel agrees with Ohirein. Speaking with OpenLife, he said “No
government is efficient enough to run any business. None. Sell it to a private,
proven and successful private enterprise like Dangote, leave him alone and
watch the steel industry thrive without the unwieldy overhead of governmental
bureaucracies”</p>



<p>Concerned
and worried by the large turnover of rejected bills, the Senate had, in 2018,
set up a Technical Committee on Declined Assent to Bills, chaired by Senator
David Umaru, APC, Niger East, to look into the development. Although the
Technical Committee laid its report in December last year, the report is yet to
be considered.</p>



<p>Without
doubt, the industry serves as stimulus to national development and economic
boost to industrial growth of a country.</p>



<p>The
Ajaokuta Steel Company in Kogi State of Nigeria was envisaged to serve as the
bedrock of Nigeria’s industrialisation.</p>



<p>The
idea of having a steel industry was conceived in 1958 by the federal
government. Preliminary market studies were carried out and studies were
initially directed towards the feasibility of establishing rolling mills.</p>



<p>However,
because of the growing awareness of the availability of iron ore in Agbaja, Udi
and other areas of the country, emphasis later shifted to establishing an
integrated steel plant.</p>



<p>Late
Tafawa Balewa and late Nnamdi Azikiwe between 1960 -1966 invited and received
proposals from foreign firms, including those from UK, U.S., Germany and
Canada, most of these being on the feasibility of establishing steel complexes.</p>



<p>The
efforts of the government did not yield significant positive result because
they were based on the use of iron deposits in Agbaja and Udi which were later
found to be unsuitable for direct reduction.</p>



<p>In
1967, a team of Soviet experts arrived in Nigeria to conduct a feasibility
study on the establishment of an iron and steel plant, as a follow-up on a
technical/economic cooperation agreement between the governments of Nigeria and
the USSR.</p>



<p>In
their report, they recommended the use of blast furnace process of iron making.
The report also pointed out that the known iron ore deposits in the country
were of poor quality and recommended that further geological surveys be
conducted to see if better ore could be found.</p>



<p>In
1968, Soviet geological experts came to Nigeria and after a general geological
investigation reported that there were high prospects for richer iron ore and
coal deposits in the country.</p>



<p>However,
the federal government signed a contract in 1970 with TYAZHPROMEXPORT (TPE), a
Russian company, under which they agreed to provide specialised equipment to
carry out further geological survey to determine the quantity of the deposits
of iron ore, coal resources in the country that could be used for the proposed
iron and steel industry.</p>



<p>By
1973, suitable iron ore deposit was discovered in Itakpe, Ajabanoko and
OShokoshoko all in the region around Kabba-Okene-Lokoja – Koton Karfe axis, now
in Kogi State.</p>



<p>The
TPE was contracted to prepare the preliminary project report for the proposed
Iron and Steel Industry in Nigeria.</p>



<p>In
1975, during the reign of Murtala Mohammed, the preliminary project report
specifying the raw materials base at Itakpe in Kogi plant site location
(Ajaokuta), 1st phase production volume (1.3 mmt), process route (Blast Furnace
-Basic Oxygen Furnace), Product form (Long products) submitted by TPE was
reviewed, discussed and accepted.</p>



<p>TPE
was subsequently commissioned to prepare the Detailed Project Report (DPR) on
Ajaokuta which was completed and submitted in 1977.</p>



<p>In
1979, Ajaokuta Steel Company Limited (ASCL)/NIOMCO, Delta Steel Company (DSC),
among others, were established under Section 2 of National Steel Council Decree
No. 60 of September 19, 1979 and incorporated as Limited Liability Companies.</p>



<p>In
1980, former President Shehu Shagari laid the foundation stone of an integrated
steel plant in Ajaokuta on 24,000 hectares of sprawling green-field landmass,
built on 800-hectares.</p>



<p>The
steel company has four different types of rolling mills inside the plant, such
as the Billet Mill which produces billets; the Light Section Mill which
produces round, square, strip and angles metals.</p>



<p>The
Wire Rod Mill produces wire rods and rebars used in construction companies and
production of nails, fencing wire, rope mesh, bolts and nut and netting and the
Medium Section and Structural Mill produces parallel flange channels, equal
angles, unequal angles and standard channels.</p>



<p>The
four rolling mills are bigger than Aladja, Osogbo, Katsina and Jos rolling
mills put together while the coke oven and bye products plant is bigger than all
the four refineries in Nigeria put together.</p>



<p>In
1980 to 1983, the administration achieved 84 per cent of Ajaokuta steel plant
as the Light Section Mill of the plant was commissioned earlier than the
scheduled date, while the Wire Rod Mill was also commissioned in April 1984,
earlier than the scheduled month of December.</p>



<p>In
1994, equipment erection work at Ajaokuta Steel Plant reached 98 per cent
completion.</p>



<p>With
all these achievements, it was, however, sad that the gigantic steel plant idea
conceived and executed by past leaders had failed to contribute to the
development of Nigeria.</p>



<p>The
Ajaokuta steel that had reached 98 per cent completion as far back as 1994 had
not produced a single steel till now.</p>



<p>The
integrated plant was envisaged to have multiplier effects on all sectors of the
Nigerian economy such as the industrial, agriculture, transport and
construction sectors, among others.</p>



<p>The
steel plant was designed to produce 1.3 million tonnes of liquid steel per
annum in its phase one, with a built-in capacity to expand its production to
2.6 million tonnes of flat iron and steel products in its second phase and
phase three plan was planned to produce 5.2 million tonnes of various types of
steel products, including heavy plates.</p>



<p>The
steel plant complex also has highly sophisticated assemblage of 43 different
plants made up of a web of complex iron, cable and machinery of different sizes
and functions. </p>



<p>The annual estimated per capita consumption of iron and steel in
Nigeria has increased from 5 kg in 1968 to 145 kg in 2018. </p>

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