FG remains true owner of Ajaokuta Steel Complex – Fayemi

Stories by Ayoni M. Agbabiaka

The Federal Ministry of Mines and Steel Development has reaffirmed that the federal government remains the true owner of the Ajaokuta Steel Complex in spite of the concession agreement with a private company.
The Minister of Mines and Steel Development, Dr. Kayode Fayemi, said that Ajaokuta Steel Complex belongs to the federal government of Nigeria, and there is no contention about this fact.
In a statement signed by the Permanent Secretary, Mohammed Abbas, the minister said his attention “has been drawn to recent media reports, where Dr. S.O. Nwanbuokei, a Director of Global Steel Holdings Limited (GSHL), was quoted as saying that the protracted litigation surrounding the ownership of the Ajaokuta Steel Complex had not been resolved.
“His claims contradict the position of the Minister of Mines and Steel Development, Dr. Kayode Fayemi, who reaffirmed the federal government’s ownership of the Ajaokuta Steel Complex, during the just concluded Nigerian Mining Week, as he has done in similar fora.
Abbas explained that the federal government does not need any mediation to determine its ownership of Ajaokuta Steel Complex as the integrated steel complex has always been the property of Federal Government of Nigeria.
“It must be stated clearly that concessioning of an asset does not make one lose the ownership of the asset. In the case of Ajaokuta Steel Complex, the federal government remained the actual owner of the asset, while the concesioning arrangement was in place. This situation has not changed after the entire concessioning arrangement crumbled.
“The position of government is that having ceded the National Iron Ore Mining Company (NIOMCO), Itakpe to GSHL, for the remaining concession period, as part of the agreement reached during the mediation, government would at the appropriate time take a decision on how best to put Ajaokuta Steel Complex to profitable use.
“This includes engaging a new core investor with proven financial and technical capacity to turn around, complete and run the steel complex profitably. This is still the position of government,” the statement reads.

 

Leave a Reply