The name ‘Ajaokuta’ has hitherto remained a household name in Nigeria, perhaps owing to how much or often it’s being cited by Nigerians in positions of authority.
It’s noteworthy that the famous Ajaokuta is a Local Government Area (LGA) in Kogi State – the North Central part of Nigeria – where the country’s one of the most significant, if not the most, tech-driven hub(s) is situated.
The Ajaokuta Steel Company Limited (ASCL) alongside Delta Steel Company (DSC) in Delta State, among others, was established in 1979 under the reign of the Late Alhaji Shehu Shagari during the Second Republic in accordance with Section 2 of the National Steel Council Decree No.60 of September 19, 1979 and they were incorporated as Limited Liability Companies.
It was reportedly expected to commence production in 1984. Amusingly, and pathetically too, 34 years after it was designed to kick-start Nigeria’s industrialization, the multi-billion naira Ajaokuta complex is yet to produce steel despite attaining about 98% completion since 1994, having sunk about $10bn into the project. It was recently reported that about $2bn was additionally needed to complete the remaining 2% of the entire project.
It would interest us to note that the ASCL, which is reckoned to be the country’s biggest industrial project, is located on 24,000 hectares of sprawling Greenfield landmass. The steel plant itself is built on 800 hectares of land. The chosen technology for the proposed steel production was the time tested Blast-Furnace, a basic oxygen furnace route.
It was rumoured sometime ago that the President Muhammadu Buhari–led administration was planning to privatize the ASCL whose slogan remains “the bedrock of Nigeria’s industrialization” in its bid to finance the 2018 deficit budget, but the government frantically refuted the insinuation.
As regards the renewed vigour and quest to complete the remaining phase of the ASCL, on 13th December 2018, the Red Chamber of the National Assembly (NASS) graciously gave its approval for one billion dollar ($1bn) to be withdrawn from the Federal Government’s (FG’s) share of the country’s Excess Crude Account (ECA).
The Senate who acted in line with the consent of the Green Chamber, equally instructed that all monies, loans, grants, and what have you, that may from time-to-time be appropriated and authorized by any tier of government or entity, either local or foreign, should be part of the funding for the completion of the project.
It’s worth noting that the resolution followed the passage of the Ajaokuta Steel Company Completion Fund Bill 2018. The bill slated for concurrence, was presented by the then Senate Leader, Ahmed Lawan, who is now the incumbent President.
The legislation, however, stated that the monies in the fund shall be applied by the minister subject to appropriation by the NASS only for the construction, improvement, extension, enlargement and replacement of infrastructure and works, including the provision, acquisition, improvement and replacement of other capital assets required in respect of or in connection with the completion of the project.
It’s noteworthy that the Ajaokuta integrated steel complex was born out of the then government’s quest for a diversified economy. It was conceived and steadily developed with the vision of erecting a metallurgical process plant cum engineering complex with other auxiliaries and facilities that would help to stimulate the diversified economy.
It was meant to be used to generate important upstream and downstream industrial and economic activities that were critical to the diversification of Nigeria’s economy into an industrial one. It’s, therefore, appalling that several decades down the line, the country is still faced with the old song regarding diversification that ought to have been a thing of the past.
Even though the development that took place in December 2018 in regard to the long awaited completion of the abandoned ASCL unarguably came so late or untimely, concerned Nigerians found joy in the fact that at last, the government had remembered the once forgotten national project.
But the candid question that yearned for answer the moment the NASS signed the bill was: how sincere and determined were the concerned authorities towards doing the needful? This signifies that the teeming citizens understood their leaders so well. Despite the concern raised, three years down the line, nothing absolutely has been heard about the foreseen resuscitation of the dying project.
It’s not anymore news that aside from the steel industry, other moribund sectors have equally been granted similar attention in recent times under the watch of President Buhari who’s apparently keen to diversify the country’s mono-economy. Yet till date, rather than getting tangible positive results, we keep receiving a myriad of excuses. Is it then a function of ineptitude or lack of will?
These impediments witnessed overtime have made most well-meaning Nigerians feel impelled to express grave doubts about the determination of any authority, or officer-in-charge, to aptly initiate, carry out as well as complete any project entrusted upon them.
It’s on this premise I challenge the Ministry of Mines and Steel to prove to the teeming Nigerians that it is ever-ready to do as expected by presenting to the citizenry the modalities worked out towards the completion of the ASCL. It’s imperative to acknowledge that a befitting framework cannot be actualized if the authority acted without reference to the original blueprint of the project.
Similarly, considering that the project was abandoned for many years, some of the completed phases may have broken down, hence there must be cross-examination in this regard towards averting any possible future breakdown when the company becomes practically in use.
It is not arguable that $1bn is a whole lot of money, but considering the market survey concerning the completion of the ASCL as well as the current fall of the naira value, it’s understandable that more funds are urgently required for the project.
Against this backdrop, the government is required to borrow from any individual or entity, particularly indigenous. It’s arguably a capital project of this kind, which would effect tremendous economic growth if completed, that requires borrowing towards its completion. It suffices to say that borrowing ought to be a welcome approach in this regard, but only if the intended fund would be genuinely and aptly utilized.
Then if eventually completed in the long run, having run the company within a reasonable period, the government may decide to sell the shares to the general public, investors in particular, with a view to servicing all the debts incurred in the process. Making the members of the public shareholders, while the government remains the stakeholder, would enable the latter to sustain the ASCL with ease in the long run.
As we greatly appreciate the NASS for approving the lofty move as engineered by the Presidency, it ought to also note that it’s required to use its oversight function to ensure the successful and timely completion of the laudable project. This mustn’t be taken for granted or juxtaposed with politics as usually witnessed in Nigeria.
The executive on its part needn’t be reminded that consulting the cognoscenti in the process cannot be compromised for whatever reason.
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