KOGI, JUNE 5, 2018 – About $4.5 bn which should have come into the Federation Account is being lost annually because of the non-completion of Ajaokuta Steel Complex in Kogi State.
Ahmed Rufai, former Director General of Nigcomsat, made the revelation yesterday at the hearing of the House of Representatives ad hoc committee ‘ one day investigative hearing on the reason for the failure of Ajaokuta Steel Company to commence operation fully since inception
The committee was headed by House Leader, Femi Gbajabiamila.
According to him, Nigeria should be earning $4.5bn annually as foreign exchange if the Ajaokuta steel Company were to be in full production.
The Ajaokuta steel company, was commissioned in the eighties by the civilian administration of Alhaji Shehu Shagari , since then, it has been lying moribound and successive regimes have failed to make it operational.
Ahmed said of the 1.7bn tons of steel produced world wide, Nigeria could produce an initial output of 1.5% of world output and increase it to 5.2% at full capacity eventually.
Also, lawmakers and other stakeholders urged President Buhari and Economic and Financial Crimes Commission (EFCC) to revisit the probe of asset stripping at the Ajaokuta Steel Company Limited (ASCL).
According to them, the President should visit Ajaokuta with the view to take informed decisions.
Natacha Akpoti, a legal practitioner spoke of the need to prosecute promoters of the shell companies bidding for the company for economic sabotage.
She said the son of a late former Head of State and a serving Governor were responsible for the lingering crisis in the steel complex.
She also said there is the need to investigate Nigerian saboteurs making Ajaokuta unrealistic.
Her words :”Shockingly, it must be noted that Ex AGF Adoke memo mentioned in item 6. (a) that: ‘In light of the fact that a presidential committee had estimated damages payable to Global in the region of $525m, the agreement of Global to wave its right to damages is a substantial achievement”.
“This singular statement goes a long way to prove that: It was not the International Arbitration Court in England that indicted
Nigeria to $525m but a presidential committee.
That this committee was made up of Nigerian individuals and agencies.
Nigerians would like to know: How the Presidential Committee arrived at indicting Nigeria against the foreigners to such a huge amount of $525m when Inuwa Magaji’s report proves contrary,” Akpoti stated.
In his presentation, Bawa Bwari, Minister of State for Mines and Steel confirmed that the N2 billion was included in the 2017 budget for audit was part of the concessionning process, adding that between $500 million and $1 billion is expected to complete the project.
Samaila Akaaba, ASCL Sole administrator, in an earlier presentation said about $635 million required to complete the two percent left undone based on the internal audit conducted by the ASCL management in synergy with two Ukrainian firms and Nigerian Society of Engineers (NSE)
According to him, based on the audit conducted in 2010, about $800 million is required to complete the internal and external infrastructure of Ajaokuta Steel company.
Gbajabiamila in his opening remarks spoke of the resolve of the House towards the industrialisation of Nigeria through a steel based socio-economic and infrastructure development.
“We all known that any country that has not migrated to the level of steel production development has not started as a true independent nation and that such national interest us the only religion that is pursued.”
“Hence, a nation without a steel development production capability will only be playing at the periphery of world industrialised countries.”
