The Federal Government of Nigeria has dismissed the recent claims by Africa’s richest man, Aliko Dangote, that the Ajaokuta Steel Company Limited (ASCL) would never work.
The FG stated it’s commitment to bringing the decades-old moribund facility into productive use.
This was disclosed in a press statement signed by the Head of Press and Public Relations Department, Ministry of Steel Development, Salamatu Jibaniya on Thursday in Abuja.
He said, “Although the Federal Government acknowledged the challenges with completing the project, it was, however, determined to turn the company around.
Jibaniya stated that another technical and financial audit of the firm was being undertaken, and the outcome of the exercise would point the way forward.
Reacting to Dangote statement on the steel plant, the press release stated: “While we note the concerns expressed, it is important to state that the Federal Government remains firmly committed to the development of Nigeria’s steel sector, including the resuscitation of ASCL.
“A comprehensive technical and financial audit of the plant is presently underway to ensure that any decision taken is transparent, data-driven and in the best interest of Nigeria.
“The overall assessment of the previous technical audit report dated 2018 maintained that the general status of the Steel Plant is in robust condition. Except for normal deterioration of replaceable parts and recommended automation of manual control systems for improved efficiency
The Ministry expressed confidence that the updated audit will provide a sound basis for decisive action that advances Nigeria’s industrial aspirations
“The Federal Government is determined to build a competitive and modern steel industry that supports national industrialization and infrastructure growth,” the statement concluded.
•Ajaokuta Steel Plant
Recall that the Ajaokuta Steel Plant was started in 1979 under the former President Shehu Shagari’s administration in the Second Republic.
The plant was part of Nigeria’s efforts to industrialize and become self-sufficient in steel production.
However, despite being nearly completed, Ajaokuta Steel has never produced steel at a commercial scale. This is due to a combination of mismanagement, political interference, lack of funding, and failed concession agreements.