Ajaokuta Steel Company Limited (ASCL) was designed to be the driving force of Nigeria’s technological advancement and the need to revamp the nation’s steel sector is now more compelling than ever before as the global oil price continues to drop.
The construction of the Ajaokuta plant commenced under the administration of Alhaji Shehu Shagari in 1979 and was commissioned in 1983, when the project had achieved about 95 per cent completion rate. At that time, the following rolling mills of the steel plant were in operation: light, billets, wire rod, medium section and structural mills. It was planned then that profits generated would provide the needed funds for the completion of the remaining 5 per cent of the plant.
However, since its inauguration in 1983, the plant has been embroiled in managerial ineptitude and controversy, ranging from allegations of obsolete machines and outdated blast furnace model. Despite its initial completion, the plant had suffered years of neglect under successive administrations but to no avail due to lack of political will.
There was a technical audit report by Ukrainian engineers recently which states that the situation of the steel plant’s equipment and facility are satisfactory.
“Technically, the Ajaokuta plant’s equipment and facilities are generally in good condition”. According to them, the blast furnace model which Ajaokuta steel plant has is the best in the world. “In 2010, the world statistical year book put the total crude steel rates produced globally at 1.4 billion tones, of which 74 per cent was through blast furnace.
Experts have said that the steel plant, if completed, has the capacity of producing 1.3 million metric tonnes of liquid steel and serve as a net provider of employment.
What is required in Ajaokuta is adequate funding and maintenance.
I sincerely urge President Muhammadu Buhari to develop the will to reactivate the steel company.
At optimal production level, the steel plant at Itakpe can generate over two million jobs for youths if properly funded because many cottage industries that will make use of the by-products from the steel mill would be established.
The Federal Government cannot create jobs through the establishment and duplication of agencies which in many cases would be scrapped due to policy inconsistency by successive governments.
The surest means of creating jobs in developing countries like ours is through technological initiative and advancement which will lead to industrial revolution. India is a typical example; the Tata Motor Company of India was established at about the same period when Ajaokuta steel company was established. Today, Tata is the major supplier of military trucks and other vehicles to Nigeria.
It is ridiculous that in the 21st century, the giant of Africa is still importing slabs, roofing sheets, simple agricultural tools such as hoes and cutlasses, glassware, potato chips, tooth picks and now even grasses etc from countries which became independent after Nigeria.
Mathematically, since the crude oil is almost 68 percent of the annual budget and its external value is consistently lessening, the revenue will be affected – affecting the budget, too.
Unthinkably, we refused to pluck up the courage to ask if the Oil we have will be “oily” forever – forgetting that change, in this life, is constant.
Forgetting that the crude oil today, can be steel tomorrow – whether we like it or not. No doubt, this is the bone of contention.
Favourably, President Buhari need to make an utter, bold initiative to expand the economy as proved in his statement – not limited to the crude oil deal like before. Other vital aspects like solid minerals, science & technology and agriculture should be strengthened. Such development, certainly, would have a lasting impact in Buhari’s administration.
Conclusively, the neglect of the Ajaokuta company is not just a neglect of Kogi State, but a grave neglect and marginalization of the Middle-Belt region of Nigeria and an attempt to endanger the future of the Nigerian youth in general.
– Balogun Emmanuel Funsho; from Kabba, Kogi State.
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