Ajaokuta: FG Advised To Be Cautious On New Concession Deal

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The Federal Government has been advised to thread with caution over the recent concession it reached with Global Steel Holdings Limited (GSHL) of India, to set the pace for the resuscitation of the nation’s ailing steel industries.

President of the Nigerian Metallurgical Society Prof. Benjamin Adewuyi, in an interview with Daily Trust said the antecedents of GSHL gives reasons to be apprehensive.

“If despite all the allegations against GSHL, the Government still prefers to do business with the company, one can predict what will come out of the present arrangement. We will be happy if GSHL can prove us wrong.

“While not debating the fact that the Federal Government means well for Nigerians, we must not play into the hands of our detractors again. Any mistake made now will be the final straw without remedy that will terminate our dream of steel production forever,” he commented.

Prof. Adewuyi said before the agreement with GSHL, the FG should have involved major professionals, stakeholders and especially the House and Senate committees on steel to avoid the mistakes of the past.

“We should not forget in a hurry that inappropriate planning and corruption brought us into the present situation. No doubt, the present Government inherited the problems of the steel sector; however we are very much concerned about the future of steel production in Nigeria,” he said.

The FG had on Monday signed a renegotiated concession agreement with Global Steel Holdings Limited for the Nigerian Iron Ore Mining Company (NIOMCO), Itakpe. The new deal according to Solid Minerals Development minister Dr. Kayode Fayemi, was a process to kick start the functioning of the Ajaokuta Steel plants.

Credit: Daily Trust

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