Ajaokuta: Reps Question Govt’s 500m Euro Bill in NIOMCO’s Agreement

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The House of Representatives Committee on Privatisation and Commercialisation sub-committee on Steel  is to meet with the Minister for  Solid Mineral Development, Dr. Kayode Fayemi today over the modified agreement with GSHL and NIOMCO.

The sub-committee is specifically questioning a 500m Euro Federal Government bill in NIOMCO modified agreement and another N 8.7 billion for settlement of workers entitlements.”

The meeting according to the Chairman of the Subcommittee, Hon. Babatunde Gabriel Kolawole is to discuss the signed modified agreement with GSHL and NIOMCO on behalf of Nigerians.

“It is important because Nigerians want to know what it means, the benefits. Implications and all other details of the agreement including how the observations raised on same agreement by the former Hon. Minister of Steel and Solid Minerals Development  which led to his refusal to sign it was resolved.”

The sub-committee is also interested in knowing why the ministry has signed the modified NIOMCO agreement with was rejected by the former Minister.

The former Minister refused to sign because Nigeria was required under Section 4 A1(b, d, h) to commit 120. 4 million euros for the rehabilitation of all plants, equipment and other facilities include ping remediation of all loss of materials, theft, deterioration etc.

And another “372, 539,307.90 euros for the completion of super concentrate, weathered ore treatment plant, and to other associated facilities and N 8.7 billion for settlement of workers settlement entitlements.”

The agreement to Iron Ore Mining Company to Global Steel was reached in London in June to enable it complete its concession. The inability to sign the agreement since it was terminated in 2008 has cost the country $3. 3 billion in terms of imports of steel products, The Nation learnt.

Credit: The Nation

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