A Civil Society Group, Social Integrity Network (SINET), has enjoined President Bola Ahmed Tinubu to halt further transactions on the revitalization of Ajaokuta Steel Rolling Mill which is aimed at transferring to foreigners through the back door contrary to the national interest of protecting the heritage of the nation.
In a statement issued by its National Coordinator, Ibrahim Issah, SINET recalled that Nigerian lawmakers recently passed a resolution to probe the $496million paid by the Federal Government to an Indian firm which failed to revitalize the Itakpe Iron Ore Company after three years.
SINET noted that preference should be given to national companies that can run such plants, ensure employment generation, reduce imports, and do away with siphoning out much-needed forex and mineral resources.
The group lamented that despite the presence of highly intellectual personalities such as University Professors, Industrialists, members of the National Assembly, seasoned administrators, captains of Industries, and technical and financial consultants among others, it called for question why foreigners should be allowed to dominate Nigeria’s business space.
The group alleged that a foreign firm has been asked to work out takeover proposal despite court injunctions, and warned the government to understand that Ajaokuta and Delta Steel Company were very old and any company claiming to run and earn profit was just misleading the nation.
“Global Infrastructure Holding Ltd. (GIHL) took over the National Iron Ore Mining Company (NIOMCO), Itakpe, Kogi State, in 2016 and got its agreement terminated in 2019 due to nonperformance.
“GIHL dragged the Federal Government to court for breach of contract and it was awarded damages to the tune of $496million which had been paid.
“We are outrightly against the way the federal government is deliberately and ignorantly selling out its national heritage without recourse to the yearnings and agitation of Nigerians especially at this crucial period when the nation is battling with economic stability among other challenges.
“Almost five decades of lost opportunity towards strengthening large scale Steel Production in Nigeria, failed attempts without a proper road map. It is also on record that Russians and Ukrainians supplied already obsolete technology in the 1970s.
“Another blunder was committed by handing over Ajaokuta, Itakpe mines with all the infrastructure and Delta Steel plants to GLOBAL INFRASTRUCTURE HOLDING LTD GHIL, India. They took over the plant and siphoned out all the resources from the country and eventually country did not get any benefit.
“GIHL was never serious in running the plants and mines at Ajaokuta Steel Company Limited, Delta Steel Company, and Itakpe. Later, GHIL sold its stakes in Delta Steel Company to Stallion Group under an SPV to Premium Steel & Mines Limited This acquisition was also a marvel of financial engineering by PSML to hide black money generated and siphon out of the country through their other businesses,” he said.
The group advised federal government and its concerned ministries to carefully dig deep into their detailed project report, elaborated business plan, capital outlay and cash flow projections by involving independent agencies and champions of business in Nigeria
