The Nigerian Metallurgical Society (NMS) has cautioned against a second concession or privatisation of Ajaokuta Steel Rolling Company without adequate arrangement for infrastructure, noting that it could lead to its total collapse.
President of NMS, Prof. Benjamin Adewuyi, made this observation at the 33rd Annual Conference of the society in Warri, Delta, on Thursday.
The theme of the conference is “Metal Production: a Panacea for National Security and Economic Recovery”.
Adewuyi said the issues of infrastructure that brought the steel plant to a standstill without completion were being brushed aside.
According to him, the re-concession of Ajaokuta Steel without infrastructure can amount to burying the steel plant.
The president said that the company that had attained 98 per cent completion, would require 400 million dollars to complete the remaining two per cent.
He also said that two billion dollars would be needed for infrastructure rehabilitation and operational cost for the plant.
“Steel and aluminum industries have been described as pathway to economic and industrial growth but Ajaokuta steel and Aluminium Smelting Company of Nigeria (ALSCON) in Ikot Abasi, Akwa Ibom, have been in one controversy or the other.
“More than four decades after conceptualisation of establishing metallurgical plants in Nigeria, the debate on the viability of steel plant in the development of the country still rages on.
He said that development of Metal and Mineral Sector could be generally seen as a major index of national prosperity because of its enormous capacity to support and stimulate growth in virtually all sectors of the economy.
“The irony is that we want to develop, manufacture vehicles; we want efficient electricity and transportation system, yet any time revitalisation is mentioned in the metallurgical sector, there is always unusual apathy and nonchalant attitude.
“The role of steel in national development cannot be over emphasised; it is not only the pillar or bedrock of industrialisation, it is also a yardstick for measuring the strength of a nation.
“The world’s steel development within the last decade has soared to an annual growth rate of seven per cent per year, and more significantly to a growth rate of about 27 per cent annually in China,’’ he said.
Adewuyi said that Africa, and indeed Nigeria, remained the dumping ground for steel products and in most cases low quality steel.
“Since we cannot produce our own steel, we have to make use of whatever we are given.
“There can never be any economic development without industrial development that is linked to steel production.
“A vibrant metal industry is germane to implementing the economic growth and recovery plan,” the president said.
He said that avoiding mistakes of the past was the main concern of the society for the country, adding that the society’s intention was to use the conference to once again advise the government constructively on the way forward.
“It is high time for revival of the metal sector to bring about the much desired mass engagement of our youths in metal casting, forging, welding and fabrication.
“We must not fold our arms or keep quiet while things continue to degenerate.
“It is on that note that we are proposing an all inclusive Mines and Metallurgy Council that will take care of central planning for all activities in ferrous and nonferrous metallurgy.”
According to him, many Nigerians are suffering today because of activities of few people who prefer self interest above national interest.
He said as vital as the sector was, it had been toyed with for too long, noting that there was little to show government eagerness to reactivate the steel plant at Ajaokuta.
The Ajaokuta company was concessioned to Global Holding Infrastructure Limited (GHIL) between 2004 and 2005 by former President Olusegun Obasanjo.
However, the Indian firm did not live up to expectations as it could not manage the company.
Following the failure of GHIL to manage the company, the Federal Government under late President Umaru Yar’Adua, was compelled to revoke the contract.
Credit: TheNews
