Ajaokuta Belongs to FG, Fayemi Reminds Global Steel Holding Limited

Kayode Fayemi

Kasim Sumaina in Abuja

The federal government wednesday reminded Global Steel Holding Limited (GSHL) that it doesn’t need any mediation to determine the ownership of Ajaokuta Steel Complex even as it noted that the Integrated steel complex has always been its property.

The Ministry’s position, as stated by the Minister of Mines and Steel Development, Dr. Kayode Fayemi is that, Ajaokuta Steel Complex belongs to the Federal Government of Nigeria, and there is no contention about this fact.

This was contained in a statement by the Special Assistant to the Minister of Mines and Steel Development, Olayinka Oyebode and signed by the Permanent Secretary, Mohammed Abbas, in Abuja

According to the statement, “the attention of the Ministry of Mines and Steel Development has been drawn to recent media reports, where Dr S.O. Nwanbuokei, a director of Global Steel Holdings Limited (GSHL), was quoted as saying that the protracted litigation surrounding the ownership of the Ajaokuta Steel Complex had not been resolved.
“His claims contradict the position of the Honourable Minister of Mines and Steel Development, Dr Kayode Fayemi, who reaffirmed the Federal Government’s ownership of the Ajaokuta Steel Complex, during the just concluded Nigerian Mining Week, as he has done in similar fora.”

The statement further said, “The Federal Government does not need any mediation to determine its ownership of Ajaokuta Steel Complex as the integrated steel complex has always been the property of FGN.

“It must be stated clearly that the concessioning of an asset does not make one lose the ownership of the asset.
“In the case of Ajaokuta Steel Complex, the Federal Government remained the actual owner of the asset, while the concessioning arrangement was in place. This situation has not changed after the entire concessioning arrangement crumbled.

“The position of the government is that having ceded the National Iron Ore Mining Company (NIOMCO), Itakpe to GSHL, for the remaining concession period, as part of the agreement reached during the mediation, government would at the appropriate time take a decision on how best to put Ajaokuta Steel Complex to profitable use.

“This includes engaging a new core investor with proven financial and technical capacity to turn around, complete and run the steel complex profitably.
“This is still the position of the government,” it concluded.

  • chyke

    Congrats and what does the country get from that? We have seen all these before. Remember Nigeria Airways, NITEL, etc. The country needs revenue not ownership. How many people are employed at Ajaokuta Steel Mill.
    Look at other economies, beating our chest about ownership has never helped us as a nation. I remember when Virgin Nigeria was chased out of MMA by thugs (Police), where is the airline now? All those jobs lost, Virgin sold up and left us with the airline, which quickly became comatose.
    Whatever the story is please this Steel Mill is better run by a private company. We can even pay a reputable company to take it over. This has been done successfully in other countries.