…Ajaokuta Steel is not obsolete
…Seek accelerated steel sector development, zero corruption in procurement
Stakeholders have urged the Federal Government to declare a state of emergency on the nation’s steel sector.
They also advocated for zero corruption in procurement management in the country. They made the call on Thursday in Abuja, at the 7th PEEF Annual Conference (PAC) with the theme:”Accelerating Steel Sector Development in Nigeria & Achieving Zero Corruption in Procurement Management”.
The stakeholders argued that Ajaokuta Steel Plant is not obsolete as insinuated by pundits. In his address, the Chairman, Board of Trustee (BoT), People Expertise and Excellent Foundation (PEEF) Engr.Abdullar Bukar called for the revival and expansion of the Ajaokuta Steel, adding that this will engender economic prosperity in Nigeria.
Bukar also underscored the need for a corruption free environment in the management of the nation’s investment in the steel sector.
He said,”Let us develop our country, so that we can process what we have and also sell finished products. Switzerland does not produce a single raw cocoa but they are the one who make the most money out of cocoa. They take raw materials that we produce, add value to it, they sell it at the price and we also go and buy.
“It seemed as if we do not value what we have that is capable of improving the quality of life of our own people. By implication, we are stagnating because our income is dropping but our population is growing. So, we now have a double problem, in one side our population is exploding and in the other side we are unable to economically sustain ourselves.”
He opined that steel has the potential to generate N7bn annually for the country if properly harnessed.”Nigeria is exporting cement, it is also possible to export steel, therefore Ajaokuta should not only be revived but should be expanded.
“The most important part of it, is that we also need a corruption free environment to ensure efficient management of our investment on steel,” he said.
Also speaking, the Minister of Steel Development, Shuaibu Audu represented by A. T. Umar said the privatization of the steel sector in Nigeria has over the years not yielded the desired result.
He said the Minister of Steel Development is making effort to collaborate with financial agencies to revive the Ajaokuta Steel.
“The funding of the Steel Companies in Nigeria became challenging which was what led to the privatization of the steel companies. Most of the companies that were privatized could not take off, these were the fallouts of privatization. We are at a stage where we are now rethinking whether to reverse the privatization of the steel sector in the country.
“During the President Buhari’s administration a lot of fund were invested on mining but the steel sector was neglected. As a government we need to produce steel from raw materials, this will bring economic prosperity to the nation. What the Minister is doing is to think outside the box in developing the Ajaokuta Steel.
“We want to collaborate with agencies, including financial agencies to see what we can do. We are working to develop the necessary manpower to man the sector,” he said.
Former Managing Director, Delta Steel represented by Engr. Anthony Madagua remarked that the Nigerian Government is ignorant of the value of steel. “Steel is power, steel is technology. I discovered that the Nigerian government does not really know what steel is all about. I have seen what steel has done in India. Infact, India has more steel plants and is still establishing more steel plants. Ajaokuta steel can be turned around.
“What we experienced in Delta Steel Should not be allowed to happen to Ajaokuta. I have written so many times to Presidents, even when President Jonathan was there and Buhari but they were not listening.
“Corruption is a major issue in the country and we are believing that this have to be addressed appropriately. With regards to what has happened in the past in the steel industry, I believe if the procurement have been very thorough may be we would have been able to get proper result especially in the privatization of the steel companies.
“If we are to go by the result from the privatized companies, if we are to go by the results emanating from their sales, privatization is supposed to bring in efficiency with improved performance but if you privatize a company to a group or an individual that does not have the capacity to run it technically or financially then something is wrong with the procurement process. So these are some of the fallouts of improper procurements process which can be likened to corruption. I believe this have to be addressed if we must move forward in terms of curbing public procurement corruption.
At the conclusion of the auspicious event, the group unveiled actionable points which include the declaration that the Steel Sector is the backbone of the country’s industrialization, that Ajaokuta Steel is not obsolete, and also recommended the inauguration of National Council of Public Procurement to oversee the Bureau of Public Procurement (BPP), among others. …Ajaokuta Steel is not obsolete.
