The Minister of State for Solid Minerals Development, Mr. Abubakar
Bawa-Bwari, had said on Thursday that the Federal Government spent over
$10bn on the Ajaokuta Steel Company in the last 35 years.
He also said the government escaped paying damages in excess of $525m
to Global Infrastructure Holdings Limited by signing a modified
concession agreement with the latter to enable the firm to retain the
National Iron Ore Mining Company, Itakpe. The modified seven-year
concession agreement was signed on August 1, this year.
Punch reports that the Chairman of the committee, Mr. Ahmed Yerima; the
Chairman, Sub-committee on Steel, Mr. Gabriel Kolawole, and other
lawmakers disagreed with the minister.
For instance, Yerima queried why the BPE was not fully involved in the process.
Some members wondered how the same government that spent over $10bn on
Ajaokuta Steel was in a hurry to return to the GIHL just to avoid paying
$525m damages.
The BPE, through its acting Director-General, Mr. Vincent Akpotaire,
said it had not been fully involved in the privatisation of NIOMCO and
Ajaokuta since 2004.
Akpotaire recalled that there was only one meeting where the BPE made
proposals to the government, but stressed that the agency was not
accorded further invitations.
“The way forward is perhaps to unbundle the various plant lines in
Ajaokuta, which can all stand independently on their own as against
going for a single core investor again,” he stated.
Akpotaire also said records indicated that NIOMCO and Delta Steel did
not find their feet after the first privatisation in 2004 because the
GIHL “clearly lacked the capacity” to deliver.
Workers of the steel firms and members of the host communities opposed
the latest agreement on account of unresolved issues; one of which was
the non-payment of outstanding benefits.
Others were calls for the payment of compensation for lives lost in the
host communities during the various protests staged by their youths to
oppose the privatisation policy.
The committee said it would have to report its findings to the general House.
Title : Ajaokuta update: House of Reps C'ttee Disagrees with Minister on Concession
Description : The Minister of State for Solid Minerals Development, Mr. Abubakar Bawa-Bwari, had said on Thursday that the Federal Government spe...
