Nigeria needs USD 880 million to complete Ajaokuta Steel
Sunday, 01 Nov 2009
All Africa.com reported that Nigerian House of Representatives has resolved to investigate the Interim Management Committee of Ajaokuta Steel Company and the National Iron Ore Mining Company, Itakpe over what it described as massive looting of equipment at both companies.
It has also revealed that the federal government would require about USD 500 million for the completion of the steel complex and another USD 380 million for the provision of infrastructure such as rail lines and roads.
The House had at the plenary upon a motion sponsored by its committee chairman on steel, Mr Aminu Shehu Shagari alerting the parliament of large scale looting at the steel complex condemned the looting and resolved to investigate the Interim Management Committee of the companies on why it has failed to prevent the mass looting of the properties under its custody.
It subsequently directed the Inspector General of Police Mr Ogbonna Onovo to tighten up security at both companies as part of measures to put a stop to alleged looting of assets. In adopting the resolutions contained in a motion, the lawmakers urged the Federal Government of Nigeria to abide by an earlier directive of the House to complete and commission the project without further delay.
Mr Shagari had in his lead debate informed the House that the original contractors that built the Ajaokuta Steel Company, PTE Russia have told the Federal Government that $500 million would be required to complete work on the industrial complex while $380 million would be needed for the provision of supportive infrastructure such as roads, rail lines and electricity.
He noted that the steel company has the potential of facilitating the goal of the Federal Government to make Nigeria one of the 20 most developed countries in the world in the year 2020 because steel production is the bedrock of industrialization and economic development of any country. He added that when functional, the company could provide employment for as many as 20,000 to 30,000 people as well as develop smaller companies in the country.
He however lamented that though the Federal Government has expended over USD 4.6 billion on the steel company, there are inadequate measures to protect the investment as there is massive looting of properties in the complex which is already 98% complete.
Speaking on the motion, he said that "The money needed to complete the complex is less than what the Federal Government has signed for the construction of railway from Abuja to Kaduna. If we had used that money to continue construction, it would have been completed by now."
