Fed Govt, GINL to resolve Ajaokuta Steel dispute

Alex Okoh, the director-general, Bureau of Public Enterprises (BPE), has expressed the willingness of president Muhammadu Buhari’s administration to resolve ongoing legal issues between federal government and Global Infrastructure Nigeria Limited (GINL) on Ajaokuta Steel Company Limited.

He said the government was desirous to see that ASCL was completed and made operational. He therefore solicited the support of the National Assembly, management of ASCL and other stakeholders in achieving the goal under the administration.

A statement released Wednesday noted that the Federal Government has not relented on its effort to address the issues of the steel industry and rescue it from its current state, foremost among which is the completion and operations of the plant.

It added that the government is desirous to achieve this through a robust framework to drive and guide the process for the revitalisation of ASCL and the steel industry in general.

The statmente reads: “In line with the above and the government’s desire to concession ASCL, a team of key stakeholders made up of Hon. Abdullahi Ibrahim, Chairman, House Committee on Steel (NASS), Alex A. Okoh Director General Imeh Okon, SSA to President on Infrastructure, conducted a fact finding visit to the Ajaokuta complex on August 19th 2019.

“The main objective of the visit was to ensure the country taps into the potential of the steel sector to transform the economy. “Other objectives of the visit were to avail members the opportunity to physically inspect the complex in order to appreciate the quantum of investments made; meet with the management and obtain the management’s option(s) on the issues that affect the plant with the view to enriching the strategy to be adopted for resuscitating the complex.

“A physical tour of the enterprise to some of the major plants, installations and facilities in the Complex was done by the Team. Some of the plants and other facilities visited included, Steel Making Plant (Blast Furnace), Light Section Mill, Wire Rod Mill, Medium Section & Structural Mill, Thermal Power Plant, Lime Plant, Machine/Tools Shop , Water In-take Plant, Rail tracks, Road networks, etc.”

It said the team verified and confirmed the management’s claim that many of the machines in the respective units were in a good condition and would only require minor repairs to operate effectively.

Additionally, the team observed that the status of the ASCL plant was not as dilapidated as assumed generally, but that the plant was rather in a reasonably operational state.