Ajaokuta will now function as purely private entity, FG declares

THE Federal Government, on Tuesday, declared that Ajaokuta Steel Company would now function as a purely private entity.

It added that the present administration of President Muhammadu Buhari was putting a lot in place to ensure that it ceased to run as a public concern.

Minister of Mines and Steel Development, Dr Kayode Fayemi, reiterated government`s position on the steel complex during a facility tour of Abuja Steel Mill, a subsidiary of African Steel Company, on Abuja-Kaduna road.

In a signed statement by his Special Adviser on Media, Olayinka Oyebode, a copy of which was made available to the Tribune Online in Abuja, the minister stated that government was putting a lot in place to get the Ajaokuta Steel Complex back to life.

Dr Fayemi said experts with proven track records and required financial capability would be encouraged to key into the scheme through a competitive bidding process that would be transparent.

He said government was committed to ensuring Ajaokuta works, because it believed that a functional complex would greatly assist the country’s developmental drives.

The minister identified the most crucial needs of the country now as energy and power, and advised that since government was putting the necessary infrastructures in place to address these needs, steel companies operating in the country should continue to maintain high product quality and put them out at reasonable prices for consumers, especially now that the pressure on the dollar was reducing.

Dr Fayemi pledged the support of government to the companies that were manufacturing locally, urging them to develop training programmes that would empower and groom young graduates, indigenous engineers and artisans.

According to him, “it is important that you come up with training schemes for young graduates and artisans. As you train more of these young indigenous engineers and artisans and absorb them, you will also gradually reduce the number of your expatriates. And this will help us as a country and also help your business.”

The Group Executive Director of the company, Mr Richpal Singh, accompanied by another director, Dr John Akanya, solicited government assistance to access coal energy, which he pointed out would enable them to locally produce the raw materials.

He explained that the high cost of steel products was not due to high dollar demand but the cost of procuring scrap iron which he said is among the items being taken out of the country.

Mr Singh, therefore, called on government to look into the regulatory framework that covers this with a view to arresting the trend.