The Federal Government has said it would appoint a competent private investor to complete the construction and commercialise the operations of the Ajaokuta Iron and Steel Plant.
The minister of mines and steel development, Dr Kayode Fayemi, said this on Saturday at the 11th national delegates conference of the Iron and Steel Senior Staff Association of Nigeria (ISSSAN) held in Lokoja, Kogi State capital.
He said the plans of the government on steel production would be made visible next year.
He said the ministry would collaborate with the Transaction Advisers and other relevant agencies of government like infrastructure Concession and Regulatory Commission (ICRC), and the Bureau of Public Enterprises (BPE).
The Minister who was represented by the Sole Administrator of Ajaokuta Iron and Steel Complex, Engr Isah Onobere, said the Federal Government has resolved to break the four decade long jinx of liquid steel production in Nigeria.
“The execution of the Modified Concession Agreement on the National Iron Ore Mining Company, (NIOMCO) Itakpe, was one of the actions taken by the present administration of President Muhammadu Bukari with the sole intent of unlocking the public steel sector from all arbitral encumbrances since 2008”.
Fayemi noted that the roadmap for the minerals and metal sector of the present administration provided that government is to focus on its role as administrator/ regulator and no longer owner/operator.
“This implies that the efforts of the Ministry are geared towards creating the favorable investment climate for private operators to thrive in the Steel industry,” he said.
The minister noted that the process of the negotiation of this agreement, MCA on NIOMCO, which commenced in January, 2013 involved all relevant stakeholders.
“The negotiation process achieved an agreement that was far more superior to the original NIOMCO Concession Agreement of 2005.
“The government position on NIOMCO, Itakpe was the best available option in view of the fact that it was a dispute negation between two parties.
“However, I have put up a robust mechanism in place to ensure that our collective national interest is secured in the implementation of the MCA,” he stressed.
He noted that the Ministry through the intervention agencies and fiscal policy tools of government would continue to provide reliant incentives to the private operators in the steel sector for conducive and competitive business climate in Nigeria.
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