THE executive and the legislative arms of government appeared set for a clash over the management of the multi-billion naira Ajaokuta Steel Company, as the Minister of Solid Minerals Development, Dr Kayode Fayemi, said the federal government might not invest in the project.
He said the successive governments in the country had sunk over $8 billion on the project without any meaningful achievement.
This is just as vice president Yemi Osinbajo, said the federal government was ready to maximise the steel company to unlock the potentials of Kogi state.
The minister spoke at the first Kogi state economic and investment summit, held in Lokoja, the state capital.
This is coming on the heels of the rejection of any concession arrangement for the development of the steel company by the speaker of the house of representatives, Yakubu Dogara.
Dogara had during an oversight visit to the Ajaokuta steel complex on Monday said the lawmakers would not support any move that would make the company go into private hands.
He described the present condition of the company as a national embarrassment and shame to the country.
However, during his presentation at the summit, Fayemi said it would be a long journey to revive the steel company as a huge investment would be needed.
The minister expressed regret that the present status did not justify the huge investment of the federal government on the project.
The former governor of Ekiti state, however, noted that efforts were on to revive the place with the restoration of the 110 megawatts power plants located within the complex.
Speaking of the steel company, the vice president said the federal government recognised the potentials in the state, noting that all legal issues on the steel company had been resolved.
He said the 110 megawatts power station is expected to service the company and also send power to the national grid for the benefit of the entire country.
According to him, the technical auditing of the steel company would soon be completed to pave way for further developmental actions on the company.
Osinbajo noted that when fully operational, Ajaokuta steel company would be maximised to open up the economy of Kogi state to enable it to benefit from its potentials.
He said, “Kogi is one of the industrial and business ready destinations in the country and the federal government will be ready to collaborate with it to make it maximise its potentials”.
and then