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Experts lament as FG spends N20bn on idle Ajaokuta Steel in six years

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The Federal Government allocated N20.4bn to Ajaokuta Steel Company Limited from 2016 to 2021 despite the company’s idleness.

The data were collated from the appropriation bill for each year available on the website of the Budget Office of the Federation.

In 2016, N295.1m was allocated with N135.2m released by October of that year.

However, a detailed breakdown of the expenditures for the year was not available.

In 2017, the total allocation was N4.3bn with recurrent expenditures at N3.9bn and capital expenditures at N354.1m.

For the recurrent expenditures, total personnel cost was put at N3.8bn while total overhead cost was put at N75.3m.

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In 2018, the total allocation was N4.3bn with recurrent expenditures at N3.9bn and capital expenditures at N354.1m.

For the recurrent expenditures, total personnel cost was put at 3.8bn while total overhead cost was at N75.3m.

Further breakdown showed that salaries and wages cost N2.9bn, allowances and social contribution cost 895.3m, uniforms and other clothing cost N2.5m, refreshments and meals cost N1.8m, and purchase of bus cost N41.3m.

Funds were also budgeted for certain projects such as the maintenance of power facilities for N106.3m, construction /provision of water facilities for N196.5m, lighting and security of Ajaokuta steel plant at N10m and purchase of a 30-seater bus at N413m.

In 2019, the total allocation was N3.6bn with recurrent expenditures at N3.3bn and capital expenditures at N262m.

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For the recurrent expenditures, total personnel cost was put at N3.25bn while total overhead cost was put at N75.3m.

Further breakdown showed that salaries and wages cost N2.5bn, allowances and social contribution cost N793.6m, uniforms and other clothing cost N2.5m, refreshments and meals cost N1.8m, and purchase of bus cost N41.3m.

Funds were also budgeted for certain projects such as the maintenance of power facilities for N87.7m, construction /provision of water facilities for N123m, lighting and security of Ajaokuta steel plant at N10m and purchase of a 30-seater bus at N41.3m.

In 2020, the total allocation was N3.7bn with recurrent expenditures at N3.6bn and capital expenditures at N147.2m.

For the recurrent expenditures, total personnel cost was put at N3.5bn while total overhead cost was put at N51.5m.

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Further breakdown showed that salaries and wages cost N43.3m, allowances and social contribution cost N5.4m, uniforms and other clothing cost N273,684, and refreshments and meals cost N1.6m.

Funds were also budgeted for certain projects such as the maintenance of power facilities for N43m, construction/provision of water facilities for N94.2m, and lighting and security of Ajaokuta steel plant at N10m.

In 2021, the total allocation was N4.2bn with recurrent expenditures at N4bn and capital expenditures at N253.9m.

For the recurrent expenditures, total personnel cost was put at N3.9bn while total overhead cost was put at N72.3m.

Further breakdown showed that salaries and wages cost N3bn, allowances and social contribution cost N846.5m, uniforms and other clothing cost N2.5m and refreshments and meals cost N1.8m.

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Fund was budgeted for only one project in 2021, which was the construction/provision of water facilities for N80m.

Russia’s Tyazpromoexport built the plant, which was incorporated in 1979.

The steel mill reached 98 per cent completion in 1994, with 40 of its 43 plants having been built before it got stuck, with the remaining two per cent for external infrastructure like waterways and viable ports.

Despite the regular budget, the steel company is yet to commence full operations in over 42 years, with the government making failed attempts at privatisation and concession.

In an attempt to revamp the company, an Indian company, Global Steel Holdings Limited, won the concession of the Ajaokuta steel mill for a 10-year period but the agreement was revoked when the Federal Government accused the firm of asset stripping, a development which led to a court case between the two parties.

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The Federal Government announced in 2016 that the legal dispute had been resolved, after it reportedly ceded the National Iron Ore Mining Company, Itakpe, to Global Steel for the remaining concession period, in line with an agreement reached during mediation talks.

However, the resolution has since turned contentious.

In 2019, the President, Major General Muhammadu Buhari (retd.), ordered the completion of the company.

In 2020, the Senate also passed a resolution urging the Federal Government to, as a matter of urgency, complete the Ajaokuta Steel Complex.

The Federal Government inaugurated the Ajaokuta Presidential Project Implementation Team.

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The Minister of Mines and Steel Development, Olamilekan Adegbite, said that the Ajaokuta Presidential Project Implementation Team would enact a pact reached between Buhari and Russia’s President Vladimir Putin, which required the East European country to assist in completing the project and finding a Russian firm to manage it on Build-Operate-and-Transfer basis.

The minister said that Afreximbank would fund the project with $1bn, while the Russians would offer $460m, adding that a Russian firm, MetProm Group, would ensure the completion and operation of the steel company.

However, efforts at concession have failed.

There had also been calls on the Federal Government to privatise the company.

The Federal Government halted privatisation move, stating that the problem with the Ajaokuta Steel Company was very complex.

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Adegbite had said that the Ajaokuta Steel Company Ltd. would function to capacity before the end of the regime of Buhari.

The minister added that the Federal Government had made efforts to ensure that the Russian company that built the steel industry would come to Nigeria to conduct a technical audit of the company.

Ajaokuta steel project, a waste of government scarce resources, say experts
An economist and a senior lecturer of economics at the Pan Atlantic University, Dr Olalekan Aworinde, who said that he was familiar with the establishment, described the company as a waste of government resources as it is currently inactive.

He, however, said that the company had the potential to significantly drive down unemployment, improve economic growth and boost the country’s foreign reserves.

He said, “I believe it is just a waste of government resources because If you go there you will see that there are a lot of workers, getting paid without working.

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“Also, majority of the infrastructures that are put in place in that country are out of date and moribund; they can’t serve any purpose at this time.

“The only solution is to update the technology and equipment. The government should be ready to do a total overhaul of the establishment; bring in the right people and the latest technology.

“Iron oil is in abundance in Itakpe. So, if the government is able to revamp the establishment, it can reduce the rate of unemployment to a reasonable level.

“This will contribute immensely to the Gross Domestic Product growth of the country. It will also lead to the appreciation of the naira as we are going to demand less of the dollar.

“You see all those steel that we import into the country, they require foreign exchange to get them into the country.

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“In summary, a functional Ajeokuta Steel Company will mean improved economic growth, reduction in unemployment. It will also help to stabilise the forex market and improve our foreign reserves.”

A former President of the Nigerian Metallurgical Society and a professor of metallurgical and materials engineering, Federal University of Technology, Akure, Benjamin Adewuyi, said that the problem with Ajaokuta was internal.

He said, “Ajaokuta Steel Company has a problem that is internal but it is not that it cannot be revived. Ajaokuta can be revived.

“The greatest problem is that those people who have benefitted in past in the corruption of Ajaokuta will not allow Ajaokuta to function.”

He added that the company could function in six to eight months if the government implemented a steel programme and allowed those in the Ajaokuta Presidential Project Implementation Team to function.

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He added, “We have told the government several times that in less than six to eight months, Ajaokuta will start functioning if a steel programme is put in place.

“If the government allows the people who have been appointed to look at the situation in Ajaokuta to function, I am sure very soon we will see the difference between the moribund industry and the functioning industry.”

He further emphasised the need for a steel university, which he believed would provide manpower for the steel company.

“If Ajaokuta starts to work, it would require a steel university to bring out manpower for the steel plant to function well,” he said.

In May this year, the Senate passed the Nigerian Steel University Bill after the adoption of the report of the Senate Committee on Tertiary Institutions and TETFUND.

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Sen. Sam Egwu, who presented the report of the Committee on behalf of the Chairman, Sen. Ahmed Kaita, said that the Nigeria Steel University, when established, would provide the required manpower for metallurgical and technological advancement in the country.

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Sacked Works Commissioner: Release or Charge Him to Court, Oganiru Izzi Challenges Nwifuru

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“If You Have Evidence Against Stanley Mbam, Charge Him; Otherwise, Release Him” — Oganiru Izzi

A socio-cultural organisation of Izzi extraction, Oganiru Izzi, has challenged Ebonyi State Governor, Chief Francis Ogbonna Nwifuru, to either release the state’s sacked Commissioner for Works, Mr Stanley Mbam, or charge him before a competent court if the government has credible evidence of wrongdoing against him.

The group said the continued detention of the former commissioner without a formal charge raises concerns about due process, constitutional rights and the rule of law.

The leader of Oganiru Izzi, Mr Godwin Mbam, made the demand while speaking with correspondents of National Issue Newspapers at the Crack Department of the Ebonyi State Police Command in Abakaliki.

Mbam condemned what he described as the prolonged detention of Stanley Mbam without allowing a court to determine whether he had committed any offence.

He challenged the state government to produce evidence if it believes the former commissioner committed a criminal offence.

“If there is credible evidence against him, charge him to court and let the court decide. If there is no case against him, he should be released,” Mbam said.

He also appealed to the Ebonyi State Police Command to uphold the Constitution and resist any pressure that could result in unlawful detention.

Vanco Flyover: “We Will Reveal the Full Details”

Mbam also issued a three-day challenge to Governor Nwifuru, declaring that if the former commissioner was not released or charged to court, his organisation would make public what it described as the “full details” of the Vanco Flyover project.

According to him, the proposed disclosure would address issues surrounding the project, including its funding, payments, contractual arrangements and other financial details.

“We will let the world know the full details of the Vanco Flyover and how the funds were utilised,” he warned.

He further challenged the state government to demonstrate transparency by making relevant documents concerning the project available to the public.

“What About the Alleged ₦1.5 Billion Forfeiture?”

The Izzi group also questioned what it described as the selective application of the state government’s anti-corruption campaign.

Mbam referred to allegations involving an account reportedly frozen by the Economic and Financial Crimes Commission (EFCC) and an alleged ₦1.5 billion forfeiture to the Federal Government.

He questioned why, according to him, the governor had allegedly not taken similar action if the facts surrounding the matter warranted it.

Mbam stressed that he was not opposed to the fight against corruption but insisted that any anti-corruption campaign must be comprehensive, transparent and applied equally.

“If Governor Nwifuru wants to fight corruption, let him fight it holistically. Nobody should be targeted while other serious allegations are ignored,” he said.

“If Nwifuru Says He Knows Nothing, We Will Produce the Facts”

Mbam further challenged Governor Nwifuru to publicly state whether he was aware of alleged corruption issues within the Ministry of Works.

“If Nwifuru publicly claims that he is unaware of corruption in the Works Ministry, I will make public the facts available to me. The facts will shock the state,” he declared.

He insisted that the matter should not degenerate into a political vendetta, arguing that the appropriate place to determine criminal liability is a court of law.

According to him, the people of Ebonyi State deserve clear answers concerning the Vanco Flyover and other issues involving public funds.

“Everybody Should Be Subject to the Law”

The Oganiru Izzi leader maintained that the controversy should be resolved through transparency, documentary evidence and due process.

“If there is a case, charge him. If there is no case, release him. The government cannot claim to be fighting corruption while abandoning the principles of justice and the rule of law,” he said.

Mbam warned that failure to address the issues could compel the organisation to make further disclosures concerning the Vanco Flyover and other matters it considers to be in the public interest.

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Nigeria at 66: Ebonyi Reps Candidate Urges Nigerians to Keep Hope Alive

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By Our Correspondent

As Nigeria celebrates its 66th Independence Anniversary, the candidate for the House of Representatives seat representing the Ezza South/Ikwo Federal Constituency, Hon. Chief Kevin Tobias Chukwu, has called on Nigerians to remain hopeful and committed to building a better country.

Chukwu, also known as Ochiri Ozua 1 of Amagu Ikwo, made the call in an Independence Day message to Nigerians, particularly the people of Ezza South/Ikwo Federal Constituency and Ebonyi State.

He described the anniversary as not only a moment for celebration but also an opportunity to reflect on the state of the nation and the responsibilities of leaders in building a Nigeria that meets the aspirations of its citizens.

According to him, Nigeria’s journey since independence has been marked by significant challenges, with millions of citizens currently facing economic hardship, while young people continue to search for opportunities and many communities contend with insecurity and uncertainty.

Despite these challenges, the Ebonyi politician said the resilience of Nigerians remained a source of hope for the country’s future.

“I believe in the resilience of our people. I believe in the ingenuity of our youths, the strength of our women, the wisdom of our elders and the determination of ordinary Nigerians who wake up every morning and refuse to give up on this country,” he said.

Chukwu, however, stressed that hope must be matched by responsible leadership, arguing that public office should be viewed as a responsibility rather than a privilege.

He called for leadership that prioritises the protection of lives, creation of economic opportunities, provision of infrastructure, strengthening of institutions and responsible management of national resources.

The candidate also emphasised the need to create an environment where young Nigerians can pursue successful lives within the country and where hard work, merit and enterprise are rewarded.

He said Nigeria had “come too far to surrender to hopelessness,” urging citizens and leaders alike to remain committed to the country’s progress.

“A better Nigeria is still possible, but it will require responsible leadership, accountable institutions and citizens who refuse to give up on their country,” he said.

Chukwu concluded by expressing optimism about Nigeria’s future, declaring: “Nigeria will rise. Nigeria must rise. And together, we must build the Nigeria we deserve.”

He also paid tribute to the nation’s past heroes, praying that their sacrifices would continue to inspire the country.

“May the labour of our heroes past never be in vain,” he said, as he wished Nigerians a happy 66th Independence Anniversary.

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Nigeria @66: Democracy Evolving, Says Anambra APC Chairman Anosike

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By Okey Maduforo, Awka

As Nigeria celebrates its 66th anniversary of independence from colonial rule, democracy in the country has continued to evolve and deepen, the Anambra State Chairman of the All Progressives Congress (APC), Senator Emma Anosike, has said.

Anosike made the observation in a message to mark Nigeria’s Independence anniversary, noting that despite the challenges the country had encountered since 1960, its democratic system had continued to improve under successive administrations.

According to him, since the return to democratic rule in 1999, Nigeria has witnessed relatively smooth transitions from one administration to another, while citizens have continued to exercise their fundamental rights to hold governments accountable for their performance.

“Before the return of the democratic process, it was indeed difficult and near taboo to challenge the leadership of the country, and those who may have attempted it in the past faced grave consequences.

“Similarly, we have had smooth transitions from one dispensation to another, producing five presidents through the ballot and not through the barrel of the gun. These elected presidents were produced by different political parties.”

Anosike said the administration of President Bola Ahmed Tinubu had sustained the country’s democratic principles and created an avenue for Nigerians, irrespective of tribe, race or religion, to express their views on government policies and programmes.

“Under the stewardship of President Bola Ahmed Tinubu, Nigerians have been enjoying the freedom to express themselves over issues, policies and programmes of government, and those expressions have been shaping and guiding the administration of Mr President,” he said.

The APC chairman said Nigeria’s 66th independence anniversary provided an opportunity for citizens to reflect on the country’s journey as a nation and the progress made since independence.

He said President Tinubu’s Independence Day broadcast had offered another opportunity for Nigerians to renew their hope for a greater and more prosperous country.

Anosike also commended what he described as the “enormous infrastructural development” taking place across the country under the Tinubu administration.

He urged Nigerians to continue to support and have faith in the administration as the country approaches the 2027 general elections.

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66th Independence: Elder statesman wants policies to reduce hardship, calls for peace

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An Elder Statesman, Chief Hycienth Ngwu, has called on political leaders and policies formulators to ensure governmental policies and programmes directly touch lives of the people and reduce hardship in the country.

Ngwu, who is a prominent community leader in Enugu, urged Nigerians to maintain peace within neighbourhoods and communities, as no meaningful development can take place without peace.

The statesman made the call on Thursday in Enugu while reacting to the developmental efforts of Nigeria at its 66th Independence.

He said that previous and present administrations had put in place policies and programmes to reset the socioeconomic fabric of the nation.

Ngwu said that while the removal of fuel subsidy, and unification of the foreign exchange had good intentions, their impact is yet to reflect on the lives and livelihoods of vast majority of Nigerians.

He urged leaders to ensure that public resources were properly managed while citizens remained patient with reforms aimed at improving the socioeconomic status of the country.

The elder statesman noted that at 66th independence, the country was still struggling on keeping its peace and co-existence as a country; adding that the founding leaders of Nigeria envisaged a closely united, bonded and peaceful country.

He called for return to policies that promote local production, indigenous industries and entrepreneurship, arguing that excessive dependence on imports had continued to weaken the country’s productive capacity.

According to him, we are yet to achieve economic independence even as we needed to do more on non oil revenue earns as the greater part of the world is moving towards greener and clean energy.

“Greater emphasis should be on skills acquisition, creativity and entrepreneurship education system, as academic qualifications without practical skills could leave graduates dependent on scarce white collar jobs.

“We ought to be economically productive nation capable of producing and exporting goods while developing its human capital,” he said.

Ngwu noted that current insecurity and social instability could be partly attributed to poverty and ignorance, while calling for greater honesty and trust between leaders and citizens.

“Corruption, tribalism and selfishness must be addressed if Nigeria is to achieve peace and lasting progress,” he added.

He also called for the scrapping of state electoral commissions as they have not helped in deepening democracy at that level. The National Election body should take over that responsibility.

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Nigeria at 66: Macmaduson Concepts Limited Sends Independence Day Greetings to Clients

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As Nigeria marks its 66th Independence Day, Macmaduson Concepts Limited, a leading provider of HVACR,industrial parts, sensors, electrical and plumbing materials, has extended warm Independence Day greetings to its customers, clients and business partners across the country.

In a goodwill message to mark the occasion, the company expressed appreciation to its valued customers for their continuous support, trust and partnership over the years.

Macmaduson Concepts Limited, which specialises in HVACR,Industrial Materials, sensors, air-conditioners, refrigerators, cold rooms, chillers, refrigerants, electrical materials and plumbing materials, said the occasion provides an opportunity to celebrate Nigeria and reflect on the nation’s journey.

The company wished Nigeria continued growth, unity, peace and prosperity, while expressing hope for a brighter future for all Nigerians.

The message from the company reads in part:

At Macmaduson Concepts Limited, we celebrate our great nation, Nigeria, and appreciate our valued clients for their continuous support, trust and partnership. May Nigeria continue to grow in unity, peace and prosperity.”

 

The company concluded its Independence Day message with the theme: “One Nation, One People, A Brighter Tomorrow.”

Happy Independence Day, Nigeria!
Happy 66th Independence Anniversary from Macmaduson Concepts Limited.

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