Ajaokuta Steel Company in Kogi State
Chairman of the Senate Committee on Steel Development, Patrick Ndubueze, has expressed dismay over the state of Ajaokuta Steel Company.
Senator Ndubueze spoke on Wednesday at the inaugural National Steel Summit held in Abuja on the themed “ _Rebuilding and Consolidating Nigeria’s Steel Industry: Collaborative Action for Sustainable Growth and Global Competitiveness”_.
He revealed that the facility, despite being non-operational, has accumulated electricity debts of up to ₦2 billion.
“I wept for my country at Ajaokuta,” Ndubueze lamented, highlighting the plant’s potential to produce critical components like brake parts, ball bearings, seals, and engine blocks.
He noted, “At times, it owes over ₦2 billion in electricity payments, yet it produces nothing.”
He further pointed out that despite trillions of naira invested, the company’s power capacity remains a mere ₦500,000, underscoring the need for corporate governance reforms and a review of its limited liability status.
Ndubueze urged summit delegates to make the event a turning point for Nigeria’s steel industry, positioning the country as a hub for industrial growth in Africa, with the Senate committed to collaborating with stakeholders for a sustainable sector.
In his address, Minister of Steel Development Shuaibu Audu highlighted Nigeria’s rich deposits of steel-making raw materials, such as iron ore, limestone, and coal, but lamented the lack of operational integrated steel plants to utilize them.
“The absence of functional steel plants has hindered our industrial progress,” Audu stated.
He traced the history of Nigeria’s steel ambitions back to 1958, initially focused on rolling mills but later shifting to integrated plants due to available resources.
However, he noted that privatization efforts in the early 2000s, which saw the sale of rolling mills in Oshogbo, Katsina, Jos, Delta Steel Company, and the Aluminum Smelter Company, have failed, with none currently operational.
“This shifted the government’s role from operator to regulator,” Audu explained.
Audu emphasized the steel sector’s role as a cornerstone for industries like construction, automotive, and telecommunications, stating, “Steel is the backbone of an industrialized value chain, creating jobs and fostering economic diversification.”
He highlighted President Bola Ahmed Tinubu’s commitment to tackling the sector’s challenges and outlined the summit’s goals: assessing the industry’s status, identifying investment opportunities, addressing policy and infrastructure gaps, and fostering partnerships for a sustainable steel industry in Nigeria. (NAN)
