$400m Investment: Buhari reassures moribund Ajaokuta Steel Company will yield $1.6bn annually, provide jobs

*President Muhammadu Buhari says the investment his administration has made in the Ajaokuta Steel Company, in Kogi State, will add $1.6billion annual income to the Nigerian economy and create over 500,000 estimated jobs

Gbenga Kayode | ConsumerConnect

Against the backdrop of the age-long efforts at resolving the hitherto promising steel company debacle, President Muhammadu Buhari has said that his administration had spent $400m to “transform” the Ajaokuta Steel Complex, in Kogi State, North-Central.

ConsumerConnect reports Buhari stated this Thursday, December 29, 2022, while in Okene, the Kogi State capital, during his one-day state visit to commission some infrastructural projects executed by Governor Yahaya Bello administration.

The President stressed the investment made in the steel company would add $1.6billion annual income to the Nigerian economy and create over 500,000 estimated jobs.

Payment of staff salaries without considerable production

ConsumerConnect had reported that Arc. Olamilekan Adegbite, Honourable Minister for Mines and Steel Development, justified the Federal Government’s reason for retaining and paying workers’ salaries with taxpayers’ money at the declining Ajaokuta Steel Complex, in Kogi State.

President Muhammadu Buhari (r) acknowledging cheers, and Governor Yahaya Bello of Kogi State, during the former’s state visit to Kogi State

Adegbite, while featuring in a forum of the News Agency of Nigeria, in Abuja, FCT, disclosed it is the need to protect the “technical infrastructure” from vandalism.

The Minister said that the measure was important to keep the place running, but noted that successive governments could still talk about the ailing steel company because of the few workers keeping the place running till date.

He stated: “The steel territory where Ajaokuta sits is about three times bigger than the Federal Capital Territory (FCT).

“So, you can imagine an investment of that magnitude being left without people to maintain.”

Adegbite added: “If everybody is withdrawn from there, we would not be seated here today talking about Ajaokuta because it will not exist anymore.

“You know who we are. If that place is left like that people will cannibalise the place and turn everything into scrap.”

We’ve rescued Ajaokuta from all legal disabilities, says Buhari

Buhari, while in Kogi State Thursday, however, said: “I am glad to report that as we begin to round off in office, we can genuinely say that our administration has rescued Ajaokuta from all legal disabilities.

“It is now ready for concessioning to a private investor with the right profiles to put it to work for Nigeria in general and Kogi State in particular.”

The Nigerian President also declared that no other single project holds the key to unlocking the potential of Kogi State as much as the Ajaokuta Steel Complex, which his administration inherited as a long moribund complex “strangulating under a tangle of local and international commercial disputes” over the years.

Malam Garba Shehu, Senior Special Assistant (SSA) to President on Media and Publicity, stated Buhari said he also considered the huge amount spent on the Ajaokuta Steel Complex as a money well-spent.

Buhari noted: “The process has cost this Federal Government over 400million US Dollars so far. “But I consider it money well spent as we move closer to achieving our objective of transforming Kogi State into Nigeria’s iron and steel powerhouse.

“The benefits of getting Ajaokuta Steel Complex working again are numerous.”

He further stated: “It would provide over 500,000 estimated jobs and more than $1.6 billion in annual income to the Nigerian economy.

“Nigerians can rest assured that I remain committed to seeing this process.”

Delivering his address at the visit to the state, the President as well spoke of the determination of his administration to position the Kogi State as an industrial hub, and solid mineral power base of Nigeria.

Buhari commissioned several projects during his state visit, including the Reference Hospital Okene, the new Ohinoyi’s Palace in Okene, the Ganaja Junction Flyover and interchange at Lokoja, the Muhammadu Buhari Square (Civic Centre), before returning to Abuja, FCT.

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