FEC Approves N853 Million For Ajaokuta Steel Company

The engagement of transaction advisors for consultancy services for the concession of Ajaokuta Steel Company Limited and the National Iron Ore Mining Complex in Itakpe, Kogi State has been approved by the Federal Executive Council on Wednesday.

Contracts worth N10.48bn and $27.09m were also approved respectively by the FEC for the Federal Ministry of Power to fund several transmission equipment to stabilise power supply nationwide.

Lai Mohammed, the Minister of Information and Culture, revealed this to State House correspondents after the FEC meeting presided over by the President, Major General Muhammadu Buhari, at the council chambers of the State House, Abuja on Wednesday.

Mohammed, who spoke on behalf of the Olamilekan Adegbite, Minister of Mines and Steel, said the move assures hope for the long-abandoned piece of infrastructure.

“The council approved the engagement of transaction advisors for consultancy services for the concession of Ajaokuta Steel Company Limited and also the National Iron Ore Mining Complex in Itakpe in favour of  CPCS Transform Consortium in the sum of N853,266,644.4 inclusive of 7.5 percent VAT.

“I am sure we are all familiar with the history of the Ajaokuta Steel complex.

"The contract was awarded in 1979 to a Russian company called TPE. By the end of 1983, the contract had reached an advanced stage.

"Regrettably, since then it has been suffering. By 1994, TPE demobilised from the site and in 1996, the contract was determined.

“Subsequently, various administrations have tried to revive the Ajaokuta steel complex without much success.

"However, you will recall that Mr. President was on a state visit to Russia on October 22 and 24 2019 and here it was resolved that the Ajaokuta steel complex which the Federal Government has made massive investment must be resuscitated.”

He explained that the efforts of the Ministry of Mines to complete the project were slowed down due to COVID-19.

He added, “However, today, the council has approved the award of a contract not just for Ajaokuta but for the iron ore in Itakpe.

“We believe that with this development, we would have made significant steps in bringing back to life both the Ajaokuta and the iron ore company in Itakpe and move forward the industrial revolution of Nigeria.

“When these two complexes begin to function, then not only are we going to save money in terms of foreign exchange, but we are going to see a lot of industrial development and also technology transfer.”

In his address, Abubakar Aliyu, the Minister of Power, revealed that contracts worth N10.48bn and $27.09m respectively were approved by the Federal Executive Council for the Federal Ministry of Power for the power sector, in order to boost electricity supply across the country.

He noted that the approvals made by the council were to fund major electricity transmission equipment.