The Nigerian government on Wednesday moved towards the revamp of the moribund Ajaokuta Steel Company.
The Federal Executive Council approved a contract that will ensure the revitalisation and operation of the Company and the National Iron Ore Complex, Itakpe in Kogi State.
It also approved contracts worth N10.48 billion and $27.09 million for the Federal Ministry of Power as part of the government’s effort at repositioning the nation’s power sector.
While speaking with Addressing State House journalists after the week’s virtual FEC meeting presided over by President Muhammadu Buhari, Minister of Information and Culture, Lai Mohammed, said the contract worth N853.25 million is about appointing contractors that would run the process of concessionning the companies.
Mohammed, who spoke on behalf of his colleague in charge of the Ministry of Mines and Steel Development, Olamilekan Adegbite, said the Council’s decision was in response to one of the two memoranda presented by the Federal Ministry of Mines and Steel Development.
“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 favor of mrses CPCS Transform Consortium in the sum of N853,266, 644.4 inclusive of 7.5percent VAT.
Regrettably COVID-19 has slowed down the efforts of the ministry of mines to bring this to fruition. However, today, the council has approved the award of contract not just for Ajaokuta but for the iron ore in Itakpe.
“We believe that with this development, we would have made significant step in bringing back to life both the Ajaokuta and the iron ore company in Etakpe and move forward the industrial revolution of Nigeria because 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”, he said.
“The FEC also approved revised fees payable for Mining Engineering and Geoscientific Services, which set benchmarks for professionals in the mining sector to enable them get fair remuneration for their services,” Mohammed added.