The Federal yesterday, approved the sum of N853.25 million to engage consultants for the concession of the Ajaokuta Steel Company Limited, and the National Iron Ore Complex, Itakpe, Kogi State.
The Minister of Information and Culture, Lai Mohammed, disclosed this while speaking with the State House journalists after the weekly Federal Executive Council (FEC) meeting presided by President Muhammadu Buhari, in Abuja.
He said the approval followed a memo presented by the Minister of Mines and Steel Devolvement, Olamilekan Adegbite, adding that the contact was awarded to CPCS Transform Consortium for the sum of N853 million and includes a value-added tax (VAT) of 7.5%.
Mohammed said: “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 Messrs CPCS Transform Consortium in the sum of N853,266,644.4 inclusive of 7.5percent 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 and by 1994, TPE demobilized from site and in 1996, the contract was determined.
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.
“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 the 22nd and 24th October 2019 and here it was resolved that Ajaokuta steel complex which the Federal Government has made massive investment must be resuscitated.”
He noted that when the plants are fully revived, Nigeria will have the benefit to save more money, and enjoy technology transfer among others, adding that the COVID-19 has slowed down the efforts of the Ministry of Mines and Steel to bring this to fruition.
He continued: “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 moving 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.”
