Transaction advisors for consultancy services for the concession of Ajaokuta Steel Company Limited is to be hired by the Federal Government
The Federal Executive Council, on Wednesday in Abuja, gave the approval for the engagement of the consultants who are to also cover the National Iron Ore Mining Complex in Itakpe, Kogi State.
The Minister of Information and Culture, Lai Mohammed, told State House Correspondents shortly after Wednesday’s hybrid FEC meeting presided over by President Muhammadu Buhari (retd.), at the council chambers of the State House, Abuja, that the move breathed an air of hope in the long-abandoned piece of infrastructure.
Mohammed, who spoke on behalf of the Minister of Mines and Steel, Olamilekan Adegbite, said the concession of the two steel complexes in favour of Messrs CPCS Transform Consortium is at N853,266,644.4 inclusive of 7.5 per cent 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 demobilised from the site and 1996, the contract was terminated.
“Subsequently, various administrations have tried to revive the Ajaokuta Steel Company 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 Company, which the Federal Government has made massive investment, must be resuscitated.”
“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,” he said.
