Eighteen months after a bilateral agreement between President Muhammadu and his Russian counterpart, Vladimir Putin, to resuscitate the Ajaokuta Steel Company after decades of inactivity, the Russians are yet to arrive in Nigeria.
The deal between the two leaders which was reached on the sideline of the Russia-Africa Summit in Sochi, Russia, in October, 2019, will see Russian engineering and construction group, MetProm, working to bring the facility into operation, while the state-owned Russian Export Centre, JSC, and the Cairo-based African Export-Import Bank (AFREXIMBANK) are to pool funds in excess of $1.4 billion to revive the plant which construction commenced about 43 years ago.
In the deal, MetProm is to complete the blasting furnace within two years – the key component of the facility that will turn iron ore into liquid steel – and also handle smaller manufacturing units using imported steel billets.
In May, 2020, President Buhari inaugurated an implementation committee for the project headed by the Secretary to the Government of the Federation (SGF), Boss Mustapha.
21st Century Chronicle learnt that the Russian team was due to arrive for the technical auditing of the plan before the spike in the COVID-19 pandemic led to cancellation of air travel worldwide.
The Sole Administrator of Ajaokuta Steel Company, Engineer Sumaila Aka’aba, confirmed to our reporters in July 2020, that the restriction on air travel stalled the take-off of the resuscitation of the plant.
Findings revealed that the management of the company had arranged residential and office accommodations, as well as vehicles and other logistics, in preparation for the arrival of the Russian guests.
However, even when the spike and spread of the virus subsided before the second wave, the team was yet to arrive in Nigeria.
On December 2, 2020, the Permanent Secretary in the Ministry of Mines and Steel Development, Dr Oluwatoyin Akinlade, while on a two-day working visit to the company said it was “preparatory to the arrival of the Russians for the technical audit.”
Among the facilities Akinlade inspected were blocks of flats for residential accommodation, office accommodation, transport facilities, a medical centre, an equipment store and a tools shop.
However, a source close to the management of Ajaokuta Steel Company told 21st Century Chronicle that part of the company’s property earmarked for the use of the Russians was gutted by fire in February, 2021, adding that the mine’s and steel minister was at the site for on-the-spot assessment.
The source further disclosed that President Buhari approved funds in February 2021, for the arrival of the Russians, adding that “the presidential team is still putting pressure on the Ministry of Finance to release the money.”
Another issue which may delay the resuscitation of the plant is delay in talks with one of the key financiers, AFREXIMBANK, which is expected to pool $1.4 billion.
The source explained that, “The relationship between the two countries on Ajaokuta is still intact, but Nigeria is yet to conclude issues with the third party – a financial institution in Egypt – which will bring the needed funds.”
The sole administrator couldn’t reply to our reporters’ inquiries but referred them to the Minister of Power and Steel Development, Olamilekan Adegbite who is more qualified to speak on the development.
However, the Special Assistant, Media to the minister, Ayodeji Adeyemi assured that the 60-man Russian team of engineers would be arriving in the country soon, adding that the only reason they couldn’t make it to the country was the outbreak of COVID-19.
Adeyemi, who spoke to 21st Century Chronicle on phone said the only reason the Russian team would join the Nigerian engineers for the technical audit “to determine the present state of the project, and know what needs to be repaired, replaced in order to get the plant working.”
He said the outcome of the audit would determine the actual cost of the work which would be sourced from the financiers, adding that five financial institutions have indicated interest to commit funds to the project.
A former president of the Iron and Steel Senior Staff Association of Nigeria (ISSSAN), Comrade Otori Saliu Maliki, said Nigeria had lost a lot with the abandonment of the project, noting that a functional Ajaokuta Steel would have greatly reduced the unemployment problem the country was facing with its capacity to take in 10,000 staff during the first phase, and that its upstream and downstream industries were supposed to engage as many as 500,000.
Comrade Maliki said, “We are optimistic that the Russians will soon come. The government is putting things in place by addressing the hindrances that can lead to further delay; that is what we are being told.
“In my evaluation, this is the closest demonstration of seriousness since President Shehu Shagari’s government,” he said.
