The federal government has refuted recent claims by Africa’s richest man, Aliko Dangote, that the Ajaokuta Steel Company Limited (ASCL) was beyond revitalisation, saying it was committed to bringing the decades-old moribund facility into productive use.
A press statement signed by the Head of Press and Public Relations Department, Ministry of Steel Development, Salamatu Jibaniya on Thursday in Abuja, said although the federal government acknowledged the challenges with completing the project, it was, however, determined to turn the company around. It said another technical and financial audit of the firm was being undertaken, and the outcome of the exercise would point the way forward.
Part of the statement read: “While we note the concerns expressed, it is important to state that the federal government remains firmly committed to the development of Nigeria’s steel sector, including the resuscitation of ASCL.
“A comprehensive technical and financial audit of the plant is presently underway to ensure that any decision taken is transparent, data-driven and in the best interest of Nigeria. The overall assessment of the previous technical audit report dated 2018 maintained that the general status of the Steel Plant is in robust condition except for normal deterioration of replaceable parts and recommended automation of manual control systems for improved efficiency.”
The Ministry expressed confidence that the updated audit will provide a sound basis for decisive action that advances Nigeria’s industrial aspirations.
“The federal government is determined to build a competitive and modern steel industry that supports national industrialisation and infrastructure growth,” it concluded.
The Ajaokuta steel firm was started in 1979 under the Shagari administration in the Second Republic as part of Nigeria’s efforts to industrialise and become self-sufficient in steel production. However, despite being nearly completed, Ajaokuta Steel has never produced steel at a commercial scale due to a combination of mismanagement, political interference, lack of funding, and failed concession agreements.
