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Fri, Mar

FEC Approves Concession Of Ajaokuta Steel Company, Other

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The Federal Executive Council (FEC) has approved the engagement of transaction advisors for consultancy services for the concession of Ajaokuta Steel Company Limited as well as the National Iron Ore Mining Complex, Itakpe both situated in Kogi state. This was disclosed on Wednesday shortly after the FEC meeting by the Minister of Information and Culture, Lai Mohammed on behalf of the Minister of Mines and Steel, Olamilekan Adegbite.


Addressing State House correspondents, the Minister 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 favor of Messrs CPCS Transform Consortium in the sum of N853,266,644.4 inclusive of 7.5 percent 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 the site and in 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 14, 2019, and here it was resolved that the Ajaokuta Steel Company, which the Federal Government has made massive investment, must be resuscitated.”

He also stated that the COVID-19 pandemic impeded the efforts of the Ministry of Mines in bringing the project to realization.

According to him, “We believe that with this development, we would have made a significant step in bringing back to life both the Ajaokuta and the Iron Ore company in Itakpe and move 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.”

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