FEC Approves N853m Contract For Ajaokuta Steel

The Federal Executive Council (FEC) has approved a contract that will ensure the revitalization and operation of the Ajaokuta Steel Company and the National Iron Ore Complex, Itakpe in Kogi State.

It also approved contracts worth N10.48 billion and $27.09 million for the Federal Ministry of Power as part of the government’s effort at repositioning the nation’s power sector.

Addressing State House Correspondents after the week’s virtual FEC meeting presided over by President Muhammadu Buhari, Minister of Information and Culture, Lai Mohammed, said the contract worth N853.25 million is about appointing contractors that would run the process of concessionning the companies.

Mohammed, who spoke on behalf of his colleague in charge of the Ministry of Mines and Steel Development, Olamilekan Adegbite, said the Council’s decision was in response to one of the two memoranda presented by the Federal Ministry of Mines and Steel Development.

“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 mrses 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 story of 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 by 1994, TPE demobilized from the site, and in 1996, the contract was determined.

“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 of October 2019 and here it was resolved that the Ajaokuta steel complex which the Federal Government has made a massive investment must be resuscitated.

“Regrettably COVID-19 has slowed down the efforts of the ministry of mines to bring this to fruition. However, today, the council has approved the award of the contract not just for Ajaokuta but for the iron ore in Itakpe.

“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 Etakpe and move forward the industrial revolution of Nigeria because 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.

“The FEC also approved revised fees payable for Mining Engineering and Geoscientific Services, which set benchmarks for professionals in the mining sector to enable them to get fair remuneration for their services,” Mohammed added.