Reps want N200bn revival scheme for iron, steel firms

THE House of Representatives has called on the Federal Government to invest N200 billion into the completion of Ajaokuta Steel Company Limited, Itakpe, Kogi State and National Iron Mining Ore Company, Aladja in Delta State.Chairman, House Committee on Steel, Saddique Mohammed, made the call on Monday, when he led committee members to the office of the Minister of Mines and Steel Development, Musa Sada, in Abuja, on oversight function.According to him, the sale of both companies has nationalistic flavour, but they were hurriedly given away without complete value and sold far below the investment sunk into them by the past administration.For instance, he said 'the initial investment for Ajaokuta was more than $1 billion as at that time in the early 70's but sold in less than a decade for peanut and thereby, throw away the worth of a national institution.'He added: 'The executive arm of the government should have same voice with the legislative to reverse the sale and concession out rightly. We join the sixth legislature in the same vein they have spoken before now.'We can appropriate N200 billion for the resuscitation and completion of both entities in our annual budget, either through excess crude money or raising of fund. We cannot throw away both places just like that.'We want the executive arm to take the same posture with us on this reversal of the sale, because Ajaokuta started same time the South Korea commenced development of its steel sector and now a manufacturing country but we have not even completed the first phase of our steel sector since the 70's when the idea was conceived.'He stated further that the Ukranians and Russians that designed the plants have offered to bring machineries and parts needed for the completion but requested for four and half years to run it, which should be addressed on a business and legal template by the Federal Government.A major challenge confronting the steel sector, he said, was lack of metal laws in place, while the sector had in the recent years focused on just mining law.He charged the minister to come up with metal draft to develop the steel sector accordingly to safeguard its future development and advance the country's technological development.'We may have the power working, the roads functioning and our education moved forward but if the steel sector is not developed, which is the indices to a real economy development and oiler for other sectors of the economy, then we have not started,' he added.
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