COVER
Tinubu Approves Committee to Revive Ajaokuta Steel Plant
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By David Torough, Abuja
President Bola Tinubu has approved the formation of a committee comprising key stakeholders to revive the Ajaokuta steel plant to boost economic growth.
The committee is made up of the Minister of Steel Development, Minister of Finance and Coordinating Minister of the Economy, Minister of Industry, Trade and Investment, and Solid Minerals.
The Minister of Steel, Shuaibu Abubakar-Audu disclosed this to State House Correspondents on Thursday in Abuja after he and the Minister of Defence, Mohammed Badaru briefed the President on their recent trip to China.
Abubakar-Audu underscored critical points for the plant’s revival, emphasising the establishment of military hardware capabilities.
He explained that a Chinese steel group, Lu’an Steel Holding Group has committed to investing in a new plant in Nigeria, while an Indian steel group plans to send an advanced team for collaboration.
“We just saw Mr. President, Bola Ahmed Tinubu, the minister of defense, Alhaji Mohammed Badaru and I myself, met with him earlier this afternoon. And we discussed the three critical matters. Number one, we briefed him on the Minister of Defence and I’s recent trip to China.
“We were in China on the 1st of January 2024, we were there till the 8th of January. And met with the Lu’an Steel Holding Group, which is one of the largest steel companies in China, and is among the top 20 steel companies in China. They produce about 20 million metric tons of steel per annum.
“We had very meaningful discussions with them, and they agreed and made a commitment to set up a new steel plant in Nigeria, where thousands of jobs would be created, and they would invest billions of dollars in foreign direct investments into Nigeria.
“In that same regard as well, basically, our discussions with Lu’an Steel Holding Group, they mentioned that they would send an advanced team to Nigeria after the Chinese New Year, sometime at the end of February 2024. And we briefed Mr. President that when the team is on ground, we would like to also give them audience with Mr. President, which he approved. Mr President was very happy with the development.
“The third thing as well, is that the reason the Minister of Defence and I jointly met with Mr. President was that we’re setting up a military hardware capacity and capability in Ajaokuta steel plant and based on that the Chinese team would help us to build that military hardware capabilities in Ajaokuta, in one of the production units. And so that’s the first agenda on the table for the joint meeting,” the minister said.
According to him, the agenda extended to the plant’s contribution to national infrastructure projects through the production of iron rods.
“The second agenda for discussion with Mr. President, was that Mr. President gave me approval towards the end of last year to raise some money to restart and rebuild the Light steel Mill of the Ajaokuta Steel Plant to be able to produce iron rods, which iron rods would be taken by the Ministry of works.
“The Minister of Works, Senator David Umahi, has already written a letter to me through his ministry, guaranteeing that they will be off takers in the iron rods that are being produced. Basically, the President under the Renewed Hope Agenda, which the Minister of works is driving, plans to construct about 30,000 kilometres of roads across Nigeria, where they will need about 7 million metric tons of iron road.
We can produce about 400,000 tons of those iron rods in Ajaokuta if we’re able to restart the steel plant.”
Abubakar-Audu also said the President has also approved local fundraising initiatives.
“Mr President gave approval for us to raise money locally. The first phase of the project for Ajaokuta Steel Plant, to revive the entire steel plant will cost somewhere between $2 to $5 million and however to restart the light steel section of the mill is going to cost about N35 billion. So we’re going to the market to show proof of consent to raise this money from local financial institutions to be able to restart that.
“We’ve gotten some offer letters from some financial institutions. And we think that you know, we should be able to conclude that in the next few days or few weeks for us to be able to hit the ground in Ajaokuta and start that project.
“The last item on the agenda was feedback to Mr. President on Jindal steel. If you recollect on the sidelines of the G-20. Meeting in India, Jindal steel committed to invest in $5 billion. So I briefed Mr. President and I’ve met with representatives of Jindal steel, and they’re very serious about their commitment. And we’re currently looking for a land that is close to a gas station that has a port and is close to the natural or mineral resources such as, you know, iron ore and the likes to be able to get them the ideal location. Either they set up a greenfield or they acquire an existing plant, such as, you know, the Delta steel plant.
“So those are the things on the table. Mr. President has given us go ahead to set up a committee with some very critical stakeholders within the government, including the likes of the minister of finance the CME, including the likes of the Minister of trade and investments, to the Minister of Defense, Minister of Solid Minerals and myself to be able to get this thing running and get it off the ground.
“So the Renewed Hope Agenda is here to stay. We think that if we’re able to complete all these projects that have been approved by Mr. President, including the revival of Ajaokuta, we should be able to create not less than 500,000 jobs and bring billions of dollars into the economy. And so Mr. President is very happy with that development. And the Minister of Defense and Alhaji Mohammed Badaru and I came to brief Mr. President, this afternoon thank you very much.”
Asked the initial amount that will be invested, the minister said: “It will be in billions of dollars. The final amount has not been determined, when they come to the country and make a determination they would meet Mr. President, they will meet key stakeholders, we would look at a map of where the key mineral resources are, where will give them access to be able to transport their goods to the final products in the markets, to rail lines, ports, gas, you know, a big enough land to be able to accommodate everything that is required. Once that is determined they will then know how much they’re going to invest but it will be in billions of dollars, but the exact amount has not been determined.”
The Minister acknowledged challenges facing the plant, emphasising the gradual nature of Ajaokuta Steel Plant’s revival and the need for support from all stakeholders, including the Transmission Company of Nigeria.
Asked how investors will take the government serious with the disconnection of electricity from Ajaokuta Steel Plant due to N30 billion debt and what the explanation for the debt is since the plant has not been in dull capacity, Abubakar-Audu said investigation was ongoing.
He said: “I mean these are some of the things that need to be clearly looked into. Like you mentioned, one of the things I spoke to the MD of Ajaokuta today (Thursday), and this was one of the questions I asked and we’re going to get to the bottom of it, why consumption of so much electricity in a place that is not operating at full capacity. Part of what we also need to do is that we’re trying to revive Ajaokuta in a collegiate system, in piecemeal, and so we may not have the capacity to be able to pay all those outstanding amounts immediately.
“Part of what the MD of Ajaokuta told me is that most of the money is in interest payments. And NBET (the Nigerian Bulk Electricity Trading), the electricity company that has disconnected it, is also a government agency. So if we as a government ministry, government agency are trying to revive Ajaokuta working hard to do that, we should not have another hand within the same government making things very difficult for us.
“And so part of what we plan to do is to sit down on the table in the next few days as quickly as possible to be able to come up with a plan so that they can put it back on the grid and put things back in order. Is a gradual process and Ajaokuta cannot be revived overnight. This is a plant that has not been working for 45 years, it is a difficult task to try and get it back on track.
“So, we need the support of the entire government apparatus, we need support from stakeholders. We need support from everyone to be able to do this difficult job. This job is not a job that myself and Mr. President can do it alone. We need the support of everyone including the electricity company to be able to help us to get this project back on track so that we can create the hundreds of thousands of jobs I want to create for Nigerians.“
COVER
BOI Restates Commitment to Local Manufacturing, Job Creation
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Managing Director of the Bank of Industry (BOI), Mr Olasupo Olusi has reaffirmed the bank’s commitment to supporting local manufacturing in Nigeria.Olusi said this when he visited the GU Ebeco facility and inspected ongoing projects at the Nisa Medical and Zeberced Group at the Idu Industrial Layout, Abuja yesterday.
He expressed delight at the progress made so far at the various facilities while commending the chief executives of the organisations, urging them to do more. During the visit to the GU Ebeco, the BOI boss emphasised the importance of job creation and the need for their products to proudly bear the “Made in Nigeria” label.Olusi praised GU Ebeco’s progress over the past seven years, applauding its expansion into a national enterprise with over 1,500 employees and several facilities across the country.“I am very happy with the fact that BOI has supported this enterprise for the last seven years. It is wonderful to see that it has grown.“It employs 1,500 staff, and operates a national distribution system. We are proud of the significant role GU Ebeco is playing in the Nigerian manufacturing landscape,” he said.The BOI boss also commended the loan repayment performance of the company saying it had taken multiple facilities from the BOI. He encouraged other young entrepreneurs to stay focused, while assuring them of BOI’s commitment to supporting them and Nigeria’s industrialisation efforts.Responding Mr Ebere Uzozie, Managing Director of GU Ebeco, expressed his appreciation for the continued support from the BOI.“We are grateful for the Bank of Industry’s backing. Their loans have helped us expand and create lasting change. We now have 34 facilities, and we are debt-free.” We are optimistic the visit will mark a new chapter for the company, and will ensure further growth and partnerships that will contribute to Nigeria’s industrial future,” Uzozie said.at the Zeberced Group, its Managing Director, Mr Aydin Kurt, said that Nigeria had lots of potential and could be the future of the world.While acknowledging the country’s potential in industrialisation, he emphasised the importance of producing locally in Nigeria rather than relying on imports.Kurt also appealed for more collaboration with the BOI to promote industrialisation, create jobs and help grow the economy.“I cannot do it alone. we have to come together and create a synergy to attract different investors to come and also invest in this country.“This is our vision we have a lot to share with you, and thank you once again for visiting our corporations,” he said.Responding, the BOI managing director said that the bank was keen on infrastructure and committed to supporting industrious infrastructure.“This project is very important to us and a critical objective for the county and, in that spirit, we have decided that we will continue to support the proliferation of industrial parts across the nation.Why yours is so unique is because it has a plan for Micro Small and Medium Enterprises (MSMEs) which is very important.“We have a mandate to support that particular segment of our economy because they are the ones that champion job creation and most of the growth of the economy is attributed to them,” Olusi said.The BOI boss thanked Zeberced Group for the opportunity while commending the groups’ vision, energy and optimism to carry the project forward.“We look forward to our partnership. Like I said, we all want to be parts and parcel of this project, we have already given you some money to implement it, and we will see how we can do more.“As you expand we will support, but you have to also show us the job creation numbers, and make sure your goods are branded made in Nigeria,” he said.The News Agency of Nigeria reports that GU Ebeco is a furniture company while Zeberced is a construction company. NANCOVER
FRSC Unveils App to Mitigate Road Crashes Impact
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By Tony Obiechina, Abuja
Federal Road Safety Corps (FRSC) has unveiled an app to boost efficiency and mitigate the impact of road accidents in the country.Speaking at the event yesterday in Abuja, the Secretary to the Government of the Federation (SGF), George Akume explained that the app was designed to digitalize FRSC operations for effective traffic management.
The SGF who described the current rate of accidents as a great concern to the present administration, urged the FRSC management to involve stakeholders in the implementation of the app to monitor motorists and curb the excesses of FRSC officers and personnel. The Chairman, House Committee on Road Safety, Abiodun Adeshida said the National Assembly was ready to review the 2007 Federal Road Safety Corps Act for more efficient service delivery.The Kenyan Ambassador to Nigeria, Isaac Parashina said African countries have a lot to learn from the FRSC’s experience in addressing the high rate of road crashes across the continent.According to the him, Africans must come together and provide homegrown solutions to address road safety challenges.In his welcome remarks, the Corps Marshal FRSC, Shehu Mohammed stated that the innovation was part of efforts to align with the Renewed Hope Agenda of President Bola Tinubu’s administration on the use of the new technology to strengthen the commitment of road users and enhancing road safety operations.Mohammed said the corps would embark on aggressive sensitization in all motor parks and town hall meetings for stakeholders to key into the new technology.The Director-General of the Federal Radio Corporation of Nigeria (FRCN), Dr. Mohammed Bulama expressed confidence that the new technology would bring sanity to Nigerian roads.Dr Bulama commended FRSC management for the new operational initiative and pledged FRCN’s continued support to every program to reduce death and enhance economic activities in the country.The Acting President, National Union of Road Transport Workers (NURTW), Isa Ore said leaders in the transport sector would contribute to the success of the application in saving lives on the highway.Other stakeholders in the transport sector promised to support FRSC in enforcing traffic laws and protect lives and property on Nigerian roads.COVER
Lokpobiri Meets Shettima, Denies Involvement in Petrol Price Hike
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By David Torough, Abuja
Minister of State (Oil) Petroleum Resources Heineken Lokpobiri yesterday denied that the Federal Government is responsible for the Tuesday increase in the price of petrol, saying it is a function of deregulation.The latest hike in the price of petrol has pushed up transport fares by over 50 percent in major cities across Nigeria.
The increase implemented by the Nigerian National Petroleum Company (NNPCL) Retail Management ranges from N855 to N897 per litre, depending on the location from the previous N568-N617. Independent marketers have adjusted their prices to between N930 and N1,200 per litre of petrol.The minister denied FG’s involvement while addressing State House correspondents after a meeting with Vice President Kashim Shettima in Abuja.Shettima had summoned Lokpobiri along with the Group Managing Director of Nigerian National Petroleum Company Limited (NNPCL) Mele Kyari and the National Security Adviser Malam Nuhu Ribadu over the recent hike in the price of petrol.Lokpobiri said, “This sector is deregulated. And we believe that with the availability of products, the price will find its level.“What is important is that the product is available in the country. Between now and weekend, there will be availability of the product across the length and breadth of the country.“We believe that by the time there is availability of the product across the country, the price itself will stabilise.”Mr Ogbugo Ukoha, Executive Director, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said regulatory efforts were geared toward stabilising supply of petrol in the country, which he said would impact positively on stability of price.Okuoha said, “The objective of the regulator is to ensure that there’s increased operating hours from all loading depots; vessels are being cleared promptly and extended hours where safety can permit truck outs as well.“More importantly also is the reinforcement of the support being given to local refinancing, because with increased production there will be higher supply, which will stabilise the price.”Despite making its product available, the Federal Government has not started lifting petrol from the Dangote Refinery.Yesterday, Dangote Group refuted the claim in the media that NNPCL is currently lifting petrol from its refinery and selling at N897 per litre.A statement signed by the Group Chief Branding and Communications Officer, Dangote Group, Anthony Chiejina said the company has not yet finalised any contract with NNPCL.The statement entitled, “NNPC yet to lift our petrol” reads, “Our attention has been drawn to a headline “NNPC lifts Dangote Petrol, sells at N897 per litre” published in the BusinessDay Newspapers of Wednesday, 4 September 2024.“We would like to state that NNPCL has not commenced lifting of refined Premium Motor Spirit (PMS), commonly known as petrol, from our Dangote Petroleum Refinery.“Therefore, the issue of fixing the price of petrol lifted from our refinery does not arise, as we are yet to finalize our contract with NNPCL.“The PMS market is strictly regulated, which is known to all oil marketers and stakeholders in the sector, hence we cannot determine, fix, or influence the product price, which falls under the purview of relevant government authorities.“We urge the public to disregard the headline as it is misleading and does not represent the true position in this matter.“We are guaranteeing Nigerians of exceptionally high quality petroleum products that will be readily available all over the country.”