Ajaokuta Steel Company FG allocates N4.3bn for plant's revival

A total sum of N4,272,797,371 was allocated for the plant, higher than the N3.9 billion budgeted for it in the 2016 budget.

  • Published:
The Minister of Mines and Steel Development Kayode Fayemi speaks during an exclusive interview with Reuters in Abuja, Nigeria October 11, 2016. Picture taken October 11, 2016. REUTERS/Afolabi Sotunde play The Minister of Mines and Steel Development Kayode Fayemi speaks during an exclusive interview with Reuters in Abuja, Nigeria October 11, 2016. Picture taken October 11, 2016. REUTERS/Afolabi Sotunde
24/7 Live - Subscribe to the Pulse Newsletter!

The Federal Government has apprioprated N4 billion for the revival of the Ajaokuta Steel Company in the 2017 budget.

President Muhammadu Buhari presented the appriopration bill to the National Assembly in December.

A total sum of N4,272,797,371 was allocated for the plant, higher than the N3.9 billion budgeted for it in the 2016 budget.

Minister of Mines and Steel Development, Dr. Kayode Fayemi, had assured that the federal government will settle all litigations between it and Global Steel Holdings Limited regarding the steel company, which is Nigeria’s leading steel plant.

It was intended to be the leading supplier of quality steel products in all the major economic sectors including construction, packaging and wire drawing/nail making industry.

But it has failed to live up to its potential since its inauguration in 1983 due to various controversies - from mismanagement to obsolete machines and outdated blast furnace model.

Therefore, the plant was neglected for years by successive administrations.

In the ministry’s budget, the Nigerian Geological Survey Agency (NGSA) got N3.8 billion, mainly for the generation of geological data which has not been updated recently.

The National Metallurgical Development Centre, Jos got N821 million, the Metallurgical Training Institute, Onitsha got N722 million, while the Nigerian Institute of Mining and Geosciences was allocated N472 million.

About N99 million was set aside for Artisanal Mines and Registration Mineral Buying Centres.

Top 3

1 Recession Financial experts seek 12 per cent MPR to strengthen economic...bullet
2 Exxon Mobil Court rules against imposition of fines by regulatory agenciesbullet
3 FMCG FrieslandCampina WAMCO posts 7.2 % growth in Profits in 2016bullet

Business