The Chairman of the Senate ad-hoc committee investigating the Ajaokuta Steel Company Limited and the National Iron Ore Mining Company in Itakpe, Kogi State, Senator Adeniyi Adegbonmire, emphasized the urgent need to overcome the persistent challenges plaguing the Ajaokuta Steel Company. During a meeting with the company’s management and workers on Wednesday, he stated, “It is high time we break the jinx surrounding Ajaokuta Steel Company.”
The committee’s visit aims to determine the reasons behind the plant’s decades-long inactivity since its establishment in 1979. Adegbonmire reaffirmed the committee’s commitment to gaining first-hand insights into the plant’s operations and to ensuring it becomes functional again.
Kanwai Joseph, the acting Chief Executive of Ajaokuta Steel, welcomed the committee’s interest, highlighting the importance of transparency and accountability in managing national assets. He noted that, despite the company not producing any steel, they strive to maintain integrity and preserve this significant investment. Joseph expressed the company’s willingness to cooperate fully with the investigation, offering unrestricted access to facilities and information.
The Ajaokuta Integrated Steel Complex was designed to include various facilities, such as a Metallurgical Process Plant and an Engineering Complex, intended to catalyze industrial and economic activities crucial for Nigeria’s economic diversification. However, the company has faced ongoing operational challenges, leading to a substantial federal payout of N38.9 billion to workers over ten years, despite no steel production.
In a recent development in September 2024, the Federal Government, led by Minister of Steel Development Shuaibu Audu, signed a Memorandum of Understanding with Tyazhpromexport, the original builders of the Ajaokuta steel plant. This agreement aims to facilitate the rehabilitation, completion, and operation of both the Ajaokuta Steel Company and the National Iron Ore Mining Company, marking a significant step towards revitalizing Nigeria’s steel industry.
