Senate probes concessioning of Ajaokuta steel

Taiwo Adisa, Abuja - 07.03.2008

The Senate on Thursday raised a joint committee comprising four of its standing committees to probe the circumstances surrounding the concessioning of the Ajaokuta Steel Company to the Global Infrastructure Nigeria Limited (GINL).

Privatization of the company has remained contentious in the past years, with the Senate Committee and the House of Representatives Committee on Power and Steel conducting investigations.

A motion moved by Senator Salihu Ohize and supported by 10 other Senators including Senators Grace Folashade Bent, Zainab Kure, Smart Adeyemi, Lee Maeba and Dahiru Awaisu Kuta among others, indicated that whereas the company was built in 1979 at the cost of $5 billion, and its worth was put at $6 billion in 2006, the immediate past administration gave it out for $525 million.

Senator Ohize, noted in the motion that while the Federal Government entered into a concessioning arrangement with GINL to manage 1.3 million tonnage per annum for 10 years from 2004, the company has abandoned the agreement that would have seen it produce liquid steel by August 2005.

The motion also noted that the senators were worried that GINL was already vandalizing the equipment at the Ajaokuta plant to repair Aladja Steel Company and the Iron Ore concentrate at Itakpe which is valued at $1billion.