FG spent $5.6 billion on Ajaokuta Steel and sold it for $500 million - Minister

Ayodele Adesanmi, Abuja - 13.04.2008

THE Federal Government has disclosed that though it has expended the sum of $5.6billion on Ajaokuta Steel Company Limited, the last adminstration sold it for $500million to Global Infrastructure Holdings Limited.

The Federal Government gave the company, through a concession agreement, to Global Infrastructure Holdings Limited GIHL for 10 years but the federal government the 2nd of April this year cancelled the concession agreements due to poor performance and failure of Global Infrastructure Holdings to comply with the major provisions of the agreement.

The Minister of State for Mines and Steel Development, Alhaji Ahmed Muhammed Gusau,who made this known while inaugurating the Interim Committee for the Management of the steel company and National Iron Ore Mining Company informed that it was done following the cancellation of the concession of the plants to Global Infrastructure Holdings Limited.

He said that government was doing this in the desire of the present government to move the sector forward.