The Federal Government has said that it will take a decision on what happens to the Ajaokuta Steel Complex in due course.
This position as contained in a statement issued by the Permanent Secretary, Ministry of Mines and Steel Development, Mr. Mohammed Abbas, on Wednesday was in response to a claim by a director of Global Steel Holdings Limited, concessionaire of the Ajaokuta Steel Company Limited, Dr. S. O. Nwanbuokei, that the dispute between the Federal Government and the Indian firm had not been resolved.
Nwanbuokei was quoted to have said that the protracted litigation surrounding the ownership of the Ajaokuta Steel Complex had not been resolved.
Responding, Mohammed said, “His (Nwanbuokei) claims contradict the position of the Minister of Mines and Steel Development, Dr. Kayode Fayemi, who reaffirmed the Federal Government’s ownership of the Ajaokuta Steel Complex during the just concluded Nigerian Mining Week, as he had done in similar forums.
“The ministry’s position, as stated by the minister, is that Ajaokuta Steel Complex belongs to the Federal Government of Nigeria and there is no contention about this fact.
“The Federal Government does not need any mediation to determine its ownership of Ajaokuta Steel Complex as the integrated steel complex has always been the property of the Federal Government.”
He added, “It must be stated clearly that concession of an asset does not make one lose the ownership of the asset. In the case of Ajaokuta Steel Complex, the Federal Government remains the actual owner of the asset, while the concession arrangement was in place. This situation has not changed after the entire concession arrangement crumbled.
“The position of the government is that having ceded the National Iron Ore Mining Company, Itakpe to the GSHL for the remaining concession period, as part of the agreement reached during the mediation, government will at the appropriate time take a decision on how best to put Ajaokuta Steel Complex to profitable use.
“This includes engaging a new core investor with proven financial and technical capacity to turn around, complete and run the steel complex profitably. This is still the position of the government.”
The Indian firm had won the concession of the Ajaokuta and Itakpe firms for 10 years but the agreement was revoked when the Federal Government accused the firm of asset-stripping.
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