Edet Edet
Sequel to the promise made by the Minister of Mines and Steel development, Arch. Olamilekan Adegbite, that some sections of the Ajaokuta Steel Company will begin operations before the end of the year, the Member representing Eket/ Esit Eket/ Ibeno / ONNA Federal Constituency in the House of Representative, Hon. Patrick Ifon, has called on the Federal Government to expedite actions within its powers to ensure that Ajaokuta Steel Company is reinvigorated to commence operations within its planned time.
Ifon, who is a Member the House Committee on Steel Development, made his position known to journalists Wednesday, immediately after the budget defence of some agencies under the Committee.
He opined that the Ajaokuta Steel is supposed to be the cynosure of steel industries in the West African Coast, but has remained moribund because of greed and connivance of some Nigerians, who mess up contractual agreement for selfish gains.
“Just as the Minister had said, Ajaokuta steel is a very viable entity, but greed and connivance in contractual agreement has kept the place moribund”
The Member of Parliament stated that Nigeria expend $4.5 billion amounting to N1.6trn on steel imports per year, which could be saved if steel is produced locally and the money made will therefore be a contributing factor to the growth of our country’s IGR and in turn reduce the rate of unemployment.
“The steel industry is the basic of every other industry, keeping it moribund and expending $4.5 billion in importation does not speak good of us as a nation who really want to take the country out of unemployment, poverty and economic development.” He said.
However, Ifon gave his opinion on the call for the privatization of the steel company, saying he will subscribe to privatization only if the company will be run in the way every other privatized institutions are run in the world.
“I share in that opinion of privatization to an extent that it will be run in the way privatized industries in the world are run, if we are selling Ajaokuta for peanuts to someone who will come and help cannibalize the facilities, this will absolutely be wrong”
“We are already embroiled in some litigation in ALSCON and other smelting companies that has aided people to cannibalize the facilities. The company that supposedly won the bid has used the fact that there is legal encumbrance as reasons they can’t put money, so if privatization is done in the right way, then we should encourage it” He said.
Ifon noted that one other reason why genuine privatization should be considered is that there is no known institution of government that is run profitably in Nigeria because, the people see government institutions as their cash cow, where they make money for themselves and not for the people.
He commended President Buhari’s led administration for identifying the steel industry as one of the key components of the economic diversification, but urged him and Nigerians to see Ajaokuta Steel as a viable entity that can contribute towards economic development.
