SAN FRANCISCO, March 14, (THEWILL) – The Federal Government has stated that the Ajaokuta Steel Company would no longer be run as a public concern, pointing out that it will now function purely as a private entity.
The Minister of Mines and Steel Development, Dr. Kayode Fayemi, reiterated this position on Monday during a facility tour of Abuja Steel Mill, a subsidiary of African Steel Company, located along Abuja-Kaduna Road.
While pointing out that a lot is being done to ensure that the Ajaokuta Steel Complex gets back to life, he stated that experts with proven track records and required financial capability would be encouraged to key into the scheme through a competitive bidding process that would be transparent.
Fayemi said government is committed to ensuring Ajaokuta company works, because it believes that a functional Ajaokuta Steel complex would greatly assist the country’s developmental drives.
He identified energy and power as the country’s current most crucial needs and advised that since government is putting the necessary infrastructures in place to address these needs, steel companies operating in the country should continue to maintain high product quality and put them out at reasonable prices for consumers, especially now that the pressure on the dollar is reducing.
The Minister pledged the support of the federal government to the companies that are manufacturing locally and urged them to develop training programmes that would empower and groom young graduates, indigenous engineers and artisans.
“It is important that you come up with training schemes for young graduates and artisans. As you train more of these young indigenous engineers and artisans and absorb them, you will also gradually reduce the number of your expatriates. And this will help us as a country and also help your business,” he said.
The Group Executive Director of the company, Mr. Richpal Singh, accompanied by another director, Dr John Akanya, solicited government assistance to access coal energy which he pointed out would enable them to locally produce the raw materials.
He explained that the high cost of steel products was not due to high dollar demand but the cost of procuring scrap iron which he said is among the items being taken out of the country.
Singh called on the government to look into the regulatory framework that covers this with a view to arresting the trend.
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