September 07, 2008

AISA terms privatization of steel sector in Nigeria faulty

The African Iron and Steel Association recently said that the entire privatization in the Nigerian iron and steel sector was done on a selfish note and should be revisited and where necessary cancelled. Mr Sanusi Mohammed secretary of AISA, stated this at a stakeholders forum in the steel sector with the Minister of State for Mines and Steel Development Mr Alhaji Ahmed Muhammed Gusau.

Mr Sanusi said that Nigeria is not benefiting enough from the privatized companies because those managing them lack the technical capacity to run the industries. He said that the foreign companies who bought the several iron and steel companies across the country lack the technical capacity, the financial capacity and the will to run the companies successfully.

He added that though he is not against privatization, it should however be credible and the companies who are buying them should be able to add value to the nation rather than coming to milk the country.

Nigerian federal government about four years ago privatized the Aluminium Smelter Company, Ikot Abasi, Akwa Ibom State, Ajaokuta Steel Company in Kogi, Delta Steel Company in Aldja near Warri, National Iron Ore Mining Company Itakpe, Katsina Steel rolling mill, Jos Steel Rolling Mill Company and Oshogbo Steel Rolling Mill Company.