Nigerian media has reported that eleven overseas investors are locked in a bid to win the concession for the Ajaokuta Steel. Nigeria’s Minister of Mines & Steel Development Mr Olamilekan Adegbite told newsmen “Now, we are no longer talking to only Russians, we are talking to 11 foreign interests. Of the 11 interests I mentioned, of course, three are Russians. People are interested in bringing their money to invest in Ajaokuta Steel and make sure it works. If we put in the right amount of money, people would start producing steel in the next two years. The process is ongoing and, before we leave office, we will concession Ajaokuta to people who would bring money and make sure it works.”The new arrangement is coming 12 years after a concession agreement for the steel plant was fought in an international court. Already, the Federal Government has begun payment of USD 496 million to Indian firm, Global Steel Holding, the initial concessionaire of the plant that won the concession during the administration of former presidentThe concession which was for 10 years was, however, revoked after the Global Steel Holding was accused of asset-stripping by the Federal Government. The cancellation of the agreement, had led to litigation before it was resolved, through arbitration.The multibillion-dollar Ajaokuta mill was built by the Soviets between 1979 and the mid-1990s, but has never produced steel as the project was never completed. It was also mismanaged.
Nigerian media has reported that eleven overseas investors are locked in a bid to win the concession for the Ajaokuta Steel. Nigeria’s Minister of Mines & Steel Development Mr Olamilekan Adegbite told newsmen “Now, we are no longer talking to only Russians, we are talking to 11 foreign interests. Of the 11 interests I mentioned, of course, three are Russians. People are interested in bringing their money to invest in Ajaokuta Steel and make sure it works. If we put in the right amount of money, people would start producing steel in the next two years. The process is ongoing and, before we leave office, we will concession Ajaokuta to people who would bring money and make sure it works.”The new arrangement is coming 12 years after a concession agreement for the steel plant was fought in an international court. Already, the Federal Government has begun payment of USD 496 million to Indian firm, Global Steel Holding, the initial concessionaire of the plant that won the concession during the administration of former presidentThe concession which was for 10 years was, however, revoked after the Global Steel Holding was accused of asset-stripping by the Federal Government. The cancellation of the agreement, had led to litigation before it was resolved, through arbitration.The multibillion-dollar Ajaokuta mill was built by the Soviets between 1979 and the mid-1990s, but has never produced steel as the project was never completed. It was also mismanaged.
