How Miscommunication Hampered Completion Of Ajaokuta Steel Complex

By Bode Gbadebob(Leadership.ng)

Startling details have emerged as to reasons why the Original Builders of Ajaokuta Steel Complex have not yet been considered as probable technical partners for the completion of Ajaokuta Steel Mill.

Speaking at a book presentation, “Whither Nigeria” and birthday dinner to mark Prof. Pat Utomi’s birthday in Lagos, the minister of Solid Minerals Dr. Kayode Fayemi explained why he had to look for solutions away from the original builders of Ajaokuta Steel Complex, TyazhPromExport (TPE) of Russia.

He said the Russians were his first choice of contact, but on approaching the Russian Ambassador, he was told that the Russians were only interested in offering consultancy services towards Ajaokuta.

This, he believed, was largely due to the effects of the breakup of the Soviet Union as some part of the company now falls in Ukraine and other former Soviet states.

He expressed concern over the urgent need to diversify the economy and promised his best to look for a solution even as the Russians are not an option.

Also speaking on the occasion, Barr. Natasha Akpoti , the founder of Builders Hub Impact investment programme,  an initiative which agitates judicious revival of Nigeria’s abandoned and local industries, drew the attention of the minister to the misconception of intention and technical capacity of the original builders.

She threw light on the error of information and spoke on the fact that TPE were interested in the total reconstruction of the plant and not mere consultancy services.

“There was definitely a breakdown in communication and understanding between the minister, Ambassador and TPE,” she said.

She appreciated the minister’s expertise in considering the Russians as the first option by reaching out to the Russian Ambassador for assistance.

“All the government needs to do is arrange for a meeting to negotiate path forward,” Barr. Akpoti added.

Ajaokuta steel company was conceived by former President Shehu Shagari in 1979 to become the bedrock of Nigeria’s industrialisation.

TyazhPromExport of Russia was contracted to build to life Africa’s largest integrated steel plant.

In 1983, Ajaokuta under TPE reached 84% completion, but the coup which ushered President Buhari slowed down the project.

The completion date of 1986 was dragged until 1994 when the Russians were frustrated out of Nigeria due to lack of funding.

Under President Obasanjo, Ajaokuta was given our as concessions to SolGas Energy in 2002 headed by Mr. Seun Oyefeso and Global Infrastructure Nigerian Limited in 2003 headed by Mr. Pramod Mital.

TPE is currently embarking upon the modernisation of Helwan Steel Company Egypt which TPE built in 1973.

Helwan Steel is Egypt’s largest steel plant and part of the Suez Canal Industrial zone project Russia has commenced in Egypt.

This Industrial Park in Egypt has Russia developing not only many iron and steel factories and related minings, but industries of medicine, vaccines and agriculture.

“We have built over 40 plants all over the world; Ajaokuta is the only one we never commissioned. It hurts us watch Nigeria miss her chance towards industrialisation.”

We are committed to work with Nigeria grow out of poverty and into her deserved development,” a TPE representative in Moscow said.