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FEC Approves N853 Million For Ajaokuta Steel Concessioning

The Federal Executive Council Wednesday approved the engagement of transaction advisors for consultancy services of Ajaokuta Steel Company Limited and the National Iron Ore Mining Complex in Itakpe, Kogi State.

The Minister of Information and Culture, Lai Mohammed, disclosed this to State House reporters after the FEC meeting.

He said the contract was awarded to Messrs CPCS Transform Consortium in the sum of N853,266, 644.4 inclusive of 7.5 percent Value Added Tax (VAT).

He said this would bring the Ajaokuta steel and the iron ore company back to life and lead to industrial development and technology transfer.

He said: “I am sure we are all familiar with the story of the history of Ajaokuta Steel complex. The contract was awarded in 1979 to a Russian company called TPE. By the end of 1983, the contract had reached advanced stage, regrettably, since then it has been suffering and by 1994, TPE demobilized from site and 1996, the contract was determined. Subsequently, various administrations have tried to revive the Ajaokuta steel complex without much success.

“However, you will recall that Mr. President was on a state visit to Russia on the 22nd and 24th October 2019 and here it was resolved that Ajaokuta steel complex which the Federal Government has made massive investment must be resuscitated.

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“Regrettably, COVID-19 has slowed down the efforts of the ministry of mines to bring this to fruition. However, today, the council has approved the award of contract not just for Ajaokuta but for the Iron Ore in Itakpe.

He said the approval had nothing to do with the war between Russia and Ukraine.

Source: Dailytrust

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