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FG recovers Ajaokuta Steel from Global Steel

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ABUJA – The Federal Government has recovered the moribund Ajaokuta Steel Complex in Kogi State from Global Steel Holdings Limited, the chairman, Senate Committee on the Federal Capital Territory, Senator Smart Adeyemi, has revealed.

The development is coming six years after the company, which was handed over to Global Steel during the administration of former President Olusegun under the privatisation programme of the Federal Government, became non-functional.

FG recovers Ajaokuta Steel from Global SteelSenator Adeyemi, representing Kogi West in the Senate, expressed belief that the development would bring the moribund company back to life and provide employment to atleast 10,000 people.

“The Federal Government has recovered the Ajaokuta steel complex from Global Steel and with that more than 10,000 workers would be gainfully employed,” he told newsmen in Abuja.

Adeyemi continued: “I think the return of this complex is worth celebrating. The government of President Jonathan is worth celebrating. They should be commended for recovering the complex. They have succeeded in recovering Ajaokuta without any attendant financial obligation whatsoever.

“This is a great achievement that deserves commendation, irrespective of political affiliation. The return of Ajaokuta will reduce unemployment and crime. By this singular achievement, it means this government has raised the hope for industrial development in Nigeria

“We got to know that Global Steel asked for $1 billion damages but the concession was illegal and unlawful. I want Nigerians to know that the Federal Government has been in arbitration with the International Chamber of Commerce since the concession was terminated in 2007. The case started in 2008.

“The two plants have not been functioning since they were privatized and I want to let you know that the meeting that resolved the issue was held in Dubai between April 29 to May 1.

“Ajaokuta is at the heart of technological development in Nigeria. If we can get the complex back, then, it means Nigeria’s march towards industrialisation has started on a good path. Return of Ajaokuta means that this will change the face of Kogi Stats and hopefully, the northern region.

“The Federal Government may revalidate the concession with Global Steel. I’m happy that the main plant is back to Nigeria.”

The government had been locked in arbitration with Global Steel Holdings Limited and Global Infrastructure Limited at the International Chamber of Commerce, London, for the return of Ajaokuta since 2007.

The legal battle began in 2008 when Global Steel dragged the federal government before the ICC, even as Attorney-General and Minister of Justice, Mohammed Adoke led the federal government delegation.

Soon after the plant was sold to Global Steel during the administration of former President Olusegun, allegations of downsizing and asset-stripping becaame rife before it finally shut down operations.

President Goodluck Jonathan had intervened in the matter with Global Steel agreeing to forfeit about $1 billion initially being demanded b it as damages suffered while running the plant.

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Business

Nigeria set to boost Naira value and foreign reserve with local gold production, as Tinubu receives gold bar

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IN  a significant move to strengthen Nigeria’s economy, President Bola Tinubu received a symbolic gold bar on Sunday from the Minister of Solid Minerals Development, Dele Alake.

This gesture marks the commencement of the National Gold Purchase Program (NGPP), aimed at boosting the naira’s value and enhancing the country’s foreign reserves.

Minister Alake expressed gratitude to President Tinubu for his support of reforms in the solid minerals sector.

He highlighted that the NGPP, which involves sourcing gold from artisanal and small-scale miners and refining it to meet the London Bullion Market Association’s Good Delivery Standard, will substantially contribute to Nigeria’s economic stability.

Alake stated “This initiative will significantly increase our foreign reserves and strengthen the naira. The refined gold will be supplied to the Central Bank of Nigeria, marking a crucial step in our economic strategy.”

The presentation also underscored the first commercial transaction under the NGPP, establishing a centralized gold purchasing system that integrates small-scale miners, cooperatives, and production units across the nation.

This program is expected to provide a structured market for gold, fostering economic growth and stability.

He said, The successful completion of the first commercial transaction clearly demonstrates the National Gold Purchase Program’s effectiveness. It has increased the nation’s foreign reserves assets and shown that using the Nigerian Naira to purchase a liquid asset traded in United States Dollars, such as gold, is a viable strategy. This transaction has also underscored the potential of the National Gold Purchase Program to enhance fiscal and monetary stability.”

Alake added that the initial commercial transaction under the program resulted in a +US$5 million boost in Nigeria’s foreign reserve assets.

The transaction involved refining over 70 kilograms of gold to meet the London Bullion Market quality standard and aggregating locally mined gold, thereby infusing approximately NGN6 billion into the rural economy.

President Tinubu expressed appreciation for the Ministry’s accomplishment in advancing the government’s goal of economic diversification by acknowledging and displaying the symbolic gold bar

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Solid Minerals

FG Fingers Foreigners Sponsoring Banditry For Illegal Mining

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The Nigerian Government has threatened to come down heavily on foreigners sponsoring bandictory as a way of sustaining illegal mining activities in parts of the country.

The warning was handed down in Abuja by Minister, Solid Minerals Development, Dr Oladele Alake, while receiving a delegation of the Nigeria-China Chamber of Mines led by its National President, Dr. Olugbenga Ajala.

Details of these were contained in a statement released by Head, Press & PR, Ministry of Solid Minerals Development, Alaba Balogun over the weekend.

The statement cited, Dr Alake, thus, “The government will come down firmly on these unscrupulous foreign operators sponsoring banditry to perpetrate illegal mining: let me use this medium to appeal through you to tell those sponsors to desist or face the full wrath of the law.”

According to Dr Alake, the Ministry is committed to establishing a multi-agency task force that will end the activities of illegal miners and their collaborators.

The Minster made it clear that the FG had given illegal miners a 30-day-ultimatum to legitimise their businesses, quit Nigeria or incur the wrath of the law.

According to him, this will help “to streamline and structure the Small-Scale Artisanal Miners for maximum yield to the Federal Government.”

The delegation paid a courtesy call on the Minsiter at the Ministry’s headquarters in Abuja.

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Energy

Fuel Scarcity: Govt Yet to Increase Pump Prices – NMDPRA

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A long queue at an NNPC fuel station

By Edozie Obasi-Eze

 

Amidst heightening uncertainties in the domestic petroleum products market characterised by scarcity and irregular pricing, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has declared that there’s no intention to review pump prices upwards.

This was contained in an advisory issued by General Manager, Corporate Communications, NMDPRA, Kimchi Apollo.

He stated that the Nigerian National Petroleum Corporation Limited (NNPCL) had imported PMS with current stock levels sufficient for 34 days.

In an attempt to address panic buying and speculations which have seen price of Premium Motor Spirit (PMS) oscillate between N180-N250 in the Lagos area, Apollo assured that there was enough quantity of the product in the country already.

He said, “Consequently, marketers and the general public are advised to avoid panic buying, diversion of products and hoarding.

“In keeping with the Authority’s responsibilities as outlined in the Petroleum Industry Act (PIA), the Authority assures the public that it would continue to monitor the supply and distribution of petroleum products nationwide, especially during this holiday season.”

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