The non-functional Ajaokuta Steel Company Limited is costing the country more than N1 billion annually in pensions, salaries, taxes, and administrative costs
~ DG National Metallurgical Development Centre, Prof. Linus Asuquo says
Prof. Linus Asuquo, Director-General (D-G) of the National Metallurgical Development Centre, Jos, stated this in his presentation at a panel discussion at the maiden edition of the National Steel Summit on Thursday in Abuja.
The discussion was titled “Dissecting the Current Policy Framework: Identifying Gaps and Building a Robust Institutional Regulation”.
The News Agency of Nigeria (NAN) recalls that, according to a 2024 report by BudgIT’s accountability platform, Ajaokuta’s financial burden has continued to grow, with about ₦1.11 billion spent in the past two years.
The D-G listed the challenges of the steel company to include a huge financial burden, mismanagement, corruption, and a disconnected value chain infrastructure.
According to him, Nigeria has invested over eight billion U.S. dollars in the Ajaokuta project over a period of more than 40 years.
He said that persistent mismanagement and policy failures derailed the project, as funds were misappropriated and concessionaire deals failed, citing the Japanese Kob Steel and India-based Global Steel Holdings Limited (GSHL) as examples.
Asuquo explained that the ASCL was burdened with a disconnected value chain infrastructure, as the iron ore mines at the National Iron Ore Mining Company (NIOMCO) in Itakpe, Kogi, remained non-operational.
“Rail line for transporting ore from Itakpe to Ajaokuta was delayed, vandalised, it was only completed and inaugurated in 2020.
“Obsolete technology and degraded equipment because most of the installed machinery has degraded over decades and the plant lacks modern energy efficient steel making technologies.”
See also House committee chairman advocates establishment of Nigerian Shipping Commission.
He also noted that local community displacement remains unresolved as 13 villages were displaced when the plant was built.
According to Asuquo, the way forward is to rebuild the integrated supply chain and adopt modern mini-mill technologies.
