Minister of Mines and Steel Development, Mr. Musa Sada, on Thursday said the Federal Government would require $1bn to revitalise the moribund Ajaokuta Steel Company in Kogi State.
Sada stated this when he appeared before the Senate Committee on Power, Steel Development and Metallurgy.
He also explained that the government-owned steel construction company would also perform optimally when there was provision for auxiliary support infrastructure.
He said the Ajaokuta project lacked critical infrastructure like rail track between its premises and the sea port for conveyance of needed raw materials and finished products.
He said, “The present administration is painstakingly addressing the needed infrastructure for the steel producing company to function on the template of all economic consideration targeted at the project.”
He explained that the project urgently required $513m to put the ailing steel processing firm on track.
But the committee queried the minister for not forwarding to it through the Presidency, request for $1bn loan for resuscitation of the project.
Senator Nurudeen Abatemi noted that despite the promise made by President Goodluck Jonathan three years ago that Ajaokuta Steel Development would come on board within three years, “exactly three years after, nothing can be said to have come on board as far the moribund project is concerned.”
Abatemi querried the minister for not seeking the approval of the National Assembly for the $1bn loan as estimated by relevant stakeholders to put the auxiliary infrastructure in place.
Punch
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