The Social Integrity Network (SINET), a non-governmental organisation, has asked the federal government to halt the revitalisation of the Ajaokuta steel mill.
Speaking after a meeting in Kaduna on Wednesday, Ibrahim Issah, SINET national coordinator, said “the federal government is deliberately and ignorantly selling out its national heritage”.
The group advised the government — through the ministries of steel development and industry; and trade and investment — to give preference to national companies that can run such plants and ensure locals are employed.
He said this will “reduce imports and do away with siphoning out much-needed forex and mineral resources”.
“It is unfortunate that our leaders still allow foreigners to fool the entire nation with unrealistic proposals and business plans,” the statement reads.
“The Global Infrastructure Holding Ltd., GIHL took over the National Iron Ore Mining Company, NIOMCO, Itakpe, Kogi State in 2016 and got its agreement terminated in 2019 due to non-performance.
“GIHL dragged the federal government to court for breach of contract and it was awarded damages to the tune of $496 million which had been paid.
“Almost five decades of lost opportunity towards strengthening large scale steel production in Nigeria, failed attempts without proper road map.
“It is also on record that Russians and Ukrainians supplied already obsolete technology then in 1970s.
“Interestingly, the immediate past government had paid the sum of $496million to GIHL as compensation even despite massive public outrage, whereas, these investors are merely looking at Itakpe mines to cater their offshore companies at a much cheaper rate of iron ore supplies.
“We hereby advise FG and its concerned ministries to carefully dig deep into their detailed project report, elaborated business plan, capital outlay and cash flow projections by involving independent agencies and champions of business here in Nigeria.
“We are quite sure that the so-called 5B investment from Jindal is a faux pas and an outrightly exaggerated number that will put Nigeria, her assets, resources and general public in total mess again.”
