After decades of deadlocks, Ajaokuta Steel Company's ownership crisis ends, as FG retakes it

 Today, the FG took a major step in its plan to revitalise the steel sector as it signed a renegotiated concession agreement with Global Steel Holdings Limited for the Nigerian Iron Ore Mining Company (NIOMCO), Itakpe, PremiumTimes reports.

By the new agreement, the Ajaokuta Steel Complex has now reverted to the FG, effectively freeing the entity from all contractual encumbrances that had left it uncompleted and non-functional for decades, while GSHL retains NIOMCO. .


Speaking at the event, Prof Osinbajo hailed the mediation process that led to the resolution of the problem that had made it impossible for the two national assets to be functional for years. .

He said: “It is one of the cases of failures. It is a tragedy of immense proportion that we have both Ajaokuta Steel Complex and NIOMCO and couldn’t get anything out of them for years.”

The Minister of Solid Minerals, Kayode Fayemi, who led the FG side in the mediation process, described the settlement as a landmark development that would help the diversification plans of the Pres. Buhari administration. .

The GSHL Chairman, Mr Mittal, said the company waited for 8 years to achieve the settlement. He said his organisation was committed to the objectives of the agreement and guaranteed supply to Ajaokuta plant and Delta Steel Company, after which it would sell what is left to other interested parties.

He assured the government of its readiness to commence operation soon, adding that in the next 2 years Nigeria would begin to produce steel. Following this settlement, the steel sub-sector is on the way to being revitalized and Nigeria’s industrial base solidified.