Stakeholders Strategize for the Revival of Ajaokuta Steel Company to Boost Nigeria\’s Economic Development

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Ify Onyekwere

The Ajaokuta Steel Company Limited (ASCL) in Nigeria is a vital institution that has the potential to catalyze economic development and create numerous job opportunities in the country. ASCL was established in the 1970s as part of a larger plan to diversify the Nigerian economy and reduce dependence on oil revenues. However, the company has yet to fulfill its potential due to various challenges and has been in disrepair for over three decades. However, two advocacy groups, the SOYUZNIK (Soviet Union Alumni Association of Nigerian Engineers) and the CSOs Coalition for the Revival of Ajaokuta Steel, have been at the forefront of efforts to revive the plant.

Recently, the two groups held a virtual meeting to discuss the progress made so far and chart a way forward. Over 20 stakeholders from various countries participated in the meeting, which was facilitated by Engr. Abdallah Mohammed Sanni, a member of SOYUZNIK, and moderated by Mohammed Bougei Attah, the National Coordinator of the CSO Coalition.

The meeting featured veterans of the SOYUZNIK, including Prof. Kolawale Ogundowole and Engr. Faniyi Fatokun, as well as members of the CSOs, such as Otunba Dele Ajayi-Smith, President of the African Citizen Development Foundation, Lagos, and Prof. Samaila Mande of the National Open University of Nigeria.

Participants at the meeting commended the outgoing Nigerian President’s administration for its efforts in resolving legal issues that had hindered the progress of the ASCL for over 30 years. They also applauded the administration for intervening in the London arbitration case, which saw Nigeria pay off a judgment debt of $495m, freeing the steel plant from foreign debt and ownership.

The meeting also highlighted the importance of the Ajaokuta Presidential Project Implementation Team (APPIT), which was established by the Buhari administration to address the myriad of problems confronting the revival of the plant. Participants urged the incoming administration of Sen. Bola Ahmed Tinubu to maintain the Team and ensure its strategic focus on achieving full implementation of the ASCL.

One key area that the meeting identified as crucial to the success of the APPIT is the inclusion of a CSO representation in the Committee. This will ensure transparency, trustworthiness, and promote inclusiveness, as CSOs often represent the voice of the people. The groups urged the government to revisit the earlier request by the CSO Coalition to include a member on the APPIT Committee.

In reviewing the policy documents for the operation of the Ajaokuta steel company, stakeholders advised the Nigerian government to revisit the initial working document prepared by some members of SOYUZNIK. The document is believed to have the approval of the Russian government and AFREMIX Bank International, the funding partners.

To provide a comprehensive roadmap for the revival of ASCL, the meeting resolved to submit a policy brief and a new book on “Steel Production and National Development: Strategic Options for the Incoming Administration” to the incoming government for review.

The meeting also recommended the establishment of a committee made up of members from SOYUZNIK and CSO Coalition to receive reports from subsequent meetings and provide regular updates to the government.

The meeting marks a significant step forward in the efforts to revive ASCL, and the collaboration between SOYUZNIK and CSOs Coalition indicates the importance of partnerships in development efforts. As Nigeria seeks to diversify its economy and promote local industries, the revival of ASCL could catalyze economic growth and development in the country.

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