…Opts for local investors take-over
A coalition of Civil Society Organisations (CSOs), have kicked against the proposed concessioning of the Ajaokuta Steel Company Limited (ASCL) located in Kogi state.
A statement made available to The Truth which was signed by Mohammed Bougei Attah and Otunba Dele Ajayi-Smith, the group which came under the aegis of a coalition of CSOs across the country, working for the revival of ASCL it took the position ‘in view of mixed reactions trailing the recent pronouncements by the Federal Government of Nigeria, FGN, to privatize the steel company.
The coalition said the decision is coming on the heel of a protracted legal tussle that was put to rest recently’.
“In particular, we view the recent comment by the Honourable Minister, Arc. Olamilekan Adegbite, where he informed Nigerians of the ongoing privatization process involving a review of select firms bidding as investors in the company, as positive and in the right direction.
“Though details about the procurement of the firms and consultants for the processes are not made public yet, we believe the government will follow due process by applying the direct sourcing or selective bidding processes.
“As civil society group monitoring the developments around the steel plant, we wish to reinstate our earlier support to the government on the ongoing privatization efforts, which in our opinion is to encourage local investors in the affairs of the company for effective and efficient management and productivity”, the coalition stated.
It further noted that, “one of the recommendations of the November 25, 2021 National Conference on Ajaokuta Steel Complex and President Muhammadu Buhari Industrialization Agenda, was for the government to stop the concessioning agreement and consider the privatization of the ASCL and the National Iron Ore Mining Company, NIOMCO, by encouraging local investors.
The conference therefore frowned at any attempt to reconsider the issue of concessioning the two companies or to allow foreign investors, as the above two factors have been the bane of setbacks recorded over the last 30 years by the two establishments.
The CSO coalition used the opportunity once again to commend the FGN over the settlement of debt owed to a foreign firm that has now set ASCL and NIOMCO on a positive new course.
