Ibekimi Oriamaja Reports
Prof. Mohammed Haruna, Executive Vice Chairman/Chief Executive of the National Agency for Science and Engineering Infrastructure (NASENI), advocated Wednesday for the rebirth of the steel industry as part of measures to realize the country’s vision for the automobile industry.
According to him, the federal government should finance steel complexes through public-private partnerships (PPPs), in which Nigeria should not hold more than 40% of the equity.
Haruna, who made the suggestion in a presentation to the steel council in Abuja, stated that NASENI will invest in any project with the private sector and the steel council that aims to produce iron and steel products from Nigerian raw materials.
He argued that the government ought to encourage domestic manufacturing by imposing a development fee on imported steel into Nigeria.
He contends that in order to ensure the completion of the privatization of Ajaokuta Steel, the government should raise money or create a fund for it.
“In the historical planning of 1958 and the years following independence, only the government had the financial resources to support steel projects,” he stated.
“Steel complexes can now be conveniently funded by private sector investment, but only through PPP models. In such a partnership, the Federal Government of Nigeria shouldn’t hold more than 40% of the stock.
“Government should develop or obtain funds for the privatization of Ajaokuta Steel with incentives to ensure its success.
The government could then encourage domestic production by imposing a development tax on steel brought into Nigeria during the resuscitation period to pay for the creation of an investor-accessible steel development fund.
In order to prevent partisan politics and geopolitical interference in the country, the new National Steel Council must resist the urge to hire foreign consultants and so-called development partners who are only in the country to bribe the officials and offer free trips abroad.
He gave the council his word that NASENI would seek board permission before investing in any project with the private sector and the council that aimed to produce iron and steel products from Nigerian raw materials.
“NASENI, which has been tasked with establishing engineering and manufacturing complexes, will actively engage and collaborate with this council for the good of the country.
“We shall seek the board’s consent before investing in any project with the private sector and the council that aims to produce iron and steel products from Nigerian raw materials. The Agency currently creates liquid iron from scrap metals in its own specially designed rotating furnaces to generate ductile iron.
“I advise this significant council to support Nigerian professionals, both at home and abroad. I am aware that a thorough dossier on the future of the Ajaokuta Steel Company has been created and submitted to the government by the Nigeria Academy of Engineering, of which I am a council member.
Haruna stated that the nation’s automotive goal cannot be fulfilled without a robust steel sector.
“We are establishing an automotive industry park in Nigeria and looking at Nigerian professionals, providing services elsewhere in the world to come back let’s develop our country together,” he said. “The automotive industry in Nigeria cannot function well without the steel industry.
“Ajaokuta Steel has the potential to grow into a significant manufacturer of industrial machinery, auto-electrical spare parts, shipbuilding, railways, and carriages.
Former minister and current chairman of the National Steel Council (NSC), Mohammed Murtala Aliyu, stated that the steel industry is currently in poor shape.
According to him, Nigeria’s steel industry is in poor form right now because, when you consider our population and the amount of steel needed in the nation, our per capita consumption is lower than the African average.
“What you’ll see is that the steel industry has been operating in fragments; the council is being established for the first time since the Act’s passage 40 years ago.
“We propose to conduct an audit both above and below the surface, including steel plants and other industry participants like importers, exporters, millers, and so forth. We’ll make sure to use as much local knowledge as we can in everything.
