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No foreign investor can make Ajaokuta Steel Complex work— Dr. Kamoru Yusuf

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In this interview with journalists, the Chairman Basic Metal, Iron and Steel and Fabricated Metal Products sector of the Manufacturers Association of Nigeria (MAN), Dr. Kamoru Yusuf, speaks on the impending issues affecting the sector especially the ongoing process to resuscitate Ajaokuta Steel Rolling Complex by the Federal Government.

Your take on the ongoing process to resuscitate Ajaokuta Steel Complex

I have taken my time to study and assessed the Federal Government’s efforts to resuscitate Ajaokuta Steel Company Limited and my conclusion is that it may be difficult for any foreign investor(s) to successfully operate Ajaokuta Steel Complex without the full support of the local industry operators.

As you can see that Steel business is my core area of specialization which has also led us to the acquisition of our new steel factory complex in Igbafa, Village, Sagamu, Ogun State which is now KAM Steel Integrated Company, Sagamu-Plant for national interest. There is need to firstly commend the efforts of President Muhammadu Buhari, GCFR, and the Honourable Minister for Mines and Steel Development, Arc. Olamilekan Adegibte for their astuteness and determination to resolve the age-long problem and make the Ajaokuta Steel Complex a dream that comes to reality in an effort to industrialize the country.

The drive to revive Ajaokuta Steel Complex is to set the stage for Nigeria as the leading industrial nation in the continent as earlier envisioned, which is being driven through the development of the Steel sector under the able leadership of the Honourable Minister of Mines and Steel Development, Arc. Olamilekan Adegbite; who has demonstrated passion and capability in promoting the steel sector in Nigeria, through his resolve that there is “the need for the Federal Government to declare Iron and Steel as National Products for Rapid Economic Growth.

The process of resuscitating Ajaokuta Steel Company which is our nation’s heritage was not properly structured. What should have been done, was to consult with owners of existing steel plants who would have given clearer narrations of the issues in the industry. But this important aspect was jettisoned by the Presidential Committee constituted by the Federal Government on Ajaokuta. However, some of the indigenous stakeholders had since drew the attention of Government to this gap.

Late President Shehu Usman Aliyu Shagari And The Federal Government Of Nigeria (FGN): What Matters Most
On the proposed negotiation with foreigners

No foreign investors can bring Ajaokuta Steel Company back to operation. What the Federal Government needs to do is to adopt the model used by the Peoples Republic of China which later transformed the country’s Steel industry within 25 years which led to massive development of the industrial sector in China.

What the Chinese Government did was to indigenize one of the country’s major industries – the Iron and Steel, into the hands of their people with the Government holding only 25% interest while local investors were allowed to own 75% stake. This created opportunities for the local investors and ensured that the wealth remained within the country-China, without repatriation of capital as well as dividends; thereby leading to development of local skills and other multiplier effects that finally resulted in what the world is witnessing today as the industrial explosion in China.

I urge Nigerian government to redirect its policy on the industry because it expended close to 40 years experimenting a particular model without result, it should be clear and in fact obvious that the commercial interest of the offshore investors does not match the developmental interest of the Government of Nigeria as well as the industrial aspiration of her citizens.

With my over 30 years’ experience in the iron and steel business, I can confidently provide a workable template, which of course could also show that no foreign investor can fix Ajaokuta Steel Company.

Any attempt to invite foreign investor(s) to resuscitate the Ajaokuta Steel Company will result in the said foreign interest depriving us of our national heritage; as any proceed realized from the sales, will be repatriated by such interests to their countries and would consequently have negative effects on Government’s policy of backward integration and the corresponding objective of conserving the scarce foreign exchange with dare consequences on the current and future well-being of our economy.

Therefore, it is only indigenous investors that can make it happen so that the proceed can remain here in Nigeria and we can re-invest this into the economy. This we have all seen, was the case in the cement industry and with Nigeria now taking another giant stride in refinery and petrochemicals.

Developed nations of the world are always at the forefront of periodic review and monitoring of progress and challenges facing the Iron and Steel sector; by mandating their financial institutions to provide adequate support to the industry”.

Challenges facing Iron and Steel Sector

For more than two decades, government had not paid the desired attention to the steel sector which is the primary basis for industrial growth and development of any nation.

Steel sector plays similar role as that of Cement, Sugar, fertilizer and Petrochemical industries, all of which can provide the needed tripod-support for the development of other light industries in the country. The incremental and progressive results being witnessed by them was the outcome of the success story of the indigenous players in the cement industry over the past 9 years and with reduced stake from the offshore investors. The best model, is to indigenize and empower Nigerians and ensure that the strategy as encapsulated in the Nigeria Industrialization Revolution Plan (NIRP), creates avenues for whosoever wishes to partner with the local giants who have verifiable track record in the industry to do so.

Iron and steel sector is suffering as a result of what is happening to Ajaokuta Steel Company. For an industry that is driven by committed and persevering investors who are putting national interest as paramount in their business decisions, what government needs to do in the immediate circumstance is to mandate commercial banks and Development banks through the Central Bank of Nigeria (CBN), to focus and direct attention to giving adequate support to the steel industry due to the capital-intensive nature of the business.

Expectations from financial institutions

Despite CBN’s announcement on diversification and creating of a window for Real Sector Support Fund (RSSF), some of the commercial banks are not willing to support genuine industrialists, probably due to lack of key project appraisal management skills.

We expect that Bank of Industry (BOI), which is created to support industrialization in Nigeria should have intervened but it seems the Bank have changed its windows of operations, which Central Bank needs look into. One wonders what was the rationale behind the current aloofness of BoI which has the expertise of project appraisal management but have decided to deviate from its initial mandate by not getting involve directly in project financing anymore except through the commercial banks by requesting for bank guarantees.

The ensuing confusion is that commercial banks are no longer comfortable with this arrangement as they believe BOI is not sharing the risk with them and hence, the consequent abandonment of the needed support from BOI, which some real sector operators believed has created and classed them into financial orphans, with no ‘care-giver’ in the financial market!

The current situation where most of the Nigerian banks showed little or no interest in project development industry due to absence of project underwriting insurance company, thereby creating preference and appetite for funding trading, may take us nowhere but rather, will continuously discount our developmental progression as our resolve to play in heavy industrial arena without capital investments, will perpetually confine us to the league of ‘industrial spectator rather than being an active player’.

Nigerian Economy and the African Continental Free Trade Area

The only way Nigeria can participate successfully in the African Continental Free Trade Area (AfCFTA) and successfully compete among countries in the continent is to develop our giant industries. We can look at China, which always underwrite their capital projects under Sinosure (China Credit Insurance Corporation).

The Federal Government should also borrow a leaf from other developed nations as well as some African countries; by creating platforms for Credit Insurance Underwriters in order to reduce the huge risks involved in capital projects. Government also needs to create more funding windows and other support infrastructure to elicit rapid industrial development.

There cannot be significant growth in the sector without the intervention of the Federal Government where and when necessary. Government should be the driving force behind the steel industry, which has the capacity and potential to resolving part of our social unrest by getting thousands of unemployed youths off the streets through direct and indirect job opportunities.”

Your advice to the President Muhammadu Buhari-led government

Once again, I commend our amiable President, his versatile economic team for salvaging our economy by fighting corruption, crimes and criminality as well as creating more windows of rapid economic recovery. To our industrial giants led by our mentor and astute industrialist, Alhaji Aliko Dangote, I want to commend you for setting a pace for successful business operation in our country and African continent at large.

Meanwhile, one way that could be easily employed is for the Government to urgently channel the Comprehensive Import Supervisory Scheme, (CISS) charges paid to the Nigeria Customs Service, (NCS) over the years, to providing bailout and support to the steel sector. “Such money should be utilized to drive the industrial revolution process that will galvanize national industrial development.

There will be no reason for the Government to borrow money to bring Ajaokuta back to life. We have the resources as a nation and we also have expertise who can make it work. We don’t need foreign investors to do it. Ajaokuta can be back again to produce machines that are needed by other steel industries in their production processes.

You will agree with me that with the gigantic size of Ajaokuta, the complex should not focus on the middle-steel production, which are massively available around Nigeria and West Africa. Rather, it should focus on the configuration of a high class production of steel products such as Slab Caster, Hot Rolled Coils and Plates, and Foundry for the production of the required machinery and tools in the country, since 50 percent requirement for these high-class configuration are already available in Ajaokuta. Although, we still welcome more opinions and contributions towards developing our sector for better performance to the benefit of our dear country and humanity at large via opinion@nigeriansteelindustries.com.

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NUJ Online Chapel Inaugurated In Enugu

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New exceutives

 

Nigeria Union of Journalists (NUJ) Enugu state Council has inaugurated a new Chapel; Corporate Online Chapel, bringing to Eleven, the number of Chapels in the Council.

Performing the inauguration of the newest chapel which has Comrade Clinton Umeh, Publisher of Journalist101 as the Chairman, on Thursday at the Rt. Hon.(Dr.) Ifeanyi Ugwuanyi NUJ Press Center, Enugu, the Council Chairman, Comrade Sam Udekwe said the election of the Executive members of the chapel in their last Congress, marked the beginning of the Online Chapel.

He urged the Executives “to ensure that the members of the chapel comply with what we believe in as members of this profession’”

Comrade Udekwe further said, “this is a very promising chapel. You have your membership now I want to assure you that more members will come in. You know what it takes to be qualified to be a member and we expect you to take this to heart while admitting new members because It is not open to just anybody . It is not open to all bloggers , that’s why we say it is Corporate Online. It’s for online practitioners that are Journalists.

There are online publishers that are not Journalists. That’s why we want you to make a difference. So, we want you to show the society that there are online practitioners, the ones that are members of NUJ,” he said.

He charged the executives to take care of their members in line with the tenets of the NUJ profession and maintain peace between themselves anf other members including the NUJ.

Responding on behalf of other members, the Chairman of the Online Chapel, Comrade Clinton Umeh thanked the President of the Nigeria Union of Journalists, Comrade Chris Isiguzo for their foresight in creating the Online chapel.

He assured that “members of the Chapel will live up to expectations and work in accordance with what the Constitution says.

This Chapel is a new dawn in online practice and will provide a platform for us to unite all that are qualified under one umbrella to ensure professionalism in the discharge of our duties as Journalists.”

He also thanked the chairman of the state council and members of his executive for their guidance and direction to help the chapel see the light of the day.

The newly inaugurated executive members are:
Comrade Clinton Umeh Chairman,
Comrade Jonathan Emmanuel Ikechukwu (First News)— ViceChairman
Comrade Odomero Igbodo (Dome TV)—Secretary
Comrade Christian Nwangene ( Aproko Republic)— Assistant Secretary
Comrade Maureen Ikpeama ( Newsline Global)—Treasurer
Comrade Sebastine Okafor— (Journalist 101) Internal Auditor
Comrade Emmanuel Terwase ( Afriquecast)—Financial Secretary.

The event was witnessed by the Vice Chairman of NUJ, Comrade Regis Anikworji, the Secretary, Comrade Ifeoma Amuta, Comrade and among other members.

Journalist 101

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Defence Headquarters Declares 8 Wanted Over Killing Of Soldiers

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The Nigerian Defence Headquarters has issued a declaration naming 8 individuals wanted in connection with the heinous killing of Late Lt. Col. AH Ali and 16 other troops in Okuama, Delta State, on March 14, 2024.

The announcement was made via the verified Defence Headquarters’ X handle on Thursday.

The wanted persons are identified as:

1. Akevwru Daniel Omotegbono (Amagbem)

2. Prof. Ekpokpo Arthur

3. Andaowei Denis Bakriri

4. Igoli Ebi

5. Akata Malawa David Sinclair Okili

6. Clement Ikolo Oghenerukvwe

7. Reuben Baru

It could be recalls  that the 17 fallen heroes were laid to rest at the National Military Cemetery, with President Bola Ahmed Tinubu honoring their memory.

 

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President Tinubu Attends Burial of Slain Soldiers, Offers Scholarships to Families

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President Bola Ahmad Tinubu paying his respect to Slain Soldiers

 

President Bola Tinubu says the federal government will provide scholarships up to the university level for all the children, including the unborn, of the Nigerian Army personnel killed in action at Okuama community in Delta State.

The President, who announced this at the funeral of the personnel at the National Military Cemetery, Abuja, on Wednesday, directed the military authorities to ensure that the benefits of the departed are paid to their families within 90 days.

The President also declared that the federal government would provide a house in any part of the nation to each of the families of the four officers and thirteen soldiers.

At the solemn event attended by some state governors, the military hierarchy, and families of the deceased, the President bestowed posthumous National Honours on the 17 fallen heroes.

Lt Col Ali, Major D.E Obi, Major S.D. Ashafa, and Captain U. Zakari were given the honour of Member of the Order of Niger (MON).

Staff Sergeant Yahaya Saidu, Corporal Danbaba Yahaya, Corporal Kabir Bashir, Lance Corporals Abdullahi Ibrahim, Bulus Haruna, Sole Opeyemi, Bello Anas, Private Alhaji Isah, Clement Francis, Abubakar Ali, Adamu Ibrahim, Hamman Peter, and Ibrahim Adamu were awarded Federal Republic Medals.

“On the 14th day of March, Lt. Colonel A. H. Ali, the Commanding Officer of 181 Amphibious Battalion, led three other officers and 13 soldiers to the Okuama Community to mediate in the lingering dispute with Okoloba Community.

“They went as peacemakers and peacekeepers respectfully seeking to bring an end to the hostilities between the two communities.

“They did not go with tanks, machine guns, and other weapons. They were on a mission of peace.

“Before the dastardly attack, Lt. Colonel Ali, as the Chief of Army Staff narrated to me, achieved great operational exploits; fighting terrorists and insurgents in the North East and North West before his deployment to the Niger Delta.

“Ali kept faith with his military calling until the end.

“On behalf of a grateful nation, we honour the sacrifice of Ali and the other gallant patriots who died that day. They will forever be remembered as heroes who answered the call of duty and paid the ultimate price,” the President said.

Reaffirming government’s commitment to justice, President Tinubu vowed to bring the perpetrators of this heinous crime to account.

While commending the military for not embarking on a reprisal attack on the community, the President declared: “I want to make it clear, once more, that those who committed this heinous crime will not go unpunished. We will find them, and our departed heroes will get justice.

“The elders and chiefs of Okuama also must help the military in fishing out the gunmen who committed the barbaric crime against our men.

“I wish to commend our Armed Forces for their restraint in choosing not to carry out any reprisal attacks on Okuama or its neighbouring communities. We must all ensure that the innocent people of Okuama are not made to bear the punishment of the guilty and wicked among them,” the President stated.

President Tinubu, while commiserating with the families of the fallen heroes and the entire Armed Forces, prayed God Almighty to comfort the bereaved.

“It is worth restating the debt of gratitude we owe these valiant soldiers and their families.

“As Commander-In-Chief, I do not take the contributions of members of our Armed Forces for granted. I recognize your valour and bravery. I honour your unflinching commitment to making our country safe from criminals, bandits, kidnappers, and insurrectionists.

“While we continue to grieve for the courageous men we lost that day, let us also, on this solemn occasion, be reminded of the unfinished business of working for peace and harmony in our communities. We must begin to rebuild our communities and make them into places where love, tolerance, and harmony will reign.

‘‘Leaders at all levels, especially community leaders and traditional rulers, must work to strengthen the bonds that unite us. We must end the cycle of violence and bloodletting,” the President said.

President Tinubu urged the Armed Forces not to be discouraged by the death of their fellow compatriots but to honour their memory by rededicating themselves to the service and defence of the nation.

“As the Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria, I have a message for you: Do not let the death of your compatriots discourage you.

‘‘There is no higher honour than the vocation you have chosen to pursue. We cherish you. We cherish your labour of love. We salute your daily sacrifice in protecting your fellow citizens from danger. We acknowledge your sacrifices to defend our nation,” the Commander-in-Chief affirmed.

 

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