The Social Integrity Network (SINET) has urged the Federal Government to prioritize the opinions of over 250 million Nigerians by suspending any further transactions related to the revitalization of Ajaokuta Steel Rolling Mill. SINET contends that the current approach could potentially transfer control to foreign entities, contrary to the national interest of preserving the nation’s heritage.
In an emergency meeting held in Kaduna on Wednesday, SINET expressed concerns about the government’s governance practices, particularly within agencies like the Federal Ministry of Steel Development and Ministry of Industry, Trade and Investment. Despite the presence of highly qualified individuals, including university professors, industrialists, national assembly members, seasoned administrators, industry leaders, and technical and financial consultants, SINET lamented that foreigners continue to present unrealistic proposals and business plans to the detriment of the nation.
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SINET recalled that the National Assembly Joint Committee on Steel Development recently passed a resolution to investigate the $496 million payment made by the Federal Government to an Indian firm that failed to revitalize the Itakpe Iron Ore Company after three years. The group argued that preference should be given to national companies capable of operating such plants, fostering employment, reducing imports, and preserving foreign exchange and mineral resources.
Ibrahim Issah, SINET’s national coordinator, stated, “We vehemently oppose the Federal Government’s deliberate and uninformed disposition toward selling off its national heritage without considering the desires and demands of Nigerians, particularly during this critical period when the nation grapples with economic stability and other challenges.”
Issah further pointed out past blunders, such as the transfer of Ajaokuta, Itakpe mines, and Delta Steel plants to Global Infrastructure Holding Ltd. (GIHL), India. GIHL allegedly siphoned out resources without benefiting the country. Subsequently, GHIL sold its stakes in Delta Steel Company to Stallion Group, further compounding the situation.
Stallion Group eventually had to shut down PSML Warri business around 2020 due to a lack of support from the government. SINET expressed concern that the Federal Government is once again seeking to involve an Indian company in exploiting resources from Ajaokuta, Delta steel plants, and Itakpe mines, with minimal public notice and without addressing existing legal injunctions.
SINET emphasized that Ajaokuta and Delta Steel Company employ outdated technologies, and any company claiming profitability is misleading the nation with ulterior motives. They advised the Federal Government and relevant ministries to conduct thorough evaluations, involving independent agencies and local business experts, before proceeding with any transaction. SINET also questioned the purported $5 billion investment from Jindal, suggesting that it may be an inflated figure that could potentially harm Nigeria’s assets, resources, and the general public.
