Curious like me about AJAOKUTA STEEL COMPANY and all the conspiracies that had made it not to work? Read this article from a Researcher, Natasha Hadiza Akpoti.
I pray God helps us. If Ajaokuta works, thousand will be employed in the Company and other allied companies that would used its bye-products.
Time to break the deadly conspiracy surrounding #Ajaokuta Steel #Company Limited!!!
I
have been advised to use pseudo names in publishing this piece, but
that’s not my nature. I am one who bolds up to situations and thus, I
shall bear my name and consequences this report might stir.
From
the 14th of August 2015, the day I had an interactive and empowerment
session with the black smiths of #Ebiraland; the pains in their voices
daunted me. A people, whose ancestors carved a niche in ironworks way
back as the 7th century suffered for want of materials to support their
trade while a steel giant lay raped in their backyard by a series of
unfortunate events and conspiracies.
In October, I took online
to issue a petition pleading with #President #Buhari to revive ASCL; and
with your support we were able to get hundreds of signatures. Since
that day, I left no stone unturned to discover the happenings so as to
better understand the best path forward. I have taken time to make this
report as brief and as simple as possible and urge you all to take time
and read.
1958 to 1979
1958 - the colonial administration conducted a feasibility study on iron ore deposits in Nigeria.
1967
– the #United #Nations #Industrial #Development #Organisation survey
identified Nigeria as a potential steel market which led to the
signing of a bilateral agreement between Soviet Union and Nigeria.
1971 - the Nigerian Steel Development Authority was established by Decree No.9 to bring to reality a steel plant.
1979
– during the administration of Alhaji Shehu Shagari, TyazhPromExport
(TPE) a #Russian leading engineering company commenced construction
works on #Ajaokuta #Steel Company Limited.
1979 to 1994
In less than 12 years, TPE transformed a wide expanse of land to contain
some giant size network of machinery meant to process the exploration
of steel for #Nigeria. Indeed, billions were spent and its evident in
the state of the art townships , roads, bridges, power plants, air
strip, port, rail that were put up in Itakpe and Ajaokuta in #Kogi
state.
In 1990, as the project approached completion, TPE on
monthly bases for 4 years wrote to the #Federal #Government reminders on
the need to commence works on the necessary infrastructure needed to
successfully operate ASCL and Nigerian Iron Ore Mining Company (NIOMCO).
They are access roads to the mines and rail system from ASCL to Onne
sea port in Port Harcourt. TPE also suggested the possibility of
dredging river Niger which could offer a better and more convenient
route of importing raw materials. This infrastructure TPE argued would
benefit the public especially Northern part of Nigeria where finished
steel manufactured products such as cars, parts, construction materials
etc could be shipped to other states and nations once the state is fully
functional as an industrial hub. The government never responded.
THE INTERNATIONAL CONSPIRACIES
A
lot of people talk about the international conspiracies surrounding
ASCL but very few know what actually they were or are. Here;
In
1992, when the project was near completion and while the Russians (TPE)
called on the government to work on needed infrastructure; powerful
countries namely #France, #America, #Germany, Britain etc including the
organizations like the World Bank and International Monetary Fund (IMF)
started reaching out to Nigerian government to terminate the project
with the Russians. The Ohinoyi of Ebira land HRM Ado Ibrahim witnessed
firsthand a plot by the IMF during a conference in NewYork where a team
of Nigerian officials and foreign agents connived that ASCL should be
completely dismantled and forgotten. To them, Nigeria did not need to
have a steel plant. Nigeria could as well buy steel from them if needed
for its development.
Nigerian government listened to the
negative solutions without ever considering the true intentions of the
so called experts from these powerful foreign countries. Russia all
through stood its ground alone against France, America and co and kept
on reminding Nigeria of the need to ignore the adverse opinions. Russia
told Nigeria that this conspiracy was cooked by the West to stop Nigeria
from achieving the economic strength strong enough to uplift not only
itself but the whole of Africa. To them, Nigeria and Africa needed to
be kept as a market for all junk goods from the West. This is in line
with the colonial economic model brought in by the British and so, to
have Nigeria turn around its economy and that of weaker nations hitherto
being exploited by the super powers, and by implication, impact
negatively on the extent of influence of the richer countries sent
shivers at the smart future awaiting Nigeria.
Nigeria’s
government was too busy focusing on ushering the 3rd Republic, June 12
saga and all. No attention was given to the Russians. TPE was no longer
being paid. In 1994 TPE left Nigeria.
SERIES OF UNFORTUNATE EVENTS
The Dept Buy Back
Nigeria’s
contract with TPE was to construct ASCL for five billion German
Deutschmarks (DM) and such that the Nigerian steel authority gave TPE
promissory notes guaranteeing payment to the company. When Nigerian
government suspended payment and TPE left, TPE sold off these
instruments to recover some of the debt owed to the company.
In
October 1995, a series of secret debt buy-back transactions took place
whereby the debt instruments were sold at inflated prices to Liberian
companies purportedly owned by the Abachas - Parnar Shipping
Corporation and Mecosta Securities .This involved the withdrawal in 1996
of $2.5 bn of public funds to settle debts owed to Russia for the
construction of the Ajaokuta steel plant, but which in reality had been
discounted to only $500m. Obasanjo in 1999 settled debt through OMPADEC .
http://www.un.org/en/africarenewal/subjindx/subpdfs/131nigr.pdf
SOLGAS - the first Concessionaire
In
2003, Nigeria under president Obasanjo realized the need to complete
Ajaokuta and so, SolGas, an American company which specialized in
petroleum was given concession. For a year and a half, Solgas zero
progress raised questions as to their technical capacity to operate
ASCL. Even though they claimed Senator Liyel Imoke and Gbenga Obasanjo
brought in Global Steel Holdings Limited/ ISPAT to short- change it from
performing. To this end, Nigeria terminated contracts with Solgas.
There were no minutes recorded to document deliberations engaging or
terminating with Solgas.
GLOBAL STEEL HOLDINGS LIMITED (INDIAN) - the second Concessionaire
An
Indian company first operating under the name ISPAT then changed its
name to Global Infrastructure Holding Limited and now #Global Steel
Holdings (GSH) were helped into Nigeria by Sen. Liyle Imoke and Gbenga
#Obasanjo under President Obasanjo’s tenure in August 2004. The
agreement was such that company would own 60 percent of the shares of
the steel mill. The Federal Government would keep 30 percent while 10
percent shares would be sold to the public. This company GSHL owned by
Mr. Primod Mittal is not affiliated with ArcelorMittal, which the
world’s renowned steel giant. #ArcelorMittal is owned by #Lakshmi
#Mittal and a cousin to Mr. Primod Mittal.
This concession which
saw the taking over of ASCL and Itakpe is termed one of the biggest
scams. The plant was hugely undervalued for $300m and GSH was to pay
nothing to the government but inject its funds to revive the plant with a
number of conditions some of which were:
- 1. That the Federal Government should give GSHL two oil blocks.
- 2. That GSHL be allowed to be lifting crude oil from Nigeria.
- 3. That the Sapele Power Plant be given to GSHL to operate.
- 4. Concession of Delta and Warri Ports to GSHL to operate.
-
10. The supply of Natural Gas to GSHL at “competitive and reasonable
tariff”.(GSHL came up with this condition after it failed to sign a Gas
Supply Agreement with the Nigeria Liquefied Natural Gas Company. GSHL
offered to pay N5.00 per cubic meter of Gas as against the market price
of N30.00). It also inserted in its conditions that “Gas price should be
kept reasonable and consistent.
After all these conditions, ASCL
still deteriorated as equipments of ASCL were moved to Delta steel
(which GSHL took over in 2005) while some to other private owned Indian
owned steel factories in Nigeria in the name of “borrowing”.
The
federal government under President Yaradua realized the huge mistake
Nigeria once again made and sought to terminate the contract with GSHL.
The then Director General of the BPE, Ms Bolanle Onagoruwa stressed that
the approval of the concession of Ajaokuta by president Obasanjo was in
violation of the BPE Act.
At Senator Ahmed Lawan led Adhoc
Committee, Minister of Mines and Steel Development, Architect Mohammed
Musa Sada also revealed that the federal government under Obasanjo
single handedly sold ASCL to GSHL and that GSHL ruined the Ajaokuta
complex by stripping it of all valuable equipment and machineries. It
led to the cancellation of the entire process by the federal government.
This act didn’t go too well with GSHL and they dragged Nigeria
to the International Chamber of Commerce (ICC) in London, UK and
demanded Nigeria pays them $1B for termination.
In 2013, after 6
years of heated negotiations at the ICC, the Jonathan’s administration
successfully took back ASCL. GSHL also lost their $1B demand.
2013 TILL DATE – INDIANS HOLD AJAOKUTA TO RANSOM
One
would have assumed the drama over in 2013 but alas, the Federal
Governments hands are tied on progressing with ASCL. GSHL shrewdly
crafted an arbitration clause in the contract between the government and
GSHL which prohibits Nigeria from dealing with anybody until all
matters with GSHL are resolved. In other words, the Indians do not want
Nigeerian government to proceed on completing Ajaokuta until an
unreasonably selfish condition is met - they want the Nigerian
government to give Itakpe Iron Ore company to them free for 25 years.
At
the moment of this report, there is a modified contract containing such
ridiculous terms before the minister of solid minerals in favour of the
Indians. GSHL wants to tap Iron Ore from Itakpe and move to Delta
Steel which was in June 2015 taken over by Premium Steel, a company set
up just months before the purchase of Delta Steel . Premium Steel is
owned by another powerful Indian conglomerate headed by the #Vasuwani
brothers (owners of the controversial Stallion group).
Truth is
that Itakpe was set up as a captive mine to ASCL. The original plan
holds that iron Ore would be moved from #Itakpe to ASCL which will in
turn distribute to other smaller rolling mills, Delta Steel inclusive.
If
GSHL succeeds in its bid to take charge of Itakpe, ASCL will become a
sad history as there will be no Ore to feed from. That means Kogi state
will have no steel plant of its own ever again. So no matter that amount
of pacifying information the government publishes for the public on the
urgency and good intention they have towards ASCL, nothing shall be
done until the arbitration is terminated.
Patriotic Nigerians
must call on the Nigerian Government to immediately terminate every
agreement in whatever form with GSHL. Nigeria is too big a nation to be
held captive by an Indian company. TPE, a whole Russian government owned
company who built the complex did not cause this much pain to Nigeria…
why would a private Indian Company who has never operated any steel
plant in its own country India do such a thing to us? A more worrisome
question to answer is – Who’re the heavyweight Nigerians behind GSHL
selling us this cheap? I don’t believe Mr. Primod Mittal would have the
courage to stand alone and dare this much pandemonium; so who are the
greedy Nigerians toiling with the present and future of Kogi state and
Nigerians? No matter what, Nigerians must remember that the masses are
always majority and the power to determine our future truly lies in our
hands. Our silence and ignorance has only cost us this much.
RUSSIAN TyazhPromExport (TPE) IS BACK WITH HOPE FOR NIGERIA
The
Sole Administrator of ASCL Egnr. Onobere has repeatedly said that since
the Russians left in 1994, no progress has been realized on the
project. The following questions kept hovering my mind :
- the
moment Nigeria realized their mistake in not completing ASCL and were
ready to commence completion, why were the Russians not called back to
resume works? Why did we settle for SolGas and GSHL in the first and
second instances?
- From the quality of work evident in Ajaokuta, is there any doubt on the expertise of TPE that questioned their invitation?
- Could it be that TPE wasn’t invited because the Russians are too straight forward and don’t engage in “smart business”?
My
research led me to uncover a lot of conspiracies on how TPE is no
longer interested in doing business with Nigeria and some even said TPE
no longer exists. My curiosity took the better part of me and I decided
to look them up the internet and initiate contacts.
I sent an e-mail to TPE in mid November and another early December 2015, none were replied.
It
is said that desperate times require desperate measures and that when
you truly want to do something, you shall find a way; so I contacted a
dear friend of mine who lives in Russia and who happens to be the acting
Chairman of Russia’s Arbitration Court on International Economic
Matters – Mr. Tunde Adewon. As God would have it he is also a Nigerian;
born to a father from Ondo State and a Russian mother. His father late
Engr. Moses Adewon was one of the senior engineers who worked to build
the Itakpe Iron Ore complex.
Mr. Adewon on behalf of Builders
Hub visited TPE in Moscow, Russia in the 2nd week in December 2015.
After the first brief meeting, TPE, as precautionary measures ran a
security check on me. Then Mr. Adewon was called for a detailed meeting
and this was noted;
- TPE expressed deep sadness at the manner in which ASCL was handled.
-
TPE said their heart was poured into the project in other to give
Nigeria, the greatest country in Africa, the biggest steel Complex in
Africa.
- That never, in all of their works across the world, not even in India, did they build a steel city as big as Ajaokuta complex.
-
That it was sad Nigeria did not heed to their warnings about the
international conspiracies and Nigeria turned their back to them instead
of seeing the bright future they dreamt for us. That we, by our own
hands allowed our economy to be trampled amidst negative interests by
other powerful countries.
- That over the past years, they had tried
reaching out to the Nigerian government to allow them come back and
complete the project. Nigeria did not respond positively.
- That
they would want nothing more than to work to revive Ajaokuta and help
Nigeria create jobs for its people and take itself out of poverty.
Nigeria, they said must wake up from its slumber and be greater than
ever before for itself and for Africa.
During a skype meeting,
TPE was advised to write a letter of intent to the Minister of Solid
Minerals. I also made it clear that neither I nor Mr. Adewon were
interested in any monetary reward. We were only good citizens of Nigeria
trying to use our best arsenals to contribute our quota in helping our
country. They appreciated our honesty.
On the 25th of December
2015 (Christmas day), TPE wrote and sent the letter (which I have
attached to this post) to the Minister of Solid Minerals Dr. Kayode
Fayemi. TPE is expecting to be invited over to discuss a path forward
which would first entail technical evaluation of ASCL to ascertain
damage and recommend modernization and upgrade plans for completion. TPE
said they are very ready to come to Nigeria even at a week’s notice.
On
Monday the 18th January, I paid a courtesy visit to the Minister
himself; Dr. #Fayemi acknowledged reading the letter from TPE and
mentioned the Ministry would look into it. I pleaded with him on the
need to expedite actions regarding ASCL and reminded him of the TPE’s
intentions should be considered a priority.
4 weeks after the letter was sent to the Ministry and no response from
the Minister’s office, I visited the Department of Steel within the
Ministry. To my shock, no one had seen or heard of the letter of intent.
Question – what happened to the TPE’s letter after the Minister read
it. Is it not supposed to be sent to the Steel and Legal departments for
action?
Do you also know that till today, no committee has been set up to investigate into ASCL?
KIND WORDS FOR HON. MINISTER DR. KAYODE FAYEMI
My
dear Minister, sorry if I sound a bit hard. I don’t like it myself but
like I told you in your office, I tour rural communities and interact
everyday with the unemployed; the pains in their eyes are unbearable and
that’s what I pour out right here… the pains of Nigerians and the huge
expectations from your kind self and Mr. President. You visited
Ajaokuta on the 14th of December 2015 and promised an urgent action
first by composing a think tank whose report would be submitted to the
President; that’s 40 days ago!!!
The Russians worked even on
Christmas day to get the letter to you. When are you going to respond
and extend an invitation to at least hear out their plans for ASCL and
Nigeria? When would you constitute the fact finding committee? How long a
time would the committee have to prepare its report? When would the
President digest the report? When would decisions be made? Please note
that Nigerians expect your efficient office to act quickly as we are
fast drowning.
Mr. Minister, I am aware you were misinformed
that the Russians are not interested in the constructions works in ASCL,
that’s not true sir. Please do not be trapped by misinterpretations.
For that sake, I have decided to post TPE’s letter out to Nigerians to
read. Also, my team met with the senior management of TPE in Russia
today the 26th of January and they once again expressed their readiness
to work with Nigeria on Ajaokuta and other projects if need be.
Sir,
do you know that TPE Russia constructed 3 of India’s largest steel
plants namely - Bhilai, Bakaro and Visakhapatnam? Do you know that
Bhilai is an eleven-time winner of the best integrated steel plant in
India? They say the blast furnace technology in Ajaokuta is old, no sir.
Do you know that India recently contracted TPE Russia to reconstruct
and modernize Rourkela (originally built by Germans) and Durgapur steel
plants? It shall interest you to know that TPE is installing the largest
blast furnace in India as part of Rourkela upgrade.
Sir, please
join as we ask ourselves why India, with all its steel expertise keeps
calling on TPE Russia? It’s because they are good and honest and that is
what Nigeria needs now. GSHL was not invited by their government to
work on their plants? Better still – has GSHL ever done any steel works
in India? Was Nigeria supposed to be a guinea pig? Little wonder they
can’t let go of Nigeria and are holding Ajaokuta hostage. Sir, please
see that the arbitration with GSHL is terminated as soon as possible. In
the meantime, TPE is at this moment writing a comprehensive letter of
intent to the president, your office shall be promptly copied sir. Thank
you .
Today the 26th of January, I printed copies of the letter
and again took a set to the Minister’s office and a set to the Director
of Steel Engr. Also Abdullahi promised to follow up with the Minister.
Dearest
Nigerians and Kogites, it is said that you can’t make the same mistake
twice, the second time you make it; it’s no longer a mistake but a
choice I don’t know what a third mistake is called. We have watched our
God given economic destiny being tossed twice by a few; we cannot sit
back and watch it happen the third time around. It will be a big shame
unto us.
Anger will do no good. We shall forgive everyone for
every negligent decision made in the past. Sadly we have found ourselves
in the most despicable of times; we should be courageous enough to seek
to take the best path forward. Let us think deep quickly and ask
ourselves – what do we have to lose or gain if the Russians come back to
rescue Ajaokuta?
Now that God has ushered us a new government
in Kogi state, let us demand of our Governor and National Assembly
members to make ASCL their watchword. Let our dear royal fathers HRM the
Attah of Igala, the Ohinoyi Ebira land, the Obaro of Kabba and others
keep interceding on behalf of ASCL. Let every Kogite realise that there
is no better time than now to unite and seek that justice is done to
ASCL. Let every state in Nigeria join forces to call on the federal
Government to revive Ajaokuta because that single project coupled with
Nigeria’s intellectualism can usher us into unprecedented greatness. We
are too poor, our youths are jobless, our future is bleak, we cannot
continue to suffer this much. The time to speak up and act is now!!!
Truly yours
Natasha Hadiza Akpoti.
NOTE:
This report took weeks of constant research with me meeting with the
Minister of Solid Minerals Dr. Fayemi, Director of Steel Ahl. Also
Abdullahi, Sole Administrator Engr Onobere, TPE Russia and so many
others. No part of this excerpt expressly stated, though all true, was
made by any of the above mentioned.
The picture herewith
attached was taken at TPE headquarters in Moscow, Russia with Builders
Hub representative on international matters Tony Adevon (second right)
and three top management officials of TPE.
" as copied"