The chairman of Kam Industries Limited, Dr. Kamoru Ibitoye Yusuf has canvassed that in order to resuscitate the Ajaokuta Steel Complex that has been in comatose for several years, the federal government should consider a partnership with competent indigenous investors rather than handing the nation's assets to foreigners.
Yusuf was speaking at a stakeholders' meeting of the iron and steel sector organised by the Federal Ministry of Industry, Trade and Investment, Thursday in Ilorin.
The meeting, according to the organisers, was to deliberate on the status of the industry and propose strategies for the development of the sector.
Yusuf, who doubles as the Chairman Basic Metal, Fabricated Iron and Steel Products at the event, said Ajaokuta Complex is an underutilized gold mine; a treasure which ought to benefit generations to come if properly handled.
While commending the master-plan of the founding fathers of Nigeria's Steel Projects, he observed that the efforts "made Nigeria to stand a better advantage of making the country to be great forever by establishing steel business in line with International best practice"
He said "the choice of Ajaokuta and Itakpe as the manufacturing hubs as well as creation of subsidiaries such as Delta Steel (South-South), Osogbo rolling mill (South-West), Jos rolling mill (Middle-Belt) and Katsina rolling mill (North) serve well as off-takers with geo-political zone representations"
He however opines that the nation's greatness as a nation depends heavily on her ability to sustain the existing developmental tendencies that are majorly our national heritage as well as initiation of new ideas and values
As a committed stakeholder in the nation's economy, he said, "it is pertinent to reiterate
that the future of Iron and Steel business in Nigeria will heavily be dictated by the policy thrust of the government which must be tailored towards rendering necessary support and ease of doing business to investors in the sector"
On what to do to resuscitate Ajaokuta Complex: "Without mincing words, the assets should not be handed over to foreign investor rather, it should be managed 100% by a competent indigenous investor who had demonstrated capability with evidence of success stories on existing Steel Plants and Wire Processing Factories. “With this, government can and may own 40%, while the investor will own 60%. This will no doubt, enhance easy, sustainable, and rewarding business fortunes for the nation”
He advised the Federal Government to take counsel from existing players in the steel industry. He also advised that government could adopt the Peoples of Republic of China’s model indigenization of her steel industry.
Yusuf urged for urgent review the policy on Free Trade Zone in view of the loophole it has created in making Government to lose about 50% of its accruable revenue from Iron and Steel companies. “This policy needs to be properly checked and we must ensure that names of all companies and investors that meet up the statutory requirements of investing in the Free Trade Zone are allowed to do so; with their names publshed, which should be reviewed quarterly. This is to ascertain their status in compliance with the products that they registered on their applications in line with the approval granted for such businesses”
In his remarks, the Director, Industrial Development Department of the Federal Ministry of Industry, Trade and Investment, Adewale Bakare said the stakeholders’ meeting was necessitated by the ongoing effort of the Ministry at repositioning the iron and steel sector through the development of workable policies and strategies for the growth and development of the sector.
He said, although the establishment of the Ajaokuta steel complex was a beacon of hope in the early days, “present realities shows that the iron and steel industry has not achieved the desired development as the various sub-sectors under the iron and steel industry have remained at the levels of infancy or non-existent, living the country to depend largely on importation of iron and steel products”
This, he said, necessitated the Stakeholders' meeting, hoping that the invitees would avail the organisers their experiences “to x-ray the challenges confronting the iron and steel sector with a view to come up with recommendations which will aid government in formulating holistic policy for the Nigerian iron and steel sector”
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