FG urged to source $1bn loan to revive Ajaokuta Steel Complex

Sen. Nurudeen Abatemi-Usman (PDP- Kogi), has suggested that the Federal Government should source for one billion dollars loan to revamp the Ajaokuta Steel Complex.

Abatemi-Usman, member, Senate Committee on Power, Steel Development and Metallurgy, made the suggestion at an interactive session with Minister of Mines and Steel Development, Mr Musa Sada in Abuja on Thursday.

He said three years had gone by without any tangible effort by the Federal Government to turn the fortunes of the steel complex around.

He sought to know why government had not sourced loan which was estimated by stake holders to revamp the steel project.

Responding, the minister told the committee that beyond cash bail out, there was need for urgent provision of infrastructure to revive the project.

Sada said the most critical infrastructure needed included rail tracks and sea port for conveying raw and finished products.

He assured that the current administration was making effort to return the steel complex to an economic asset for the country.

“The project needs massive provision of auxiliary infrastructure to revamp and put the steel company back on stream’’, he said.

According to the minister, the federal government is taking its time to ensure it did not make mistakes in the implementation of the project.

Chairman of the committee, Philip Aduda expressed concern over the delayed take off of the revival of the company.

Aduda said the committee would not relent in its efforts to ensure that the company was revamped to advance the nation’s industrialisation drive.

He said the committee would meet with President Goodluck Jonathan to discuss financial allocation for the steel sector in the 2014 budget.

“We want to see that the steel sector is revamped to boost our industrial sector. For us to industrialise, we must ensure that our steel sector is working.

“We need to have audience with Mr President to discuss the worries of the committee on revamping the company and the need for one billion dollars loan for the auxiliary infrastructure.

“We will do everything possible within our power to move the sector forward because without the sector there can be no industrialisation in the country”, Aduda added. (NAN)

One Comment

1. 

   charles

   November 22, 2013 at 6:02 pm

   lt cannot be revived but used as a looting mechanism.