Business

FG spent $400m to settle Ajaokuta Steel coy dispute – Buhari

The Federal Government has committed $400 million to settle legal liabilities on the Ajaokuta Steel Complex.

The steel complex is also expected to generate $1.6 billion annually and provide 500,000 jobs for Nigerian youths when it becomes operational.

President Muhammadu Buhari made the disclosures on Thursday at the Palace of the Ohinoyi of Ebiraland in Okene, Kogi State.

The President was in Kogi State on one-day state visit to commission projects of the Yahaya Bello-led administration.
Buhari explained how the Federal Government achieved the resolution of all legal entanglements that had bogged down the progress of the Ajaokuta Steel Complex.
According to him, the project stands to benefit the people of the state immensely.
“No other single project holds the key to unlocking this vast potential as much as the Ajaokuta Steel Complex which we inherited as a long moribund complex strangulating under a tangle of local and international commercial disputes.
“I am glad to report that as we begin to round off in office, we can genuinely say that our administration has rescued Ajaokuta from all legal disabilities.
“It is now ready for concessioning to a private investor with the right profiles to put it to work for Nigeria in general and Kogi in particular.
“The process has cost this Federal Government over $400 million so far, but I consider it money well spent as we move closer to achieving our objective of transforming Kogi State into Nigeria’s iron and steel powerhouse,” he said.

President Buhari and Governor Yahaya Bello during the President’s visit to Kogi State on December 29, 2022

Buhari added: “The benefits of getting Ajaokuta Steel Complex working again are numerous. It would provide over 500,000 estimated jobs and more than $1.6 billion in annual income to the Nigerian economy.

“Nigerians can rest assured that I remain committed to seeing this process to a logical conclusion before the end of my tenure in office.”
The president said that Kogi also stood to benefit in diverse ways when the 614 km (384 mile) AKK gas pipeline which traversed the state commence operations in 2023.

The Star

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