President Jonathan Recovers Ajaokuta Steel Company From Global Steel

President Goodluck Jonathan has recovered the dead Ajaokuta Steel Complex in Kogi State from Global Steel Holdings Limited, Chairman, Senate Committee on the Federal Capital Territory, Senator Smart Adeyemi (PDP, Kogi West) has said, in a move that came six years after the company had remained non-functional.

Senator Adeyemi noted that the development
and bringing back of the company to full
operation will provide at least 10, 000 jobs, not only for Kogi State indigenes but also,
neighbouring states.

Speaking to newsmen, yesterday, Adeyemi said the Federal Government was in the process of negotiating the return of the Iron Ore Mining Company, Itakpe, also in Kogi State.
"The Federal Government has recovered the
Ajaokuta steel complex from Global Steel and
with that more than 10,000 workers would be
gainfully employed," he said.
"I think the return of this complex is worth
celebrating. The government of President
Jonathan is worth celebrating. They should be commended for recovering the complex. They have succeeded in recovering Ajaokuta without any attendant financial obligation whatsoever.
"This is a great achievement that deserves
commendation, irrespective of political
affiliation. The return of Ajaokuta will reduce
unemployment and crime. By this singular
achievement, it means this government has
raised the hope for industrial development in
Nigeria
"We got to know that Global Steel asked for $1
billion damages but the concession was illegal and unlawful. I want Nigerians to know that the Federal Government has been in arbitration with the International Chamber of Commerce since the concession was terminated in 2007. The case started in 2008.

"The two plants have not been functioning since they were privatized and I want to let you know that the meeting that resolved the issue was held in Dubai between April 29 to May 1.
"Ajaokuta is at the heart of technological
development in Nigeria. If we can get the
complex back, then, it means Nigeria's march
towards industrialization has started on a good path. Return of Ajaokuta means that this will change the face of Kogi Stats and hopefully, the northern region".

"The federal government may revalidate the
concession with Global Steel. I'm happy that the main plant is back to Nigeria."
It will be recalled that the Federal Government had been locked in arbitration with Global Steel Holdings Limited and Global Infrastructure Limited at the International Chamber of Commerce, London, for the return of Ajaokuta since 2007.

Ajaokuta was sold to Global Steel during the
administration of former President Olusegun
Obasanjo, under the privatisation Programme of the Federal Government then and after that, allegations of downsizing and asset-stripping came up before it finally shut down operations.

President Goodluck Jonathan was said to have intervened and the federal government regained total control of the steel company and with this, Global Steel agreed to forfeit hefty $1b initially being demanded as damages allegedly suffered by the company while running the two plants.