Nigeria lawmakers fault Ajaokuta Steel concession deal

Members of the House of Representatives on Thursday disagreed with the Minister of State for Solid Minerals, Mr. Kayode Fayemi, on the process that led to the recent modified agreement signed by the Federal Government with Global Steel Holdings Limited for the Nigerian Iron Ore Mining Company (NIOMCO), Itakpe.

At an investigative hearing in the National Assembly, Members of the House Committee on Privatization said stakeholders were not consulted prior to the signing of the agreement.

The Minister of Solid Minerals, Mr Kayode Fayemi, had on August 1, signed a renegotiated concession agreement on behalf of the federal government with Global Steel Holdings Limited for NIOMCO.

The Ministry insists that the renegotiated concession agreement would remove the obstacles which have prevented Ajaokuta Steel Company Limited from performing at optimal capacity.

But criticisms are following the agreement as the Bureau of Public Enterprises (BPE) said they were excluded from the renegotiation process thereby making the agreement null and void since BPE, the technical partner of the National Council of Privatization (NCP) did not participate in the process.

Members of the Committee are however dissatisfied with the process that brought about the concession agreement.

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They said that going forward, the Ministry of Solid Minerals should work in conjunction with the BPE to find a way forward on the signed agreement in conformity with the law.