FG set to revive Nigeria’s Aluminium Smelting Company

The federal government has begun an initiative to revive the Aluminium Smelting Company of Nigeria (ALSCON), a pivotal player in the nation’s industrial landscape.

The Assistant Director, Information and Public Relations of the Ministry of Steel Development, Tine-Lulun Maureen, disclosed this in a statement on Tuesday.

According to the statement, the revival will reinvigorate the local economy, create jobs, and enhance Nigeria’s position in the global aluminium market.

ALSCON, incorporated in 1989, was originally a joint venture project between the Nigerian government and two foreign technical partners, Ferrostaal AG of Germany and Reynolds International Inc. U.S.

Stay Ahead with Premium Times

Add as a preferred source on Google

For over a decade, the company has been enmeshed in an ownership tussle between a Nigerian-American consortium, BFIGroup, and a Russian firm, UC RUSAL.

In July 2023, Vice President Kashim Shettima restated the determination of the Bola Tinubu administration to revive ALSCON, particularly by engaging with key stakeholders in the industry.

The Minister of Steel Development, Shuaibu Audu, while emphasising the importance of resuscitating the project during his two-day facility tour of the company in Ikot Abasi, Akwa Ibom State, according to the statement, stated that the revival of ALSCON is not just about aluminium production but about creating a robust industrial base that will attract foreign investment and stimulate economic growth.

He added that the present administration is committed to making Nigeria a hub for aluminium production in Africa.

Mr Audu, who was accompanied by Chris Isokpunwu, the permanent secretary and other directors of the ministry, according to the statement, said after a series of extensive meetings, President Bola Tinubu gave charge to the ministry as the regulator of the aluminium industry to ensure a resolution of all teething issues regarding the company.

“The company, when all issues are successfully resolved, is expected to create thousands of direct and indirect jobs, providing a significant boost to the local economy.”

Additionally, he said resuscitating the company will enhance the supply chain for aluminium products, which will benefit various sectors, including construction, automobile and packaging.

The minister said the revival of ALSCON is anticipated to attract investments in the aluminium sector, as the project is expected to generate substantial revenue for the government through taxes and royalties, contributing to national development goals.

“For the president to achieve the $1 trillion economy for the country by 2030, all critical assets have to come back online.” Mr Audu was quoted as saying.

READ ALSO: Aradel’s annual profit jumps almost fivefold amid mega boost to crude oil exports

He revealed that the purpose of the visit was to have a firsthand assessment of the plant’s capacity that would enable him to do a comprehensive report for the consideration and approval of the president on the best ways of resolving all the issues regarding the company.

In his remarks, Mr Isokpunwu noted how critical the plant is to the country’s economic development while reiterating the ministry’s commitment to resuscitating the plant.

He enjoined all the parties involved to ensure they provided all the necessary information to facilitate a speedy resolution.

Zaviyalov Dmitriy, the managing director of the plant, noting the challenges that have hampered the revival of the plant, said the management had kept a staff strength of about 108 people to keep the plant infrastructure and equipment in preservation state for the overhaul and final start of the plant.