Reps ask Buhari government to halt “last minute” concession of Ajaokuta Steel Co.

The House of Representatives has asked President Muhammadu Buhari to suspend the “last minute” concession of Ajaokuta Steel Company.

The lower chamber made its position known on Tuesday, following a motion of urgent importance moved by Ali Halims (APC, Kogi) during plenary.

Mr Halims, in his motion, said the planned concession at the eleventh hour of the current administration is self-serving and not in the national interest.

Background

PREMIUM TIMES reported that the Nigerian government agreed to pay $496 million to settle a multibillion-dollar claim by Global Steel Holdings Limited.

Attorney-General Abubakar Malami had stated that the federal government will pay the company $496 million instead of the $5.258 billion demanded by the firm, to settle the dispute.

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The dispute followed the federal government’s revocation in 2008 of an agreement that handed control of the steelworks and the National Iron Ore Mining Company to Global Steel Holdings Limited, an Indian firm. In cancelling the deal, the then Umar Yar’adua administration said the terms of the concession at the time were not favourable to the country.

Why the last-minute rush? — Halims

Mr Halims questioned the motive behind the rush by the Buhari administration to concession the asset weeks before the end of the administration.

“Why now? Why the hurry to concession such strategic national assets within a narrow window of less than six weeks? Why the rush to consummate a concession deal during this transitional period and not leave it for the incoming administration which stands inaugurated on the 29th of May 2023,” he said.

He added that there is a need for a “robust stakeholder consultation and adoption of proper procurement, due diligence and due process protocols are well adhered to and observed in the said concession deals and in the best national interest.”

Following the presentation of the motion, the House resolved to invite the Minister of Mines and Steel Development, Olamilekan Adegbite, to appear before it in a plenary session to explain the details of the concession process.

When the motion was put to question by the Speaker, Femi Gbajabiamila, members voted overwhelmingly in support of it.