Nigerian government dont have what it takes to complete ajaokuta steel

The Minister of state for Mines and Steel Development, Abubakar
Bwari, on Monday said the federal government has no money to
complete the Ajaokuta Steel Company Limited.
Bwari made this comment as an ad hoc committee of the House
chaired by the Majority Leader, Mr. Femi Gbajabiamila, opened a
public hearing into the troubled steel plant.
The House is against the Federal Government’s plan to give the
plant to private investor as a concession, and had taken up the
former minister of Mines and Steel, Dr. Kayode Fayemi, on the
issue.
The two bills, sponsored by 301 lawmakers, were, ‘A Bill for an Act
to Provide for the Ajaokuta Steel Company Completion Fund for
the Speedy Completion of the Project; and for Related Matters’ and
‘A Bill for an Act to Amend the Public Enterprises (Privatisation and
Commercialisation) Act, Cap. P38, Laws of the Federation of
Nigeria, 2004 to Review the List of Enterprises to be Privatised; and
for Related Matters’.
Bwari, who appeared before the Gbajabiamila committee to defend
the government’s decision to give out the plant as a concession,
said that the government could not complete the plant because it
could not afford the cost.
The minister stated, “With concession, the government will not put
more money, but will appoint a reputable transaction adviser to
move forward. Right now, the government does not have the
funds. It is important that we hand it over to those who have the
resources.
“The government is even borrowing to run services. That is to tell
you that there is no money.”
Bwari added that it would cost the government far above the
$500m to complete the plant and make it functional.

2 Comments

  1. Good update

  2. Ok

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