The Social Integrity Network, SINET, has urged the federal government not to be deceived into selling the Ajaokuta Steel Rolling Mill to foreigners.
The group also asked the federal government to halt any further transactions on the revitalization of the mill through the back door.
The national coordinator of SINET, Ibrahim Issah, made the appeal while briefing newsmen at the end of an emergency meeting in Kaduna on Wednesday.
He said it would be against the national interest to engage in such transactions.
“We are outrightly against the way the federal government is deliberately and ignorantly selling out its national heritage without recourse to the yearnings and agitation of Nigerians especially at this crucial period when the nation is battling with economic stability among other challenges.
“Almost five decades of lost opportunity towards strengthening large-scale steel production in Nigeria, failed attempts without a proper road map. It is also on record that Russians and Ukrainians supplied already obsolete technology then in 1970s,” he said.
Mr Issah lamented that despite the presence of highly intellectual personalities in Nigeria, “it is unfortunate that our leaders still allow foreigners to fool the entire nation with unrealistic proposals and business plans.”
The group also expressed disappointment over the poor system of governance adopted by the federal government through its relevant agencies and parastatals.
It recalled that the National Assembly joint committee on steel development recently passed a resolution to probe the $496 million paid to an Indian firm that failed to revitalise the Itakpe Iron Ore Company after three years.
Mr Issah, however, said preference should be given to national companies that can run such plants, ensure employment generation, reduce imports, and do away with siphoning out much-needed forex and mineral resources.
He said, “The Global Infrastructure Holding Ltd., GIHL took over the National Iron Ore Mining Company, NIOMCO, Itakpe, Kogi State in 2016 and got its agreement terminated in 2019 due to non-performance.
“GIHL dragged the Federal Government to court for breach of contract, and it was awarded damages to the tune of $496 million, which had been paid”.
Speaking further, Mr Issah alleged that the company took over the plant and “syphoned out all the resources from country, and eventually the country did not get any benefit.
“GIHL was never serious in running the plants and mines at Ajaokuta Steel Company Limited, Delta Steel Company and Itakpe. Later, GHIL sold its stakes in Delta Steel Company to Stallion Group under a SPV to Premium Steel & Mines Limited This acquisition was also a marvel of financial engineering by PSML to hide black money generated and siphon out of country through their other businesses.”
Narrating further, he said, “When stallion did not get support from the former President Muhammadu Buhari-led government, they had to shut down the PSML Warri business around 2020. Sadly, for the third time, the Federal Government is trying to bring in Indian company to loot the resources from Ajaokuta, Delta steel plants and Itakpe mines.
“Interestingly, the immediate past government had paid the sum of $496 million to GIHL as compensation, even despite massive public outrage, wherein these investors are merely looking at Itakpe mines to cater to their offshore companies at much cheaper rate of iron ore supplies.”
While confirming that Jindal-India has been asked to work out a takeover proposal through the back door despite several court injunctions SINET warned the federal government “to understand that Ajaokuta and Delta Steel Company are very old and obsolete technologies, and any company claiming to run and earn profit is just misleading the nation with nefarious intentions.
“We hereby advise FG and its concerned ministries to carefully dig deep into their detailed project report, elaborated business plan, capital outlay, and cash flow projections by involving independent agencies and champions of business here in Nigeria.
“We are quite sure that the so-called 5B investment from Jindal is a faux pass and an outrightly exaggerated number that will put Nigeria, her assets, resources, and general public in total mess again”.
