Mining: Union Kicks against Ajaokuta Concession

   •Says triple actions of hurried privatisation, cost Nigeria $400m

Kasim Sumaina in Abuja

The Nigeria Union of Mines Workers (NUMW) has  urged the Muhammadu Buhari led administration to as a matter of national interest halt the concession process of Ajaokuta Steel Plant and the National Iron Ore Mining Company on a Public Private Partnership model.

The group hinted that consequences of the last triple actions of hurried privatisation, lack of due diligence and the actions of the new government resulted in Nigeria paying over $400,000,000 to GINL as an out of Court settlement through a process that lasted 15 years.

It however stated that while it is not in any way against private investments in the Steel Sector, “we will not hesitate to draw the attention of the Federal Government and indeed Nigerians that the RUSH and SPEED of the Process might end up putting the two Companies back into the same mess that H.E. President Muhammadu Buhari tried hard to bring them out.”

National President, NUMW, Comrade Hamza Mohammad, in a statement issued in Abuja, said: “It would be recalled that in a rush to inject private hands in the Ajaokuta Steel Plant and National Iron Ore Mining Company, the Federal Government in 2003 hurriedly signed a 10 year concession agreement with SOLGAS ENERGY of USA.

“This concession only lasted for a little more than 1 year, with M/S SOLGAS throwing in the towel due to lack of capacity.”

According to Mohammad, “In 2005, another 10 year concession agreement was hurriedly entered into with Global Steel Holdings owned by Mr. Pramod Mittal without any due diligence by the relevant Government Agencies.

“The concession agreements were solely handled and messed up by the same Ministry of Mines and Steel Development with unverified claims that it was a directive from the then President Obasanjo. 

“Following the inauguration of the Late President Musa Yar’adua’s Government, and the complaints of Nigerians, that agreement was reviewed by the Engr. Inuwa Magaji Commission of Inquiry.

The outcome of that inquiry led to the Government terminating the second Concession agreement. We seem to be treading that same path again with the current efforts, and this time around the processes are h only haphazard but against the LAWS of the Federal Republic of Nigeria.”

Mohammad said the observation of the group was that, “Section 68 of the Finance Act 2020 which clearly amended Section 25, Sub Section (2) (a) and (b) of the Public Procurement Act, 2007 states that advertisements for Parastatals and Ministerial Tenders should not be less than four (4) Weeks from the date of publication if the process is within the thresh-hold of the Ministry.

“If however it would require the consideration and approval of the Federal Executive Council, the time line is six (6) weeks.”

Continuing, he noted: “We want to put it on record that this very process falls within the threshold of the six (6) weeks proviso and not four (4) weeks contemplated in the Advertisement. Sections 2 to 5 of the ICRC Act confirms our observation above and strengthened by Sections 55 and 56 of the Public Procurement Act, 2007 on disposal of Public Assets.

“This violation of the extant rules and Laws of the Federation is therefore a recipe for future litigations. So why the HURRY if we may ask.”

This present government is in transition mode and it has just about 33 Days to hand-over to a new Administration. 

“What it did not do in eight (8) years, should not be done in less than 30 Days in all honesty. We therefore request as follows that the process should follow the due processes of our laws and no law should be circumvented as doing so would demean National Pride and Nationhood. 

“The six (6) Weeks threshold MUST be the ground rule and must be respected and adhered to. Anything short of this is recipe for litigations,” Mohammad said.