Ajaokuta Steel Company Limited (ASCL) popularly known as Ajaokuta Steel Mill is Nigeria’s largest steel plant located in Ajaokuta, Kogi State, Nigeria. A report the other day that the Federal Government was ready to offer the Ajaokuta Steel Mill for sale to finance budget is curiously casual and. A report the other day that the Federal Government was ready to offer the Ajaokuta Steel Mill for sale to finance budget is curiously casual.
|Published (Last):||24 May 2017|
|PDF File Size:||19.6 Mb|
|ePub File Size:||7.30 Mb|
|Price:||Free* [*Free Regsitration Required]|
The industry serves as stimulus to national development and economic boost to industrial growth of a country. The idea of having a steel industry was conceived in by the federal government.
Preliminary market studies were carried out compahy studies were initially directed towards the feasibility of establishing rolling mills. However, because of the growing awareness of the availability of iron ore in Agbaja, Udi and other areas of the country, emphasis later shifted to establishing an integrated steel plant.
Late Tafawa Balewa and late Nnamdi Azikiwe between invited and received proposals from foreign firms, including those from UK, U. The efforts of the government did not yield significant positive result because they were based on the use of iron deposits in Agbaja and Udi which were later found to be unsuitable for direct reduction.
Nigeria: FG Denies Claims of Selling Ajaokuta Steel Company
In their report, they recommended the use of blast furnace process of iron making. The report also pointed out that the known iron ore deposits in the country were of poor quality and recommended that further geological surveys be conducted to see if better ore could be found.
InSoviet geological experts came to Nigeria and after a general geological investigation reported that there were high prospects for richer iron ore and coal deposits in the country. Induring the reign of Murtala Mohammed, the preliminary project report specifying the raw materials base at Itakpe in Kogi plant site location Ajaokuta1st phase production volume 1.
Informer President Shehu Shagari laid the foundation stone of an integrated steel plant in Ajaokuta on 24, hectares of sprawling green-field landmass, built on hectares. The steel company has four different types of rolling mills inside the plant, such as the Billet Mill which produces billets; the Light Section Mill which produces round, square, strip and angles metals. The Wire Rod Mill copany wire rods and rebars used in construction companies and production of nails, fencing wire, rope mesh, bolts and nut and netting and the Medium Section and Structural Compnay produces parallel flange channels, equal angles, unequal angles and standard channels.
The ajaokutx rolling mills are bigger than Aladja, Osogbo, Katsina and Jos rolling steell put together while the coke oven and bye products plant is bigger than companny the four refineries in Nigeria put together. In tothe administration achieved 84 per cent of Ajaokuta steel plant as the Cimpany Section Mill of the plant was commissioned earlier than the scheduled date, while the Wire Rod Mill was also commissioned in Aprilearlier than the scheduled month of December.
With all these achievements, it was, however, sad that the gigantic steel plant idea conceived and executed by past leaders had failed to contribute to the development of Nigeria. The Ajaokuta steel that had reached 98 per cent completion as far back as had not produced a single steel till date.
The integrated plant was envisaged to have multiplier effects on all sectors of the Nigerian economy such as the industrial, agriculture, transport and construction sectors, among others. The steel plant was designed to produce 1. The steel plant complex also has highly sophisticated assemblage of 43 different plants made up of a web of complex iron, cable and machinery of different sizes and functions.
Ajaokuta steel has the capacity to become a major producer of industrial machineries, auto-electrical spare-parts, shipbuilding, railways and carriages. South Korea, which started its steel construction around the same time with Ajaokuta steel now has a revenue base of over N60 billion dollars per annum and employed over 65, staff.
Virtually all the nations that are playing big globally have enhanced capacities for steel production.
Even those that do not have any of the key mineral inputs needed for steelmaking had over the years developed the capacity to produce steel. Japan and South Korea, for instance, have no mineral resource for iron and steel, but they rank among the world top 10 countries in steel production. Nigeria that is blessed with raw materials such as iron ore, coal, natural gas and limestones needed for the compqny of steel is still struggling with what to comany with the dormant plant.
The Indian company thereafter took Nigerian conpany to arbitration court in London, which also crippled the two firms. InPresident Muhammadu Buhari fulfilled his campaign promise on Ajaokuta steel by settling the legal bottleneck surrounding the companies out of court.
The modified seven-year concession agreement was signed on August 1,while the federal government took over the Ajaokuta steel. While the federal government was planning to reconcession Ajaokuta steel again, stakeholders in the Nigerian Metallurgical Society urged it to complete the remaining two per cent and operate the plant for few years before concessioning it.
Nigeria: FG Denies Claims of Selling Ajaokuta Steel Company –
The stakeholders also urged government to provide clear and articulated plan for the development and growth of metal production sector as the struggle for functional steel company in Nigeria continued.
Please click here if you are not redirected within a few seconds.
More in Headline Stories.