Tech I NASS' $1bn Nod On Ajaokuta Project

By Fred Doc Nwaozor



The name Ajaokuta has hitherto remained a household name in Nigeria, perhaps owing to how much or often it’s being cited by must Nigerians in positions of authority.

It’s noteworthy that the famous Ajaokuta is a Local Government Area (LGA) in Kogi State – the North Central part of Nigeria – where the country’s one of the most significant, if not most, tech-driven hub(s) is situated.

The Ajaokuta Steel Company Limited (ASCL) alongside Delta Steel Company (DSC) in Delta State, among others, was established in 1979 under the reign of the Late Alhaji Shehu Shagari during the Second Republic in accordance with Section 2 of the National Steel Council Decree No.60 of September 19, 1979 and they were incorporated as Limited Liability Companies.

It was reportedly expected to commence production in 1984. Amusingly, and pathetically too, 34 years after it was designed to kick-start Nigeria’s industrialization, the multi-billion naira Ajaokuta complex is yet to produce steel despite attaining about 98% completion since 1994, having sunk about $10bn into the project. It was recently reported that about $2bn was additionally needed to complete the remaining 2% of the entire project.

It would interest us to note that the ASCL, which is reckoned to be the country’s biggest industrial project, is located on 24,000 hectares of sprawling Greenfield landmass. The steel plant itself is built on 800 hectares of land. The chosen technology for steel production is the time tested Blast-Furnace, a basic oxygen furnace route.

It was rumoured sometime last year that the President Muhammadu Buhari–led administration was planning to privatize the ASCL whose slogan remains “the bedrock of Nigeria’s industrialization” in its bid to finance the 2018 deficit budget, but the government frantically refuted the insinuation.

As regards the renewed vigour and quest to complete the remaining phase of the ASCL, on 13th December 2018, the Red Chamber of the National Assembly (NASS) graciously gave its approval for one billion dollar ($1bn) to be withdrawn from the Federal Government’s (FG’s) share of the country’s Excess Crude Account (ECA).

The Senate who acted in line with the consent of the Green Chamber, equally instructed that all monies, loans, grants, and what have you that may from time-to-time be appropriated and authorized by any tier of government or entity, either local or foreign, should be part of the funding for the completion of the project.

It’s worth noting that the resolution followed the passage of the Ajaokuta Steel Company Completion Fund Bill 2018. The bill slated for concurrence, was presented by the Senate Leader, Ahmed Lawan.

The legislation, however, stated that the monies in the fund shall be applied by the minister subject to appropriation by the NASS only for the construction, improvement, extension, enlargement and replacement of infrastructure and works, including the provision, acquisition, improvement and replacement of other capital assets required in respect of or in connection with the completion of the project.

I want to bring to our notice that the Ajaokuta integrated steel complex was born out of the then government’s quest for a diversified economy. It was conceived and steadily developed with the vision of erecting a metallurgical process plant cum engineering complex with other auxiliaries and facilities that would help to stimulate the diversified economy.

It was meant to be used to generate important upstream and downstream industrial and economic activities that were critical to the diversification of the Nigeria’s economy into an industrial one. It’s, therefore, appalling that several decades down the line, the country is still faced with the old song regarding diversification that ought to have been a thing of the past.

Even though the latest development in regard to the long awaited completion of the abandoned ASCL is coming so late or not timely, we should find joy in the fact that at last, the government has remembered the once forgotten national project. But the candid question that’s yearning for answer is: how sincere and determined are the concerned authorities towards doing the needful henceforth?

It’s not anymore news that aside the steel industry, other moribund sectors, such as the petroleum, have equally been granted similar attention in recent times under the watch of President Buhari who’s apparently keen to diversify the country’s mono-economy, yet till date, rather than getting tangible positive results, we keep receiving myriad of excuses. Is it then a function of ineptitude or lack of will?

These impediments witnessed overtime have made most concerned Nigerians to feel impelled to express grave doubts about the determination of any authority, or officer-in-charge, to aptly initiate, carry out as well as complete any project entrusted upon them.

It’s on this premise I challenge the Ministry of Mines and Steel to prove to teeming Nigerians that it is ever-ready to do as expected by presenting to the citizenry the modalities worked out towards the completion of the ASCL. It’s imperative to acknowledge that a befitting framework cannot be actualized if the authority acted without reference to the original blueprint of the project.

Similarly, considering that the project was abandoned for many years, some of the completed phases may have broken down, hence there must be cross-examination in this regard towards averting any possible future breakdown when the company becomes practically in use.

It is not arguable that $1bn is a whole lot of money, but considering the market survey concerning the completion of the ASCL, it’s understandable that more funds are urgently required for the project. Against this backdrop, the government is required to borrow from any individual or entity, particularly indigenous. It’s arguably a capital project of this kind, that would effect tremendous economic growth if completed, that requires borrowing towards its completion.

Then if eventually completed in the long run, having run the company within a reasonable period, the government may decide to sell the shares to the general public, investors in particular, with a view to servicing all the debts incurred in the process. Making the public shareholders, while the government remains the stakeholder, would equally enable the latter sustain the ASCL with ease.

As we greatly appreciate the NASS for approving this lofty move as engineered by President Buhari, it ought to also note that it’s required to use its oversight function to ensure the successful and timely completion of the laudable project. This mustn’t be taken for granted or juxtaposed with politics.

The executive on its part needn’t be reminded that consulting the cognoscenti in the process cannot be compromised for whatever reason. Think about it!

Comrade Nwaozor, National Coordinator of
Right Thinkers Movement writes via
frednwaozor@gmail.com

Tech I That Osinbajo's Notice On Modular Refineries

By Fred Doc Nwaozor



Even an imbecile in Nigeria can boldly attest to the lingering fact that the country’s major and highest revenue base – the petroleum sector – has over the decades been clamouring for rescue as its pathetic situation lingers.

This perhaps could be what informed the ongoing seeming efforts of the present administration led by President Muhammadu Buhari towards ensuring that the said sector wears a new look in all ramifications, hence probably understood that only a tech-driven mechanism can fix the unending mayhem.

In his keynote address during the first-ever Nigeria Diaspora Investment Summit, which held in Abuja between 27-29 November, 2018, the Vice-President Prof. Yemi Osinbajo graciously notified the participants that the first set of the privately-owned modular refineries “being developed as part of the private-sector component of the vision” were currently being completed in Delta and Rivers States.

The number two citizen said amidst the gathering, which comprised more than 300 Nigerians living outside the country, that “One of them is a Brownfield Project that is being expanded from 1,000 barrels per day (bpd) capacity to 10,000 bpd, while the other is a Greenfield Investment”, as he further disclosed “As at yesterday, another of such modular refinery was coming on stream”.

The 3-day epochal summit, which sought to mobilize the Diaspora to invest in Nigeria as part of the current government’s thrive to reposition the national economy, equally saw the vice-president informing the prospective investors that in each of the efforts, the communities were equity holders and stakeholders in the modular refineries.

According to him, such a gesture was crucial as the government was ensuring that the various communities were economic stakeholders in the development and economic opportunities in the Niger Delta in its quest for a rebranded oil and gas sector.

In the conference and exhibition attended by other top government functionaries such as Ministers of Foreign Affairs – Geoffrey Onyema, Agric – Audu Ogbe, and Power, Works and Housing – Babatunde Fashola, among others, Prof. Osinbajo reminded that “For those who may recall some of the engagements we had with the Niger-Delta, we promised we would ensure we are able to put in place some of the modular refineries that are actively engaged with the local communities.”

It suffices to assert that the remarkable event, which ensured that the diaspora investors have the opportunity to meet potential local partners as well as interact with government institutions, came to an end with wonderful notices and assurances to the people’s delight.

It’s only a dummy that’s yet to comprehend that the bane of the Nigeria’s petroleum sector has conspicuously been lack of refineries and allied matters. It’s a shame, to assert the least, that the world’s six most oil producing country cannot at the moment boast of a single refinery in any part across the federation.

In the past, the Nigeria’s indigenous company, the Nigeria National Petroleum Corporation (NNPC) could proudly boast of at least three standard world-class refineries situated in different localities namely: Port-Harcourt, Warri and Kaduna in Rivers, Delta and Kaduna States, respectively. But it’s pathetic that presently the aforementioned investments are mere monuments, and nothing more.

It is ridiculous and absurd that, rather than export petroleum products to other countries, Nigeria is deeply involved in their importation. When the crude oil is extracted from the earth crust, they are transported to foreign nations, thereby refining them over there.

Having made the raw materials available for consumption, the oil marketers who have been contracted or licensed by the Federal Government (FG) would import the finished products towards distributing them among the dealers domiciled in the country. Then the dealers would ensure the commodities are sold to the final consumers. This recurring decimal is what the citizens have been experiencing herein ever since the country’s refineries went into moribund.

This unfortunate occurrence was apparently what triggered the quest for total removal of fuel subsidy in the country by the Buhari-led reign on its emergence in 2015. Having perceived the oil subsidy as an avenue to ‘unfairly’ enriched the marketers who were seen as racketeers, the government was damn determined to completely stop the payment of subsidy on petrol otherwise known as Premium Motor Spirit (PMS), and its agitation was reportedly actualized in the long run after series of counter reactions from the teeming Nigerians.

It’s noteworthy that the government’s total removal of the fuel subsidy, as was reported, was primarily informed by its motive to ensure that the downstream sector was thoroughly revived and boosted. But till date, despite all the earlier promises to resuscitate the incapacitated refineries, none is currently wearing a new look. This seeming inaction has signalled a great worry to the concerned citizenry.

It was barely few weeks ago Nigerians realized that the subsidy, contrary to the initial report, wasn’t actually totally removed. This implies some intriguing politics had been taking place underground without the knowledge of the masses. This smacks of pranks.

Taking a painstaking study of the Nigeria’s worrying situation as regards the oil and gas industry, it is only until the government addresses the unwholesome policies therein, the country can boast of a reputable tech-driven economy in respect of the sector in question.

Even as the government is frantically carrying out crusade on random establishment of modular refineries, its sustenance will definitely meet a downfall if it fails to critically consider and implement a set of strict required policies that would guarantee the healthy functionality of the initiative.

Aside the sustenance aspect, failure to set up adequate modus operandi would pose a great threat to further establishment of such refineries in the nearest future. Suffice it to say that such practice might be hijacked by unscrupulous and unpatriotic elements.

This, therefore, is the reason the Petroleum Industry Governance Bill (PIGB) recently passed by the National Assembly (NASS) needs to, henceforth, be further reviewed with a view to amending it where need be. And if passed, its considerations must equally be taken as serious by the Executive Arm if it’s really and genuinely willing to revamp the downstream sector.

Similarly, as we ostensibly make move to support setting up of modular refineries across the country, particularly in the Niger Delta region, we must equally not hesitate to do the needful towards reviving the forgotten standard ones.

Summarily, a lofty tech-driven concept requires a candid political will for apt plan and implementation. And if eventually implemented, sound relevant policies are needed for its onward sustenance. Think about it!

Comrade Nwaozor, National Coordinator of
Right Thinkers Movement writes via
frednwaozor@gmail.com

Feature I As Uzodinma Romances nPDP, Others

By Fred Nwaozor



Who is yet to hear or come across the name ‘Senator Hope Uzodinma’ in the Nigeria’s political terrain? If I’m to answer the question, I would boldly say; nobody or only a dummy. The name could be said to be synonymous with Prince Eze Madumere.

The said names have in recent times abruptly become household names across the Nigerian State, particularly Imo – the Eastern Heartland – where the bearers hail from. And till date, a discerning political analyst in the aforementioned clime cannot do without the names or forget them in haste.

Though he’s currently serving his second term in the Red Chamber of the National Assembly (NASS) as he represents the Imo-West Senatorial District, Sen. Uzodinma apparently became more relevant to the people of Imo the very moment he succeeded in acquiring the ticket of the ruling All Progressives Congress (APC) to vie for the governorship position in the state amidst all odds.

It’s noteworthy that after all intrigues and intricacies that consequently surrounded the outcome of the Imo guber primaries of the APC, the National Working Committee (NWC) of the party led by Comrade Adams Oshiomhole eventually confirmed Sen. Uzodinma as the authentic and suitable candidate for the gubernatorial race come March 2, 2019.

It’s not anymore news that the lawmaker’s emergence as the Imo guber flag-bearer of the APC was against the wish of the sitting governor, Chief Rochas Okorocha who made frantic effort to ensure that his ‘anointed’ son-in-law Mr. Uche Nwosu clinched the gubernatorial ticket.

Owing to the grievances that ensued afterwards, Mr. Nwosu was reportedly instructed by his godfather, Chief Okorocha to defect to another political party for continuity’s sake, not minding the fact that he (Okorocha) is a senatorial candidate of the APC. This implies that the latter is hell bent to make the former his successor come May 29, 2019.

The amazing part of the overall melodrama thus far is that Sen. Uzodinma, who is conspicuously working hand-in-hand with the famous Imo Deputy Governor Prince Madumere, has never been deterred by the distractions emanating from the sitting governor’s camp. Rather, he has gone extra mile to showcase to his teeming allies that he possesses all it takes to be the next Executive Governor of the revered Imo.

By so doing, the federal legislator has ostensibly succeeded in gaining more momentum or popularity in the state compared to his rivals, particularly those holding the tickets of the major political parties for the awaited race.

This could be attested to penultimate week, precisely on Sunday, 27th January 2019, when the leadership of the new People’s Democratic Party (nPDP) in the state proudly collapsed its structure into the camp of the Chief Marcellinus Nlemigbo – led APC in their bid to throw unalloyed support for the Imo-West Senator.

The nPDP led by Dr. Fabian Ihekweme publicly disclosed that their decision was rightly informed by the conviction that Sen. Uzodinma was the right man for the governorship seat, as he further strongly asserted that the lawmaker who he described as ‘pleasant’ would emerge convincingly victorious at the polls because “he has the majority behind him”.

It would be recalled that the nPDP’s emergence sometimes in November last year being 2018 was as a result of the differences that ensued between the two main guber aspirants Sen. Samuel Anyanwu and Hon. Emeka Ihedioha in the Imo PDP after the party held her governorship primary in Owerri, the state’s capital in which the latter secured the party’s ticket.

Sen. Anyanwu who is presently representing the Imo-East Senatorial District in the Senate alleged that the primary, which produced the immediate past Deputy Speaker of the Federal House of Representatives Chief Ihedioha as the Imo PDP’s flag-bearer, was marred by irregularities, hence headed for the court to seek for justice. It was amid this trending that the nPDP, which was in support of the aggrieved candidate, emerged.

Aside the nPDP’s unannounced support for Sen. Uzodinma’s guber aspiration, penultimate Tuesday being 29th January 2019 when the APC held her Presidential rally in the state – precisely Owerri – which saw the presence of the presidential candidate of the party, Muhammadu Buhari, a bigwig of the All Progressive Grand Alliance (APGA) and a national leader of the party, Chief Martin Agbaso alongside his teeming followers was in attendance to equally throw his support behind the senator’s aspiration.

It’s worthy of note that the APGA is currently having Sen. Ifeanyi Araraume, who had twice represented the Imo-North Senatorial District in the Upper Chamber of the NASS and has hitherto relentlessly been in the race, as its guber flag-bearer in the Eastern Heartland.

This intriguing gesture of Chief Agbaso who had once been the guber flag-bearer of the APGA, might perhaps not be unconnected with the controversial way the Imo-North senator clinched the ticket of the party. The rest is history.

As Sen. Uzodinma publicly romances with the nPDP and other political gladiators, many onlookers in various quarters have opined that the Oru-East born dogged politician, who refused to throw in the towel even when all hopes seemed to have been lost, is far closer to the state’s Douglas House than his fellow contenders.

So, as Imolites watch the drama and impatiently wait to see the D-day, could it be that the APC’s guber flag-bearer – who obviously acquired the party’s ticket with the keen support of Prince Madumere – is already calling himself Chief Okorocha’s successor? Think about it!

Comrade Nwaozor, the National Coordinator of
Right Thinkers Movement writes via
frednwaozor@gmail.com