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FG approves N853m to concession Ajaokuta steel company

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The Federal Executive Council, on Wednesday in Abuja, approved the engagement of transaction advisors for consultancy services for the concession of Ajaokuta Steel Company Limited.

The approval also involved the National Iron Ore Mining Complex in Itakpe, Kogi State.

The Minister of Information and Culture, Lai Mohammed, disclosed this to State House Correspondents shortly after Wednesday’s hybrid FEC meeting presided over by the President, Major General Muhammadu Buhari (retd.), at the council chambers of the State House, Abuja.

Mohammed, who spoke on behalf of the Minister of Mines and Steel, Olamilekan Adegbite, said the move breathed an air of hope in the long-abandoned piece of infrastructure.

He said “Council approved the engagement of transaction advisors for consultancy services for the concession of Ajaokuta Steel Company Limited and also the National Iron Ore Mining Complex in Itakpe in favour of Messrs CPCS Transform Consortium in the sum of N853,266,644.4 inclusive of 7.5 per cent VAT.

“I am sure we are all familiar with the history of the Ajaokuta Steel complex. The contract was awarded in 1979 to a Russian company called TPE. By the end of 1983, the contract had reached advanced stage. Regrettably, since then it has been suffering and by 1994, TPE demobilised from site and 1996, the contract was terminated.

“Subsequently, various administrations have tried to revive the Ajaokuta Steel Company without much success. However, you will recall that Mr President was on a state visit to Russia on October 22 and 24, 2019, and here it was resolved that the Ajaokuta Steel Company, which the Federal Government has made massive investment, must be resuscitated.”

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