FG inaugurates Ajaokuta Presidential Project Implementation Team

Federal Government on Monday Inaugurated Ajaokuta Presidential Project Implementation Team, APPIT,
Secretary to the Government of the Federation, SGF, Mr. Boss Mustapha, while performing the ceremony on Monday in Abuja, said Ajaokuta Steel plant have languished in economic unproductivity for about four decades and previous efforts at reviving it had proved abortive.
Mustapha said that this has resulted in avoidable massive foreign exchange losses at intolerable opportunity cost to the country, saying that the pressing need to redress these avoidable challenges has necessitated thie Presidential intervention at this time.
Acording to him, “This is further underscored by difficulties being witnessed with present challenges in the global oil industry”
“Hon. Minister, distinguished guests, it is therefore my singular honour and privilege to formally inaugurate the ‘’Ajaokuta Presidential Project and Implementation Team’’ (APPIT) to the good of our dear country, Nigeria.
“I am delighted to address you all at this unique and historical event that is expected to culminate in pushing forward the economic diversification agenda of this government. As you are all aware, Mr. President’s quest to create opportunities for the development of our national local capacity, especially in the area of industrialization within a diversified economy remains a major cardinal point in his administration.
“Revamping the Ajaokuta Steel Plant, therefore clearly presents a unique opportunity to make us West Africa’s largest fully integrated steel producer and most importantly accelerate our industrialization especially in steel related industries.
“Honourable Minister and distinguished Members of the Committee, this government places a lot of value on the diversification of the economy, hence, Mr. President’s participation at the Russia-Africa Summit last year in Sochi, to discuss the resuscitation of the Ajaokuta Steel Plant with his Russian counterpart, President Vladimir Putin” he said.
The SGF said that the Ajaokuta Steel Project is to be resuscitated on the basis of a Government-to-Government agreement with funding from the Afreximbank and the Russian Export Centre, following the bilateral discussions in Sochi, Russia.
He however stated that, one of the key issues discussed by the parties was the Technical Audit, Upgrade, Completion and Operation of the Ajaokuta Steel Company.
“Today’s inauguration of the “Ajaokuta Presidential Project and Implementation Team” (APPIT) is therefore meant to kick start the process of re-directing the activities of the Steel Plant with the aim of bringing the Steel Project back to life for the growth and economic development of our dear nation.
“I am happy to note that preliminary works have commenced to determine parameters for effective and coordinated take-off of rehabilitation works on the Steel plant. It is on this note that Mr. President graciously approved the composition of this Implementation Team that is being inaugurated today, with the under listed terms of reference (TOR):
Engage in all bilateral negotiations as shall be necessary on behalf of the Federal Government of Nigeria leading to the execution of the Government-to-Government Agreement with the Russian Federation and the Afreximbank;
Provide all relevant technical and other inputs necessary to close the Government-to-Government negotiations;
Ensure that the best extreme possible, all relevant raw materials are sourced locally, bearing in mind the local content provisions and the Presidential Executive Order 005;
Scrutinize and assemble Nigerian Content Engineering, Procurement and Construction (EPC), Special Purpose Vehicle Contractors which will embody the Co-Concessionaire representing Nigeria’s interest in the Build-Operate-Transfer (BOT) Concession;
Ensure the resuscitation of Ajaokuta Steel Plant (ASP) based on the original design; and
Ensure timely commissioning of the Ajaokuta Steel Plant (ASP) within a reasonable period to be agreed upon by the parties to the agreement and recommend primary tenure of a Build-Operate-Transfer (BOT) Concession.
Th following are members of the Ajaokuta Presidential Project Implementation Team inaugurated by the SGF:
Secretary to the Government of the Federation: Chairman
Hon. Minister of Mines and Steel Development: Alt Chairman
Permanent Secretary, Mines and Steel Development Member
Permanent Secretary, Ministry of Finance Member
Solicitor-General of the Federation/
Permanent Secretary Ministry of Justice Member
Mr. Gabriel Aduda Member
Sole Administrator, Ajaokuta Steel Company Ltd Member
Sole Administrator, National Iron Ore Mining Co. Member
Engr. Vincent Dogo (Industry Expert) Member
Prof. Elegba S.B. (Industry Expert) Member
Dr. Godwin Adeogba (Industry Expert) Member
Director-General, ICRC Member
Director, Steel; MMSD Member.
The Committee is expected to prepare and submit a periodic work plan along with quarterly progress reports on assignment activities, end-of-assignment report and develop concession contract terms.