Ajaokuta Steel Mill: Russian technical team to arrive Nigeria soon - minister
Hope of eventual completion of the long- abandoned Ajaokuta Steel Company seems to be rising as a 60-man team from Russia is expected in Nigeria to carry out a technical audit of the company, minister of Mines and Steel Development, Olamilekan Adegbite has said.
Adegbite said in Abuja on Thursday that the Russian government has nominated TYAZHPROMEXPORT (TPE), the company which originally constructed the Ajaokuta Steel to conduct a technical audit to ascertain the level of work required to complete the steel mill.
“The original builders of Ajaokuta Steel TPE are coming with the 60-man team to Nigeria to commence audit report of the company.
“I am in contact with them; we are making arrangement for their coming in line with Covid-19 protocol established in Nigeria.”
Agreement to revive the Ajaokuta Steel Company was reached during a meeting between President Muhammadu Buhari and President Vladimir Putin in Russia in 2019.
The foundation laying of Ajaokuta Steel Company was conducted in 1980 by late President Shehu Shagari and within four years, the company recorded 84 percent completion.
The steel company located on 24,000 hectares of greenfield landmass was built on 800 hectares of land over three decades ago.
Ajaokuta steel reached 98 percent completion in 1994 and has not produced a single iron to date.
On improving the sector, the minister said that the ministry had commenced the process of reviewing the mining law. “The law that controls mining is 2007 but we are at the process of reviewing it.”
He said some physical incentives for attracting miners to invest in Nigeria include import duty waiver for all mining equipment.
Others are three-year tax holiday for foreign with a possible extension and low royalty-three to five percent compared to some countries that charge 20 percent royalty, among others.
“These are parts of incentives put in place to attract foreign investors. These incentives are also applicable to local miners,’’ said Adegbite.