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The federal government has stated that the coronavirus pandemic (COVID-19), having adversely affected the economic activities of the sector as in other sectors, has interrupted the ongoing redesign procedure of the Ajaokuta abandoned metal project.
The Minister of Mines and Flight Development, Arc. Olamilekan Adegbite this on Monday at a press convention held at the ministry in Abuja.
He said, “This pandemic has limited our ability to further the process of completing our Ajaokuta steel project and making it operational. Shortly before the COVID-19, precisely around March, the Russians where to come in and do audit of the complex, but this was not to be as the pandemic set in about the same time, and now we are about 4 to 5 months behind schedule. But the project will be in abeyance until it is safe enough to have the Russians here.
He said the president, in his determination to make Ajaokuta work, had established and inaugurated a presidential implementation team, but that attempts to do an online audit were unsuccessful, so the Russians will have to come and physically audit the sloppy company. to know how to move forward.
“We tried to do an online audit, but because of the complexity of Ajaokuta, it didn’t work,” the minister said.
In addition to revealing that the agreement between Nigeria and Russia on Ajaokuta was based on construction, operation and transfer, Adegbite said a total of $1.45 billion should be raised through Russia to reorganize the company.
According to him, “the Russian Export Center will have to make a contribution of $450 million, while AFREXIM Bank will have to raise $1 billion.
“But most importantly, the Russian technical experts will come and do the audit that will lead them to give us an accurate figure of the resuscitation charge of Ajoakuta and the National Iron Ore Mining Company (NIOMCO), Itakpe, because the two are related, and once that is done, of course, will be negotiations.
The Minister also noted that, in accordance with the industry’s mandate to create jobs and wealth and, in the end, diversify the economy, the federal government has proposed a local content of 60% in the structure and control of Ajaokuta.
The Minister stated that, as a result of COVID-19, production in the sector had been reduced to almost zero, however, the government was not discouraged in its efforts to diversify the economy throughout the sector in addition to agriculture.
He said that from the budget of 2.3 trillion post-COVID-19 allocated through the federal government, $6 billion approved for the sector in addition to the budget amounts to which it is entitled to the herbal resources fund.
“This will have to be used in the execution of the projects that are underway, to deepen the exploration companies, in particular the National Integrated Mining Exploration Project (NIMEP); to further boost our road displays; and launch our new land registration formula among others,” he said, adding that a NIMEP online page had been created where the public can make a stop and access updates on the scan itself.
According to the minister, the ongoing exploration in the form of the formation of small-scale and artisanal miners, the minister, who noted that in the last count, between three hundred and 400 cooperatives had been formed, adding: “It is an ongoing process.
He said teams were encouraged to “budget we have at the Bank of Industry (BIO), as it is less difficult for cooperative members to get the loan than for individuals.”
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