There are indications that Global Steel Holdings Limited, GSHL, the company involved in the botched concession of Ajaokuta Steel Company Limited, was preparing for a fresh legal battle with the Federal Government over the control of the Nigeria’s steel mill.The Minister of Mines and Steel Development, Mr. Olamilekan Adegbite, dropped the hint of the impending legal battle while inspecting the National Iron Ore Mining Company NIOMCO at Itakpe, Kogi State.NIOMCO was reportedly ceded to the GSHL after the breakdown of the concession of Ajaokuta Steel to the Indian company for a ten year period.There are signs that the Federal Government has also backed out of the renegotiated concession agreement which allowed the GSHL to retain NIOMCO, as provisions were made for the iron ore mining company in the 2020 budget.
Also, Mr. Adegbite inspected NIOMCO and Ajaokuta Steel Complex as part of plans by the Federal Government to revive the two long abandoned national assets.
The Federal Government recently entered a fresh agreement with Russia for the completion of Ajaokuta and stakeholders in the steel industry believe that the steel complex cannot function without NIOMCO.Speaking during the inspection, the minister declared that the ‘concession modification agreement’ with the GSHL did not make any sense, and vowed that Nigeria would keep both Ajaokuta Steel and NIOMCO.
He insisted that Nigeria would not surrender her sovereignty to individuals.
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