Sun. Sep 27th, 2020

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MAN Calls For The Privatisation Of Ajaokuta Steel Company

3 min read

The call for the privatisation of the Ajaokuta Steel Company has been raised by manufacturers and experts on the basis that it would promote great dividend than the facilities the government is running.

This was disclosed during an interview and it revealed that the government lack the potential to run business that could yield profit other than corruption and waste.


The privatization of the national assets is therefore urged to be done transparently.

Dr Vincent Nwani, a business and Investment consultant highlight that the function of the government is not to run business.

He said, “Ajaokuta needs to be run as a business and not as a government agency or non-profit organisation. It needs to be transferred to the private sector for proper management.
“The steel mills in Japan and other places worldwide are not run by the government but by private companies and they are very successful.

“The pending court case on Ajaokuta should be resolved and the facility should be given to private investors in a transparent and competitive manner.”

Nwani emphasised that steel industry everywhere in the world was the bone of development.

“If our steel mill is well managed, it will service the local industry and save us huge foreign exchange spent on importation and there will be multiple benefits derived including job creation and economic development,” he said.

Leo Ukpong, an expert and a professor of economics at the University of Uyo inclined that a presentation idea will be good to revive the ajaokuta steel company and run it profitably.

He said, “Government-run business has a history of corruption and lack of continuity in cases where another administration takes over and quickly abandons the agreement entered into by his predecessor.

“The demand for steel is very high both domestically and globally. This would serve as an incentive to any private investor who will see the prospect of profit and market in the investment.”

Mansur Ahmed, the manufacturer Association of Nigeria President address the issue of privatisation of the steel company as a good move in order to make it profitable and a better way of welcoming private investors.


He emphasized that the right investors must be welcomed who could help in promoting the country’s economy.
The MAN president want the steel company be privatised in order to bring it back to life because of the steel demanded in the country.

Professor Benjamin Adewuyi, the former Nigerian metallurgical Society president appealed to the Nigerian president to hasten the steel company completion in a second term.

He said amrs, ammunition and cars and so on can be manufactured in the country which would limit importation from the other countries.

He said, “Ajaokuta has the capacity to produce cars, arms for the military among others and can also provide massive employment for the youth.

“We are only deceiving ourselves that we are manufacturing cars locally. Without Ajaokuta steel functioning, we cannot manufacture our own cars.

“We have many brilliant youths among us that cannot carry out any innovation because we lack the materials they require, Mr President should revisit Ajaokuta Steel Company and kickstart the project.”

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