• World
  • Columnist
  • Commodities
  • WORLD BUSINESS & ECONOMY
  • Executive Knowledge Series
  • Finance
  • Manufacturing
  • Markets
  • Risk & Governance
  • Small Business
  • Technology, Media & Innovation
  • Comments
  • Business AM WebTV
  • Login

Businessamlive
  • FRONTPAGE
  • FINANCE
    • AllAsset ManagementAuditBankingBondBudgetCapital MarketsC&I LeasingCurrencyDealDebt marketForexFund RaisingFundingGovernmentHedge FundsInsuranceInvestmentInvestorInvestor ServicesMergers & AcquistionsMoney marketTreasury BillsMortgagePensionsPersonal financePonziQuantitative EasingshareTaxationTSAWealth Management
      Finance

      Stringent regulations, business environment forced Stanbic IBTC out of BDC business

      January 15, 2021

      Finance

      Cautious equities trading see gains in Flour Mills, Mobil, Wapco push market cap to ₦21.09trn

      January 15, 2021

      Finance

      CBN issues guidelines for QR codes operation in Nigeria

      January 15, 2021

      Finance

      Global Equities: Positive sentiment buoys global markets’ performance on vaccine rollout, Biden confirmation

      January 13, 2021

  • MARKETS
  • ECONOMY
    • AllAfricaAgricAirportsAmericaAsiaAustraliaBreakthroughDealEuropeForeign InvestmentsforexGlobal marketGovernanceIMFMiddle EastNECANigeriaOutlookRich listSouth AfricaSport BusinessTradeU.KWest AfricaWorld Economic forum
      Technology

      Africa data centre market to outpace $3bn by 2025, says Turner & Townsend

      7 hrs

      Commodities

      Wheat soars as Russia considers export tax

      7 hrs

      WORLD BUSINESS & ECONOMY

      Only 20% of UK financial services professionals believe firms possess ethical commitment

      January 16, 2021

      Frontpage

      Moody’s sees negative 2021 outlook for sub-Saharan Africa, with severe economic challenges

      January 15, 2021

  • COMMODITIES
  • ENERGY
    • AllConferenceElectricityOil and GasPowerRenewable
      Frontpage

      NNPC receives $120.49m crude oil receipt in September  

      17 hrs

      Frontpage

      NNPC moves to rehabilitate downstream infrastructure, openscontract bids

      January 15, 2021

      Companies

      Ardova enters acquisition talks with Enyo as part of expansion drive  

      January 15, 2021

      Oil and Gas

      NNPC reaffirms commitment to OPEC+ agreement   

      January 15, 2021

  • TECHNOLOGY
  • MANUFACTURING
  • ANALYSIS
    • Analyst Insight

      CBN meeting and NSE in focus

      January 18, 2021

      Analyst Insight

      Once again, fiscal stimulus takes centre stage

      January 18, 2021

      Analyst Insight

      Organisations must learn from the WhatsApp story  

      January 18, 2021

      Analyst Insight

      Data privacy maturity model in organisations

      January 11, 2021

Mining

Opposition mounts against Indian firm’s take-over of Itakpe Iron Ore Mining Company

Kelvin Egerue

News Editor

June 30, 20171.2K views0 comments

Opposition is mounting against Indian firm, Global Infrastructure Holding Ltd. (GIHL) bid takeover of the National Iron Ore Mining Company (NIOMCO), Itakpe, Kogi State.

GIHL recently won the re-concession of Itakpe Iron Ore Company conducted by the current administration.

Under the auspices of Metallurgical Stakeholders Forum, a group is urging the Federal Government to cancel the re-concession of the mining company to the foreign firm on ground of incompetence.

The group, which made the call at a news conference in Abuja, comprised the Nigerian Society of Engineers, Nigerian Metallurgical Society, African Iron and Steel Association, Host Community, and the Nigeria Labour Congress (NLC), among others.

Read Also:

  • Indian sugar mills seal export deals as global prices soar
  • Chinese insurers dominate global list as UnitedHealth, AXA, Allianz hold firm

According to report by the News Agency of Nigeria (NAN), Sanusi Mohammed, executive secretary-general of the African Iron and Steel Association, and convener of the news conference, is arguing that the Federal Government should cancel the concession agreement considering that the Indian company lacks the competence, trust as well as the ability to manage NIOMCO.

Sanusi said that the first concession of NIOMCO and Ajaokuta Steel Company to GHIL in 2004 brought unquantifiable losses to the nation with monumental economic consequences.

He said that Nigeria was short-changed by the Indian company, as it vandalised Ajaokuta steel company and carted away valuable assets from NIOMCO.

“We have written several letters to the Federal Government on the need to cancel the agreement but to no avail. So we decided to come together to covey the same message through the media today,’’ Sanusi said.

Citing the case of Delta Steel Company (DSC), he said that the Federal Government concessioned and later sold the company built with 1.5 billion dollars in 2005 to GHIL at a paltry 30 million dollars. Till date the DSC is still in shambles.

Sanusi said the five-man administrative panel of inquiry set up by the Federal Government in 2007 revealed the rot that was perpetrated on Delta Steel Company.

“GHIL in the period of operation in DSC stripped the company down and accumulated more than N40 billion debt it collected from Nigerian banks as it used the company as collateral,’’ Sanusi noted, adding that the re-concession of NIOMCO did not go down well with stakeholders as the Federal Government did not involve them.

“This is not acceptable to all the metallurgical stakeholders.’’

It would be recalled that the Ajaokuta Steel Company was concessioned to GHIL between 2004 and 2005 by then President Olusegun Obasanjo. However, the Indian firm did not live up to expectations as it could not manage the company.

Following the failure of GHIL to manage the company, the Federal Government under late President Umaru Yar’Adua was compelled to revoke the contract.

However, the President Muhammadu Buhari led Federal Government reconcessioned NIOMCO to GHIL, while still taking of the Ajaokuta Steel Company.

According to the stakeholders, NIOMCO did not only witnessed poor performance, but also non-compliance of post-acquisition plan (PAP) in terms of injection of funds, while being operated by GHIL.

Also speaking, David Esezobor of Extractive Metallurgical and Materials Processing, urged the Federal Government to pursue a clear vision as well as clear policies and roadmap to ensure development of the iron and steel sector.
Esezobor said that government should remove all obstacles militating against the growth and development of the sector.

He urged the government not to privatise Ajaokuta Steel Company, till the remaining two percent and other external infrastructure were completed.
Esezobor said that any attempt to commercialise or privatise the company would not yield the desired result for Nigerians.

He also urged the government to re-establish contact and to initiate negotiation with the original builder of Ajaokuta Steel Company, TPE, a Russian company to complete the company.

He also noted that the Governor of Kogi State, Alhaji Yahaya Bello and Alhaji Musa Bello, a Kaduna based entrepreneur were laying claim to NIOMCO, adding that they both had registered the company with the Corporate Affairs Commission (CAC).

Share on Facebook Tweet Email
TagsIron ore Itakpe Mining Company
PreviousNigeria to generate $10 billion from hives, honey – USAID
NextNigerian insurers to earn more as motor insurance portal comes live July 1  

Leave a comment

- Cancel reply

MARKET DATA

Market Videos

Recent Posts

  • Africa data centre market to outpace $3bn by 2025, says Turner & Townsend
  • Wheat soars as Russia considers export tax
  • Tizeti expands coverage to Edo, introduces low-cost unlimited 4G services
  • NNPC receives $120.49m crude oil receipt in September  
  • Sachet Culture: Fueling consumer buying behaviour or pollution?

World

Africa

Buhari, Okonjo-Iweala congratulate Adesina over reelection as AfDB President

Europe

EU businesses to cut investments in 2020, says EIB report

America

U.S. increases cost of visa application for Nigerians

Africa

Thatcher-Loving Nigeria Candidate Plans to Overhaul Economy

Africa

AfDB scales up industrialization pace on the continent, delivers improved business access to finance, skills, energy

Frontpage posts

0

Eni, Shell to stand trial in Milan over alleged $1bn bribery case in Nigeria

Frontpage December 20, 2017

1
2

Union Bank to raise $164m to bolster capital buffers

Banking December 20, 2019

3

Saraki releases details of National Assembly’s 2018 budget

Frontpage April 13, 2019

4

TUC rejects FG’s position on payment of national minimum wage

Frontpage July 18, 2019

5

Nigeria’s Zenith Bank receives $200m from Afreximbank to maintain its foreign currency trade flows

Finance September 11, 2020

SUPPORT

  • Photo Gallery
  • Help Centre
  • About Us
  • Accessibility

LEGAL & PRIVACY

  • Terms & Conditions
  • Privacy
  • Cookies
  • Copyright

SERVICES

  • Conferences & Events
  • Analysts Research
  • Advertising Rate
  • Ebooks

TOOLS

  • Portfolio
  • Newsletters
  • News feed
  • Currency Converter

SUBSCRIBE

Join us to get latest updates on business related news.

[mc4wp_form id="3076"]
  • ABOUT US
  • CONTACT US
  • CAREERS
  • TERMS & CONDITIONS
  • PRIVACY POLICY
Copyright 2017. All rights reserved. BusinessAMLive. A Businessnewscorp Member Company.