By Wole Adedeji, Ilorin
The Federal Government has been urged to indigenise the iron and steel sector of the economy with marginal interests going to the goverment and major interests going to the indigenous stakeholders, who are the major investors.
Chairman of the Basic Metal, Fabricated Iron and Steel Products, BMFISP, Dr. Kamoru Yusuf, stated this position of the body at a stakeholders’ meeting held in Ilorin, the Kwara State capital.
According to Yusuf, the future of iron and steel business in Nigeria would heavily be dictated by the policy thrust of the government, which he said, must be tailored towards rendering necessary supports and ease of doing business to investors in the sector.
The meeting, organized to deliberate on status of the industry and propose strategies for the development of the sector, was attended by relevant government Ministries, Departments and Agencies, MDAs, as well as Chief executives of local and foreign various iron and steel companies.
The meeting posited that the said position often expressed by the general public that Ajaokuta Steel Compant should come up and begin to work again in the hands of local investors should stand.
He added that Nigeria needed to pride herself as the giant of Africa by making judicious use of her highly talented, patriotic and committed indigenous investors with adequate recognition however, of the stakes of the government.
He said “Without mincing words, the assets should not be handed over to foreign investor(s), rather, it should be managed 100 per cent by competent indigenous investors, who had demonstrated capability with evidence of success stories
on existing steel plants and wire processing factories.
“With this, government can and may own 40 per cent, while the investors will own 60 per cent. This will no doubt, enhance easy, sustainable, and rewarding business fortunes for the nation. Every phase and processes of the investment must be given cognizance attention and priority.”
Speaking further, Dr. Yusuf said the nation can be assured that the capital as well as the proceeds would remain in the country, which would be re-invested into the economy as long as indigenous steel investors were given the chance to resuscitate Ajaokuta.
The Federal Government, he said, should take a cue from its developed counterparts by allowing Credit Insurance Underwriters to operate in Nigeria, adding that investment in the iron and steel business is capital-intensive with huge risks.
He added, “We believe that with policy shift, some benefits will accrue; this would complement the Backward-Integration Policy, BIP, of the government, which seeks to preserve our scarce foreign exchange and create employment for millions of Nigerians directly and indirectly.
“There will be more liquidity in the Nigerian economy and Nigeria would have the opportunity of competing with her peers in the continent and across the globe.
“It will minimise brain drain to foreign countries in the name of search for greener pasture, especially among our teeming youths.
“Nigeria would be able to participate successfully in the African Continental Free Trade Area, AfCFTA, and compete favourably among the countries in Africa.
“Ajaokuta will come with good opportunity of reinvigorating the
automobile sector of the economy after a successful installation and commissioning of ultramodern machineries.”
Also speaking, the Director, Industrial Development Department in the Federal Ministry of Industry, Trade and Investments, Adewale Bakare, said that the stakeholders’ meeting was necessitated by the ongoing efforts of the ministry at repositioning the iron and steel through development of workable policies and strategies for the growth and development of the sector.
He said, “Our developmental history shows that Nigeria started its nation building with a strong iron and steel sector, including the establishment of the Ajaokuta Steel Complex, which was a beacon of hope in the early days.
“However, present realities shows that the iron and steel industry has not achieved the desired development as the various sub-sectors under the iron and steel industry have remained at the levels of infancy or non-existent, leaving the country to depend largely on importation of iron and steel products.”
