A Review of the Nigerian Energy Industry

Ajaokuta Steel, Itakpe Iron Ore Company get sole administrators

15 November 2012, Sweetcrude, ABUJA – PRESIDENT Goodluck Jonathan has approved the appointment of sole administrators for the Ajaokuta Steel Company Limited, ASCL, and the National Iron Ore Mining Company, Itakpe, both in Kogi State.

The Interim Management Committee overseeing activities has been disbanded, following the appointments.

The disbanded 16-member Interim Management Committee on ASCL and the National Iron Ore Mining Company, Itakpe, was inaugurated in April 2008 when the concession agreement between the Federal Government and Global Infrastructure Holdings Nigeria Limited on the two facilities was cancelled.

The Ministry of Mines and Steel Development, in a statement, Wednesday, named the Sole Administrator for ASCL as Mr. Isa Joseph Onobere, a metallurgical engineer and a top management staff of the company. He hails from Kogi State.

The Sole Administrator for the National Iron Ore Mining Company, Itakpe, is Mr Abubakar Yaro Ibrahim.

The statement signed by Deputy Director of Press, Marshal Gundu, described Ibrahim as a seasoned Mining Engineer from Taraba State.

The statement read: “While making the disclosure and issuing the letters of appointment to the new appointees in Abuja yesterday, the Minister of Mines and Steel Development, Musa Mohammed Sada, said the appointments are with immediate effect.

“The Minister noted that the two sole administrators were appointed on the basis of their experiences and professionalism in the minerals and metals sector, that they should be able to bring about the expected turn-around in the two facilities.”

It added that the handing and taking over ceremonies between the new Sole Administrators and the former Interim Management Committee on the two companies were expected to be completed within one week.

The statement quoted Sada as explaining that what informed Federal Government’s decision on the appointments of the new sole administrators for the two companies was to inject new ideas into them to make them operational in line with the transformation agenda on service delivery.
The minister advised the new appointees to add value to the two companies by making them operational and conserving the assets.

He also urged the sole administrators to select their management teams on the basis of seniority, experience and competence.

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  • Clearly, government’s retention of ownership of the Ajaokuta Steel Company and the Itakpe Iron Ore Company despite years of mismanagement and depletion of the value of the assets of these entities, speaks volumes of the kind of leadership Nigeria has been saddled with over the years. We believe that the appointment of Sole administrators is an attempt to perpetuate the status quo ante. If the country must make progress with these investments, government must divest immediately and let entities with a proven track record of delivery run them.

  • Back to wasting more oil money on an already globally acclaimed quintessential “waste project”…

  • This arrangement is better than what it was, however the ultimate should be private sector driven. In any case there is no budgetary provision for starting production. We have a long way to go.