A Review of the Nigerian Energy Industry

Shortage of accommodation may hinder Ajaokuta’s take-off

Ajaokuta-Steel-Company-Nigeria02 October 201, Abuja – All arrangements put in place by the management of Ajaokuta Steel Company and REPROM Nigeria Limited to commence the running of the multi-billion naira steel plant may suffer a set back, as a result of shortage of accommodation the foreeign workers.

The management of Ajaokuta Steel Company had concluded arrangement to commence operation of its rolling mill, one of the most critical section in steel factory.

There has been major preparation to commence the take off of the steel company in Kogi state, after some delay by the successive government in the country.

But the Managing Director of REPROM Nigeria Limited, Mr Attah Achimugu, said contract for the necessary Low Pour Fuel Oil (LPFO) to lubricate the rolling mill had been issued to a successful company, and that the product had since been delivered.

But, according to him, accommodation which is key to the success of the steel company has become the major problem.

However, both the interim management of the steel plant and REPROM Nigeria Limited are already making efforts to renovate hundreds of abandoned houses to provide enough accommodation to the expertrates.

He said rolling mills have been lubricated and undergoing test runs, adding that full operation of the sector would commence this month.

REPROM Nigeria Limited had last year entered into a Memorandum of Understanding (MoU) with the interim management of Ajaokuta steel company.

The Nation investigation revealed that the shortage of the accommodation was not unconnected with the manner in which houses were allocated to people by past management.

– The Nation

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