A Review of the Nigerian Energy Industry

Accommodation problem threatens Ajaokuta’s new take-off plan

Ajaokuta-Steel-Company-Nigeria14 October 2013, Sweetcrude, Lagos – If all goes according to plan, products would be rolling out from the rolling mill of the Ajaokuta Steel company soon.
The management of the company said it had concluded arrangement to put the rolling mill, a critical aspect of the steel factory, on stream.
But, shortage of accommodation for foreign workers expected at the plant may yet derail this plan.
Plans have been in top geared by the management of the company and REPROM Nigeria Limited for the plant to take off after several delays by successive government in the country.
Managing Director of REPROM Nigeria Limited, Mr Attah Achimugu, confirmed that accommodation which is key to the success of the steel company has become the major problem as he disclosed that 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.
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 expatriates.
Achimugu said the rolling mill has been lubricated and undergoing test runs, adding that full operation of the section 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.

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