The government of Ukraine has stated its readiness to invest about $2.6billion in the Nigerian Mines and Steel sector
Ukraine’s ambassador to Nigeria, Serhii Khanenko, stated this when he
paid a courtesy visit to the Minister of Mines and Steel, Mr Mohammed
Sada.
The ambassador said that Ukrainian investors were ready to inject
$2.6billion into the re- activation of Ajaokuta Steel Company Limited,
expressing the hope that the project would be given to the Ukrainian
government.
He said the purpose of the visit was to explore areas of partnership
with the Nigerian government in the development of solid mineral
resources as well as to specifically indicate his country’s interest in
the reactivation of Ajaokuta Steel Company.
Responding, the minister said that the Federal Government was
committed to removing bottlenecks in the privatisation of steel
industries in the country.
He described the visit as timely and important, noting that President
Goodluck Jonathan had given a time frame for all outstanding issues
affecting the nation’s steel industries.
He further said that government was working proactively towards
ensuring that the interests of the various stakeholders were brought on
board for the development of Nigeria’s steel industries.
The Minister disclosed that the present administration was determined
to tackle all critical issues impeding the successful privatization of
the nation’s steel industries.
He said “We reiterated the need to come up with clearer business
model for the project including cash flow, we also talked about source
of funds for this, because we made it critically clear that government
is not likely to invest but it is relying on the existing assets of the
place to do business”.
“We also talked about issues of technical capability and the type of
privatisation arrangement that you would like government to have with
you, how you intend to tackle the issue of infrastructure,
transportation and raw materials”.
The Minister noted that government was handling Ajaokuta Steel
Company Limited and National Iron Ore Mining Company (NIOMCO) as two
integrated plants that must work together for the optimum benefits of
the steel industries.
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