President Muhammadu Buhari has been cautioned against the plan to
concession Nigeria Iron Ore Mines Company, NIOMCO, to Global Steel
Holdings Limited.
The traditional council of Udu community, hosts to the moribund Delta
Steel Company, which gave the warning accused Global Steel Holdings
Limited of being a failed firm, describing the plans as a step in the
wrong direction.
These are contained in a petition addressed to the President, advising the
Federal Government to reconsider its stance due to the bad track records
the Indian firm left behind while managing Delta Steel Company.
The community noted that concession NIOMCO to this Indian firm would
clearly spells doom for the entire Nigerian Steel industry as it means not
only tying the fortunes of the Nigerian steel industry to a known failed
firm, but a debtor.
It stated that the petition is aimed at expressing the reservation of the
host communities over the moves by the Federal Government, through the
Ministry of Solid Minerals, to concession NIOMCO at Itakpe to Global Steel
Holdings Limited GSHL, former (through BPE) investors at the old DSC.
The letter reads in parts: “It is our contention that the unfortunate
antecedents of GSHL when the company held sway at Delta Steel Company
(Aladja Steel Complex), are not conducive for any form of business
partnership in Nigeria, at least not just now.
‘’The history which includes, amongst others: the unsuccessful
administration of the Aladja Steel Complex, the running aground of same,
the accruement of monumental debts for the company and consequently the
Nigeria community, the subsequent abandonment of the Steel Company, and
the court case between them and our country abroad, should be enough
grounds for blacklisting the firm.
“Secondly, NIOMCO is the only visible source of raw materials for the
Nigerian Steel Sector- both Delta Steel and Ajaokuta steel companies.
Concessioning NIOMCO to this Indian firm therefore clearly spells doom for
the entire Nigerian Steel industry as it means not only tying the fortunes
of the Nigerian steel industry to a known failed firm, but also to the
whims and caprices of a known debtor who has vamoosed once and may again.
“This planned concessioning is the fears highlighted above and to avoid a
repeat of the abysmally woeful performances which characterize the
management of GSHL globally. Indeed, the circumstances under which this
Indian company vamoosed and abandoned DSC, the stories surrounding the
intervention by AMCON with the scarce funds of Nigeria to enable the new
investors come on board the Nigeria Steel Industry are too green to be
forgotten, or ignored so soon.”