The federal government has approved the sum of N853 million for the engagement of transaction advisors for consultancy services for its concession of the Ajaokuta Steel Company Limited.
The approval also includes the National Iron Ore Mining Complex in Itakpe, Kogi State.
The Minister of Information and Culture, Lai Mohammed, made this known while speaking with state house journalists after the weekly Federal Executive Council (FEC) meeting on Wednesday.
The Ajaokuta steel company in Kogi State was envisaged to serve as the bedrock of Nigeria’s industrialization.
Mohammed said the contract for the consultancy services was awarded to CPCS Transform Consortium for N853 million.
“Council approved the engagement of transaction advisors for consultancy services for the concession of Ajaokuta Steel Company limited and also the National Iron Ore Mining Complex in Itakpe in favor of mrses CPCS Transform Consortium in the sum of N853,266,644.4 inclusive of 7.5percent VAT.
“I am sure we are all familiar with the history of the Ajaokuta Steel complex.
“The contract was awarded in 1979 to a Russian company called TPE. By the end of 1983, the contract had reached an advanced stage, regrettably, since then it has been suffering and by 1994, TPE demobilized from site and in 1996, the contract was determined. Subsequently, various administrations have tried to revive the Ajaokuta steel complex without much success.
“However, you will recall that Mr President was on a state visit to Russia on the 22nd and 24th October 2019 and here it was resolved that Ajaokuta steel complex which the Federal Government has made massive investment must be resuscitated,” he said.