COALITION OF CSOs DECLARES SUPPORT FOR PRIVATIZATION OF AJAOKUTA STEEL COMPANY
A Coalition of Civil Society Organizations (CSOs) working for the revival of Ajaokuta Steel Company Limited (ASCL) has applauded the intention of the federal government to privatize the company for effective restoration of its functions.
The CSOs in a statement by the National Coordinator, Mr Mohammed Attah on thursday in Abuja vehemently opposed concessioning saying that indigenous ownership of the company will lead to the much desired revitilzation.
Although the privatization pronouncement which which came up from a protracted legal tussle has gathered mixed reactions, the coalition argued that privatization will sustain efforts of the federal government on the company which was left moribund for decades.
It stated that “As civil society group monitoring the developments around the steel plant, we wish to reinstate our earlier support to the government on the ongoing privatization efforts, which in our opinion is to encourage local investors in the affairs of the company for effective and efficient management and productivity”.
It noted that one of the recommendations of the November 25, 2021 National Conference on Ajaokuta Steel Complex and President Muhammadu Buhari Industrialization Agenda, was for the government to stop the concession agreement and consider the privatization of the ASCL and the National Iron Ore Mining Company, NIOMCO, by encouraging local investors.
It recalled that the conference condemned any attempt to reconsider the issue of concessioning the two companies or to allow foreign investors stressing that the above two factors have been the bane of setbacks recorded over the last 30 years by the two establishments.
The coalition described the announcement by the Minister, Arc. Olamilekan Adegbite of the ongoing privatization process involving a review of selected firms bidding to invest in the company as positive and in the right direction.
It stated that though details about the procurement of the firms and consultants for the processes are not made public yet, it believes that the government will follow due process by applying the direct sourcing or selective bidding processes.
It further commended the federal government for the settlement of debt owed to a foreign firm that has set ASCL and NIOMCO on a positive new course.
