The Iron and Steel Senior Staff Association of Nigeria (ISSSAN) on Sunday advised the Federal Government to ensure that all legal issues that would affect the proposed revival of the Ajaokuta Steel Plant were settled amicably .
ISSAN President, Mr Otori Maliki, told the News Agency of Nigeria (NAN) in Lagos that the Federal Government should ensure that it settled any court case involving the company before restructuring it.
Maliki said that the steel plant stopped functioning since 2005 when it was sold to Global Steel, an Indian Company, during former President Olusegun Obasanjo- led administration.
He said that there were transnational irregularities at the rolling mill when it was privatised and those issues needed to be rectified before rebuilding it.
“Since 2007, the government has been in arbitration with Global Steel and Global Infrastructure Limited at the International Chamber of Commerce, (ICC) London.’’
The union leader said that later, the international court of arbitration asked the Federal Government to take charge of the steel plant and work out an amicable settlement with Global Steel.
He said this was after Global Steel had agreed to withdraw its claim of one billion dollar it initially demanded as damages from the Nigerian government.
Maliki said that the issue had not been completely resolved by both parties because there were still irregularities regarding the process of its privatisation.
The union leader then urged the Federal Government to look into the grey areas before it commenced the restructuring of the plant.
Maliki said that if revamped, the plant could employ no fewer than 10, 000 people and boost the economy of the country.
He said that it was regrettable that Nigeria had continued to suffer unquantifiable losses from the depreciation of the multi-billion dollar investment due to its abandonment.
“Ajaokuta steel plant is in need of resuscitation for the company to serve its purpose. There is also brain drain of the manpower trained in Russia, Bulgaria and India for the steel plant,’’ he said.
The ISSAN president said that Ajaokuta could produce over 110MW of electricity to meet its local consumption needs, while the remaining would be transferred to the national grid.
He said that if the company was revived soon, it would help to revive other dead manufacturing companies as well as train youths in technical craftsmanship. (NAN)