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The Nigerian Iron and Steel Summit 2008
organized by the Federal Ministry of Mines and Steel
Development was held in All Season’s Multi-Purpose Hall, 24
Lateef Jakande Street Agindigbi, Ikeja, Lagos on July 31st
and August 1st, 2008.
The theme of the summit was: “Attainment of
Vision 20/2020; National Strategic Planning for Metal Sector
Development”. The summit was declared open by the Honourable
Minister of Mines and Steel Development, Chief Sarafa Tunji
Isola, while the keynote address was delivered by the
Honourable Minister of State, Alhaji Ahmed Mohammed Gusau,
MFR.
The summit was well attended by eminent personalities and
stakeholders in the metals industry. Twelve technical papers
were presented and there were six syndicate group
discussions on Infrastructure, Research and Development,
Production/Operation, Regulation/Database, Investment and
Raw materials.
The summit made the following decisions:-
1. That the indispensable role of the Metals Industries to
the industrial growth of Nigeria cannot be over emphasized.
That Government should reposition the sector to achieve a
substantial increase in the per capita consumption of major
commercial metals and alloys to become a major regional and
global producer of steel and aluminum by the year 2020.
2. That the Metals Industry especially the steel sub-sector
is too strategic and capital intensive to be left solely in
the hands of the private sector.
3. That Government should create investment friendly
environment through appropriate policies to encourage
entrepreneurs and other potential stakeholders in stint up
upstream and down stream spin-off industries.
4. That Government should encourage the re-engineering of
the metals industry through capacity building of the
manpower base which has been depleted over the years. The
Metallurgical Training Institute (MTI) Onitsha and other
professional institutions should be strengthened to meet the
demands of the steel sub-sector of the national economy.
5. That Government should create appropriate Legal &
Regulatory framework to control operations in the metals
industry in terms of quality, safety and environmental
measures.
6. That there is an urgent need for Government to set up a
technical group with members of proven ability to realign
the development of steel making raw materials i.e.
limestone, dolomite, coal deposits.
7. That the structural and hydrological problems associated
with Lafia/Obi coal should be addresses while coal of coking
grade known to exist at deeper horizon in Enugu (>480m)
should be evaluated.
8. That all major steel raw material/deposits should be seen
as captive mines to Publicly Owned Steel Plants and urgent
effort should be made by Government to take over these
mines.
9. That a comprehensive technical audit and valuation of
ASCL and NIOMCO by Messrs TPE of Russia and KOCH
respectively, in collaboration with indigenous engineers and
consultants should be urgently executed by Government.
10. That based on the report of the technical audit,
Government should embark on the completion of Ajaokuta Steel
Company within 24 months. Following the expiration of the
performance guarantee test period as per the Global contract
with TPE and a successful operation of the plant, Government
may embark upon any viable opinion involving Public Private
Partnership, e.t.c.
11. That the Government should urgently complete the rail
lines from Ajaokuta to Delta Steel, Aladja, and extend it to
Warri port. Bulk handling and storage facilities should also
be installed at Warri port.
12. That transportation linkages by rail and road to
locations of local raw materials should be executed
urgently. In this regard, the Ajaokuta-Oturkpo-Onne rail
line should be constructed for the haulage of coking coal.
13. That Government should construct a rail line from Warri
to Port Harcourt along the East-West highway to link with
Ajaokuta-Warri rail line for bulk handling of raw materials
to both Warri and Delta Steel.
14. The Warri Escravos should be dredged pending the
completion of the Warri-Port Harcourt rail lines.
15. That power utility must be made available and affordable
to the industry. Government should embark on electricity
power generation using coal and other alternative sources of
power.
16. That the Nigerian Inland Waterways be made navigable to
link clusters of small and medium scale industries.
17. That infrastructural development should be carried out
by Government, with reasonable local content incorporated.
Local Communities should be carried along from the inception
of any infrastructural development to avoid friction leading
to delays in project execution.
18. That an inter-ministerial group complemented with
stakeholders should examine infrastructural options and
propose implementation plan (funding, milestones, etc).
19. That Government should enforce the law prohibiting
export of metal scraps.
20. That the Government should encourage Commercial Banks,
Development Finance Banks, to set aside a certain percentage
of their loan portfolio to Metal Industry.
21. That the Government should maintain consistent policies
to guide potential investors in the metals Industry.
22. That Government should encourage investors to set up new
steel plants as the current Nigeria’s per capita consumption
of 6kg of steel is far below the world average of 130kg, if
the Vision 2020 goal is to be realized.
23. That the Management of Ajaokuta Steel Company Limited
(ASCL) should be encouraged to put into operation the
completed units of the Steel Plants.
24. That Metallurgical inspectorate department of Federal
Ministry of Mines and Steel Development should be empowered
to monitor the quality of imported and locally produced
steel products.
25. That the Government should reinstate all the concession
of zero duty and Value Added Tax (VAT) on the importation of
plant machinery, equipment and industrial raw material.
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