Nigerian Government Cancelled Agreement with Global Infrastructure Holding limited (GIHL)

The Nigerian Government has revoked the sale/concession of Ajaokuta Steel Company and National Iron Ore Mining Company in Itakpe located in Kogi State, North – Central Nigeria. The Nigerian government had in 2004 concessioned both companies to an Indian Company called Global  Infrastructure Holding Limited (GIHL) in a controversial way.

Many of the stakeholders in the steel sector both in Nigeria and outside the country were taken aback by the obnoxious agreement signed by the Global Infrastructure whose Chief Executive Officer is Promad Mittal.  The dust of the concessioning has really not settled when the Nigerian government out-rightly sold Ajaokuta Steel Complex and its assets to Global Infrastructure at a ridiculous price of US$300 Million Dollars, it should be recalled that the Nigerian government has spent between US$5 to US$6 Billion Dollars to build the steel complex.

Organization like the African Iron and Steel Association (AISA), and other stakeholders refused to give up their cries against the dubious transaction, the government of President Musa Yar’adua constituted an Administrative Panel in the late 2007 to x-ray the accusation leveled against the Indians of asset – stripping, cannibalization of equipment etc.  The Panel report indicted Global Infrastructure and subsequently the agreement was cancelled.

The Nigerian government has since inaugurated an Interim Management Team to oversee the affairs of the two companies.  The African Iron and Steel Association (AISA) has encouraged the Nigerian government to re-visit its agreement with Global Infrastructure, and adviced for a technical audit to be carried out on the plants both in Ajaokuta and Itakpe to ascertain the extent of damages done by the GIHL on the facilities which some expert say, were enormous.