By Cross Udo
The Federal Executive Council, FEC, yesterday approved a contract for the revitalization and operation of the Ajaokuta Steel Company and the National Iron Ore Complex, Itakpe, both in Kogi State.

The FEC also approved contracts worth N10.48 billion and $27.09 million respectively for the Federal Ministry of Power, as part of the government’s effort at repositioning the nation’s power sector.

Briefing State House correspondents at the end of virtual FEC meeting presided over by President Muhammadu Buhari at the Council Chamber Presidential Villa, Abuja, the Minister of Information and Culture, Alhaji Lai Mohammed, reported on the approval granted by Council for the Ajaokuta and Itakpe companies.

Alhaji Mohammed, who stood in for the Minister of Mines and Steel Development, Olamilekan Adegbite, said the contract, worth N853.25 million, is about appointing contractors that would run the process of concessionning the companies, adding that the Council’s decision was in response to one of the two memoranda presented by the Federal Ministry of Mines and Steel Development.

According to him, “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 messrs 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 story of the history of Ajaokuta Steel complex. The contract was awarded in 1979 to a Russian company called TPE. By the end of 1983, the contract had reached advanced stage, regrettably, since then it has been suffering and by 1994, TPE demobilized from site and 1996, the contract was determined.

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“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.

“Regrettably COVID-19 has slowed down the efforts of the ministry of mines to bring this to fruition. However, today, the council has approved the award of contract not just for Ajaokuta but for the iron ore in Itakpe.

Also briefing journalists, the Minister of Power, Abubakar Aliyu said the FEC approved contracts worth N10.48 billion and $27.09 million respectively for his ministry in order to boost electricity supply across the country.

He said the three memoranda presented to Council, including one seeking variation for an old contract, sailed through, explaining further that the approvals were for the purchase of major electricity transmission equipment.

The Minister further disclosed that the council approved two contracts for the procurement two sets of power transformers and the construction of a transmission line in Kebbi State.

“The second approval was for the design, manufacture, and supply of two 60 MVA 132/33 KV power transformers. The cost has two components; the offshore is $1,294,447 then the onshore is N16,485,000.

“The third approval is a contract to also design, construction and installation of a 260 kilometre transmission line from Birnin-Kebbi, through Zuru to Yauri in Kebbi State. Also, the cost has two components; the offshore is $25.8 million and the onshore is N10.2 billion,” he explained.

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Also, Aliyu expressed optimism that the Presidential Power Initiative (PPI) is on course to deliver on incremental power supply, despite the setbacks with the Siemens power deal and reported sabotage on power infrastructure.

Minister of Science and Technology, Ognonnaya Onu, who also briefed the journalists, announced FEC’s approval of Nigeria’s Revised Energy Policy (2022).

He explained that the revision of the policy became imperative to enable Nigeria take optimum advantage of all the available sources of energy in the country.

He noted that Nigeria has abundance of crude oil, fossil fuels, and variants of renewal energy (solar, hydro, wind, geothermal and biomass), in commercial quantities, and a good mix of all these will greatly improve energy supply in the country.