*Ajaokuta gas supply deal, major step towards reviving Steel Complex-TMSG*
(Option 1)
Ajaokuta gas supply dea
By Bassey Asuquo
The Tinubu Media Support Group (TMSG) has described the agreement by the Nigerian National Petroleum Company Limited (NNPCL) to transport gas to Ajaokuta Steel Company as a major step by the President Bola Tinubu administration to revive the Steel Company after 46 years.
In a statement signed by its Chairman Emeka Nwankpa and Secretary Dapo Okubanjo, the group said the landmark deal reflects the administration’s political will and rare readiness to fulfil its promise to make the steel complex work after 46 years.
The statement read in full: “Coming after more than 40 years of abandonment, the stage is now set for the revival of the Ajaokuta Steel Complex after the management sealed a Memorandum of Understanding with the Nigeria National Petroleum Company Limited (NNPCL) for gas supply over the next 20 years.
“This is a major step which underlines the political will of President Tinubu to fulfil a campaign promise made in February 2023 to get the Steel plant working again in a move to jumpstart Nigeria’s beleaguered industrialization
“We agree with the Minister of Steel Development, Prince Shuaibu Abubakar Audu, that the deal for feedstock to the complex is a game changer in the federal government’s effort to get the plant back to life after decades of inactivity.
“It also reflects NNPCL’s capacity under its new management, especially as it also sealed strategic MOUs, Gas Supply Agreements and Network Entry Agreements with 4 other companies aside from the Ajaokuta Steel Company.
“To be clear, the Gas supply deal for the steel complex is bound to remove a major obstacle to the operation of the plant, which many Nigerians had unfortunately given up on. The general impression had always been that any investment in the complex after several years of inactivity is another waste.
“But we are aware that this agreement will ensure the supply of ‘3MMscf/d of Firm Contract Volumes and 47MMscf/d of Interruptible Contract Volumes’ to be used as feedstock for the steel complex.
“So what the Tinubu administration is doing is breathing fresh life into the Ajaokuta Steel Complex to kick-start the industrial revolution that its founding fathers had envisaged when it was established in 1979.
“We recall that in February 2023, the then Candidate Asiwaju Bola Tinubu had promised to revive the steel complex. This is part of the steps he is taking to fulfil that pledge of ensuring local steel production, which would consequently boost job creation in the sector.
“We are convinced that now that the problematic gas supply to the plant is out of the way, potential investors would eagerly show more interest in partnering with the government to complete the Steel complex and use it as a springboard for the much-awaited industrialisation of the country.”
TMSG observed that a revitalised Ajaokuta Steel Complex will bring the country closer to unlocking its industrial potential, urging Nigerians to keep faith by trusting the Tinubu administration’s capacity to deliver on its promises.