He wants to study the sector for one year before investing in it. That would have been great if they didn't use the immediate resustication of the steel company as a campaign promise

GenBuhari:
This Fayemi is saying he is devoid of ideas.

I think it is time to redeploy or sack him.

instead of think of innovative and creative solutions he is here making excuses for failure.

Abeg this ministry is too important for our diversification plans to be handed to a negative and bewildered minister.

Give the ministry to Ogbonnaya Onu.

Lol. The same Ogbonnaya Onu who announced that Nigeria is due to start production of Pencils! in 2 years time right?

Let then critically study the steel market and come out with reasonable plans...The point is we have to be self sufficient to grow economically as a nation...

Tomoarika:


Lol. The same Ogbonnaya Onu who announced that Nigeria is due to start production of Pencils! in 2 years time right?

our ministers have lost touch with recent advancements...its a pity..

Meriekriss:


You strong oooo.. What a suggestion...

Good investors know when its time to count there losses and walk away.
You can't get too emotionally attached to an investment. That's the mistake most people make in investing (even gamblers are guilty of this also). They keep hoping to make the money they lost back instead of just letting by gones be by gones and walk away.

Obiagelli:



http://newtelegraphonline.com/fg-spent-10-bn-ajaokuta-fayemi/

. Misplaced priorities. DSC that was working initially, Obj sold it to Indians for personal gains and that was the 2nd phase of its problems after the first one by previous govt. DSC workers are owed salaries but staff of Ajaokuta that hasn't produced ones gets paid. Which way for Naija?

NavierStokes:
Is this government under the anointing of a "snail".

Why waste one year studying the legalities and sorting legal issues. Meaning you will spend the next 1 year raising funds and another one year to get contractor on aite, then a hiatus because we will be campaigning for 2019 for the last of their 4 years. When will the plant then be commissioned?

Empty Rhetorics.

Actions not more words, thats what we need.
Nigerians will not be swayed by these empty talks.

Its about time they start giving us timelines of when our steel will be in the market not asking for a year

Speak for urself biko. u r not Nigerians buh just a Nigerian. If Nigerians can wait for 16yrs or more, then wat is 1yr? Nigerians will wait. If we are not ready to wait we wouldnt hv ushered in new govt.
GodBless Naija

This is a shame. Past governments have just been wasting money on this project. I hope Fayemi succeeds where many others have failed.

I think individuals like Pat Utomi, Fola Adeola, Bath Nnaji, Odimegwu and Ribadu should be brought in asap. I now understand why Tinubu stood against the appointmemt of this guy. He is simply a non-achiever. Fayemi soliciting for fund from organizations and countries that tried to decommision ajaokuta plant show his total lack of education about our steel industry. To those that felt that investment into Ajaokuta is a waste of money... They need to be informed that industrial revolution in all of Europe, USA, Japan, China, India, and all other revently rejuvemating economies like Brazil have all their revolution attributted to their steel revival. With a functioning Ajaokuta the Coal cities of Enugu and Jos will regain their economic status, the steel rolling mills and machine tools in aladja delta state and Osogbo osun state will come back online, the port in calabar and the dredging of river niger will become an ecomomic necessity and not just political obligation. Trillions invested into capital project such as building of bridges, buildings and roads will stay in our economy, instead of enriching economy of ukraine and china where bulk of our steel are imported from, cinstruction cost will reduce by at least 50%. No agricultural revolution can take place until a country start to manufacture its own farm machines.and implements. Manufacturing tractors is not as complicated as manufacturing bullion vans... Investing into automotive and aviation manufacturing without a functioning steel plant is insane especially when we consider that we have havard trained experts incharge of our economy... Wetin person wan talk sef, if a reputable minister of petroleum can tell us that we have no need for refineries since we can import cheaper gas from singapore... Ajaokuta has the capacity to employ 100k with about a million working in adjoining bussinesses... Fayemi in his campaign in 2007 promised creativity...i remember he talked about annexing power from some water falls? in ekiti, he emphasized so much on renewable energy, he mentioned making money from rocks(granite) that can be found all over the state...after the guy got into power all he did was construct roads and fight workers. I even heard that imported the granite used for his road from Ondo. I think buhari need an achiever in that sector not some phonet-speaking buffon. U cant have achievers like Odimegwu, Adeola, Nnaji, Anyaoku, Rogers Makanjula waste away while u over-labour a Fasola. People like Utomi, Ezekwesili, Soludo cannot be roaming the street and bugged Kemi down with over-work. I think Nigeria interest should supersede APC interest. Even PDP make do with some good ones sometimes...Adesina comes to mind

No be 3 days ago we were talking about dis topic here,this is to moderator and people who are into or allows talks of rubbish,THE GOVERNMENT HAS REPRESENTATIVES HERE AND THEY LISTEN WHEN WE SPEAK.

Godmann:


Keep off what you know little about. Every sane country needs a steel company.

Judging from your false analogy, why won't US and Europe close down their steel companies and buy cheaper ones from China? Why go the length of protecting to make their people pay higher price?

If we think manufacturing and self sufficient, we must have a steel company.

What stats do you have to back your ascertions?

The Chinese are dumping steel by selling it below the cost of production. That is why the EU, USA have introduced anti-dumping duties.

And it is not true the country needs to have a steel plant to industrialise.

In this day of biotechnology, steel manufacturing is a low tech, low margin commodity business.

What businesses need is cheap steel and not a steel mill

grandstar:
That is Nigeria's largest white elephant!

The plant is a very unproductive plant compared to the super modern ones today.

Also there is a massive glut of steel inn the world market from China.

China has an excess capacity of over 250m tons. These has led to the dumping of steel and the EU and America have been forced to impose anti-dumping duties on chinese steel.

Its far cheaper to import than to make steel locally. Making steel here will put local users at a competitive disadvantage due to very steep prices.

Govt should do the needful. They should dynamite the place and ring it for miles with mines and lease the place out to ISIS

Your well thought out and insightful comment is appreciated.

Here's a short report from today's Economist briefing, buttressing what grandstar has been saying about the state of the steel market:

Creeping corrosion: the steel industry

For decades steelmakers have scraped by on thin margins. As prices have fallen by four-fifths since the financial crisis, thanks to overproduction and falling Chinese demand, they’ve been truly clobbered. American mills are suffering (US Steel lost $1.5 billion last year) but get some help from cheap energy and anti-dumping duties on Chinese steel. Europeans are in agony. Yesterday ArcelorMittal, Europe’s biggest steelmaker, warned investors to expect a year-on-year fall of 35% in fourth-quarter operating profits. Next week it’s likely to reveal an annual loss. Today more bad news is expected when the second-biggest, Indian-owned Tata Steel, reports third-quarter results; last month it said it was cutting another 1,000-odd jobs. Both borrowed heavily to buy much of Europe’s low-grade capacity before 2008, when the market was buoyant. That strategy is looking badly dented.

And this is the kind of market into which one expects to bring a plant using Soviet-era steel-making technology? It's astonishing just how ignorant so many Nigerians are.

omohayek:
Here's a short report from today's Economist briefing, buttressing what grandstar has been saying about the state of the steel market:



And this is the kind of market into which one expects to bring a plant using Soviet-era steel-making technology? It's astonishing just how ignorant so many Nigerians are.

So you are working in league with NOI to work against Nigeria's interest ?
How much were you paid to do this ?

neocortex:



So you are working in league with NOI to work against Nigeria's interest ?
How much were you paid to do this ?

It takes real work to be this daft!

Reps, Kachikwu Disagree Over NNPC’s Crude Swap Deals.

http://www.nairausd.com/2016/02/reps-kachikwu-disagree-over-nnpcs-crude.html?m=1

omohayek:


It takes real work to be this daft!

Understanding language through context is one of the key indices of intelligence,
it is unfortunate you lack such.

neocortex:


Understanding language through context is one of the key indices of intelligence,
it is unfortunate you lack such.

Well, it's good to see you acknowledge your personal shortcomings. Now, please go back to your room and leave the adults to discuss the issues in peace.

Godmann:


Keep off what you know little about. Every sane country needs a steel company.

Judging from your false analogy, why won't US and Europe close down their steel companies and buy cheaper ones from China? Why go the length of protecting to make their people pay higher price?

If we think manufacturing and self sufficient, we must have a steel company.

Wrong! Try again. The united States govt does not own any steel company. They are all owned by private entities. You think yanki is like naija where every sector of the country from banking to even sports is run by the fed govt? In yanki, private enterprise is king and thats one of the reasons they are successful as a nation because of their ideology that govt should stay out of getting involved in commerce and trade except to enforce the rules and the law of the land.

During the recession of 2009 when the govt stepped in to bailout the auto industry by handing out loans to them. The public was FURIOUS at the govt by their interventionist policy because they strongly believe that the govt should not be getting involved in business.

grandstar:
That is Nigeria's largest white elephant!

The plant is a very unproductive plant compared to the super modern ones today.

Also there is a massive glut of steel inn the world market from China.

China has an excess capacity of over 250m tons. These has led to the dumping of steel and the EU and America have been forced to impose anti-dumping duties on chinese steel.

Its far cheaper to import than to make steel locally. Making steel here will put local users at a competitive disadvantage due to very steep prices.

Govt should do the needful. They should dynamite the place and ring it for miles with mines and lease the place out to ISIS

It is very easy to spew stupidity early in the morning. Please go and inquire about Ajaokuta before you write poo.
Soon I will Address The so called minister about his role in this western affront against Africa’s Steel Giant....... Rubbish

grandstar:
That is Nigeria's largest white elephant!

The plant is a very unproductive plant compared to the super modern ones today.

Also there is a massive glut of steel inn the world market from China.

China has an excess capacity of over 250m tons. These has led to the dumping of steel and the EU and America have been forced to impose anti-dumping duties on chinese steel.

Its far cheaper to import than to make steel locally. Making steel here will put local users at a competitive disadvantage due to very steep prices.

Govt should do the needful. They should dynamite the place and ring it for miles with mines and lease the place out to ISIS

the most empty post.

Caseless:
the most empty post.

Why is his post empty? Can you state your case just like did.

UmecheMoses:





It is very easy to spew stupidity early in the morning. Please go and inquire about Ajaokuta before you write poo.
Soon I will Address The so called minister about his role in this western affront against Africa’s Steel Giant....... Rubbish

Why don't you write a rebuttal instead of resorting to petty insults man.

omohayek:
Here's a short report from today's Economist briefing, buttressing what grandstar has been saying about the state of the steel market:



And this is the kind of market into which one expects to bring a plant using Soviet-era steel-making technology? It's astonishing just how ignorant so many Nigerians are.

sorry I don't seem to get ur point.....
are u saying we should abandon steel production in Nigeria because of cheap imported ones from china........
then we can as well abandon manufacturing in this country since Chinese products will always be cheaper.......
the way some people reason, u go fear.......yet u came here and called Nigerians ignorant.
Russia churns out 70 million tons of steel every year with the same soviet-era technology.....
and 100 years old blast furnace still exist in Europe churning out steel.
even if ASC will be abandoned, govt should come up with an alternative......

steel production is of strategic importance to the economic renaissance of any nations......
all newly industrialized or emerging economies have a viable and vibrant steel industry.......
mexico, Egypt, turkey, Taiwan, Indonesia, south Africa, india, Malaysia all produce steel.....
the ability to produce steel and fabricate it into different steel components is key to the economic diversification we all yearn for......
innoson's cars will sell for as low as #1 million if he starts sourcing for vital car component within the Nigerian steel industry....


Nigeria for now cannot compete effectively in the international market when it comes to manufacturing.......
we lack the competitive advantage to accomplish that......
thus, focus in our manufacturing sector should be on import-substitution industrialization and not export .....
Govt must do everything within its powers has to protect our nascent manufacturing industries from cheap foreign products......
if it means Nigerians paying more, then so be it.......
America placed 225% import duties on Chinese steel products
try and export finished products or consumer goods to china and experience daunting restrictive barriers at their borders.
every nation protects its own, Nigeria should do the same....
everything mustn't be about the end users.....

grandstar:
That is Nigeria's largest white elephant!

The plant is a very unproductive plant compared to the super modern ones today.

Also there is a massive glut of steel inn the world market from China.

China has an excess capacity of over 250m tons. These has led to the dumping of steel and the EU and America have been forced to impose anti-dumping duties on chinese steel.

Its far cheaper to import than to make steel locally. Making steel here will put local users at a competitive disadvantage due to very steep prices.

Govt should do the needful. They should dynamite the place and ring it for miles with mines and lease the place out to ISIS

The bolded to me is not correct since the primary source of raw material is in abundance in our country. What put China at advantage if not for the presence of abundance iron ore of which Nigeria can equally boast of? It seems Nigerians have been brainwashed by lazy government who have failed woefully in the responsibility to industrialised the nation. That is the reason why they always clamour for the removal of subsidy citing the importation cost of refined product but look other way when it comes to refining crude.

suyamasta:
Dr. Fayemi's First Half Truth on # Ajaokuta . Read
and Share!!!
Dearest # Nigerians , We did a good job spreading
my post "Time to Break the Conspiracy
Surrounding Ajaokuta" found here https://
www.facebook.com/NatashaAkpoti/posts/10154065985231758
Hon. Min. Dr. Fayemi got to read it and your
comments too. To this, while defending the
budget, he spent quite some time yesterday at
the National Assembly talking, for the FIRST time,
about the (partly) true reasons why the
government cannot revive #Ajaokuta now. This
truth the minister decided to speak out is the
legal case between GSHL (GIHL) the Indians and
FG of Nigeria I mentioned in my post.
Few words for Hon. Minister Dr. # Fayemi:
1. Thank you for corroborating my statement on
the fact that Global Infrastructure (GHSL) is
holding Nigerian government to ransom over the
Ajaokuta/ Itakpe's arbitration. http://
www.premiumtimesng.com/news/top-news/197876-ajaokuta-steel-company-wont-function-immediately-minister.html . Now, Nigerian's are
fully aware that all the previous posts in the
media was cool air blown on Nigerians' wounds.
Sir it isn't going to work anymore.
However sir, you mentioned that you would need
1 year to clear the legal hurdles surrounding
Ajaokuta. 1 year is too much a time sir.
Nigerian's do not have 1 more year to waste over
a legal contract entered into without the best
interest of Nigeria at the soul of it. We know its
quite uneasy for you; uneasy so because GHSL
has powerful "godfathers" and their legal counsel
is a Special Adviser to the president himself; and
ironically on matters relating to the improvement
of social welfare for the common man. We plead
with Mr. President, the Attorney General and your
kind self to please expedite the termination of
every legal agreement with the Indian company.
Nigerian's are fast losing their patience.
2. Hon. Minister, you also mentioned that the
Federal Government has spent over $10b on
Ajaokuta from inception till date http://newtelegraphonline.com/fg-spent-10-bn-ajaokuta-fayemi/ . Sir, you know that by and large,
more than half of the $10b was fraudulently
embezzled by those we entrusted our sovereign
wealth with. It is wrong to add the Abacha loot,
# SolGas and now GHSL erroneous expenditures
to the supposed money "spent" on the Ajaokuta
steel plant. At this time I wish Ajaokuta Steel
were a human being and could speak for itself.
Pity.
TPE Russia has built over 40 steel plants around
the world, Ajaokuta is the only one they never
completed and commissioned. Nigeria Why
Maybe its time Nigerian's got a glimpse of the
legal contract between GSHL and Nigeria. Watch
my page in a few hours...

Source={> www.facebook.com/NatashaAkpoti/posts/10154065985231758

most of the things written on that your topic is false.
1. DSC does not require billets or raw materials from Ajaokuta. They operate different systems. DSC uses the shaft furnace system to produce what is called sponge iron or direct reduced iron (DRI) which is then melted with the EAF (electric arc furnace). The raw material required for this method is high quality iron ore with iron content of above 67% and natural gas. The iron ore can be obtained for NIOMCO itakpe through beneficiation. The natural gas is abundant in the south south.
2. In the case of Ajaokuta, it uses the blast furnace system to produce what is called liquid steel or iron. The major raw material is iron ore of above 32% and coal the iron ore may not require beneficiation because Nigerian ore exceeds 32% but the higher the iron content the lesser the slag.
Now here comes the tricky part. Nigeria has abundant coal but Nigeria coal is not coking. It has a high ash content and is low porosity.

Enice:
most of the things written on that your topic is false.
1. DSC does not require billets or raw materials from Ajaokuta. They operate different systems. DSC uses the shaft furnace system to produce what is called sponge iron or direct reduced iron (DRI) which is then melted with the EAF (electric arc furnace). The raw material required for this method is high quality iron ore with iron content of above 67% and natural gas. The iron ore can be obtained for NIOMCO itakpe through beneficiation. The natural gas is abundant in the south south.
2. In the case of Ajaokuta, it uses the blast furnace system to produce what is called liquid steel or iron. The major raw material is iron ore of above 32% and coal the iron ore may not require beneficiation because Nigerian ore exceeds 32% but the higher the iron content the lesser the slag.
Now here comes the tricky part. Nigeria has abundant coal but Nigeria coal is not coking. It has a high ash content and is low porosity.

for you to use coal in the blast furnace, it must be coking. That is carbon content exceeding 98%. Ash content must be less than 2%. Nigerian coal has ash content greater than 2%. This will lead to a longer melting time and high slag production making it uneconomical. In the case of the mechanical and physical properties like porosity and compressive strength, these can be resolved through the use of a binder that burns off in the presence of heat. This is done by pulverising the coal, screening to remove silica and mixing with the binder to impact strength.
3. Here is the truth. For you to light the blast furnace, you need guarantee of not less than 5 to 10 years supply of coke. Since Nigerian coal is not coking, then we need to import. Here the politics comes in. Nigeria has not been able to find any country that can guarantee that much years of coke supply. Hence we can basically conclude that Ajaokuta is a white elephant project unless we change to the DRI method. Research is currently ongoing at the NMDC nigerian metallurgical development center Jos to make nigerian coal coking.

PLEASE LETS MAKE A CONCRETE EFFORT TO FINALLY DEVELOP THIS INDUSTRY.ITS THE BEDROCK OF NIGERIAN INDUSTRIALISATION.

HAND AJAOKUTA STEEL BACK TO THE RUSSIANS FOR COMPLETION AND UPDATING.!!!!!!!!!!!!!!!!!!!!

Ttalk:


The bolded to me is not correct since the primary source of raw material is in abundance in our country. What put China at advantage if not for the presence of abundance iron ore of which Nigeria can equally boast of? It seems Nigerians have been brainwashed by lazy government who have failed woefully in the responsibility to industrialised the nation. That is the reason why they always clamour for the removal of subsidy citing the importation cost of refined product but look other way when it comes to refining crude.

You may have abundant iron may not give you a competitive advantage.

Its like saying having plentiful bauxite gives you a comparative advantage inmaking aluminium. You will score a zero.

Though Jamaica had abundant amount of bauxite,it chose to set up an aluminium plant in Ghana? Why.

SIRTee15:


sorry I don't seem to get ur point.....
are u saying we should abandon steel production in Nigeria because of cheap imported ones from china........
then we can as well abandon manufacturing in this country since Chinese products will always be cheaper.......
the way some people reason, u go fear.......yet u came here and called Nigerians ignorant.
Russia churns out 70 million tons of steel every year with the same soviet-era technology.....
and 100 years old blast furnace still exist in Europe churning out steel.
even if ASC will be abandoned, govt should come up with an alternative......

steel production is of strategic importance to the economic renaissance of any nations......
all newly industrialized or emerging economies have a viable and vibrant steel industry.......
mexico, Egypt, turkey, Taiwan, Indonesia, south Africa, india, Malaysia all produce steel.....
the ability to produce steel and fabricate it into different steel components is key to the economic diversification we all yearn for......
innoson's cars will sell for as low as #1 million if he starts sourcing for vital car component within the Nigerian steel industry....


Nigeria for now cannot compete effectively in the international market when it comes to manufacturing.......
we lack the competitive advantage to accomplish that......
thus, focus in our manufacturing sector should be on import-substitution industrialization and not export .....
Govt must do everything within its powers has to protect our nascent manufacturing industries from cheap foreign products......
if it means Nigerians paying more, then so be it.......
America placed 225% import duties on Chinese steel products
try and export finished products or consumer goods to china and experience daunting restrictive barriers at their borders.
every nation protects its own, Nigeria should do the same....
everything mustn't be about the end users.....

In the day of biotechnology,steel is low tech. Even car manufacturing is considered medium tech.

It is not true that a country needs tohave a steel plant in order for it to industrialise. That is a myth.

If steel manufacturing is so profitable, why hasn't Dangote or any other rich Nigerian rushed into it.

Instead they are avoiding it like a plague.

Well, the Nigerian govt acts before it thinks. A feasibility study will expose the folly of steel manufacturing

Enice:
for you to use coal in the blast furnace, it must be coking. That is carbon content exceeding 98%. Ash content must be less than 2%. Nigerian coal has ash content greater than 2%. This will lead to a longer melting time and high slag production making it uneconomical. In the case of the mechanical and physical properties like porosity and compressive strength, these can be resolved through the use of a binder that burns off in the presence of heat. This is done by pulverising the coal, screening to remove silica and mixing with the binder to impact strength.
3. Here is the truth. For you to light the blast furnace, you need guarantee of not less than 5 to 10 years supply of coke. Since Nigerian coal is not coking, then we need to import. Here the politics comes in. Nigeria has not been able to find any country that can guarantee that much years of coke supply. Hence we can basically conclude that Ajaokuta is a white elephant project unless we change to the DRI method. Research is currently ongoing at the NMDC nigerian metallurgical development center Jos to make nigerian coal coking.

are you a metallurgist.
You have an indebt knowledge of iron and steel technology.

Kudos bro