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Koginews: FG inaugurates Ajaokuta Presidential project implementation team

The Federal Government has inaugurated the Ajaokuta Presidential Project Inauguration Team APPIT to help revamp the company in line with the recent agreement reached with Russia to resuscitate the steel company.

Inaugurating the team on Monday in Abuja, Secretary to the Government of the Federation SGF, Boss Mustapha who chairs the team noted that "the Ajaokuta Steel plant has languished in economic unproductivity for about four decades and previous efforts at reviving it had proved abortive".

He said this has resulted in avoidable massive foreign exchange losses at an intolerable opportunity cost to the country, adding that the pressing need to redress these avoidable challenges has necessitated the current Presidential intervention.

"This is further underscored by difficulties being witnessed with present challenges in the global oil industry", he added.

According to Mustapha, revamping the Ajaokuta Steel Plant, therefore clearly presents a unique opportunity to make the country West Africa's largest fully integrated steel producer and most importantly accelerate her industrialization especially in steel-related industries.

Speaking further, he said; "this government places a lot of value on the diversification of the economy, hence, Mr President's participation at the Russia-Africa Summit last year in Sochi, to discuss the resuscitation of the Ajaokuta Steel Plant with his Russian counterpart, President Vladimir Putin.

"Following the bilateral discussions in Sochi, Russia, the Ajaokuta Steel Project is to be resuscitated on the basis of a Government-to-Government agreement with funding from the Afreximbank and the Russian Export Centre. However, one of the key issues discussed by the parties was the Technical Audit, Upgrade, Completion and Operation of the Ajaokuta Steel Company.

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