What really happened to Nigeria Billion dollar steel company

In today’s video, we take a trip to Ajaokuta a community in Kogi State, Nigeria to find out the true state of Ajaokuta Steel Company. What really happened to this billion-dollar steel factory that should have changed the fortune of Nigeria. Let’s find out (Black) In 1973, Iron Ore of required quality was discovered in Itakpe in Kogi State Nigeria, subsequently The National Iron Ore Mining Company (NIOMCO) was founded in 1979 along with Ajaokuta Steel Company. The mission of NIOMCO was to explore iron ore in various parts of the country, process and supply the iron ore concentrates to the Ajaokuta Steel Company, from where steel and liquid still are produced. So essentially NIOMCO will be doing the mining of iron ore, while Ajaokuta Steel will be doing the processing of iron ore to steel. To construct the Ajaokuta steel complex, in 1979 Under a Cooperation agreement between Nigeria and the then Soviet Union The construction of the Ajaokuta Steel Company started. The construction was expected to be completed in 7 years, that is from 1979 to 1986. Different companies were involved in the construction of different components of the project, however a Russian firm called Technoproexport in short (TPE) were the main architect and project managers of the project. Unfortunately, President Shagari government which started the project in 1979 was overthrown in 1983 in a coup and another government took over and the project was never completed in 1986 as planned Walkthough talk…. 15 years later in 1994, the Russian firm completed the project to 98% and needed Nigeria government to meet up with its 2% contractual obligations, Unfonately, that never happened, so the company abandoned the project and left Nigeria in 1994. The company then demanded for $2.5bn compensation for the work they have put into establishing Ajaokuta steel, after long negotiation, it was agreed that they be paid $500m with the plans that they will be re-invited to complete the works. Also as at the time the Russian Firm TPE left Nigeria, they did not handover the detail Master Plan to the Nigerian government, because they were still expecting to be invited to complete the work However instead of recalling the original builders of the factory for completion, in 2004 the Nigerian govt now led by President Obasanjo leased the project to Solgas Energy, an American firm. Shortly after leasing Ajaokuta steel to the solgas, sighting non-performance, the contract was revoked and given to an Indian company called Global Steel Holdings. Unfonately the Indian company Global Steel, did nothing significant in getting the place to work either So in 2007 After President Musa Yaradua took over from Obasanjo, he terminate the concession given to Global Steel accusing the Indian company of asset stripping and faulting the agreement to be largely skewed in favor of the Indians. The president also ordered that the Indian company be investigated for corruption and assent stripping. Well as you know, president yaradua government did not last that long, and the investigation he ordered to be conducted nerve happened. Well, the Indian company however sue Nigeria govt claiming they spent $500 million on the project.