By Martha Agas
Tinubu Media Support Group (TMSG) says the Nigerian National Petroleum Company (NNPC) Ltd deal to transport gas to Ajaokuta Steel Company Ltd (ASCL) for 20 years marks a major step towards reviving the plant.
The group said this in a statement jointly signed by its Chairman, Mr Emeka Nwankpa, and Secretary, Mr Dapo Okubanjo, issued to newsmen on Sunday in Abuja.
The News Agency of Nigeria (NAN) reports that NNPCL and ASCL’s Sale and Purchase Agreement will provide the critical gas infrastructure required to power the resuscitation of the nation’s foremost integrated steel plant.
The development, according to the group, aligns with President Bola Tinubu’s Renewed Hope Agenda for industrialisation, economic diversification and sustainable economic growth.
The group said that the deal represents a significant progress by Tinubu towards restoring operations at the company, which has remained largely dormant for 46 years.
It described the move as a “major step” that reflected Tinubu’s political will to fulfil his February 2023 campaign promise to revive the steel plant and reignite Nigeria’s industrialisation drive.
“We agree with the Minister of Steel Development, Prince Shuaibu 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 sealed strategic Memorandum of Understanding, gas supply agreements and network entry agreements with four other companies aside from the ASCL.
“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 group said.
It added that the agreement would guarantee the supply of three million standard cubic feet of gas daily, with an additional 47 million standard cubic feet available when required, to support the operations of the steel complex.
This, the group said, would restore confidence in the project, which had suffered years of setbacks, while creating opportunities for private sector participation in completing and operationalising the facility.
The group expressed optimism that the resolution of the gas supply challenge would attract investors and support the completion of the complex as a catalyst for Nigeria’s industrial growth.
NAN reports that the Minister of Steel Development, Prince Shuaibu Audu, had said that the availability of dedicated gas supply would address one of the critical requirements for the revitalisation of the steel plant.
Audu said the development would also unlock ASCL’s economic and industrial potential, boost local steel production, reduce import dependence, create jobs and stimulate growth across key sectors through increased utilisation of Nigeria’s gas resources. (NAN)(www.nannews.ng)
Edited by Philip Yatai