The Federal Government may have terminated the concession of Ajaokuta Steel Complex to Global Infrastructure Holding Company of India.

The steel complex, built by a Russian firm, was Inaugurated on September 16, 1979.
The complex was initially expected to produce 1.5m tones of long steel products per annum. Its capacity was, however, expanded to between 3.6m and 6m tonnes. Investigations revealed that the steel company has not met its objectives, forcing the Federal Government to look for investors. The concession agreement with the Indian firm was hurriedly concluded in May 2007.

Although Global Holding paid about $300m for the concession, the value of the steel complex was then put at about $5billion. A source in The Presidency, told our correspondent in Abuja, that the Federal Government had not been happy with the concession agreement and the management of the steel complex. He also said that Northern leaders are opposed to the engagement of the Indian firm. "Since this administration came in board, it has received many petitions and protests on the concession of Ajaokuta Steel Complex.
"The protests led to the establishment of a panel of inquiry to look into allegations surrounding the concession of the complex.

"From the findings of the panel, the government may have no choice than to terminate the concession agreement" the source told The Nation. "The report of the panel has been sent to the Attorney-General of the Federation for advice. You know that the government cannot terminate a concession agreement without considering the legal implications."

On the technical competence of Global Holding, he said it had been less satisfactory to the government.
He added, "We have found out that the Indian firm could not manage the complex and it had to reengage about 50 Russian and Ukrainian experts, who built it. "There are also allegations of cannibalization of Ajaokuta Steel Complex and non-payment of salaries of workers. The purpose of concession is being defeated by these problems."

When contacted, the management of Global Holding said it could only speak officially on Monday.

One of the officers of the firm, Mr.Aja Nittin, said: "The management, through the corporate affairs unit, will react to some of the issues on Monday."