VenturesNow

44 years after, Nigeria sets fresh 3-year revival plan for moribund steel plant, Ajaokuta

Published

1 year ago

October 8, 2023

Nigeria’s Minister for Steel Development, Shuaibu Abubakar Audu has revealed that plans are on for revival of the moribund Ajaokuta Steel Plant located in Kogi State.

“The Ministry of Steel Development is working on a Road Map that will contain a 3-Year Revival Plan for the revitalization of the Ajaokuta Steel Plant as well as contain a recommendation to designate the Plant Area as an Industrial Park that would be a Free Trade Zone to attract local and international investors”, he said.

Nigeria’s revenue from its mineral resources has been affected lately by industrial-scale oil theft in Niger Delta and increasing cases of illegal mining in some other parts of the country, notably in Zamfara and Osun states.

The ministry, in a statement on Saturday, said the government was committed to ensuring that the plant began production for the industrialization of the country, creation of jobs and wealth, and attracting foreign direct investment.

The minister further said the steel plant which had been moribund for about 45 years would be resuscitated so as to begin production before the end of President’s Tinubu’s tenure. He noted that the plant when revived, would be beneficial to all as it would create about 500,000 jobs for Nigerian youths.

Speaking further, Prince Audu stated that the purpose of the facility visit was to ascertain the operational and non-operational level of the plant and make recommendations on how to turn the plant around to begin production, noting that production of steel sheets from the Ajaokuta Steel Plant would be a significant achievement for the administration, a feat that has not been achieved in over 45 years.

A Raw Material Research Development Council had in 2022 claimed Nigeria was yet to establish a stable iron and steel sector despite the huge investment of over $ 7 billion already expended on steel development.

The country has continued to import steel despite heavy investment in the sector. Reports say

Nigeria imported $1.18 billion worth of steel materials in 2020, and imported iron, steel and metals, valued at N837.76 billion in the 3rd and 4th quarters of 2021.

Click to comment

VenturesNow

IMF, Egypt reach agreement for fourth review of Egypt’s $1.2 billion loan request

Published

2 days ago

December 26, 2024

Ifeoluwa Dada

Egypt and the International Monetary Fund (IMF) have reached a staff-level agreement over the fourth review of the Extended Fund Facility arrangement, which might lead to a $1.2 billion payout under the program.

In March, Egypt, struggling with rising inflation and cash shortages, consented to the $8 billion, 46-month facility. Its economic problems were made worse by a precipitous drop in Suez Canal revenue over the last year due to regional tensions.

Over the next two years, Egypt’s government has committed to raising its tax-to-revenue ratio by 2% of GDP, according to the IMF, emphasising removing exemptions rather than raising taxes.

According to a statement from the IMF, this would allow it to expand social expenditure to support vulnerable populations.

“While the authorities’ plans to streamline and simplify the tax system are commendable, further reforms will be needed to enhance domestic revenue mobilization efforts,” the statement said.

According to the IMF statement, Egypt had also committed to maintaining its commitment to a flexible currency rate and to taking more urgent action to guarantee that the private sector became the primary driver of development.

The IMF’s executive board still has to accept the fourth review’s staff-level agreement.

VenturesNow

Libya’s eastern govt accepts petrol subsidy elimination

Published

2 days ago

December 26, 2024

Ifeoluwa Dada

In a recent statement, the eastern government of Libya claimed it had reached a consensus on a plan to eliminate gasoline subsidies and would draft a mechanism to carry out the accord.

Additional information on the idea was not released by the administration led by Osama Hamad, a challenger to the internationally acknowledged Tripoli-based government.

However, it is uncertain if Hamad’s government would be able to carry out the plan in the divided nation.

According to the Global Petrol Prices online tracker, a litre of gasoline costs just 0.150 Libyan dinars ($0.03) in OPEC member Libya, making it the second-cheapest in the world.

Following an uprising against former ruler Muammar Gaddafi in 2011, smuggling networks have thrived in the ensuing political unrest and armed fighting. In 2014, conflicting eastern and western governments separated the nation.

A World Bank analysis estimates that the annual value of fuel smuggling from Libya is at least $5 billion.

In a meeting with Mari Barrasi, the deputy governor of the Central Bank of Libya (CBL), located in Tripoli, and four members of the bank’s board of directors, Hamad in Benghazi supported the idea of removing subsidies.

The CBL’s Benghazi branch offices served as the venue for the conference.

The eastern parliament appointed Hamad in 2023 to succeed Abdulhamid Dbeibah, who had been put in position in 2021 under a U.N.-backed procedure that the parliament said had lost its legitimacy.

Dbeibah, who is located in Tripoli, stated in January that he will conduct a public poll on the topic of eliminating gasoline subsidies, but he hasn’t done anything about it since.

According to CBL figures, gasoline subsidies cost 12.8 billion Libyan dinars between January and November of this year. 4.8 Libyan dinars to $1 is the official exchange rate.