1. INTRODUCTION
The dream to develop the Iron and Steel Sector was started by the Yakubu Gowon Regime
with the formation of National Steel Development Authority
(NSDA) in 1971.
Their job essentially was to develop the steel Sector.
It was from here that all the various Steel Companies were formed during the General Murtala Mohammed/Obasanjo Regime. These companies started realizing their potentials during the Shagari Regime. These companies are:
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1. Delta
Steel Company Ovwian Aladja, Delta Steel
2. Jos Steel Rolling Company, Jos Plateau State
3. Katsina Steel Rolling Company, Katsina State
4. Oshogbo Steel Rolling Company, Osun State
5. Ajaokuta Steel Company, Kogi State
6. National Iron Ore Mining Company Itakpe, Kogi State
7. National Steel Raw Materials Exploration Agency, Kaduna State
8. National Metallurgical development Center, Jos Plateau State
9. Metallurgical Training Institute Onitsha, Anambra State
These Companies up
till this moment never realized their full potentials. However, one thing is
clear. The Western World through their Institutions, the world bank and International
Monetary Fund (IMF) have always campaigned against the development of the Steel Industry in third world countries which includes
Nigeria. They have always quoted the fraudulent David Ricardo theory of comparative
cost advantage that Africa should not develop Steel Industry but should export their raw materials to the Developed West and
buy finished Steel from them. The world today is measure by the quantity of Steel
produced and consumed. It was the Soviet Union that agreed to develop the Iron
and Steel Industry for Nigeria. That is why we have a Steel Industry but it was
later arrested with the civil works given to the West. That is the contradiction
of the Steel Industry particularly Ajaokuta Steel Company.
2. DELTA
STEEL COMPANY
This
is a 960,000 metric tons turned key project that was built and commissioned by Austrians and Germans in 1981. It is to use
the Direct Reduction Method (D.R.I.). Up till this moment, the
capacity has not been tested to the full. What we have is 45% production level
during Fred Brume in 1985 and since then, it has been dwindling until it was grounded to a halt in 1996.
PROBLEMS OF DSC
(a) Lack of working capital from inception till date.
What they have been getting is pitiable doles from the Government through the Ministry of Finance incorporated (MOFI)
which is always recorded as loans
(b) Lack of incentive/patronage from Government.
Government being the owner of the Steel Industries neither patronized Delta Steel Company nor protected the young industry
from the onslaught of the West who had economies of scale in production.
(c) The above and other factors like Government incessant interference, lack of tenure
of management etc. brought the company into coma. This coupled with the introduction
of the structural Adjustment Programme (SAP) by the Babangida Regime, which made Naira worthless destroyed production in Nigeria
and Steel Sector, which was not protected, was not exempted.
3. INLAND ROLLING MILLS (IRMS)
The Inland
Rolling Mills (IRMS) located in Jos, Katsina and Oshogbo were commissioned in 1981 to roll out billets that was to be produce
from Delta Steel into Wire Rods, Iron Rods etc. These Companies were dependent
on what Delta Steel could produce and supply them. The capital outlay of was
N2.00 (two Naira). The vagaries of DSC also affected them.
4. AJAOKUTA
STEEL COMPANY
The RUSSIANS
were constructing this company. It is to use the blast furnace method to produce
1.3 million metric tons. This Company has been under construction since 1979
and it has not been completed up till date. In 1996, the backward integration
method was adopted where you utilize the finished section of the plant. This
is still what GIHL is also doing now.
5. NATIONAL IRON ORE MINING COMPANY ITAKPE, KOGI STATE
This Company
is to mine the Iron Ore concentrate for production of liquid Steel in Ajaokuta. The
first phase is completed and they have mined a large quantity of Iron Ore concentrates.
The second phase, which was added later, is to produce iron Ore and beneficiate for Delta Steel Company. This feat was jointly done between Itakpe and NMDC Jos, which is a laboratory factory for the Iron and
Steel Sector.
6. NATIONAL METALLURGICAL DEVELOPMENT CENTER JOS.
This is the
laboratory unit of the Steel Sector. It was from here that it was discovered
that Itakpe Ore could be used in DSC. They test raw materials and know the suitability
for the Steel Sector amongst others.
7. NATIONAL STEEL RAW MATERIALS EXPLORATION AGENCY (NSRMEA) KADUNA
This is where
NSDA started. This agency is to explore raw materials in large quantity for the
Steel Industry. Today they have discovered quite a lot in different sites. All these are not being discussed today.
8. METALLURGCAL TRAINING INSTITUTE (MTI) ONITSHA
This institute is to train
middle level manpower for the Steel Industry. Steel workers are not just any worker.
They are trained. While some were trained abroad, others were trained
in Onitsha.
9. INTERWOVENESS OF THE STEEL SECTOR
From the above we can see that all the various Companies are Interwoven and Interconnected. You knock-off one, you have a domino effect. Example DSC being knocked off will affect the Inland Rolling Mills. This then affect Itakpe, NMDC NSRMEA and MTI and vice versa.
That
is why we believe that Government should have a re-think about the reckless agreements it is signing on the Steel Sector.
10. WHAT DO WE HAVE TODAY
As at now Ajaokuta Steel Company and National Iron Ore Mining Company
have been concession for
Ten years to Global Holdings Nigeria Limited while Delta
Steel Company have been sold to Global holdings Nigeria Limited. This makes them big player in Steel production in Nigeria. The Inland Rolling Mills in Jos, Katsina and Oshogbo have been slated for LIQUIDATION. As
of now the liquidators are all over the places trying to sell.
11. ARE THERE COMPANIES WAITING TO TAKE OVER THE INLAND ROLLING MILLS IN THE PRIVATISATION
OPTION?
The answer is yes. For Katsina Rolling
Mill, the following bided:
1. katsina Investment Development Company,
2. BUA Investments Limited, Kano
3. Spanish Engineering Limited Kano
These companies bided for
Katsina Steel. If Government does not want the winner of the bid, they could
have gone to the second and third respectively. They rather abruptly terminated
the whole biding exercise, not just for Katsina Steel but for all Inland Rolling Mills and opted instead for liquidation. For the avoidance of doubt, the following companies are interested in Jos and Oshogbo
Steel Companies.
JOS STEEL
Lehman Commodities Limited of Ukraine.
BUA Investment Limited of Kano are seriously interested and waiting.
OSHOGBO STEEL
Mayor Engineering Limited Lagos
BUA Investments Limited Kano
Hang Jin Steel Company Limited of South Korea are seriously interested and waiting.
GLOBAL HODLINGS NIGERIA LIMITED is interested in the Inland Rolling Mills.
12. WHY GOVERNMENT OPTED FOR LIQUIDATION
Information available to us shows two reasons. The
first is that the IMF/World Band has told them to show concrete proof of liquidating the Steel Sector to get Debt relief. That is why they are starting with the Inland Rolling Mills and later extend it to
others.
The
second reason is that the Government was trying to shy away from paying Gratuity and Pension of workers in addition to other
liabilities.
13. WHAT HAVE THE UNIONS DONE
IN THE FACE OF THESE ONSLAUGHT?
The Unions have always believed that the problem of the Public Sector Companies is lack
of provision of working capital. When Government came with these options, the
Unions were blackmailed with lack of salaries and emoluments.
To this end several month salaries were owed. The
Unions have to fight to make sure that these arrears are cleared in all the companies by December 2004. Meanwhile, another
arrears of salaries have started mounting in 2005 in virtually all the companies.
14. DELTA STEEL COMPANY
This Company
was sold under the privatization programme of the Government to Global Holdings Nigeria Limited. This Company bought 80% of the share while 10% each have been for workers and community.
From the time Global took over payment of salaries in April 2005, they have religiously
paid on 7th of every Month and production going on. But we have salary
arrears of January to March 2005. The Unions have negotiated that houses in Delta
Steel be sold to Staff are pay from the pension liabilities. Efforts of the Unions
Ministry of Power and Steel and BPE have resulted in the President approving N3 billion being for the total amount provided
for in the 2005 payment of gratuity. This will be made available in August 2005.
The new management
could not according to them continue with all the staff they inherited, so out of 2800 staff, they absorbed 1800 staff.
15. NATIONAL IRON ORE MINING COMPANY ITAKPE
This Company
was concessioned to Global Holdings Nigeria Limited in March 2005 under a management contract for Ten years. Since the take over, salaries have been regular and production going on, on a progressive rate. The management have out of 1800 staff dropped 600 staff leaving behind 1200 staff. Efforts have been made to pay 3 Months in lieu of notice plus all outstanding staff claims except the terminal
benefits that will be paid in August.
16. AJAOKUTA STEEL COMPANY
This Company is concessioned for Ten years to Global Holdings Nigeria Limited. They started paying salaries since January 2005 after disengaging 1417 staff out of a staff strength of
about 4000. Some Workers decided to take laws into their hands and started demanding
that their Gratuity and Pension be paid while still being employed. This agitation
led to the supplanting of our Branch Executives by those who called themselves “ASCL WORKERS REPRESENTATIVE COMMITTEE”. They became our Caretaker Committee and they continued with this agenda disregarding all known rules
and regulations. They held sway and started calling strikes recklessly using
brigandage, bravado, lie telling etc. The last straw that broke the Carmel’s
back was when they said that they were pulling out of the two Unions and reverting to “ASLC WORKERS REPRESENTATIVES COMMITTEE”. Under this banner, they called a work to
rule action, which they did not know how to managed, and they seized check- off dues of both Branch and National and started
converting Union properties. This led to their dissolution by the two Unions
and a Caretaker Committee set up that had to call of the strike. They were sacked
by the Management on the orders of the President of the Federal Republic or in the alternative, the Company be closed down. Workers sacked are about 150. They constitute
infinitesimal number of the workforce and they all claimed to be members of “ASCL WORKERS REPRESENTATIVES COMMITTEE”
and such cannot be our members. Those
sacked include their Management backers. As at today there is Industrial peace
and harmony in the Company. The Unions may press charges against Momoh Musa and
Co for stealing their check-off.
17. INLLAND ROLLING MILLS
These workers in the Inland Rolling Mills in Jos, Katsina, and Oshogbo are in Limbo now on the way forward. The liquidation
programme of the Government has not been favourable. But we are after going to court against the Federal Government on the
liquidation issue. Now the Government has virtually agreed to pay Gratuity and Pension from the proceeds of liquidation and
the balance will be paid by the Federal Government. As at now the workers are anxiously waiting
CONCLUSION
The ISSSAN and SEWUN require expertise
and the cooperation of all in making sure that workers do not loose out totally.
Our Sector/Unions
are the most ravaged by IMF/World Bank inflicted problems. We must not fail.
As at today, we are engaging in damage control.
