Metallurgical Industry Bill: Attention Should Be Focused on the Rocks of Boki, Presenter Suggests

The call on the federal government to expedite action on the passage and signing into law of the Metallurgical Industry Bill (MIB) now before the national assembly, received a boost at the 2nd Nigerian Metallurgical Industry Stakeholders Forum recently held in Asaba, the Delta State capital as stakeholders met with a view to chatting a new course for the industry. 

One of the paper presenters at the event, Dr N. Egesi, was of the view that even as the enactment of the bill was being awaited, attention should be focused on the rocks of Boki in Cross River State where he said 14 rare metals have been identified, adding that rare metals are crucial for high-tech manufacturing. 

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The stakeholders considered the bill as the basis for industrialisation but regretted that it was let down by long abandonment and lack of the requisite instruments of control. The metallurgical (iron and steel) industry in Nigeria started by government intervention through the construction of various steel rolling mills. 

After iron ore deposits were discovered in old Kwara (now Kogi) State in the 1950s, the Nigeria’s first republic government began active planning and mapping of strategies for local production of iron rods and steel. Between 1979 and 1983, Nigeria government jump – started iron and steel production with emphasis on the importance of iron and steel in developing and driving local production of goods. 

A strong iron and steel industry was also projected to reduce demand of foreign currency used towards the importation of steel products. In 1979, the Nigerian government signed an agreement with soviet group Technopromexport for the construction of a steel plant in Ajaokuta. Steel making infrastructure reached an advanced stage in 1982 with the commissioning of Aladja Steel complex whose first phase was built at a total cost of 922 million naira.  

However, in spite of all the grand plans and the zeal with which the industry projected as a bedrock of the country’s industrialisation was started, no tangible progress has been made, as 100 per cent  local production is still being awaited many years after. The sector suffered utter neglect by successive governments even as huge sums of taxpayers money were reportedly budgeted and expended on the projects year in year out. 

Speakers at the stakeholders’ forum which was themed: “Development of the Nigeria’s Metal Sector-A Panacea for National Development and Imperative for Economic Diversification,” agreed that the Metallurgical Industry Bill (MIB) now awaiting public hearing at the national assembly (NASS) was one that when signed into law would make the sector vibrant and viable again hence everything possible should be done to ensure its enactment as soon as possible. Addressing the stakeholders, the secretary general, Association of African Iron and Steel, Prof. Sanusi Mohammed, who disclosed that the bill has passed through second reading at NASS said the bill is all that is required to get the sector working again, adding that lack of regulatory mechanisms in the sector has been the bane of progress. 

“Those concerned have to put in the best of their effort to ensure that the bill is passed by the national assembly and signed by Mr President because without the regulatory mechanisms, the industry players will continue to have a field day as no one can hold them accountable,” he said. According to him, with the bill becoming law, the Department of Metallurgical  Inspectorate and Raw Materials Development (MI & RMD) would be empowered to monitor the activities of sector players effectively to ensure the right thing is always done. “When that happens, the department will be responsible for certification and registration of all stakeholders,”he said. 

Mohammed, who attributed the incessant building collapse in the country to poor metal quality, noted that metals produced from scraps, cannot compare in strength with ones originally produced from mined and processed raw materials. He said the department too would be able to control the source of raw materials and play a good role in the area of health and safety of workers in the sector. Presenting an overview of the sector, the acting director, MI & RMD and chief organiser of the event, Victor Ihebinike, who expressed regret that the bill was passed by the 7th assembly and transmitted for presidential assent, but returned to the assembly due to some loopholes discovered, expressed strong hope that it  would see the light of day this time as the ministry has taken steps to address all the bottlenecks that made the bill not to get the nod. 

He explained that the drafting of the bill was informed by the strong desire to develop a vibrant and robust metallurgical industrial sub-sector with government relinquishing its role as owner-operator to the private sector and repositioning itself as administrator-regulator in line with the government policy on privatisation. Ihebinike said, “The bill has presently passed through the first and second readings at the senate and now awaits public hearing. 

“In order to ensure that it is signed into law when passed this time, the minister had in a meeting held with the chairman, Senate Committee on Power and Steel (metallurgy), Sen. Enyinnaya Abaribe, agreed that the Nigerian Society of Engineers (NSE) and ministry officials would meet to fine-tune the content of the bill.” 

Earlier in his welcome address, the permanent secretary,  Abdulkadir Mu’azu, who was represented by the director,  Reform and Coordination, Zachius Atte, assured of federal government’s readiness to create enabling environment for metallurgical operators and other allied metal outfits in the sub sector with a view to generating employment and creating wealth. He itemised some of the strategies and activities of the ministry towards turning around the industry to include ensuring presidential assent to the MIB when finally passed; recovery and re-operationalisation of the long abandoned projects-ASCL, NIOMCO, DSL, and ALSCON through commercialisation and concession, etc. 

According to Dr. N. Egesi who suggested that attention should be focused on the rocks in Boki local government area of Cross River State, said China dominates in rare earth element (REE) production at the moment to the tune of about 90 per cent of global demand and has continued to increase its stock with investment of billions of dollars in Africa where geologists are saying half of the world’s deposit of an REE rich rock group called carbonatites is located. 

On his part, a professor of sociology at the University of Port-Harcourt, Akaha Tse, urged that to have a vibrant metal sector, enabling policies had to be formulated and pursued vigorously. In his own submission as a paper presenter, Dr Nwosu of the University of Port-Harcourt, who however acknowledged that government has done a lot in the development of the institutional framework to move the sector forward said Bureau of Mines was the only critical institution now missing and causing untold setback to the industry. 

According to him, the bureau is the wing of the mineral drive mechanism responsible for solving technical problems of the sector. “The Bureau should be a well established institution with zonal offices, and the staff should constantly visit the mines operations and collect the relevant technical data for proper calculation of productivities of these mines and the right royalty to be paid to government,” he noted. 

Nwosu, who was so concerned about lack of mechanisms to properly estimate the royalty that should accrue to government suggested that, in the interim, experienced mine planners can be consulted to do the job pending the establishment the bureau and training of staff. 

The three points which he spoke on as posing the greatest threat to the development of the sector are , manpower, institutional framework, and mineral policy development.