Reps oppose ajaokuta concession plan to amend privatisation law

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Reps Oppose Ajaokuta Concession Plan to Amend Privatisation Law

The House of Representatives has rejected the plan by the Federal Government to concession the Ajaokuta Steel Company to a private investor, citing concerns over the potential loss of national assets and the need to review the privatisation law.

The decision was reached during a plenary session on Tuesday, where lawmakers expressed reservations about the proposed amendment to the Public Enterprises (Privatisation and Commercialisation) Act, which would allow for the concession of the Ajaokuta Steel Company to a private investor.

The lawmakers argued that the concession plan would lead to the loss of national assets and undermine the country's industrial development. They also expressed concerns that the proposed amendment would not provide adequate protection for the country's interests and would not ensure that the concessionaire is held accountable for its actions.

The House also resolved to set up an ad-hoc committee to investigate the concession plan and report back to the House within six weeks. The committee is expected to examine the proposed amendment to the privatisation law and assess the potential impact of the concession on the country's economy and industrial development.

The Ajaokuta Steel Company is one of the country's largest steel producers and has been facing challenges in recent years, including a lack of funding and inadequate maintenance. The Federal Government has been exploring options to revamp the company, including the concession plan, which would allow a private investor to take over the management and operation of the company.

However, the concession plan has been met with opposition from some lawmakers and stakeholders, who argue that it would lead to the loss of national assets and undermine the country's industrial development. The House's decision to reject the plan is seen as a major setback for the Federal Government's efforts to revamp the Ajaokuta Steel Company.

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