Nigeria has resolved a USD 5.3 billion dispute about the ownership and control of Ajaokuta Steel Co. and an iron ore mine. The dispute was brought by Indian-owned companies Global Steel Holdings and Global Infrastructure Steel.
To settle the conflict, the West African country would pay USD 496 million, as stated in the president of Nigeria's document. The International Chamber of Commerce's alternative dispute settlement process was used to reach the agreement.
An agreement that gave control of Ajaokuta Steel and the National Iron Ore Mining Co. to Global Infrastructure (Nigeria) Ltd. - Ispat Industries Ltd.'s subsidiary, was revoked by Nigeria in 2008 for the reason that the contract was unfairly biased in favour of the concessionaire to the nation's detriment. In court, Global Steel contested the revocation.
The largest steel complex in Africa's largest economy was built with the goal of lowering the nation's reliance on oil by utilising the country's massive iron ore reserves to manufacture up to 5 million tonnes of steel annually. Since it was constructed by Tyazhpromexport of Russia, it has not yet produced any steel.
When he assumed office in 2015, President Muhammadu Buhari deemed the completion of Ajaokuta Steel, whose development began in 1979, a key priority. May marks the conclusion of Buhari's term, giving him little time to restart the factory.
The materials and information on this article have been prepared or assembled by Viet Nam Steel and are intended for informational purposes only.