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University of Nigeria Nsukka UNIVERSITY OF NIGERIA, NSUKKA DEPARTMENT OF HISTORY AND INTERNATIONAL STUDIES TITLE AJAOKUTA STEEL COMPANY, 1979 – 2007 A PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF MASTERS OF ARTS (M.A) DEGREE IN HISTORY AND INTERNATIONAL STUDIES BY DANGA, JAMIU YUSUF REG. NO: PG/MA/15/78146 SUPERVISOR: DR. C.C. OPATA AUGUST, 2018 i TITLE PAGE AJAOKUTA STEEL COMPANY, 1979-2007 i CERTIFICATION This is to certify that this research work has been examined and approved for the award of the Degree of Master of Arts in History and International Studies. ____________________ __________________ Dr. C.C. OPATA DATE SUPERVISOR ___________________ ________________ REV. FR. PROF. A.N. AKWANYA DATE HEAD OF DEPARTMENT __________________ ______________ EXTERNAL EXAMINER DATE ii DEDICATION To My Late Father and late Brother Barr. Yusuf Isah Danga and Yunusa Adeiza Danga Continue to rest in peace. iii ACKNOWLEDGEMENTS I begin my acknowledgements by sincerely appreciating the Almighty Allah whose infinite mercy has been a source of inspiration and strength throughout this programme and beyond. My sincere appreciation goes to my supervisor, Dr. C.C. Opata for the motivation, direction and his promptness throughout this research process. I appreciate the critical input of my Internal Reader Professor R. Ejiaga. I thank Professor U.C. Anyanwu for his kind words of encouragement and guidance throughout my stay in the university. More so, I appreciate my lecturers, Prof. C.J. Korieh, Prof. Paul Obi Ani, Prof. Victor Ukaogo, Prof. R. Ejiaga, Dr. C. Ajaebili, Dr A. Apeh, and the Post graduate coordinator Dr. Uche Okonkwo for his vigor, tirelessness and efficiency. I sincerely appreciate the officer in charge of data at the National Bureau of statistics Mr Leo Ade for guiding me through the plethora of data relevant to my work. I thank the departmental librarians, Miss Ifechi Sandra and Dennis A. for their patience and services rendered to me while using the library. And my Loving mother Hajia Sefinat Danga Oyiza for everything I have so far achieved in this life. I also appreciate the unwavering friendship and camaraderie of Mr Anagwureyi Pius Joseph, Mr Andrew Angbah, Mr Philip Aina Oluwafemi, and Onoja Daniel. Finally I appreciate the entire staff of Government Secondary School Wuse Zone 3, Abuja. I also appreciate all my family members for their support and prayers. iv ABSTRACT Steel is an important element of the industrialization process. A nation with a highly developed steel industry is often characterized by heavy industrial development. Countries like USA, Britain, Japan, China and Russia were known to have particularly paid keen attention to steel development. Using historical method and modernization framework, the study found that Nigeria has been pursuing industrial policies that are externally propelled. From the ISI to ESS, Nigeria has been unable to attain industrial developments. The failure of policy development as well as policy implementation is major causes of the inability of Nigeria to attain industrial development. The consequences are that unfavorable balance of payment, less than 6% contribution of manufacturing to GDP and underdevelopment remain the norm. Though Nigeria attempted to jumpstart her industrialization through the Ajaokuta Steel Company since 1979, it has remained unproductive. ASC was conceived as an integrated steel plant with a production of capacity of 2.1 million tons of steel per annum in the first phase which was to be expanded to over 5 million tons in the final phase. Despite huge financial and material wealth of the nation being expended on the company, it has remained a monument that exemplifies the failure of purposeful governance in Nigeria. The study using oral interview, archival materials and relevant literatures found that there are many challenges facing the company; governmental policy inconsistency, monumental corruption, external factors, and lack of governmental will to actualize the project. The study is relevant to the ongoing discourse to diversify the economy from the mono-culture of dependence on oil. Whereas the West continues to discourage state participation in development enterprise, companies like ASC are hardly known to have been handled by private companies in other climes. This is as a result of massive investment requirement which has a long gestation period; therefore exploring concessions by the FGN has proved to be unproductive. The dependence on foreign preferred solution to problems in Nigeria has been met with catastrophic failure. The study proposes and inwardly developed industrial policy to solve the problem of Nigeria’s industrialization problems. v TABLE OF CONTENTS Title page ...............................................................................................................................i Certification page ...................................................................................................................ii Dedication ..............................................................................................................................iii Acknowledgements ...............................................................................................................iv Abstract ..................................................................................................................................v Table of contents ....................................................................................................................vi List of Figures and Tables......................................................................................................ix Glossary of Terms ..................................................................................................................x CHAPTER ONE INTRODUCTION Background to the study ........................................................................................................1 Statement of problem .............................................................................................................6 Purpose of study .....................................................................................................................7 Significance of study..............................................................................................................7 Scope of the study ..................................................................................................................8 Source, method and organization ...........................................................................................8 Theoretical framework ...........................................................................................................9 Literature review ....................................................................................................................13 Notes ......................................................................................................................................24 CHAPTER TWO NIGERIA AND THE QUEST FOR INDUSTRIALIZATION Nigeria’s policy on Industrialization .....................................................................................27 Rationale for the Steel Industry .............................................................................................46 Steel Industries in Nigeria before Ajaokuta Steel Company .................................................52 Notes ......................................................................................................................................55 CHAPTER THREE THE BIRTH OF AJAOKUTA STEEL COMPANY Geographical location of Ajaokuta steel company ................................................................61 vi Geological formations and the Choice of Sitting the Industry ..............................................62 Major sites in the Ajaokuta steel company ............................................................................68 Environmental Impact Assessment of ASCL ........................................................................73 Notes ......................................................................................................................................76 CHAPTER FOUR PRODUCTION AND CHALLENGES Major players in the Steel Company ......................................................................................80 Contract Termination and Concessions of the Company ......................................................92 Challenges of Ajaokuta Steel Company ................................................................................94 Ramification of the Concessions ..........................................................................................94 What Went Wrong? ...............................................................................................................100 Prospects of the Ajaokuta Steel Company .............................................................................105 Notes ......................................................................................................................................110 CHAPTER FIVE CONCLUSION AND RECOMMENDATION Conclusion .............................................................................................................................114 Recommendation ...................................................................................................................119 Notes ......................................................................................................................................121
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