Lagos Promises Collaboration With FG To Boost Steel Companies’ Operations

In a deliberate move to boost the operation of the steel companies in Nigeria, the Lagos State Government has reiterated its commitment to collaborate with the Federal Government to ensure that the Steel industries in Nigeria are revitalised.

Towards this end, the Governor of Lagos State, Mr. Babajide Olusola Sanwo-Olu having realised the negative roles which inadequate power sector is having on the industry, has promised to assist the Ministry of Steel Development in every way possible to ensure that things turn around for better.

Speaking in Lagos today through his Deputy, Dr. Kadri Obafemi Hamzat, who hosted the Minister and his entourage who were on a courtesy call at his official residence in Osborne Road, Ikoyi, noted that these companies are power guzzlers and that everyone knows that their operations require a lot of power.

According to Sanwo-Olu, “Lagos is grateful to Mr. President for signing the Fifth Amendment Bill No.33, Devolution of Powers which now expands the scope of State legislative powers to include generation, transmission, and distribution of electricity in areas covered by the national grid system, and that sort of decentralized power is the only way that this thing can be done”.

The Governor stated that the Lagos has set up different commissions, such as the Lagos State Electricity Regulation Commission, the independent market operators, and the rural fund to assist, adding that the state government has also done the Request for Proposal Form (RPF) for people to come and build five power plants across Lagos, and the process has started.

“In another year’s time, when the plants are on board, then we start building our grids in such a way that we can embed them in such a way that all these industries have their power. So we are starting. We’re following the new agenda of Mr. President in terms of the power economy,” the Governor said.

The Governor noted that the State understands the need for power generation when it comes to steel development.

Earlier in his remarks, Minister of Steel Development, Prince Shuaibu Abubakar Audu stated that the purpose of his courtesy visit to the state government is to appreciate the efforts the administration has been putting in place in terms of creating an enabling environment for the steel sector to operate very effectively.

According to the Minister, “60 per cent of the private steel companies, based on the data we have at the Federal Ministry of Steel Development, operate in the Lagos, Ikorodu, Ogun, Sagamu and Abeokuta axis. And I am here with my delegates in Lagos to talk to the government and the private steel companies to understand their challenges, highlight where opportunities are, and learn how the Ministry can create fiscal incentives for them to increase and improve their operations.”

He added that understanding and addressing their challenges will enable the Ministry to meet President Bola Ahmed Tinubu’s objective of creating a $1 trillion economy for the Federal Republic of Nigeria.

Prince Shuaibu Abubakar Audu applauded the efforts of the Lagos State Government led by Governor Babajide Olusola Sanwo-Olu for its efforts and consistency.