Senate approves $1bn for completion of Ajaokuta Steel Company

The Senate on Thursday passed a bill to provide for the withdrawal of $1billion from the Excess Crude Account (ECA) for the completion of the Ajaokuta Steel Company.

The bill titled: An Act to Provide for the Ajaokuta Steel Company Completion Fund for the Speedy Completion of the Project also puts a stop to government’s planned concession of the steel plant.

It however provided that government may concession the plant in future on the condition that the project is completed and commenced ‘production at a very significant stage.’

The proposed legislation, which originated from the House of Representatives, was passed in the Senate after Senate Majority Leader, Ahmad Lawan, moved that the Bill be concurred by the house.

Apart the ECA withdrawal, the bill prescribes other sources of funding for the completion of the project to include loans, grants, as well as monies from other tiers of government.

The ECA was instituted under the administration of President Olusegun Obasanjo as a savings mechanism for the nation. Excess oil incomes above national budget estimates are put into the account as the nation’s savings for rainy days.

However, after the Obasanjo administration, experts have frowned at the continued depletion of the ECA by the Federal Government in controversial circumstances, saying this portends grave danger to the economy.

While the immediate past administration of Goodluck Jonathan withdrew $2 billion from the ECA, President Muhammadu Buhari has so far withdrawn $1.462 billion from the account to fight insecurity.

Also, two bills passed First Reading in the upper legislative chamber. They include the North West Development Commission Bill and the Federal Polytechnic, Anyamelu, Anambra State (Est, etc) Bill.