NIOMCO started manufacturing in early 1990s and continued production up until between 1995 and 1997. NIOMCO was in production throughout the aforementioned amount, Ajaokuta company wasn't ready for production. As a result, the corporate had to prevent production as a result of it ran out of area to stock the ore concentrate.
In 2OO4, the federal government signed a memorandum of understanding with an Indian company to manage the company for 10 years.
The Indian company was supposed to rehabilitate NIOMCO and complete the task of managing the company, which was believed would help federal government recover there investment, and thenceforth hand the corporate back to the Federal government. In short it was on lease.
Along the line, the Indian company defaulted on several provisions of the concession agreement. Also was the public outcry to the fact that things were going wrong relating to the implementation of the concession agreement.
Along the line, the Indian company defaulted on several provisions of the concession agreement. Also was the public outcry to the fact that things were going wrong relating to the implementation of the concession agreement.
It was even alleged that the Indians were using already used parts of the plants to repair another sections of the plant. it had been wide believed that they weren't buying new spare parts to develop the plant. As a result, government terminated the agreement in 2OO8. The Indians weren't happy, in order that they took to arbitration. Right now the federal government is at the tail end of the mediatian proccess.
Niomco is set to return to production ways once the dispute between federal government and the Indian company is settled agreement can then be reached if the company is to be managed by the indians or better handled by the federal government.
All said and done, i still believe that the company needs good and quality plants to meet the production pattern as schedule from inception.
The existing equipments are old which are to be replaced before any meaningful production can start, some of these equipments are more than 25years old. In other word to achieve an optimum production capacity that could match up with the rest of the world, new equipments are to be replaced with the old ones and this will cost a fortune.
Another problem uprising is that the labour has insisted not work under the Indians. They wish to be paid off at any decision in favour of the Indians. Although it is with a clause that he staff need associate freelance agreement with the Indians.
Other problem to be taken into consideration is the borrow of money from nigerian banks by these indians which they already use NIOMCO as a collateral. They also have pensions problem, PAYE, etc however they did not remit the sums befittingly. The deductions quantity to an outsized total of cash. Of these and different issues ought to be settled before the Indians come to NIOMCO.
Meanwhile there had been outcry to resuscitate these industry so that it will encourage the locally manufacturing of vehicle which is to be embarked on. We just wish the federal government can see to all this problems and address them for the benefit of the everyone.
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