The Federal Government has reaffirmed its commitment to swiftly addressing the prolonged ownership dispute and gas supply challenges crippling operations at the Aluminum Smelter Company of Nigeria (ALSCON) in Ikot Abasi, Akwa Ibom State.
The Minister of Steel Development, Prince Shuaibu Audu, gave this assurance on Monday during a visit to the dormant multi-billion-dollar plant.
He vowed that ALSCON’s revival aligns with President Bola Tinubu’s Renewed Hope Agenda and is critical to Nigeria’s economic growth.
A statement issued on Thursday by ALSCON’s Managing Director, Zavlyalov Dmitriy, revealed that stakeholder consultations have reached an advanced stage to resolve key issues, including the dredging of the Imo River to enhance industrial operations.
Despite being shut down for over a decade, the minister expressed optimism about the condition of the plant’s equipment, emphasizing its economic significance.
“The Federal Government has invested significant resources in establishing this plant. ALSCON initially began operations in 1997, ran for about two years, and later resumed production between 2008 and 2013 before shutting down again,” Audu explained.
Highlighting its economic potential, Audu stressed that ALSCON has the capacity to generate 20,000 direct and indirect jobs, making its revival a key priority for the current administration. He also noted that the plant’s current managers have invested over $400 million in its infrastructure, reinforcing President Tinubu’s ambition to expand Nigeria’s economy to $1 trillion by 2030.
However, the minister identified three critical challenges hindering the plant’s revival: the long-standing ownership dispute between BFIG and RUSAL, inadequate gas supply, and the need for the Imo River’s dredging to facilitate industrial activities.
“As the minister overseeing the steel industry, I am fully committed to resolving these bottlenecks. The ownership dispute must be settled without further delay.
Additionally, gas supply challenges require urgent intervention, and dredging the Imo River is essential for seamless operations,” Audu stated.
He assured that the Federal Government would take decisive steps to restore ALSCON’s operations, emphasizing its role in Nigeria’s industrialization drive.
Responding, ALSCON’s Managing Director, Zavlyalov Dmitriy, reaffirmed the company’s readiness to resume production once legal and infrastructural challenges are addressed.
He noted that despite the plant’s prolonged inactivity, RUSAL has consistently maintained the facilities and invested in corporate social responsibility initiatives.
Dmitriy reiterated RUSAL’s commitment to sustaining its corporate responsibilities while stakeholders push for a final resolution to the crisis that has kept ALSCON dormant for over a decade.
With renewed government intervention, industry experts anticipate that resolving ALSCON’s legal and operational hurdles will catalyze Nigeria’s aluminum sector, boost job creation, and contribute significantly to the nation’s economic expansion.