FG, China deal to resuscitate ALSCON: The Onofiok Luke advocacy

By Samuel Abasiekong-Abasiekong

Monday November 11, 2024 Federal government of Nigeria, BFI Group and China National Chemical Engineering Corporation International CNCEC signing of $1.2 billion investment deal to revive the long-dormant ALSCON in Ikot Abasi, Akwa Ibom State, was a reply of an advocacy made by the immediate past Members Rt. Hon Onofiok Luke representing Etinan Federal Constituency in the green chamber of the National Assembly in February 2020.

The long-dormant 135MMscfd Gas Processing Plant at ALSCON is a leading aluminum facility producing for both domestic and international markets, with an annual capacity of 300,000 metric tonnes.

The reactivation of ALSCON by the Federal Government is a step in a right direction to reshape Nigeria’s aluminum sector, using natural gas to position the country as a significant player in Africa and on the global stage.

It could be recalled that in February 25, 2020 the member representing Etinan Constituency, Rt. Hon. Onofiok Luke, moved a motion calling on the Federal Government to make Aluminum smelter company of Nigeria functional again.

Hon.Luke who cried to Federal government on a motion he tittled: Call On The Federal Government To Make Aluminium Smelter Company of Nigeria Functional was seconded by Rep. Jafar Mohammed.

Rep. Nkem Abonta proposed an amendment on the motion to ensure the Supreme Court’s judgement on the issue be adhered to make ALSCON functioning again. The amendment of the motion was seconded by Rep. Dagomie Abiante.

The motion was thereafter voted on and adopted as amended.

Rep Luke drew the attention of the House on the fact that, the Aluminium Smelter Company of Nigeria – ALSCON, before its privatisation, had the Federal Government of Nigeria, Forrestal of Germany and Reynolds Incorporated of America as major shareholders on an equity holding of 70 per cent, 20 per cent and 10 per cent respectively;

He reminded the speaker and members that ALSCON which is located in Ikot Abasi, Akwa Ibom State, was an aluminium-producing plant servicing Nigerian markets with aluminium products and provided jobs for thousands of Nigerians.

The motion which brought about the signing of the deal with new Investors on November 11, 2024 noted that the objectives of establishing the company were to utilize and enhance the country’s gas reserve and to discourage gas flaring in the Niger Delta, to establish a self-reliant aluminium factory, provide employment for Nigerians, impact technical/develop trained technical manpower, conserve and earn foreign exchange by meeting local aluminium demands and to aid the development of aluminium downstream industries.

He reminded the House that between 1997 and 1999 when ALSCON was operational, the company provided employments to about 1,820 permanent workers and over 4, 000 casual workers, and the number of people employed was expected to increase with the expansion of the production capacity of the company.

In further appeals, Rep Onofiok reminded lawmakers of the lower chamber that ALCON stopped operation on the 6th of June 1999 due to irreconcilable differences between some shareholders, coupled with other associated challenges of lack of working capital, insufficient gas supply and non-dredging of Imo River, among others;

He further appealed that those challenges necessitated the Bureau of Public Enterprises (BPE) to privatize the company in 2004 for smooth operation and efficient service delivery.

By privatising ALSCON, it was expected that there would be improved management of assets of the company, job retention, job creation, technological advancement, empowerment of local communities, improved tax revenues and execution of corporate social responsibility projects for the communities, Rep Luke said.

The federal lawmaker reminded the House that since the privatization of ALSCON, there has not been any significant improvement in the operations of the company as it was not producing any aluminium since then.

Luke was also worried that the former staff of ALSCON and their families are facing hardship due to Federal Government’s failure to pay the retrenched staff their terminal benefits of N2.3billion, having only paid N4 million to them;

The motion was so worried that the assets of the company are deteriorating as they are not being put use, serviced or maintained and with the level of unemployment in the country, ALSCON would have provided thousands of job opportunities for the teeming population.

By way of prayers, Rep Luke urged the Federal Government to ensure the resumption of operations by the Aluminium Smelter Company of Nigeria – ALSCON and to pay all former staff of the Company the remaining terminal benefits of N2.3 billion and;

He appealed that the House invites the Director-General of the Bureau of Public Enterprises -BPE to brief the Committee on Steel Development on the current state of Aluminium Smelter Company of Nigeria – ALSCON.

The advocacy of the former member representing Etinan Federal Constituency call for resuscitation of ALSCON was actualized on November 11, 202 at the Boardroom of the Minister of State Petroleum Resources (Gas) at the NNPC Towers in Abuja to marks a crucial milestone in the aluminum company rehabilitation, re-commissioning, and expansion.

The Minister of State Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo who was on other official assignment was represented in the deal signing by the Permanent Secretary, Ministry of Petroleum Resources, Ambassador Nicholas Agbo Ella

In his speech Ekpo described the deal as “epoch-making” and a testament to President Bola Tinubu’s commitment to encouraging investments in natural gas utilization for Nigeria’s industrialization, economic growth, and development.

He lauded the synergy between BFI Group and CNCEC International, highlighting the Chinese and Nigerian governments’ collaboration for mutual growth and development.