COMMUNIQUE OF THE 32ND ANNUAL CONFERENCE AND AGM OF THE NIGERIAN METALLURGICAL SOCIETY HELD AT KADUNA, 26 – 29THOCTOBER, 2016.

The 32st Annual Conference and AGM of the Nigerian Metallurgical Society were held at the Conference Hall of Command Guest House. Kaduna between 26 and 28th October 2016.

The Nigerian Metallurgical Society was commended for living up to its mandate and is considered by all stakeholders present at the conference to be a credible partner in progress. From the various goodwill messages and presentations the Nigerian Metallurgical Society was commended for being one of the highly respected professional bodies in Nigeria having been in the fore-front in the Nation’s quest for Industrial Revolution in the Metal sector and was advised to continue to play a pivotal role in ensuring that the revitalization of the metal industry remain in focus.

It was generally accepted that the theme of the Conference: ‘Materials for Defence: Revitalisation of the Metal Industry for National Security’is very apt in view of the renewed commitment of the present administration towards the diversification of the economy through pragmatic development of the metal sector. It was also agreed that the theme is a reflection of shared vision of the Society with the Federal Government of Nigeria’s current efforts to revive the metal industries and diversify her economy through solid minerals and steel development. At the end the following resolutions and recommendations were arrived at:

  1. The conference agreed that at this point in time in our history, strengthening the Nation’s defense industry becomes very topical and expedient. Conference noted that Nigeria is blessed with all it needed to transform from being an importer of Arms and Ammunitions to a prominent producer of modern world class ammunitions, having over 44 known Mineral assets and less than 0.3percent is being harnessed. A vibrant domesticated liquid steel production for the production of arms and ammunitions and other metal product will usher in an era of industrialization for the defence, energy, automobile and agricultural mechanization.
  2. The conference identified the need to recognize the role of the steel industry as a catalyst for the military, industrial and economic development. Development of the Metals Industry is a veritable tool for achieving National Strategic Goals including employment generation and it is therefore a Strategic Industry in itself, implying that as far as the business of the Metals Industry is concerned, the Nigerian Government has business being in business.
  3. The conference noted with dismay that Defence Industries Corporation of Nigeria (DICON) was established with a mandate to develop the capacity for local arms and ammunition production in support of the Nigerian Armed Forces. However, theefforts made so far by DICON to realize the self sufficiency in the defence industry have not satisfactorily yielded the desired results due to a weak technology base and particularly poor state of the iron and steel sector.
  4. The conference frowned at the fact that the Nigerian Armed Forces consistently depends on foreign firms to supply all aspects of military platforms, weapons and associated equipment due to lack of local supplies of steel materials for production. The situations whereby defence equipment such as tanks, warships, , communication accessories, bridge laying equipment etc are entirely sourced from abroad must give every patriotic Nigerian cause to worry.
  5. The conference agreed that no Nation can become strong with borrowed strength; hence indigenous production of steel becomes imperative and urgent. We must as a matter of urgency evolves a master plan for rapid industrialization from which our core assets such as Defence Industries Corporation of Nigeria (DICON), can prosper.
  6. The Conference advocates holistic industrialization plan which must include revamping the moribund Ajaokuta steel, Delta Steel, Aluminium smelting Company, Osogbo Machine tools and others. Such plans must incorporate the establishment of Cluster of Small and Medium Scale foundry and fabrication industries and also raise Innovation Centresto be located in various geopoliticalzones of the country.
  7. The Conference commended the research efforts of the Armed Forces and especially Nigerian Air Force for their breakthrough on composite materials technology which had culminated in the design and production of the Unmanned Air Vehicle (UAV). The conference therefore advocates strong research collaboration especially in the area of science of metallurgy and material between the academia and the military. A committee of major stakeholders in the metallurgical sector should draw a roadmap to look into current and future capabilities in the metal industry and come up with proposals on how to make it work to our advantage in the globalised world setting.
  8. The Conference expresses with concern the continuous reliance of the Government on misleading reports of naïve consultants on Ajaokuta Steel Company. The Conference is not unaware of deliberate plan to truncate the steel dream and the quest of foreign steel producers to prevent us from developing our own steel base. Government should break the machinery designed to make Nigeria the captive market, exporting raw materials at low prices not dictated by us and return at exorbitant prices after value addition to the raw materials.
  9. The Conference advised that the Nigerian Government should take its own fate in its own hands, and stop reading and implementing reports of non professional consultants such as the Nigeria Infrastructure Advisory Facility(NIAF). Government should stop employing foreigners whose sole aim is to destroy or slow the pace of our development. Ajaokuta Steel Company has inbuilt facilities to produce railway line and flat sheets. Why are the consultants recommending to disassemble existing facilities only for Nigeria to go back to the developed nations to buy individual units to be installed in Nigeria again, thus wasting valuable resources in disassembling and buying other potentially unviable technologies.
  10. The Conference noted the recent attempts by the Government to revive the metal sector with the signed renegotiated Modified Concession Agreement with Global Infrastructure Holdings Limited (GIHL) on the National Iron Ore Mining Company (NIOMCO), Itakpe. The Conference however wanted it on record the objection of the Society to the non inclusion of the Professionals and major stakeholders in signing the agreement which is largely responsible for the errors and lopeholes in the agreement. Also the Society expressed reservation and dissatisfaction for the recall of GIHL whose past performance is nothing to write home about. However, the conference is satisfied with the 30 Billion Naira intervention fund by the Federal Government which is meant to focus mainly on exploration. It is expected that more funds will be released for the ministry to be able to expedite actions on the completion of the Ajaokuta steel.
  11. The Conference noted that the iron and steel industry in any country has never been set up based on financial analysis only. It is therefore misleading to rely on ‘financial risks’ only as a factor. Strategic, self-reliance, employment opportunities, multiplier effect, technological advancement, security, social and socio-economic potentials etc are greater indices in measuring profitability or otherwise of an enterprise such as Ajaokuta Steel.The completion and operation of Ajaokuta Steel Company will undoubtedly gear up upstream and downstream industrial activities of commercial value that will make Nigeria an industrial hub in Sub-Saharan Africa.

Recommendations

  1. Global antecedents and trends show that nations that excel technologically have their respective military forces as its spring board. The conference therefore urged the federal Government to fully involve the Armed Forces of Nigeria in the technological decision making processes.
  2. The Nigerian Metallurgical Society strongly supports the formation of Nigerian Military Industrial Complex with DICON serving as its hub. Government should establish a Defence Industries Management Board to complement the Military Industrial Complex in Nigeria. Government should also establish an Institute of Armament Technology to promote research synergy between the academia and the military.
  3. Government should be mindful of the important factors that inform nations to produce arms, while arriving at decisions on providing hardware for the Armed Forces. Accordingly, government should establish a coordinating organization for collation, procurement and management of the needs of the military and other security agencies. Furthermore, a Defence Industrial Policy to support the National Defence Policy for the development of a Military Industrial Complex should be established.
  4. Government should adopt the provisions in the Nigerian National Defence Policy on Science and Technology and thereby establish an Institute of Armament Technology whilst also issuing a white paper for the implementation of the recommendations of the Presidential Committee on Review of the Operations and Activities of the Defence Industries Corporation of Nigeria to accomplish the dream of a Military Industrial Complex.
  5. Coordinated infrastructural development promotes viable and competitive commercial and industrial and economic endeavours, hence, the recent MOU signed by the FGN with a Chinese firm on the development of the Central Railway be promptly executed to the letter. With some adjustment to the agreement to include production of the rails to be done at the Medium and structural mill of the Ajaokuta Steel.
  6. Implementation of laudable provisions of the National Integrated Infrastructure Master Plan should be aligned to harness the gains accruable in the Metals Industry.
  7. The Government should ‘Take the bull by the horns’ and prioritize the completion and integrated commissioning of Ajaokuta Steel Plant. Government must ensure timely completion of works on the relevant mines and the outstanding external infrastructure necessary for sustainable operation of the Plant which is considered as a strategic route for industrializing the national economy.
  8. Despite the huge benefits waiting to be tapped from domesticating liquid steel production at Ajaokuta Steel Plant, the blast furnace and the steel making plant cannot be commissioned for sustainable operation without development of the relevant local mines and completion of the outstanding works on the external infrastructure for raw materials supply and finished products evacuation.Conference recommends that Government should expedite action on their completion.
  9. Even though much work has already been done in identifying local raw materials sources for liquid steel production through exploration efforts, the time is now apt for mining and minerals processing for value addition, local utilization and possible export. Therefore, the Conference strongly advocates the inclusion of steel and other metal industries in the local content law. This is to discourage importation of substandard metallic materials that impact negatively on the nation’s economy. Our country must no longer be allowed to be a dumping ground for fake or substandard metallic products.
  10. Research and development into the metals industry is acutely important if the territorial integrity of our nation must be intact. R&D is a catalyst for growth in all ramifications. R&D engenders breakthroughs, accentuates contemporary technology, forecasts future development, guides strategic planning and results in innovation. The Conference commended the efforts of researchers that presented technical papers. It was recommended that Government should make funds available for collaborative research in metals and materials for defence because of the strategic importance of such research.
  11. The conference requests that the Metallurgical Industrial Bill should be signed into law by the Federal Government. Also, exploration laws of the mining sector should be reviewed by the Government involving requisite professionals and stakeholders which should include the Nigeria Metallurgical Society. Signing the Metallurgical Industrial Bill and strengthening the exploration laws will enable the professionals to pick up the gauntlet and compel all that are concerned in metallurgical and mining industries to work by the dictates of such laws.

APPRECIATION

The conference appreciates the Armed Forces of Nigeria: (the Army, Navy and the Air Force), the Ministry of Mines and Steel Development, and other stakeholders / establishments that were duly represented at the Conference.

Prof. Engr. Benjamin Adewuyi, President, Nigerian Metallurgical Society