The Institute of Chartered Economists of Nigeria (ICEN) has written President Muhammadu Buhari to resuscitate the moribund $3.1 billion investment worth Aluminium Smelter Company of Nigeria (ALSCON) at Ikot Abasi, Akwa Ibom State.
According to The Guardian, ALSCON has been shut down since 2013 owing to intrigues and lawsuits revolving around its ownership.
“ALSCON will, sustainably, engage over 61,200 Nigerians and contribute N47.8 billion yearly to the economy and resuscitation of the firm, will reduce the burden on import bills and increase the value-added potentials of available resources.”
ICEN
In the letter issued in Calabar by its Chief Coordinator, South-South, Friday Nathaniel Udoh, the group noted: “There are grave consequences allowing the ALSCON plant to rot in political intrigue. In addition, major issues that need Federal Government’s consideration are the total risks over the lifetime of the asset, adjudging from the sum of all yearly risks associated with physical, chemistry, economic growth, inflation and interest rate.
“And following the events along technology and changes in physical properties that potentially impact on the function of the plant and given to an endless litigation, degrading, ageing and deterioration could potentially ruin the very essence of this $3.1 billion investment, plunging the plant value to zero sum in a matter that requires critical and timely attention given the strategic position of this plant to the economy.”
While expecting the inclusion of the ALSCON matter in the agenda of the Federal Executive Council (FEC) meeting anytime soon, the institute said its position was premised on the ground of grave consequence of ALSCON’s continued closure to the economy.”
ALSCON was incorporated in 1989 with the Federal Government of Nigeria (FGN), Forrestal AG of Germany and Reynolds of America as share-holders on an equity holding of 70 percent, 20 percent and 10 percent, respectively.
The company was established in order to utilize and enhance the country’s gas reserve and to discourage gas flaring, since the natural gas being flared would be needed to generate electricity for the smelter plant
