Oyibode’s Development Efforts Earn Recognition from Premium Steel During Udu Council’s Courtesy Visit”

The Executive Chairman of Udu Local Government Council, High Chief Hon. Vincent Ogheneruemu Oyibode JP FCIA, along with his team, paid an official visit today, Thursday, April 3, 2024, to the defunct Delta Steel Company, now Premium Steel and Mines. The purpose of the visit was to assess the current state of the company and its operations as part of an ongoing effort by the Udu Local Government administration to ensure industries operate effectively and contribute to the development of the Udu Kingdom.

During the visit, Hon. Oyibode emphasized the importance of understanding the operations of Premium Steel and Mines, particularly its potential to provide significant employment opportunities and contribute to the local economy. He noted that even just one division of the company, whether in iron ore production or mechanical processing, could potentially employ over 2,000 people. His administration’s goal is to create an enabling environment for businesses to thrive, aligning with the development agenda of Delta State Governor, Rt. Sheriff Oborevwori.

“The people of Udu deserve to know the direction in which Premium Steel and Mines is heading. Is the leadership here signaling hope for progress, or will it lead to retrogression?” Hon. Oyibode asked, stressing the need for transparency and clarity regarding the company’s operations moving forward.

The Chairman also acknowledged that his administration was aware of certain individuals expressing interest in taking over the company. However, he mentioned that management had denied such requests and turned down potential partnerships with companies in China. He pointed out that understanding the company’s leadership approach and operational challenges was essential to fostering collaboration and ensuring long-term success.

Hon. Oyibode reiterated his administration’s commitment to fostering realistic reforms and meaningful development. He highlighted significant strides made in improving public service and making Udu a business-friendly environment, including eliminating double taxation, enacting people-friendly laws, and ensuring equal opportunities for all citizens, regardless of origin.

Regarding security, Hon. Oyibode shared that there had been notable improvements in community safety, previously affected by crime. Proactive measures, including community engagement and increased security, have contributed significantly to this positive change.

Hon. Oyibode also addressed the longstanding issue of the 20% community share in Premium Steel and Mines, which had been promised under previous agreements. He said efforts are underway to push for a Memorandum of Understanding (MOU) to formalize these commitments.

Some of the questions asked by the Udu Council Chairman included concerns about the privatization process, asking for clarification on the individuals involved in negotiating the privatization and those who represented Udu as a kingdom. wondering why host communities were excluded from key discussions about their future stake in the company.

In his response, Mr. Venkatesan Lakshmanan, the Head of Operations at Premium Steel and Mines, expressed admiration for the developmental strides made by Hon. Oyibode within less than a year in office. He acknowledged that the progress seen in Udu, particularly in terms of infrastructure, had never been seen before.

Mr. Lakshmanan also discussed the significant challenges faced by the company due to the ongoing Ukrainian-Russian war, which disrupted the supply of billets, a key raw material for production. Despite these challenges, he assured that the company is working diligently to resume production, with rehabilitation efforts underway to revitalize the plant.

He proudly stated that over 80% of the plant’s workforce currently comprises people from Udu, and Premium Steel is committed to ensuring that surrounding communities continue to benefit from employment opportunities.

Press Unit, Office of the Executive Chairman of Udu Local Government Council