The Federal Government of Nigeria aims to generate approximately N35 billion by leveraging the local financial market to repair Ajaokuta Light Steel Mill. Mr. Shuaibu Audu, the Minister of Steel Development, revealed this information to State House Correspondents after a meeting with President Bola Tinubu in Abuja.
The primary focus of the steel mill will be on producing iron rods to support the government’s road construction initiative, with the goal of creating thousands of jobs across the country. Minister Audu stated that Senator David Umahi, the Minister of Works, has assured his ministry that there will be off-takers for the iron rods produced.
“The precedent is on the Renewed Hope Agenda, with plans to construct about 30,000 kilometers of roads across Nigeria, requiring approximately 7 million metric tonnes of iron rods,” Audu explained. “We can produce about 400,000 tonnes of those iron rods in Ajaokuta if we’re able to restart the steel plant. Mr. President gave approval for us to raise money locally.”
Audu revealed that active discussions with local financiers are ongoing, and the finalization of arrangements is expected within the next few weeks to ensure a prompt commencement of the project. Additionally, he highlighted a joint meeting with the President and the Minister of Defence, Muhammed Badaru, focused on the Ajaokuta Steel plant.
The discussions centered on the establishment of military hardware, with a Chinese firm demonstrating a solid commitment to the project. Mr. Shuaibu Audu mentioned that talks regarding the commitment of a Chinese company took place at the G20 summit in India, expressing a willingness to invest $5 billion in the steel sector of the Nigerian economy.
The President has approved the establishment of a ministerial committee to oversee the implementation of this investment in the country. The committee will include critical stakeholders within the government, such as the Ministers of Finance, Trade and Investments, Defence, Solid Minerals, and Steel Development.
