President Bola Tinubu has given the green light for the establishment of a committee, comprised of key stakeholders, dedicated to rejuvenating the dilapidated Ajaokuta steel plant in a bid to stimulate economic growth. The committee includes the Minister of Steel Development, Minister of Finance and Coordinating Minister of the Economy, Minister of Industry, Trade and Investment, and Solid Minerals.
Following a recent trip to China by the Minister of Steel, Shuaibu Abubakar-Audu, and the Minister of Defence, Mohammed Badaru, the committee disclosed plans for the plant’s revival. Abubakar-Audu highlighted the critical points for the plant’s resurgence, with a specific focus on the establishment of military hardware capabilities.
During their visit to China, discussions with Lu’an Steel Holding Group, one of China’s top 20 steel companies, resulted in a commitment to invest in a new steel plant in Nigeria. The Chinese company has pledged to create thousands of jobs and invest billions of dollars in foreign direct investments. An advanced team from Lu’an Steel Holding Group is scheduled to visit Nigeria after the Chinese New Year in February 2024.
Additionally, the committee addressed plans for the Ajaokuta steel plant to contribute to national infrastructure projects, particularly in the production of iron rods. The President approved the restart and reconstruction of the Light Steel Mill of the Ajaokuta Steel Plant to produce iron rods, which will be utilized in the construction of approximately 30,000 kilometers of roads under the Renewed Hope Agenda.
To fund the initial phase of the project, estimated to cost between $2 and $5 million, the President has granted approval for local fundraising initiatives. Abubakar-Audu confirmed that offers have been received from financial institutions, and efforts are underway to secure the necessary funds.
Lastly, the committee provided feedback to the President regarding Jindal Steel’s commitment to invest $5 billion. Representatives from Jindal Steel are actively exploring suitable locations, considering factors such as proximity to a gas station, a port, and abundant natural resources like iron ore, to establish a new facility or acquire an existing one, such as the Delta steel plant.
