The Federal Government plans to generate approximately N35 billion for the Ajaokuta Light Steel Mill through the local financial market, according to Mr. Shuaibu Audu, the Minister of Steel Development.
After a meeting with President Bola Tinubu in Abuja, Audu revealed that the funds would support the mill’s production of iron rods for the administration’s road construction program, aiming to generate thousands of jobs.
Audu disclosed that the Minister of Works, Sen. David Umahi, had guaranteed off-takers for the iron rods, as part of the Renewed Hope Agenda, which plans to construct about 30,000 kilometers of roads across Nigeria, requiring approximately 7 million metric tonnes of iron rods.
He stated, “The Minister of Works, Sen. David Umahi, has already written a letter through his ministry, guaranteeing that there will be off-takers in the iron rods that are being produced.
“Basically, the precedent is on the Renewed Hope Agenda which the Minister of Works is driving plans to construct about 30,000 kilometres of roads across Nigeria, where they will need about 7 million metric tonnes of iron rods.
“We can produce about 400,000 tonnes of those iron rods in Ajaokuta if we’re able to restart the steel plant. Mr President approved for us to raise money locally,” he said.
In addition, Minister Audu shared insights into discussions with the Minister of Defence, Muhammed Badaru, regarding the Ajaokuta Steel Plant’s involvement in building military hardware.
“We’re setting up a military hardware capability in our Ajaokuta Steel plant, and based on that the Chinese people would help us to build that military hardware capability in one of the production units,” Audu stated.
The entire resuscitation of the Ajaokuta Steel Plant is estimated to cost between two billion dollars to five billion dollars. Audu also mentioned a commitment from a Chinese company, secured during the G20 summit in India, to invest five billion dollars in the steel sector of Nigeria’s economy.
To oversee the realization of these investments, President Tinubu has approved the establishment of a ministerial committee, comprising critical stakeholders from the government. This new investment is expected to create about 500,000 direct and indirect jobs.
Addressing recent reports of the Ajaokuta Steel Plant being disconnected from the national grid, Audu assured that the government would swiftly resolve the issue, emphasizing the gradual process of reviving the plant after 45 years of non-operation.
“So, part of what we plan to do is to sit down on the table in the next few days, as quickly as possible to be able to come up with a plan so that they can put it back on the grid.
“Putting things back in order is a gradual process. Ajaokuta cannot be revived overnight. This is a plant that has not been working for 45 years. Its a difficult task to try and get it back on track.
“We need the support of everyone including the electricity company to be able to help us to get this project back on track so that we can create the 1000s of jobs that we want for Nigerians,” he said.