During a news briefing on the achievements of President Bola Tinubu’s administration, Minister of Steel Development, Prince Shuaibu Audu, revealed that the Federal Government is in the final stages of securing over N35 billion necessary to revive the Light Mill Section (LMS) of the Ajaokuta Steel Company. This announcement was made in Abuja on Thursday.
Audu mentioned that presidential approval has been obtained to source the required funds from a local financial institution, aligning with the administration’s commitment to bolster Nigeria’s economic standing. He further explained that the LMS possesses the capability to produce 400,000 metric tonnes of iron rods annually, playing a pivotal role in driving industrialization within Nigeria.
Collaboration efforts are underway with the Ministry of Works to supply iron rods essential for various road construction projects across the nation. Audu emphasized the importance of this collaboration, especially considering the substantial demand for iron rods in the construction of approximately 30,000 kilometers of roads across all six geopolitical zones over a four-year period.
In addition to industrial objectives, discussions with the Minister of Defence are progressing to rejuvenate the Defence Industries Corporation of Nigeria (DICON)’s engineering workshop. This initiative aims to enhance national security by facilitating the production of military hardware.
Plans are also in motion to revive the Ajaokuta 110 Megawatts power plant, which could not only power the steel plant but also contribute to the national grid. Due to financial constraints, the ministry is exploring public-private partnerships to secure funding, engaging in talks with potential investors such as Transcorp Power, NigerDelta Power Holding Company, and Reticulated Global Engineering.
Audu reiterated the ministry’s mandate to revitalize both the Ajaokuta Steel Company and the National Iron Ore Mining Company, emphasizing the importance of leveraging expert knowledge and competence to achieve these goals. These efforts align with the president’s vision outlined in the Renewed Hope agenda, aiming to elevate Nigeria’s economy to surpass one trillion dollars by the end of the first term and position the country among the G20 economies.
To realize the revitalization of Ajaokuta Steel, a minimum investment of two million dollars is required, with plans to concession the company to entities demonstrating the capability to execute the necessary revitalization efforts.
