Ajaokuta steel to supply 400,000 metric tonnes of iron rods for road construction

During a press briefing in Abuja, Minister Shuaibu Audu of Steel Development disclosed that the light section mill at Ajaokuta Steel is poised to deliver 400,000 metric tonnes of iron rods annually for national road construction projects.

This move, approved by President Bola Tinubu, involves restarting the mill with an initial N35 billion capital injection from a private financial institution.

The aim is to bolster the Ministry of Works in its nationwide road construction endeavors across all six geopolitical zones.

We are in the last phase of securing more than N35 billion from a domestic financial institution, equivalent to $25 million, to revive the light section mill within our facility for iron rod production.

This mill has the capability to manufacture up to 400,000 metric tonnes of iron rods annually. Audu emphasized the partnership with Minister of Works, David Umahi, revealing that 40,000 metric tonnes of these iron rods will be allocated for national road construction projects.

The nation is currently in the process of constructing approximately 30,000 km of roads, which will necessitate about 7 million metric tonnes of iron rods within the next four years.

Although Ajaokuta’s capacity falls short of meeting this demand, reviving the mill is seen as an essential step towards reducing Nigeria’s reliance on imported steel.

I have been collaborating closely with the Minister of Works, Mr. David Umahi, to supply iron rods to the ministry as part of President Bola Tinubu’s concrete road revolution.

Numerous roads are being built across the country, spanning approximately 30,000 km and encompassing all six geopolitical zones.

The Ministry of Works is in need of approximately seven million metric tonnes of iron rods over a four-year period to build 30,000 km of roads.

Ajaokuta’s current production capacity of 400,000 metric tonnes falls far short of this requirement. However, due to its significance as a national asset, the president is determined to revitalize Ajaokuta Steel in order to contribute towards meeting the government’s iron rod needs.

This initiative was originally launched in 1975 under President Shehu Shagari but has remained inactive for many years, despite the minister highlighting its wider economic benefits.

The minister emphasized that reviving Ajaokuta would require an investment ranging from $2 billion to $5 billion. He highlighted the significance of the Ajaokuta complex, stating that if it operated at full capacity, it could fulfill all of Nigeria’s steel requirements.

With Nigeria currently spending approximately $4 billion each year on steel imports, the government’s objective in revitalizing Ajaokuta is to convert this financial burden into a pillar of national prosperity.