Tinubu approves N35bn financing to revive Ajaokuta – Steel Development Minister, Shuaibu reveals

The Federal Government has announced that it is in the final stages of securing over N35 billion needed to revive the Light Mill Section (LMS) of the Ajaokuta Steel Company.

Prince Shuaibu Audu, the Minister of Steel Development, revealed this during a Ministerial Sectoral Update on President Bola Tinubu’s administration’s progress over the past year in Abuja.

Audu mentioned that approval from the President has been obtained to obtain this funding from a domestic financial institution, as part of efforts by Tinubu’s administration to enhance Nigeria’s economic standing. The local financial institution has presented us with a formal offer.

After submitting a cover letter and sending the necessary documents to the Minister of Finance, I have secured approval for financing on behalf of the Federal Government.

The Minister mentioned that the LSM has the ability to produce 400,000 metric tonnes of iron rods annually, playing a crucial role in boosting industrialization in Nigeria.

He also informed me that he is collaborating closely with the Minister of Works to provide the required iron rods for road construction projects within the country from this particular sector.

The country is currently witnessing a massive infrastructure development initiative, with approximately 30,000 kilometers of roads being built across the six geo-political zones.

The Ministry of Works has estimated that they will require seven million metric tonnes of iron rods over the first four years to complete these road projects. Ajaokuta Steel Company has the capacity to produce 400,000 tonnes to support this endeavor, according to reports.

Discussions have been held with the Minister of Defence regarding the revival of DICON’s engineering workshop to produce military hardware for enhanced security in Nigeria.

To achieve this, a Metallurgical Development Centre is needed to provide the necessary lead and zinc. Plans are also in place to revive the Ajaokuta 110 Megawatts power plant, which can supply power to both the plant and the national grid.

Due to limited funds, a public-private partnership is being considered, with potential investors including Transcorp Power, Niger Delta Power Holding Company, and Reticulated Global Engineering.

The minister emphasized the ministry’s goal of revitalizing both the Ajaokuta Steel Company and the National Iron Ore Mining company, as well as rejuvenating the steel industry with the help of experts.

This initiative aligns with the president’s Renewed Hope agenda to elevate Nigeria’s economy to over one trillion dollars by the end of his first term, positioning the country as a G20 economy.

To revive Ajaokuta steel, a minimum investment of two million dollars is required, and the plan involves concessioning the company to capable individuals who can successfully execute the task.