In a strategic move to transform Nigeria’s industrial landscape, the Federal Government has entered into talks with Luan Steel Holding Group, a Chinese firm, to construct a new steel plant in Nigeria. Additionally, the collaboration aims to kick-start the production of military hardware at the Ajaokuta Steel Plant, signifying a significant step towards not only enhancing manufacturing capabilities but also bolstering national security.
The delegation, comprising the Minister of Steel Development, Shuaibu Audu, the Minister of Defence, Mohammed Badaru, and the Permanent Secretary of the Ministry of Steel Development, Mary Ogbe, recently visited Luan Steel Holding Group in the Hefei and Guangzhou regions of China to solidify the partnership.
The Ministry of Mines recently made a funding request of N35 billion from financial institutions to revive the moribund Ajaokuta Steel Company, indicating the government’s commitment to revitalizing the steel industry. The collaboration with financial institutions aims to explore optimal financing options to revive the Ajaokuta Steel Plant’s operations and commence iron rod production.
Shuaibu Audu emphasized that the trip to China marks a crucial stride in realizing the government’s vision of revitalizing the steel industry to attract substantial foreign direct investments, stimulate the nation’s economy, and generate numerous employment opportunities.
Highlighting the potential impact of the collaboration, Audu stated, “The plan to construct military hardware at the Ajaokuta steel plant will contribute significantly to the fight against insecurity and terrorism in Nigeria.”
During the visit, meaningful discussions took place between the Nigerian delegation and key executives of Luan Steel Holding Group, affirming the firm’s commitment to establishing a new steel plant in Nigeria and undertaking a segment of the Ajaokuta Steel Plant for the production of military hardware.
Reflecting on the discussions, Audu expressed optimism about the prospects, stating, “With all the commitments on the ground, we are confident that commercial steel production will commence in some government-owned entities in Nigeria before the end of President Tinubu’s administration.”
The prospective creation of a new steel plant and the revitalization of existing facilities signal a momentous leap forward in Nigeria’s quest for industrialization, economic growth, and national security reinforcement.
