The Minister of Steel Development, Prince Shuaib Audu, has revealed a comprehensive three-year roadmap designed to breathe new life into the long-dormant Ajaokuta Steel Mill in Kogi, Nigeria. This initiative is part of President Bola Tinubu’s administration’s commitment to rejuvenate the steel industry and bolster Nigeria’s industrialization efforts.
Audu disclosed that extensive technical analysis and evaluation by experts have indicated a funding requirement of $2 billion to $5 billion USD to jumpstart the revival of the Ajaokuta steel company.
The ministry has developed an internal roadmap and plans to engage global consultants to provide additional perspective. The official announced the launch of the three-year roadmap within the next three months.
As part of the plan, the ministry intends to concession the company to individuals with the essential expertise to execute the revitalization. Audu emphasized the importance of consulting critical stakeholders to ensure that the concessionaires possess the necessary competencies.
The roadmap encompasses the revival of the 44 different production units of the steel company in incremental stages through its concession to investors. The Light Steel Mill (LSM) section is slated for revival to produce iron rods at an estimated cost of N35 billion, enabling the production of 50,000 metric tons of iron rods.
Negotiations are ongoing with the ministers responsible for Defense and Interior, in collaboration with the Defense Industries Corporation of Nigeria (DICON), to revive the engineering workshop for the production of military hardware.
Furthermore, discussions are underway with international investors for the establishment of a new steel plant, recognizing the high demand for steel in Nigeria, the most populous country in Africa, with over 220 million inhabitants.
Audu highlighted commitments from Indian and Chinese companies, with Jindal Steel expressing willingness to invest $5 million USD in establishing a steel plant in Nigeria, and ongoing negotiations with Luan Steel Holding.
The efforts to revamp the Ajaokuta Steel company and attract foreign investments are projected to inject over $10 billion USD into Nigeria’s economy and create 500,000 direct and indirect employment opportunities for Nigerians.
Addressing the heavy reliance on steel imports, the minister emphasized the administration’s determination to reverse this trend, outlining legislative actions through the Nigerian Metallurgical Industrial Bill and the National Steel Council Act.
The administration is committed to creating a conducive environment for the growth of local steel industries, with President Tinubu providing full support towards the development of the steel sector as the cornerstone of industrialization.
