Nigeria’s Minister of Steel Development, Prince Shuiabu Abubakar, has announced that the ministry is exploring a partnership with the Republic of China to revitalize the Ajaokuta Steel Company Limited and the National Iron Ore Mining Company. This development comes after the Federal Government signed a Memorandum of Understanding with Russia’s Tyazhmashpromexport in September 2024 to rehabilitate and operate the plants, but the Russia-Ukraine war has hindered progress.
At the 10th edition of Nigeria’s Mining Week, themed “Nigeria Mining: From Progress to Global Relevance,” Mr. Abubakar stated that the ministry is seeking alternative partnerships due to the constraints caused by the ongoing conflict. The Minister emphasized that President Bola Tinubu’s administration remains committed to breaking the nearly five-decade jinx of the steel company’s comatose state.
The ministry is also in advanced discussions with the Ministry of Defence and the Defence Industries Corporation of Nigeria to commence production of input materials for military hardware, including rifles, vests, and helmets, at the Ajaokuta Steel Complex. This move aims to support the defense sector of the Nigerian economy and improve security.
Furthermore, the National Steel Raw Materials Exploration Agency has identified 12 iron ore deposits across the country, which are at various stages of exploration. The agency is working to generate the necessary resource data to drive investments in the sector, particularly in iron ore, cokeable coal, and bauxite.
The Minister urged private sector participants to invest in the steel raw materials value chain, highlighting the economic benefits of local steel production. He emphasized the importance of sustainable mineral raw materials supply for the growth of the Nigerian steel industry, which would attract increased foreign direct investment.
The Federal Government is committed to providing an enabling environment for the development of strategic minerals like iron ore, fluxes, and coal. With the top management of the Ministry of Steel Development and industry players present at the conference, the government is poised to reposition the Nigerian steel industry for sustainable growth.