Tinubu Approves Revival of Ajaokuta’s Light Steel Mill

Confidence UbaniJanuary 13, 20241 Mins read494

President Bola Tinubu, in a meeting held at the State House in Abuja, has officially approved the relaunch of the Light Steel Mill section of the Ajaokuta Steel Complex. This ambitious project, earmarked at N35 billion for its initial phase, aims to commence the production of iron rods.

In the meeting, held on Thursday, the President was briefed on prospective investments in Nigeria’s steel sector by the Minister of Steel Development, Shuaibu Audu, and the Minister of Defence, Mohammed Badaru.

Following the approval, Minister Audu stated that several financial institutions have shown interest, with the project poised to create up to 5,000 jobs directly and indirectly for Nigerians. President Tinubu, in turn, stressed the pivotal role a thriving steel industry plays in driving economic growth and opening doors for Nigeria’s entrepreneurs.

The Minister of Steel Development mentioned ongoing talks with India’s Jindal Steel Group, following their interest expressed five months ago at the G20 meeting in New Delhi. The said company holds promises of a potential $10bn investments and an estimated 500,000 jobs in new and existing steel plants. This is according to a statement from the President’s Special Adviser on Media and Publicity, Ajuri Ngelale.

Minister Shuaibu Audu emphasized the transformative impact these investments would have across various sectors, propelling Nigeria toward industrialization with adequate steel and energy resources.

The briefing also covered discussions with another major player, China’s Luan Steel Holding Group, who showed interest in establishing a new steel plant in Nigeria. This includes potential military hardware production at the Ajaokuta Steel Plant.

A delegation, including both the Minister of Defence and the Minister of Steel Development, visited China for business talks with the Chairman and top executives of Luan Steel Holding Group. The President commended the ministers and other members of his cabinet for proactively seeking initiatives.