FG NEEDS N35bn TO RESTART AJAOKUTA LIGHT STEEL SECTION - MINISTER

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Olori Uwem

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Mar 18, 2024
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FG NEEDS N35bn TO RESTART AJAOKUTA LIGHT STEEL SECTION - MINISTER

The Federal Government has made significant progress in raising over N35 billion needed to restart the Ajaokuta Steel Company’s Light Mill Section (LMS), according to Prince Shuaibu Audu, Minister of Steel Development. During a ministerial update on President Bola Tinubu’s administration’s performance, Audu noted that presidential clearance has been granted to secure funds from a local financial institution.

Audu highlighted the LMS's capacity to produce 400,000 metric tonnes of iron rods per year, crucial for Nigeria's industrialization and road construction projects, which require about seven million metric tonnes of iron rods. Advanced discussions are also underway to revive the Defence Industries Corporation of Nigeria’s engineering workshop for military hardware production.

Plans are ongoing to revive the Ajaokuta 110 megawatt power plant through a public-private partnership, with potential investors including Transcorp Power, Niger Delta Power Holding Company, and Reticulated Global Engineering. The ministry aims to revive the Ajaokuta Steel Company, the National Iron Ore Mining Company, and the steel industry, aligning with the president's vision to grow Nigeria’s economy to over one trillion dollars and join the G20 by the end of the first term.

A minimum of two million dollars is needed to revive Ajaokuta Steel, with plans to concession the company to competent entities.