The Federal Government is set to generate around N35 billion from the local financial market to kickstart operations at the Ajaokuta Light Steel mill. Mr. Shuaibu Audu, the Minister of Steel Development, shared this development after a meeting with President Bola Tinubu in Abuja.
The mill’s primary focus will be on producing iron rods for the government’s road construction initiative, aiming to create thousands of jobs across the country. Sen. David Umahi, the Minister of Works, has provided assurance that there will be off-takers for the iron rods, emphasizing the need for approximately 7 million metric tonnes in the construction of about 30,000 kilometers of roads under the Renewed Hope Agenda.
Mr. Audu stated, “We can produce about 400,000 tonnes of those iron rods in Ajaokuta if we’re able to restart the steel plant. Mr. President gave approval for us to raise money locally.” Discussions with local financiers are actively ongoing, with finalization expected in the coming weeks for a swift commencement of the project.
Military Hardware Production and Chinese Investment
Mr. Audu also highlighted a joint meeting with the President and the Minister of Defence, Muhammed Badaru, focusing on the Ajaokuta Steel plant’s role in manufacturing military hardware. A Chinese firm has demonstrated significant commitment to this project, expressing a willingness to invest $5 billion in the steel sector.
The President has approved the establishment of a ministerial committee to oversee the realization of this investment. The committee will include key stakeholders from the government, such as the Ministers of Finance, Trade and Investments, Defence, Solid Minerals, and Steel Development.
