The federal government has advanced in raising over N35 billion to restart the Light Mill Section (LMS) of the Ajaokuta Steel Company.
Announced at the Ministerial Sectoral Update in Abuja, the financing comes with a presidential approval, sourced from a local financial institution, as part of President Bola Tinubu’s efforts to bolster Nigeria’s economy.
According to Honourable Minister of Steel Development, Prince Shuaibu Audu, the LMS, with a capacity to produce 400,000 metric tonnes of iron rods annually, is crucial for Nigeria’s industrialisation.
He indicated collaboration with Honourable Minister of Works to supply iron rods needed for the construction of 30,000 km of roads nationwide. This initiative aims to meet the projected demand of seven million metric tonnes of iron rods over President Tinubu’s first term.
Furthermore, discussions are underway with the Defence Industries Corporation of Nigeria (DICON) to utilise the Metallurgical Development Centre for producing military hardware.
Mr. Audu also mentioned plans to revive Ajaokuta’s 110 Megawatts power plant, which could supply energy to both the plant and the national grid, through a public-private partnership. Talks are ongoing with potential investors like Transcorp Power, NigerDelta Power Holding Company, and Reticulated Global Engineering.
The ministry’s mandate includes revitalising the Ajaokuta Steel Company and the National Iron Ore Mining Company to revive Nigeria’s steel industry. This vision aligns with President Tinubu’s ‘Renewed Hope agenda’, aiming to grow Nigeria’s economy to over one trillion dollars by the end of his first term, thereby positioning the country among the G20 economies.
The Honourable minister noted that a minimum of $2million is required to revive Ajaokuta, with plans to concession the company to competent operators.
