Business a.m.
Shuaibu Audu,the minister of steel development, has announced that the ministry is close to securing more than N35 billion in funding to restart the Ajaokuta Steel company’s Light Mill Section (LMS).
Audu made this statement during a ministerial sectoral update on the achievements of President Bola Tinubu’s administration in its first year, which took place on Thursday in Abuja.
The minister noted further, “The local financial institution has given us a final offer.
“I have done a cover letter and forwarded the relevant documents to the Minister of Finance to be able to take the financing on behalf of the Federal Government.”
According to the minister, the LSM has the ability to produce 400,000 metric tonnes of iron rods annually, which is vital for bolstering industrialisation in Nigeria. He also explained that his ministry is collaborating closely with the minister of works to supply iron rods sourced from the LSM for use in road construction projects across the country.
Audu noted that the Nigerian government has numerous road construction projects underway across the country’s six geopolitical zones, totaling approximately 30,000 km. He added that in order to complete these projects over the first four-year term of the administration, the ministry of works will require an estimated seven million metric tonnes of iron rods.
The Minister emphasised that the Light Mill Section of the Ajaokuta Steel Company has the capacity to produce 400,000 metric tonnes of iron rods annually, which could contribute to the ministry of works’ needs.
Providing further updates on the ministry of steel development’s plans to boost security, improve power generation, and revive the Ajaokuta Steel Company, the minister stated that advanced discussions are underway to revive the Defence Industries Corporation of Nigeria’s engineering workshop to produce military hardware and enhance security in Nigeria, in collaboration with the minister of defence.
Audu also outlined the ministry’s mandate, which includes reviving the Ajaokuta Steel Company and National Iron Ore Mining Company. This revival, he said, is critical to President Bola Tinubu’s renewed hope agenda, which aims to grow Nigeria’s economy to over a trillion dollars and achieve G20 status by the end of the first term.
According to the minister, reviving Ajaokuta Steel Company requires a minimum investment of two million dollars. He added that the Ministry’s strategy is to concession the company to competent parties, ensuring that the revival is successful and the company is managed effectively.
