UPDATE: Tinubu’s Minister Seeks Over $2 Billion to Revive Ajaokuta Steel

UPDATE: Tinubu’s Minister Seeks Over $2 Billion to Revive Ajaokuta Steel

by Victor Ndubuisi

Ajaokuta Steel has declared that it will provide the Ministry of Works for road development projects throughout Nigeria with over 400,000 metric tonnes of iron rods per year, according to Shuaibu Abubakar Audu, Minister of Steel Development.

At a press conference in Abuja on Thursday, Chief Bola Tinubu’s ministers’ performance over the previous 12 months was reviewed.

According to Audu, Tinubu has given his approval for Ajaokuta Steel to resume its light section mill. This approval is supported by N35 billion in seed cash that was obtained from a private financial institution. The minister underlined the significance of this project and its part in Tinubu’s concrete road revolution.

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He also disclosed a collaboration with Minister of Works David Umahi to provide 40,000 metric tonnes of iron rods for road construction across Nigeria’s six geopolitical zones.


Audu pointed out that over the course of four years, the 30,000 km of new roads being built in the country will require almost 7 million metric tonnes of iron rods. Ajaokuta contributes 400,000 metric tonnes per year, which is a considerable yet minor portion of this requirement.

Audu stated, “We are at the final stage of raising over N35 billion from a local financial institution which is about $25 million to restart the light section mill of the complex so that we can produce iron rods.

“That light section mill has the capacity to produce up to 400,000 metric tonnes of iron rods per annum.

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“I have been working very closely to the Minister of Works, Mr. David Umahi, so that we can provide iron rods to the ministry as part of the concrete road revolution of President Bola Ahmed Tinubu.

“There are so many roads that are being constructed across the country, about 30,000km roads across the six geopolitical zones.

“We understand that the ministry of works needs about 7 million metric tonnes of iron rods over 4 years period to construct the 30,000 km of roads. Ajaokuta can produce 400,000 metric tonnes which is a drop in the ocean of what is required.


“But because it is an important asset, the president is keen on us getting Ajaokuta to work and being able to produce some of these iron rods that is required by the federal government,” Audu added.


Notably, Audu earlier disclosed that the cost of resurrecting the steel factory in Ajaokuta is estimated to be between $2 billion and $5 billion.


He added that the government’s disjointed approach to getting the plant operating was caused by the enormous amount needed to revitalise the enterprise.Forty-five years after its founding, under the administration of the former president Sheu Shagari, the steel complex has remained dormant.


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