Tinubu govt to revive Ajaokuta steel company in 3 years — Minister


Revitalization Plan Unveiled for Ajaokuta Steel Mill by Nigerian Government

In a bid to rejuvenate the dormant Ajaokuta Steel Mill in Kogi State, the Minister of Steel Development, Prince Shuaib Audu, has introduced a comprehensive three-year roadmap. This initiative, announced during a media briefing in Abuja on Friday, forms a significant component of President Bola Tinubu’s administration’s strategy to bolster Nigeria’s industrialization efforts.

According to Minister Audu, thorough technical assessments have indicated that an estimated $2 billion to $5 billion USD would be required to revive the Ajaokuta steel company. To execute this ambitious plan effectively, the Ministry has formulated an internal roadmap and intends to engage global consultants to provide specialized expertise.

“We aim to launch this three-year roadmap within the next three months,” stated Audu during the briefing.

As part of the strategy, the Ministry plans to concession the company to individuals or entities possessing the necessary expertise to accomplish the task. Stakeholder consultations will be integral to ensuring that awardees possess the requisite capabilities.

“We are exploring options where different segments can be managed by entities with specialized expertise,” Audu explained.

The roadmap entails a phased revival of the steel company’s 44 different production units through concessions to investors. The Light Steel Mill (LSM) section is prioritized for revival, with plans to invest approximately N35 billion for the production of 50,000 metric tons of iron rods.

Additionally, discussions are underway with the Ministries of Defence and Interior, in collaboration with the Defence Industries Corporation of Nigeria (DICON), to rejuvenate its engineering workshop for the production of military hardware.

Furthermore, negotiations with foreign investors, including Indian company Jindal Steel and Chinese company Luan Steel Holding, are in progress to establish new steel plants in Nigeria. These investments, coupled with the revitalization of Ajaokuta Steel, are projected to inject over $10 billion USD into Nigeria’s economy and create 500,000 direct and indirect job opportunities.

Mr. Audu underscored the urgency of reversing Nigeria’s heavy reliance on steel imports, emphasizing President Tinubu’s commitment to legislative reforms such as the Nigerian Metallurgical Industrial Bill and the National Steel Council Act. These measures, alongside creating a conducive environment for local steel industries to thrive, are pivotal to achieving Nigeria’s industrialization goals, with steel at its core.

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