President Bola Tinubu, in a significant move towards bolstering Nigeria’s economy, has recently greenlit the formation of a high-profile committee tasked with the revival of the dormant Ajaokuta Steel Plant. This initiative not only aims to jumpstart the steel industry but also promises substantial economic growth and job creation.
The committee comprises influential figures including the Minister of Steel Development, Minister of Finance, Coordinating Minister of the Economy, and others from the sectors of Industry, Trade and Investment, and Solid Minerals. This selection of experts signifies the government’s commitment to a holistic and integrated approach to reviving the steel plant.
Shuaibu Abubakar-Audu, the Minister of Steel, disclosed this development to State House Correspondents following a briefing with President Tinubu, alongside the Minister of Defence, Mohammed Badaru, about their recent visit to China. This trip was a strategic move to foster international partnerships essential for the plant’s revival.
Central to the discussions in China was a commitment from the Lu’an Steel Holding Group, a prominent Chinese steel conglomerate, to establish a new steel plant in Nigeria. This venture is expected to generate thousands of jobs and attract billions in foreign direct investment. Similarly, an Indian steel group has expressed interest in collaborating, planning to send a delegation to Nigeria post the Chinese New Year in February 2024.
The ministers highlighted the establishment of military hardware capabilities at the Ajaokuta plant as a critical component of this revival strategy. This innovative direction aligns with the government’s vision to enhance Nigeria’s self-reliance in military equipment production, utilizing the plant’s resources.
Furthermore, President Tinubu has endorsed plans to utilize the plant’s output for national infrastructure projects, notably the production of iron rods for the Ministry of Works’ extensive road construction initiative under the Renewed Hope Agenda. This approach not only supports infrastructure development but also ensures steady demand for the plant’s products.
In terms of funding, President Tinubu has approved local fundraising initiatives. The initial phase of reviving the entire steel plant is estimated to cost between $2 to $5 million, with the light steel section requiring about N35 billion. Financial institutions have already shown interest, promising a swift kick-off of the project.
The involvement of Jindal Steel, following a commitment made at the G-20 meeting in India, further underscores the international interest in Nigeria’s steel sector. The company plans to invest $5 billion, a move that could significantly elevate Nigeria’s steel production capabilities.
Addressing the challenges facing the plant, including a significant electricity debt that has resulted in disconnections, the minister emphasized the need for a collaborative approach involving all stakeholders, including the Transmission Company of Nigeria. He assured that investigations into the plant’s electricity consumption and debt were underway, highlighting the importance of resolving these issues for the plant’s successful revival.
This ambitious project, part of President Tinubu’s Renewed Hope Agenda, is set to transform Nigeria’s steel industry, creating over 500,000 jobs and injecting billions of dollars into the economy. The government’s proactive steps, coupled with international partnerships, herald a new era of economic growth and industrial development in Nigeria.
