Ajaokuta Steel Mill: Federal Government Targets N35 Billion Investment to Boost Infrastructure

The Federal Government is aiming to raise approximately N35 billion for the Ajaokuta Light Steel Mill by leveraging the local financial market, according to Mr. Shuaibu Audu, the Minister of Steel Development. Following a meeting with President Bola Tinubu in Abuja, Mr. Audu stated that the mill’s focus would be on producing iron rods for the government’s road construction initiative, which aims to create thousands of jobs across the country.

The Minister of Works, Sen. David Umahi, has provided assurance through his ministry that there will be off-takers for the iron rods produced at the mill. This is in line with the administration’s Renewed Hope Agenda, which plans to construct approximately 30,000 kilometers of roads across Nigeria, requiring about 7 million metric tonnes of iron rods. The Ajaokuta Steel Plant has the potential to produce about 400,000 tonnes of these iron rods if it can be restarted.

Mr. Audu also mentioned discussions with local financiers to raise the required funds, with plans to finalize the arrangements within the next few weeks to ensure a swift start to the project. Additionally, the minister highlighted a meeting with the President and the Minister of Defence, Muhammed Badaru, regarding the Ajaokuta Steel Plant’s potential in manufacturing military hardware.

He noted the interest of a Chinese firm in investing $5 billion in the steel sector of the economy and its commitment to the project. To oversee the realization of these investments, the President has approved the establishment of a ministerial committee comprising key stakeholders from various government ministries, including Finance, Trade and Investments, Defence, Solid Minerals, and Steel Development.

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