The Minister of Steel Development, Shuaibu Audu, has revealed plans to revive the long-dormant Ajaokuta Steel Company and solicited for N35bn in funding from financial institutions.
The announcement was made during a meeting with a delegation from Stanbic IBTC Bank at the ministry’s headquarters in Abuja on Tuesday.
According to the ministry’s Chief Information Officer, Tine-Iulun Maureen, the collaboration with financial institutions aims to explore optimal financing options for restarting the Light Mill Section of the Ajaokuta Steel Plant, focusing on iron rod production.
The minister emphasized the importance of securing funding, stating, “It has become imperative to seek funding of about N35bn to enable the re-start of the Light Mill Section of the Ajaokuta Steel Plant for the production of iron rod to achieve the agenda of the current administration to revive Ajaokuta in phases in accordance with its set timelines and benchmark.”
He said:
“It has become imperative to seek funding of about N35bn to enable the re-start of the Light Mill Section of the Ajaokuta Steel Plant for the production of iron rod to achieve the agenda of the current administration to revive Ajaokuta in phases in accordance with its set timelines and benchmark.
“This is in furtherance of achieving its mandate of reviving the Steel Sector, improving industrialisation in the country, diversifying the economy, providing jobs for the teeming youths and growing the Gross Domestic Product, is collaborating with Financial Institutions, for best financing options to re-start the light Steel Mill in Ajaokuta.”
The ministry is actively pursuing its mandate to revive the Steel Sector, enhance industrialization, diversify the economy, generate employment for youths, and boost the Gross Domestic Product (GDP). The collaboration with financial institutions underscores the commitment to finding the most suitable financing options for the revitalization project.
The minister revealed existing agreements with the Works Ministry and the Ministry of Defence, indicating plans for off-take agreements for the rod produced and the construction of a Military Complex in Ajaokuta. He emphasized the vast opportunities in Ajaokuta, expressing optimism about the potential achievements.
Stanbic IBTC Bank’s CEO, Wole Adeniyi, represented by Head of Industrials, Debola Seriki, expressed the bank’s readiness to collaborate with the ministry. Adeniyi requested detailed information for the bank’s consideration, highlighting the importance of comprehensive data in realizing the project.
The minister also engaged with top management from United Bank of Africa and Voda Infrastructure Management Ltd. The goal is to secure funds for the immediate commencement of the project, ensuring sustainable development in the Steel Sector. The meetings underscore the multi-faceted approach taken by the ministry to garner support and resources for the revitalization of Ajaokuta Steel Company.