The Minister of Works, David Umahi, has disclosed that the Nigerian government needs $35 billion to initiate the
construction of concrete roads across the country. Umahi revealed this during a meeting with the Minister of Steel Development, Shuaib Audu, at the ministry’s headquarters in Abuja.
According to the Chief Press Secretary to the minister, Orji Uchenna, the meeting focused on the importance of coordination, cooperation, and coherence in executing the Federal Government’s action plans for national development. Umahi emphasized that funding for the project, which involves constructing concrete roads using Ajaokuta steel, will be facilitated through a partnership with a commercial bank, subject to approval by the Federal Executive Council.
The minister explained, “We need about $35 billion to start. If we start waiting for FG it might become difficult. We analyzed the Return on Investment, and the profit we could have made, part of it will go to bank interest. We are looking at a partnership with a commercial bank but Federal Executive Council has to endorse it.
“How do we reactivate the Ajaokuta Steel. We are going into the concrete road, in this concrete road, about 16 per cent of it is from Steel while 30 per cent is cement. We need a lot of money to start but we decided to face it and God has given us an idea.
“We need about $35 billion to start. If we start waiting for FG it might become difficult. We analyzed the Return on Investment and the profit we could have made, part of it will go to bank interest. We are looking at a partnership with a commercial bank but Federal Executive Council has to endorse it. If this could be done, it means Mr President is living up to his words and this is going to be possible.
“One of the renewed hope agendas of Mr President is to think outside the box, Mr President inherited a large chunk of debt from the past administration, the beauty about it is that he is not complaining, he knew how the country was before he took the job and how it is. The good thing is that if you have passion for something God will give you an idea.”
Umahi highlighted the composition of the concrete road materials, stating that 16% would come from steel, and 30% from cement. He acknowledged the importance of reactivating the Ajaokuta Steel Company for the success of this initiative.
The ministers resolved to collaborate and strategize on tapping into the opportunities presented by the Ajaokuta Steel Plant for the development of road infrastructure in Nigeria. This move is expected to create jobs, stimulate economic growth, and enhance global market industrialization.
Umahi reaffirmed his commitment to supporting the steel minister in realizing the potential of the Ajaokuta Steel Plant.
Shuaib Audu, the Minister of Steel Development, emphasized the threefold objectives of the initiative: creating job opportunities for Nigerians, activating economic activities around the North Central Zone and the Ajaokuta-Warri axis, and restarting the inactive steel plant after close to four decades.
“We are to achieve three things, one to create job opportunity for Nigerians as a whole, two, to ensure that the corridor around the North Central Zone and the Ajaokuta-Warri axis is busy with activities and thirdly, the plant has been inactive for close to four decades and we are here to restart the plant within the shortest possible time,” he said.
The ministers believe that this innovative approach aligns with President Buhari’s commitment to thinking outside the box and finding sustainable solutions to economic challenges inherited from previous administrations. The initiative aims to harness the economic benefits of the steel industry, generating revenue and providing employment opportunities for Nigerians.
