Reviving Ajaokuta Steel: FG Seeks N35bn Funding for Iron Rod Production
The Minister of Steel Development, Shuaibu Audu, is actively pursuing a financial boost of N35 billion from various financial institutions to breathe life back into the dormant Ajaokuta Steel Company.
In collaboration with Stanbic IBTC Bank, the minister aims to secure optimal financing options, specifically to revive the Light Steel Mill in Ajaokuta and initiate the production of iron rods. The strategic move aligns with the current administration’s agenda to revive Ajaokuta in phased approaches, adhering to predetermined timelines and benchmarks.
According to the ministry’s Chief Information Officer, Tine-Iulun Maureen, Audu emphasized the necessity of acquiring approximately N35 billion in funding. This financial injection is crucial for restarting the Light Mill Section of the Ajaokuta Steel Plant, focusing on iron rod production. The overarching goal is to advance the administration’s mandate, contributing to steel sector revitalization, enhanced industrialization, economic diversification, job creation, and GDP growth.
Maureen stated, “This is in furtherance of achieving its mandate of reviving the steel sector, improving industrialization in the country, diversifying the economy, providing jobs for the teeming youths, and growing the Gross Domestic Product.”
Audu also revealed existing agreements with the Works Ministry, designating them as off-takers for the produced rods, and with the Ministry of Defence to construct a Military Complex in Ajaokuta. He emphasized the immense potential and opportunities available in Ajaokuta for substantial achievements.
The CEO of Stanbic Bank, Wole Adeniyi, expressed the bank’s willingness to collaborate with the Ministry and requested further details for consideration to support the project. The minister held discussions with the top management of United Bank of Africa and Voda Infrastructure Management Ltd, aiming to secure funds for the immediate commencement of the project, ensuring sustainable development in the Steel Sector.