The Federal Government of Nigeria has expressed its commitment to reviving the Ajaokuta Steel Plant within the next three years, according to the Minister of Steel Development, Prince Shuaibu Abubakar Audu. Speaking at a press conference on Friday, the minister outlined the government’s strategy to reposition the steel sector, emphasizing the creation of a 10-year roadmap for the revival of the steel and metals industries across the nation.
The ambitious plan also includes the three-year revival roadmap specifically tailored for the Ajaokuta Steel Complex, aiming to address vacancies left by members who either passed away or resigned from national and state assemblies. Audu revealed that part of this process involves considering a collegiate approach to the complex, allowing different production units or plants within the vast area to be handled by entities with distinct core competencies.
Highlighting the significance of the Ajaokuta Steel Complex, the minister stated that the government intends to use a collegiate approach to achieve immediate success, focusing on reviving the light steel mill for iron rod production. Additionally, discussions are underway with the Minister of State for Defence and the Defence Industries Corporation of Nigeria (DICON) to explore partnerships for military hardware production.
Audu acknowledged the significant financial investment required for the entire revival, estimating between two to five billion US dollars. However, he outlined a phased approach, with plans to restart the Light Steel Mill section to produce 50,000 metric tonnes of iron rods. This initial phase, costing approximately 35 billion naira, would involve importing raw materials for production.
While Audu affirmed the government’s determination to bring the Ajaokuta Steel Complex back to operational capacity, he emphasized the need for thorough assessments and consultations before deciding on a concessionaire. The potential concessionaire’s capacity to produce and contribute to the complex’s revival would be a crucial consideration, with options including collaboration with the original Russian builders or exploring alternatives.
The minister’s comprehensive presentation sheds light on the government’s strategic vision for revitalizing the steel sector and the iconic Ajaokuta Steel Complex within the specified timeframes.
