FG Requires $25 Million To Revitalize Ajaokuta Steel Plant, According To The Minister

By: Nwakaji Peace Martins

Minister of Steel Development, Prince Shuaib Audu Abubakar disclosed that the Federal government requires $25 million in funding to revive the Ajaokuta Steel Plant in Kogi State, with the aim of commencing the production of iron rods for the construction industry. Prince Abubakar made this announcement during a sectoral update briefing to commemorate the first anniversary of President Bola Ahmed Tinubu’s one year in office in Abuja.
He mentioned that the ministry is in the final stages of securing private-sector financing to enable the plant to partially manufacture crucial military hardware and reduce the country’s dependence on importing these essential items from overseas.

“We are on the verge of procuring over N35 billion from a local financial institution, equivalent to $25 million, to recommence operations at the light section mill of the complex in order to produce iron rods,” he emphasized.

Abubakar highlighted that the ministry is currently exploring the possibility of reinstating the Russian company that originally built the Ajaokuta steel plant, or potentially collaborating with other firms from China, India, and Nigeria to optimize the plant’s operations for the nation’s benefit.
The minister emphasized that in addition to collaborating with the private sector to complete the 100-megawatt power plant for a stable electricity supply, the government is considering establishing an industrial park on the vast land where the plant is situated.
Consequently, he mentioned that his ministry is working in partnership with the Minister of Works, Senator David Umahi, to provide 40,000 metric tonnes of iron rods for road construction across the six geopolitical zones of the country.
“That light section mill has the capability to produce up to 400,000 metric tonnes of iron rods annually. I have been in close collaboration with the Minister of Works, Mr. David Umahi, to supply iron rods to the ministry as part of President Bola Ahmed Tinubu’s concrete road revolution,” he stated.
“There are numerous roads under construction nationwide, totaling approximately 30,000km across the six geopolitical zones. We are aware that the Ministry of Works requires about seven million metric tonnes of iron rods over a four-year period to complete the construction of these 30,000 km of roads.”