In a bid to revitalize Nigeria’s steel industry, President Bola Tinubu has given the green light for the establishment of an inter-ministerial committee, with a primary focus on resurrecting the Ajaokuta Steel Mill. The committee is tasked with overseeing three crucial steel development projects, including collaborations with international partners.
Committee Members:
The inter-ministerial committee comprises key figures from various ministries, ensuring a holistic approach to the projects:
- Minister of Finance and Coordinating Minister of the Economy – Wale Edun
- Minister of Industry, Trade, and Investment – Doris Uzoka
- Minister of Solid Minerals Development – Dele Alake
- Minister of Defence – Muhammadu Badaru
- Minister of Steel Development – Shuaibu Audu
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Key Projects:
The committee’s objectives span multiple fronts, with a focus on securing funding for the revival of the Ajaokuta Steel Company Limited. Additionally, the committee will work towards establishing a steel plant in collaboration with Lu’an Steel Holding Group, a leading Chinese steel company. Another crucial task involves finding an ideal location for a proposed steel plant in partnership with the Indian firm, Jindal Steel.
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Economic Impact:
If successfully executed, these projects have the potential to generate over 500,000 jobs, marking a significant milestone in President Tinubu’s administration.
Collaboration with Lu’an Steel Group:
During discussions with Lu’an Steel Group, a major player in the Chinese steel industry, both the Minister of Defence and the Minister of Steel Development secured a commitment for the establishment of a new steel plant in Nigeria. The Chinese company expressed its dedication to investing billions of dollars and creating thousands of jobs, with plans to deploy an advanced team to Nigeria after the Chinese New Year in February 2024.
Reviving Ajaokuta Steel Plant:
The committee also aims to raise funds locally to restart and rebuild the light steel mill of the Ajaokuta Steel Plant. This initiative aligns with the Renewed Hope Agenda, with the produced iron rods intended for use in the construction of 30,000 kilometers of roads across Nigeria. The estimated cost for restarting the living steel section of the mill is approximately N35 billion.
Jindal Steel’s Commitment:
Jindal Steel, which pledged $5 billion during the G-20 Summit in India, has reiterated its commitment to investing in Nigeria. Plans are underway to secure an ideal location for operations, either by setting up a greenfield or acquiring an existing plant like the Delta Steel Plant.
Military Hardware Capacity:
The committee is also laying the groundwork for establishing military hardware capabilities at the Ajaokuta steel plant. A Chinese team has agreed to assist Nigeria in building this capacity within one of the production units of the plant.
Investigating Ajaokuta Steel’s Electricity Debt:
In light of recent developments where the Ajaokuta Steel Company Limited was disconnected from the national grid due to a N33 billion electricity debt, the Minister of Steel Development has vowed to investigate the matter. The committee aims to understand why such a significant debt was incurred when the company has not been operating at full capacity. Plans are underway to collaborate with relevant stakeholders to address the outstanding amounts and resume operations.
The approval of the inter-ministerial committee marks a crucial step in revitalizing Nigeria’s steel industry, fostering international collaborations, and creating a substantial number of jobs. The committee’s comprehensive approach, encompassing local and international partnerships, signals a strategic move towards economic growth and development in the country.
