CEM REPORT, TECHNOLOGY | The Ajaokuta steel mill, a long-dormant symbol of Nigeria’s potential in the steel sector, has reignited hope for revival. Minister of Steel Development, Shuaibu Audu, during a visit to Plateau State, revealed the government’s plan to revitalize the mill, acknowledging the significant financial commitment required.
“Reviving the Ajaokuta steel mill will cost something in the range of $2 billion to $5 billion,” stated Audu, attributing the high cost to the need for a comprehensive overhaul. However, the minister emphasized the current administration’s commitment, echoing President Tinubu’s “Renewed Hope” agenda.
“This administration has demonstrated the political will to revive the steel plant to promote development in the nation,” he declared.
Piecemeal Approach and Concession Partner
With the substantial cost in mind, the government plans to adopt a phased approach. “We are using a piecemeal approach,” explained Audu. This strategy prioritizes the light steel unit, which produces iron rods, as the initial focus.
“We are at the final stage of signing a N35 billion funding from a local financial institution to commence work,” revealed the minister, highlighting the progress on this first stage.
Recognizing the need for expertise, the government is actively seeking a partner: “Therefore, we have been asked to look for a concession partner that can take over the technical management of the mill.” This partnership aims to leverage external expertise and expedite the revival process.
Collaboration and Local Development
Audu’s visit to Plateau State extended beyond the funding announcement. He also visited the National Metallurgical Development Centre (NMDC) to assess its capabilities in supporting the steel industry. The NMDC plays a crucial role in research and development, crucial for advancing domestic steel production.
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Governor Simon Lalong of Plateau State welcomed the minister’s visit, underscoring its significance. “This visit is timely,” he stated, “and it underscores President Tinubu’s commitment to rejuvenating our nation’s struggling sectors.”
Governor Lalong further emphasized the importance of steel in national development, reiterating the potential benefits of a revived Ajaokuta mill. “Reviving the Ajaokuta steel mill will be of immense benefit to our nation,” he asserted.
Ajaokuta Steel Mill: A Cautiously Optimistic Future
The Nigerian government’s plan for the Ajaokuta steel mill revival signifies a renewed commitment to the project. While challenges remain, including securing a concession partner and securing the remaining funds, the initial focus on the light steel unit and the collaboration with institutions like the NMDC offer a glimmer of hope for the mill’s future. The success of this project has the potential to significantly contribute to Nigeria’s economic development and industrialization.
