By Francis Ajuonuma, with agency reports
The Minister of Steel Development, Shuaibu Audu, has stated that reviving the Ajaokuta steel mill will cost something in the range of $2bn to $5bn.
The Minister, who made this known during a familiarisation visit to the National Metallurgical Development Centre (NMDC) in Jos yesterday, also noted that the nation currently imports steel worth four billion dollars annually.
Audu explained that the huge sum required to revive the company was responsible for the government’s piecemeal approach towards getting the plant to work.
“Based on technical analysis, it will cost us between two to five billion dollars to revive the Ajaokuta steel mill, hence we are using a piecemeal approach. So, we are going to first, revive the light steel unit that can produce iron rods; we are at the final stage of signing a N35 billion funding from a local financial institution to commence work,” he said.
The minister stated that his visit to Jos was to evaluate the infrastructure at the National Metallurgical Development Centre (NMDC), highlighting its crucial role in advancing the country’s steel manufacturing initiatives, and also visit the Jos rolling mill.
*Says Nigeria imports $4bn worth of steel annually
He explained that 70 per cent of steel in Nigeria is imported, adding that President Bola Tinubu was determined to reverse the trend.
”Right now we import about $4bn worth of steel, which is over 70 per cent worth of steel in Nigeria.
”Mr President wants us to reverse this trend; he wants to ensure that most of the steel consumed in Nigeria is produced locally to reduce the pressure on foreign exchange.
”The president is determined to turn around the fortunes of Nigeria and this is why he is taking tough decisions.
”For the first time since independence, a steel ministry is created. It shows the president’s seriousness and determination to put the steel industry and industrialisation of Nigeria on the front burner,” he said.
In response, the Plateau State Governor, Caleb Mutfwang emphasised the critical role of steel in national development, stressing that reviving the Ajaokuta steel mill would significantly benefit the country.
Recall that recently the federal government revealed a plan to raise N35 billion through local financing for the Ajaokuta Steel mill in a move to get the mill working as fast as possible.
The Ajaokuta Steel Mill is a multi-billion dollar integrated steel plant established in the late 1970s and early 1980s but has faced a series of administrative setbacks negating its operations.
