President Bola Tinubu, on Thursday, met with the five-man committee set up for the resuscitation of Ajaokuta Steel Company who traveled to China to explore collaborative efforts with some Chinese companies.
The meeting was to brief the President on their journey to China on the project. Those on the team are the Minister of Steel Development, Prince Shuaibu Audu, and his defence counterpart, Mohammed Badaru.
The Minister of Steel Development briefed the President, following his approval to restart the Light Steel Mill (LSM) section of Ajaokuta Steel Complex for the production of iron rods, on the progress made on restarting the section, which will cost N35 billion at the first stage.
The Minister said several financial institutions had already provided offer letters for this transaction and that the project is expected to create up to 5,000 direct and indirect jobs for Nigerian
According to the Minister, upon the completion of these deals, about $10 billion worth of new investments in both new and existing steel plants in Nigeria will be established, which will create over 500,000 direct and indirect jobs in the steel industry in line with President Tinubu’s Renewed Hope Agenda for massive job creation through industrialization.
During the meeting held at State House, Abuja, Tinubu emphasised that a revitalised steel development industry was both a catalyst for robust economic growth and a doorway to immense opportunities for Nigeria’s massive pool of talented entrepreneurs.
The president stated, “We will remain unyielding in our determination to build a Nigeria where every citizen has an equal opportunity to prosper and achieve their dreams. New investments in steel production will spur the growth of so many sectors. Industrialisation will be a reality in our country with sufficient energy and steel.
“Nigerian steel will undergird our economy and other economies in our region in future years. I am glad that members of my cabinet have adopted my approach to attracting new investments and job opportunities for our people. Hard work is the only true pathway. We will not relent.”
Audu and Badaru, according to a statement by presidential spokesperson, Ajuri Ngelale, informed the president of their discussions with a Chinese company, Luan Steel Holding Group, to build a new steel plant in Nigeria, as well as plans to commence the production of military hardware at Ajaokuta Steel Plant.
A delegation led by Minister of Defence and Minister of Steel Development had visited Hefei and Guangzhou regions of China to hold business talks with the Chairman of Luan Steel Holding Group, Mr Wang Jianbing; Chief Executive Officer of the Company, Mr Xiao Weizhan; and other senior executives of Luan Steel Holding Group.
The Chinese company is expected to invest billions of dollars in Nigeria to build the new steel plant.