Minister of Steel Development, Shuaibu Audu, has said reviving the Ajaokuta steel mill will cost Nigeria $2 billion to $5 billion.
Gatekeepers News reports that the Minister said this during his visit to the Governor of Plateau state, Caleb Mutfwang, as part of visit to the National Metallurgical Development Centre (NMDC).
Audu said the huge sum required to revive the company was responsible for the government’s piecemeal approach towards getting the plant to work.
The Minister said, “But this administration, under the Renewed Hope mantra of President Tinubu, has demonstrated the political will to revive the steel plant to promote development in the nation.
“Therefore, he has asked us to look for a concession partner that can take over the technical management of the mill.
“We are looking for one that has the expertise, in terms of steel production so that the facility can start to produce once again.
“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 noted 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.
In response, Governor Mutfwang expressed gratitude for the minister’s visit, praising its opportune timing and lauding President Tinubu’s dedication to rejuvenating the nation’s struggling sectors.
He emphasized the critical role of steel in national development, asserting that reviving the Ajaokuta steel mill would significantly benefit the country.
Meanwhile, the federal government earlier announced plan to raise N35bn 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 series of administrative setbacks negating its operations.
