The wheels are in motion as the Federal Government engages in talks with Luan Steel Holding Group, a Chinese entity, with the aim of establishing a modern steel facility and commencing the production of military hardware at the Ajaokuta Steel Plant.
As a crucial element of the Federal Government’s drive to industrialize Nigeria, this initiative is part of a broader strategy to enhance the country’s economic landscape, focusing specifically on the steel industry.
Central to the visit by a delegation featuring the Minister of Steel Development, Shuaibu Audu; the Minister of Defence, Mohammed Badaru, and the Permanent Secretary of the Ministry of Steel Development, Mary Ogbe, was the focus on Luan Steel Holding Group, with the delegation touring locations in Hefei and Guangzhou Regions of China.
Africa Today News, New York, has uncovered that the Mines ministry is actively pursuing a financial boost of N35 billion from financial institutions, indicating a concerted effort to bring the moribund Ajaokuta Steel Company back to life.
The statement clarified that the partnership with financial institutions aims to explore optimal financing avenues for restarting the Ajaokuta light Steel Mill and initiating the production of iron rods.
As outlined in a statement endorsed by the ministry’s Head of Press and Public Relations, Salamatu Jibaniya, Audu emphasized that the visit to China constitutes a vital step in the comprehensive efforts to bring about the revitalization of Nigeria’s steel industry, aligning with the vision set forth by the current administration.
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According to his remarks, active steps have been taken to initiate a functional steel industry, with the aim of attracting substantial foreign direct investments totaling billions of dollars, ultimately spurring economic development and creating extensive job opportunities.
He further noted that the plan to construct military hardware in the Ajaokuta steel plant would help in the fight against insecurity and terrorism.
He said, ‘We had very meaningful discussions with the Chairman of Luan Steel Holding Group, Mr Wang Jianbing, the Chief Executive Officer of the Company, Mr Xiao Weizhan, and other senior Executives of the Luan Steel Holding Group.’
‘Like several other international and local investors, Luan Steel Holding Group has indicated interest in setting up a new Steel Plant in Nigeria, as well as handling a component of the Ajaokuta Steel Plant for building military hardwares in Nigeria.’
‘The Minister of Defence and I led this delegation, which includes the Permanent Secretary of the Ministry of Steel Development, Dr Mary Ogbe, Sole Administrator/Managing Director of Ajaokuta Steel Company, Mr Sumaila Abdul-Akaba, to enable us to have a first-hand look at the Luan steel plants before arriving at a decision.’
The Minister added, ‘With all the commitments on the ground, we are optimistic that before the end of President Tinubu’s administration, we will commence commercial steel production in some of the government-owned entities in Nigeria.’