Prince Shuaibu Audu, the Minister of Steel Development, disclosed on Monday that the Federal Government has intentions to kickstart the production of military hardware at Ajaokuta Steel Mill.
The minister revealed that he has been collaborating closely with counterparts from the Ministries of Defence and Works to finalize plans for the long-dormant steel plant to begin production of iron rods and military hardware.
‘In addition to restarting light steel mill, we want to produce military hardware in Ajaokuta Steel,’ Audu said on Channels Television’s Politics Today.
‘I have been working very closely with Minister of Defence Alhaji Badaru and Minister of Works Senator Umahi to work hand in hand to produce iron rod in Ajaokuta and to produce military hardware capabilities in Ajaokuta.’
“Whether it is helmets, whether it is bullets, whether it is vests, whether it is pads for tanks of all shapes and all of those things or rifles ammunitions, we will be able to have the capacity to be able to do that.”
Built more than 40 years ago, the massive Ajaokuta Steel Mill has been subject to mismanagement by successive governments, preventing it from achieving its full potential.
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The minister stated that the present administration is unwavering in its commitment to revive the light steel mill within the steel complex, allowing it to produce iron rods.
He mentioned that experts estimate the complete overhaul of the entire complex would require between two to five billion dollars, with the light steel mill section alone estimated at about N35 billion.
The minister disclosed that President Bola Tinubu has authorized him to raise funds locally for the revival of the light steel mill section within the steel plant.
He stated that the N35 billion investments on the steel plant will help it produce 50,000 tons of iron rods with the capacity to go up to 400,000 tons.
Audu identified lack of political will as one of the major reasons why the Ajaokuta Steel Mill has not functioned for over 40 years.
‘I think part of the issue is that there has been no political will. This is the first time in our 63-year history since independence that the President of the Federal Republic of Nigeria has created a Steel Ministry.
‘He understands the industrial revolution will hinge on the Ministry of Steel. There were some concessions done in the past where concessionaires brought in didn’t have the skills required to be able to carry out the job, so those were some of the challenges,’ he said.
The minister also disclosed that the recent concession with Global Steel was terminated, leading to the Nigerian government having to pay around $496 million for the cancellation of the concession agreement with the Indian company.