The Minister of Steel Development, Mr. Shuaib Abubakar, notes that Nigeria’s steel import expenditure amounts to a substantial $8 billion yearly, stressing that reviving the Ajaokuta Steel Company is essential for reducing the country’s dependence on imported steel and promoting economic self-sufficiency.
During an informative session with the House of Representatives Committee on Steel Development in Abuja on Thursday, the minister unveiled this remarkable data, underscoring the importance of Nigeria’s steel industry and the need for its growth and development.
The minister emphasized that resuscitating Ajaokuta Steel will come at a cost, but a comprehensive 10-year plan has been drafted to guide the revival process, which will soon be presented to the President for approval.
The minister, who hails from Kogi State, acknowledged his personal connection to Ajaokuta Steel’s fortunes, and vowed to leverage his influence to push for its revival, knowing that the company’s success would greatly benefit his home state and its people.
According to the minister, the Federal Government had invested $500 million to terminate the concessional agreement for Ajaokuta Steel, and his ministry was working diligently to explore every possible avenue to revive the steel plant.
“It is a problem that has persisted for 45 years. we have gone to China to come and invest in the steel company including setting up a new plant and we have gone to seek financing .
He said that the challenges had changed as new technology had come up and there had been innovation and there had been discussion around it but it had not been finalised.
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“Funding is a big challenge to the ministry of steel development. steel industry will be the bed rock of industrialisation if we have proper funding.
“I am still at a stage where to find a solution to the Ajaokuta steel company.
The minister downplayed the $2 billion price tag for reviving the steel company, calling it a preliminary calculation, and hinting that the final cost could be significantly less, once a detailed evaluation is completed.
The minister cautioned that the estimate may not be exact, but rather a ballpark figure that will undergo refinement through a meticulous process aimed at arriving at a precise conclusion.
“The president has asked me to find a solution to Ajaokuta, so the figure will change pending the outcome of the technical audit.
“It’s clear to Nigeria that for this to happen we need funding and all the help we can get from the two chambers, this is why we need.I need all your support to make this a reality.”
The Chairman of the House Committee on Steel Development, Rep. Zainab Gimba, called on the ministry to promptly provide the committee with all necessary documents, including procurement processes and supporting responses, to aid their investigation.
Ajaokuta has been a persistent thorn in the side of many, but the committee expressed hope that with the minister’s oversight, the nation can finally expect significant strides towards its revitalization and success.