FG secures $4b investment from Jindal group for steel plant

The Federal Government has secured a $4 billion investment from Jindal Group to develop a 10 million metric tonnes steel plant and 650MW power facility in Akwa Ibom State.

The office of the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, announced that the minister had obtained a commitment from Jindal Group to offtake approximately 450 million metric standard cubic feet per day (MMscfd) of natural gas.

The 10-million-tonne-per-year Hot Briquetted Iron (HBI) steel plant will be built at Ibom Solutions Hub Industrial Park (ISHIP), a free zone facility in Akwa Ibom state.

The project, it said, is expected to create thousands of jobs and establish Nigeria as a regional industrial powerhouse for high-quality steel production.

The agreement was sealed after a meeting in New Delhi, India, between Ekpo and Jindal Group Chairman, Mr. Naveen Jindal, with discussions underway to finalise the Gas Sales and Purchase Agreement (GSPA) for the supply of natural gas to the Indian firm.

The office also claimed that ISHIP and Jindal agreed to lease 300 hectares of the ISHIP for the project as part of the agreement.

Meanwhile, Ekpo on X announced his arrival in New Delhi, India, accompanied by Kyari, where he said he was warmly received by Mr. Ahmad Tijani Lawal, Acting High Commissioner for Nigeria to India, and Mr. Mukesh Sharma, Country Head of Jindal Nigeria Ltd.

“Our visit is focused on engaging in strategic discussions with the Jindal Group to advance plans for the establishment of a 10 million tonnes per annum High Briquetted Iron (HBI) Steel Plant and a 650MW Power Plant in the Ibom Solutions Gas Hub, Akwa Ibom State,” he said.

“This project will require about 450MMscfd of gas for startup and aligns with the federal government’s commitment to gas-based industrialisation and driving economic growth in Nigeria.”