Ajaokuta Steel: FG seeks N35bn to revive light mill section

The Minister of Steel Development, Prince Shuaibu Abubakar Audu, is seeking N35bn funding from financial institutions to re-start the Light Mill Section of the Ajaokuta Steel Plant for diversification of the economy.

It said that there are plans to revive the Ajaokuta Steel Plant in phases by its set timelines and benchmarks.

Audu, disclosed this in Abuja while receiving Debola Seriki, the representative of the MD/CEO of Stanbic IBTC Bank, Wole Adeniyi, at the Ministry’s Headquarters, on a courtesy visit.

The minister noted that the sector is in partnership with Financial Institutions, for best financing options to re-start the light Steel Mill in Ajaokuta.

He explained that the ministry aims to achieve its mandate of reviving the Steel Sector, improving industrialization in the country, and diversifying the economy to provide jobs for the teeming youths and grow the Gross Domestic Product (GDP).

Audu, in a statement by the ministry Information Officer, Tine-Iulun Maureen, said: “It has become imperative to seek funding of about N35bn to enable the sector re-start the Light Mill Section of the Ajaokuta Steel Plant for the production of iron rod to achieve the Present Administration’s Renewed Hope Agenda.”

“The Ministry already has an existing agreement with the federal ministry of works to off-takers the rod produced as well as the Ministry of Defence to build a Military Complex in Ajaokuta, we have huge opportunities in Ajaokuta and potentially a lot can be achieved.”

Earlier,  Seriki, while stating the bank’s willingness to partner with the Ministry, enjoined the Ministry to provide more details for their consideration towards realizing the project.

In the same vein, the Minister met with top Management of UBA and Voda Infrastructure Management Ltd with a view to ensure that funds are raised for the immediate take off of the project for sustainable development of the steel sector.