FG sourcing for over $2b to revive Ajaokuta Steel plant, Minister reveals

The Federal Government has said it is exploring various options to source over $2 billion in private funding for the revival of the Ajaokuta Steel Company.

Minister of Steel Development, Shuaibu Abubakar Audu, disclosed this when he appeared before the House of Representatives Committee on Steel Development on Thursday in Abuja.

He also reiterated the dissolution of the Board of the National Steel Council following the directives of President Bola Ahmed Tinubu.

According to Audu, the ministry is keen on achieving the mandate it was specifically created for, which is the revival of the Steel Industry, which requires significant funding.

The Minister told the House of Representatives Committee on Steel Development that he was in talks with prospective partners and technical experts for funding and revival of the Complex.

Audu said: “One thing is very clear to me; we do not have the funding as a Federal Government to be able to revive Ajaokuta. So, what we need to do is think outside the box and try to use what we have to get what we want.

“Based on all my discussions with all the experts, the minimum required for the revitalisation of Ajaokuta is about $2 billion, but that could rise to well over $5 billion. And the revitalisation will cover not just the plant and equipment but things that have to do with the infrastructure, whether it is the rail line, the dredging of the River Niger or a deep sea port to be able to bring in some of the heavy equipment.”

“I have said this several times. If we get it right, potentially, it could create in excess of 500,000 jobs for Nigerians.

“And Mr. President has said that we should not necessarily wait for a “big bang” approach by trying to solve all the problems at once, but perhaps we can start with the low hanging fruits. Hence, conversations are ongoing to raise private money to revive the light steel mill in the interim. It is important to note the strategy we have deployed is to raise private money.

“We are also in conversation with the Ministry of Defence to get the engineering workshop working so that we can produce military hardwares.

“For this to happen, we need funding. So, all the help that we can get from the National Assembly to make this national asset a success is what we require. So, I need all your support to make this a reality,” Audu said.

Speaking, Rep. Sanni Abdulkahreem (APC-Kogi) called for the establishment of a special purpose fund to finance and revive Ajaokuta Steel Company in Kogi State.

Sanni, who represents Ajaokuta Federal Constituency in the House of Representatives, said the ministry couldn’t finance the takeoff of the company alone.

The lawmaker said that all stakeholders must be carried along, adding that partnerships should be formed to kick-start the company to revive Nigeria’s economy.

“Funding of the Ajaokuta Steel Company cannot come from the ministry alone; no budget provision will be enough to cater for the company.

“There is a need to create a special purpose fund for Ajaokuta Steel Company; we need to draw a road map now that there is a political will to revive the company,” he said.

In her remarks, Chairman of the House Committee on Steel Development, Zainab Gimba, urged the ministry to provide the committee with all the procurement processes and other responses they demanded.

The committee said that Ajaokuta had remained a nightmare to many, adding that now that the minister has accepted to supervise it, Nigeria expects more from him.