The Federal Government of Nigeria (FGN) through the Ministry of Steel Development (MSD) is collaborating with Financial Institutions for the best financing options to re-start the light steel mill section of the Ajaokuta Steel Plant for production of iron rods.
Minister of Steel Development Prince Shuaibu Abubakar Audu disclosed this when he played host to the MD/CEO of Stanbic IBTC Bank, Wole Adeniyi at the ministry’s headquarters on Tuesday in Abuja, a statement from the ministry signed by Tine-Iulun M.A for the head of Press and Public Relations.
He noted that it has become imperative to seek funding of about N35 billion to enable it re-start the light mill section of the Ajaokuta Steel Plant in line with the present administration’s Renewed Hope agenda, adding that the ministry plans to revive Ajaokuta in phases in accordance with set timelines and benchmark.
He recalled that the ministry already had an existing agreement with the Federal Ministry of Works to be off-takers of the rods produced as well as with the Ministry of Defence to build a Military Complex in Ajaokuta, stressing that Ajaokuta portends a lot of opportunities by which a lot can be achieved.
Earlier, the Stanbic Bank boss who was represented by head, Industrials, Debola Seriki, while expressing the Banks willingness to partner with the ministry, urged it to provide more details for their consideration towards realising the project.
In the same vein, the Minister met with top Management of UBA and Voda Infrastructure Management Ltd with a view to ensuring that funds are raised for the immediate take off of the project in the spirit sustainable development of the steel sector.
The Rock Post can report that over 40 years after the Ajaokuta project was flagged off to be the bedrock of Nigeria’s industrialisation, not a single sheet of steel has been produced because its completion and operationalisation has remained a mirage, even as it reportedly achieved over 95 per cent completion in the early 1980s, due to neglect by successive administrations.
The light mills were finally made to commence operation a few years back for fabrication and production iron rods, but this was not sustainable.
