- The Minister of Steel Development highlights Nigeria’s $8 billion annual spending on steel imports and stresses the urgency of the revival of the Ajaokuta steel company
- Abubakar outlines a 10-year plan for Ajaokuta’s resurgence, emphasizing the need for substantial investment and government commitment
The Minister of Steel Development, Mr. Shuaib Abubakar, has disclosed that Nigeria spends a staggering $8 billion annually on steel imports, underscoring the urgent need to revive the Ajaokuta steel company.
During an interactive session with the House of Representatives Committee on Steel Development in Abuja, Abubakar emphasized the economic imperative of revitalizing Ajaokuta Steel, citing the country’s significant financial burden from steel imports.
“The revival of Ajaokuta Steel Company requires substantial investment, and we have developed a 10-year plan for its resurgence, which we will present to Mr. President,” Abubakar stated.
Highlighting his interest in the matter as a native of Kogi State, where Ajaokuta is located, the minister reaffirmed the government’s commitment to finding a sustainable solution for the steel company.
Abubakar revealed that the Federal Government had expended $500 million to terminate a concessional agreement related to Ajaokuta, underscoring the seriousness with which the ministry is approaching the issue.
He elaborated on ongoing efforts to attract investment and secure financing for Ajaokuta Steel, including discussions with Chinese investors and exploring funding options.
Addressing the funding challenges facing the Ministry of Steel Development, Abubakar stressed the pivotal role of proper funding in harnessing the steel industry’s potential to drive industrialization in Nigeria.
Regarding the $2 billion estimate for reviving the dying steel company, the minister clarified that it was a preliminary calculation subject to adjustments pending the outcome of a technical audit.
In response, Rep. Zainab Gimba, Chairman of the House Committee on Steel Development, urged the ministry to provide necessary procurement processes and responses to enable the committee to make informed decisions.
Expressing the committee’s expectation of tangible progress under the minister’s supervision, Gimba emphasized the urgency of addressing the longstanding challenges associated with Ajaokuta Steel.