{"id":308581,"date":"2024-02-02T23:22:25","date_gmt":"2024-02-02T22:22:25","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=308581"},"modified":"2024-02-02T23:22:25","modified_gmt":"2024-02-02T22:22:25","slug":"fg-insists-on-three-year-plan-for-ajaokuta-steel-company","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2024\/02\/02\/fg-insists-on-three-year-plan-for-ajaokuta-steel-company\/","title":{"rendered":"FG insists on three-year plan for Ajaokuta steel company"},"content":{"rendered":"<ul>\n<li><strong><strong>This follows a previous legal restraint, and despite opposition in 2022, the Federal Executive Council approved the engagement of transaction advisors for the concession<\/strong><\/strong><br \/>\n<hr \/>\n<\/li>\n<\/ul>\n<p>The Ministry of Steel Development, under the Federal Government, is proceeding with the concession process for Ajaokuta Steel Company, aiming to expedite its revival.<\/p>\n<p>Minister Shuaibu Audu revealed plans for a three-year ultimatum to initiate steel operations, aligning with <a href=\"https:\/\/www.withinnigeria.com\/news\/2024\/01\/30\/over-2400-nigerians-killed-1800-abducted-in-tinubus-first-8-months\/\">President Bola Tinubu\u2019s<\/a> directive.<\/p>\n<p>This follows a previous legal restraint, and despite opposition in 2022, the Federal Executive Council approved the engagement of transaction advisors for the concession.<\/p>\n<p>Audu emphasized that the concession is integral to a three-year roadmap addressing the steel company&#8217;s dormancy and reducing the nation&#8217;s heavy reliance on steel imports.<\/p>\n<p>He said, \u201cAbout the three-year plan for Ajoakuta Steel and whether we should assume that it would start working, I think the short answer is yes.<\/p>\n<p>\u201cThe three-year plan is to enable us to start production of some form of steel in the next three years, so we should be able to get the light steel mill working, the engineering workshop working, we should be able to get some of the lines plants working and operating at near full capacity or full capacity.<\/p>\n<p>\u201cPart of what we would also do within that three years is to concession it to a concessionaire that has the required skill set to be able to have liquid steel production coming out of blast points. Ideally, in a perfect scenario, that\u2019s what we would like.<\/p>\n<p>\u201cAnd I suspect that the concession agreement to be worthwhile for the concessionaire would have to be a minimum of let\u2019s say, 10 or 30 years agreement where they would be able to recoup their capital.\u201d<\/p>\n<p>According to him, the implementation of the road map which requires an investment of $5bn will create 500, 000 jobs and a possible revenue of $10bn.<\/p>\n<p>Audu added that the ministry is considering all available options with stakeholders to avoid the misdeeds of previous administrations, adding that ongoing litigation have been resolved.<\/p>\n<p>The minister added, \u201cBased on the advice I\u2019ve been provided with and based on some of the data that I\u2019ve seen and the technical analyses that have been done, we would need between $2bn and $5bn to revive this entire Ajaokuta Steel Complex but certain things can be done in piecemeal before we resolve the entire issue with the plant.<\/p>\n<p>\u201cWhat we plan to do is to restart the Light Steel Mill section, which will cost us about N35 billion for us to be able to produce 50,000 metric tonnes of iron rods. When we achieve all of these, we expect to bring $10bn into the economy and 500,000 direct and indirect jobs for Nigerians. Right now, 90 per cent of our steel demand is imported and we spend in excess of $4bn annually on the importation of steel and we are going to reverse that trend.\u201d<\/p>\n<p>The minister also stated plans to commence the construction of new steel companies through foreign investors from China in order to meet local production demands.<\/p>\n<p>\u201cWe have also engaged with foreign investors to start new steel plants in the country. We have met with Chinese investors to look into how to set up a new steel plant in Nigeria and I am sure all of these plans will come to fruition soon.<\/p>\n<p>\u201cPart of what we need to do for this is to identify a new location, would it be a green field location or ground field location that has enough land mass with the needed infrastructure? Ideally, where we intend to get is to have 90 percent local production and 10 percent import,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This follows a previous legal restraint, and despite opposition in 2022, the Federal Executive Council approved the engagement of transaction advisors for the concession The Ministry of Steel Development, under the Federal Government, is proceeding with the concession process for Ajaokuta Steel Company, aiming to expedite its revival. Minister Shuaibu Audu revealed plans for a [&hellip;]<\/p>\n","protected":false},"author":49,"featured_media":308582,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"2","single_blog_custom":"211693","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_share_counter":"1","show_view_counter":"0","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"1","post_reading_time_wpm":"300","show_zoom_button":"1","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"0","show_prev_next_post":"0","show_popup_post":"0","number_popup_post":"1","show_author_box":"0","show_post_related":"0","show_inline_post_related":"1"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo_enable":"0","sponsored_post_logo":"","sponsored_post_desc":"","disable_ad":"0"},"jnews_primary_category":{"id":"","hide":""},"jnews_override_bookmark_settings":{"override_bookmark_button":"0","override_show_bookmark_button":"0"},"jnews_override_counter":{"override_view_counter":"0","view_counter_number":"0","override_share_counter":"0","share_counter_number":"0","override_like_counter":"0","like_counter_number":"0","override_dislike_counter":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[2],"tags":[13825,1337,75851,75850],"class_list":["post-308581","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-ajaokuta-steel-company","tag-china","tag-chinese-investors","tag-ministry-of-steel-development"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - 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