The Minister of Steel Development, Prince Shuaibu Audu, announced on Monday that the Federal Government intends to commence the production of military hardware at the Ajaokuta Steel Mill.
He revealed that he has been collaborating closely with the Ministries of Defence and Works to finalize plans for the steel plant, which has been inactive for many years, in order to begin the production of iron rods and military hardware.
Audu emphasized the government’s commitment to revitalize the steel mill and stated that it would require an estimated investment of two to five billion dollars to fully restore the complex. He also mentioned that President Bola Tinubu has granted approval to raise funds locally for the revival of the light steel mill section, which is projected to produce 50,000 tons of iron rods initially, with the potential to increase to 400,000 tons.
Audu has identified the lack of political will as a significant factor in the non-functioning of the Ajaokuta Steel Mill for more than four decades.
He emphasized that this is the first time in Nigeria’s 63-year history since independence that a Steel Ministry has been established by the President of the Federal Republic of Nigeria.
Audu believes that the President recognizes the importance of the Ministry of Steel in driving the industrial revolution.
He also mentioned that previous concessions were granted to individuals who lacked the necessary skills to carry out the job, leading to challenges in the functioning of the steel mill. Additionally, Audu revealed that the Nigerian government had to terminate the last concession agreement with Global Steel, resulting in a payment of approximately $496 million to the Indian company.
