FG has partnered Chinese Company to establish a new steel plant and revive the Ajaokuta Plant.
NewsOnline Nigeria reports that the Federal Government has reportedly initiated discussions with Luan Steel Holding Group, a Chinese company, to establish a new steel plant in Nigeria and begin the production of military equipment at the Ajaokuta Steel Plant.
This Nigeria news platform understands that this initiative is part of the government’s efforts to promote industrialization in Nigeria through the steel industry.
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This news is coming following a delegation consisting of the Minister of Steel Development, Shuaibu Audu, the Minister of Defence, Mohammed Badaru, and the Permanent Secretary of the Ministry of Steel Development, Mary Ogbe, that visited Luan Steel Holding Group in Hefei and Guangzhou Regions of China to discuss the collaboration.
NewsOnline Nigeria had earlier reported that the Ministry of Mines had requested N35 billion in funding from financial institutions to revive the inactive Ajaokuta Steel Company.
The collaboration with financial institutions aims to explore the best financing options to restart the light Steel Mill in Ajaokuta and initiate iron rod production.
Giving an insight on the latest development, Audu, in a statement signed by the ministry’s Head of Press and Public Relations, Salamatu Jibaniya, explained that the visit to China was a crucial measure undertaken to achieve the objectives of revitalizing Nigeria’s steel industry, aligning with the vision of the incumbent administration of President Bola Tinubu.
Audu emphasized that efforts have already begun to establish a functional steel industry that would attract foreign direct investments, stimulate the nation’s economy, and generate numerous employment prospects.
Additionally, he highlighted that the proposal to manufacture military equipment at the Ajaokuta steel plant would contribute to combating insecurity and terrorism.
He said, “We had very meaningful discussions with the Chairman of Luan Steel Holding Group, Mr Wang Jianbing, the Chief Executive Officer of the Company, Mr Xiao Weizhan, and other senior Executives of the Luan Steel Holding Group.
“Like several other international and local investors, Luan Steel Holding Group has indicated interest in setting up a new Steel Plant in Nigeria, as well as handling a component of the Ajaokuta Steel Plant for building military hardware in Nigeria.
“The Minister of Defence and I led this delegation, which includes the Permanent Secretary of the Ministry of Steel Development, Dr Mary Ogbe, Sole Administrator/Managing Director of Ajaokuta Steel Company, Mr Sumaila Abdul-Akaba, to enable us to have a first-hand look at the Luan steel plants before arriving at a decision.”
The Minister added, “With all the commitments on the ground, we are optimistic that before the end of President Tinubu’s administration, we will commence commercial steel production in some of the government-owned entities in Nigeria.”
