Boost for Road Construction
The Minister of Steel Development, Shuaibu Audu, announced that Ajaokuta Steel Company will supply 400,000 metric tonnes of iron rods annually for nationwide road construction. This initiative aims to support the Ministry of Works’ extensive road construction agenda across the six geopolitical zones.
Government Approval and Funding
During a press briefing in Abuja, Audu revealed that President Bola Tinubu approved restarting the light section mill at Ajaokuta Steel with an initial capital injection of N35 billion from a private financial institution. This funding will facilitate the production of iron rods essential for road projects.
Collaboration with Ministry of Works
Audu highlighted the collaboration with Minister Umahi, stating they will allocate 40,000 metric tonnes of iron rods for construction. Currently, 30,000 km of roads are under construction, requiring 7 million metric tonnes of iron rods over four years.
Economic Impact and Capacity
Audu highlighted the broader economic implications of reviving Ajaokuta Steel, a project initiated in 1975 but left moribund for decades. Ajaokuta’s annual production capacity of 400,000 metric tonnes, while only a fraction of the total requirement, is seen as a crucial step in reducing Nigeria’s dependency on imported steel.
Revival Costs and Potential
Reviving Ajaokuta Steel will cost between $2 billion and $5 billion. If fully operational, the complex could meet all of Nigeria’s steel needs, significantly reducing the $4 billion the country spends annually on steel imports. This revival effort aims to transform Ajaokuta into a source of national strength.
National Benefits
Audu reiterated that restarting Ajaokuta Steel aims to turn an economic drain into a source of national strength and resilience. This initiative will support infrastructure development and contribute to economic growth by providing locally produced steel for various projects.
The government’s efforts to restart Ajaokuta Steel aim to transform it from an economic liability to a national asset. This initiative will bolster infrastructure development and economic growth by supplying locally produced steel for diverse projects.
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