From Charity Nwakaudu, Abuja
Minister of Steel Development, Prince Shuaib Audu Abubakar revealed that the Federal government needs $25 million to revive the Ajaokuta Steel Plant in Kogi State, to start the production of iron rods for the construction industry. Prince Abubakar, made this known this at the sectoral update briefing to mark the first anniversary of President Bola Ahmed Tinubu one year in office in Abuja.
He said that the ministry was at the final state of obtaining private sector funding to get the plant partially producing important military hardware and save the country from importing the core items abroad.
“We are at the final stage of raising over N35 billion from a local financial institution which is about $25 million to restart the light section mill of the complex so that we can produce iron rods” he noted.
Abubakar stated that the ministry was also deliberating on the desirability of bringing back the Russian firm that constructed the Ajaokuta steel plant or engaging other companies from China, India and Nigerians to get the place working maximally for the benefit of the country.
The minister stressed that apart from engaging with the private sector to complete the 100 megawatt power plant to provide uninterrupted electricity, the government is also contemplating creating an industrial park in the huge expanse of land where the company is situated.
Accordingly, he said his ministry is partnering with the Minister of works, Senator David Umahi to supply 40,000 metric tonnes of iron rods for road construction across the six geopolitical zones of the country.
“That light section mill has the capacity to produce up to 400,000 metric tonnes of iron rods per annum.
I have been working very closely to the Minister of Works, Mr. David Umahi, so that we can provide iron rods to the ministry as part of the concrete road revolution of President Bola Ahmed Tinubu”
“There are so many roads that are being constructed across the country, about 30,000km roads across the six geopolitical zones, We understand that the ministry of works needs about seven million metric tonnes of iron rods over four years period to construct the 30,000 km of roads.