Shuaib Abubakar, the Minister of Steel Development, recently revealed that a revival of the Ajaokuta Steel Company would require an investment of approximately $2 billion.
This estimation was shared during a dialogue with the House of Representatives Committee on Steel Development. He further clarified that the actual cost might escalate following a technical audit of the company.
Abubakar highlighted that Nigeria annually spends $8 billion on steel imports, emphasizing the national interest in making the Ajaokuta Steel Company operational. He assured that the government is diligently working towards this goal and that a proposal for the company’s revival will soon be presented to President Bola Tinubu.
The minister acknowledged the long-standing issue, which has persisted for 45 years, and the efforts made to attract investment from China, including the establishment of a new plant. He admitted that securing funding remains a significant challenge for the Ministry of Steel Development. However, he expressed optimism that with adequate funding, the steel industry could become the foundation of industrialization.
Abubakar, tasked by the president to find a solution for Ajaokuta, stated that the projected cost might change based on the results of the technical audit. He appealed for support from both legislative chambers, emphasizing the need for funding to make this vision a reality.
Zainab Gimba, the Chairperson of the House Committee on Steel Development, instructed the ministry to provide the parliament with all procurement processes and other details related to the company. She acknowledged that the Ajaokuta Steel Company has been a longstanding issue for the country and expressed the nation’s anticipation for the current administration to make it operational.
