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The Federal Government has initiated discussions with Luan Steel Holding Group, a Chinese firm, to establish a new steel plant in the country. The collaboration also includes plans to commence the construction of military hardware at the Ajaokuta Steel Plant.
A delegation comprising Shuaibu Audu, Minister of Steel Development; Mohammed Badaru, Minister of Defence; and Mary Ogbe, Permanent Secretary of the Ministry of Steel Development, recently toured Luan Steel Holding Group facilities in Hefei and Guangzhou Regions of China to solidify the partnership.
PUNCH Online reports that the Ministry of Mines had previously sought N35 billion in funding from financial institutions to revitalize the Ajaokuta Steel Company. The ministry aims to explore optimal financing options to rejuvenate the Ajaokuta Steel Mill and initiate iron rod production.
In a statement by the Ministry’s Head of Press and Public Relations, Salamatu Jibaniya, Minister Shuaibu Audu emphasized that the trip to China is a crucial step towards achieving the administration's vision of revitalizing the steel industry in Nigeria.
Audu highlighted that the government is actively working to establish a robust steel industry capable of attracting substantial foreign direct investments, stimulating economic growth, and generating hundreds of thousands of job opportunities.
Addressing the potential collaboration with Luan Steel Holding Group, Audu stated, "Luan Steel Holding Group has indicated interest in setting up a new Steel Plant in Nigeria and handling a component of the Ajaokuta Steel Plant for building military hardware. The Minister of Defence and I led this delegation to assess the Luan steel plants and make informed decisions."
The Minister emphasized the strategic importance of the plan to manufacture military hardware at the Ajaokuta steel plant, emphasizing its role in enhancing national security and combating terrorism.
Audu expressed optimism, stating, "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." The development underscores the government's commitment to fostering economic growth through strategic partnerships and industrial initiatives.
