Moribund Ajaokuta Steel Mill will cost Nigeria mere $2 to $5 billion to revive — Minister of Steel Development

Shuaibu Audu, the Minister of Steel Development, has revealed that reviving the Ajaokuta steel mill will cost something in the range of $2 billion to $5 billion..

The Steel Minister disclosed this during his visit to the Governor of Plateau state, as part of visit to the National Metallurgical Development Centre, NMDC.

According to the Minister, the huge sum required to revive the organization was responsible for the government’s piecemeal approach towards getting the plant to work.

He said,

“But this administration, under the Renewed Hope mantra of President Tinubu, has demonstrated the political will to revive the steel plant to promote development in the nation. Therefore, he has asked us to look for a concession partner that can take over the technical management of the mill. We are looking for one that has the expertise, in terms of steel production so that the facility can start to produce once again.

Based on technical analysis, it will cost us between two to five billion dollars to revive the Ajaokuta steel mill, hence we are using a piecemeal approach. So, we are going to first, revive the light steel unit that can produce iron rods; we are at the final stage of signing a N35 billion funding from a local financial institution to commence work.”

The minister of Steel stressed that his visit to Jos was meant to evaluate the infrastructure at the National Metallurgical Development Centre (NMDC), highlighting its crucial role in advancing the country’s steel manufacturing initiatives and also visit the Jos rolling mill.

Freshreporters had in Last month, gathered that the federal government plan to raise N35 billion through local financing for the Ajaokuta Steel mill in a move to get the mill working as fast as possible.

The Ajaokuta steel mill is a multi-billion dollar integrated steel plant established in the late 1970s and early 1980s but has faced series of administrative setbacks negating its operations despite the billions of Naira spent by every administration to settle operating costs such as staff salaries’ etc. [CONTINUE READING HERE]>>>>>