ABUJA, NIGERIA – In a significant development for Nigeria’s infrastructure sector, the Minister of Steel Development, Shuaibu Audu, announced that the light section mill of Ajaokuta Steel will soon supply 400,000 metric tonnes of iron rods annually, primarily for nationwide road construction projects. This announcement came during a press briefing on Thursday in Abuja, where the performance of President Bola Tinubu’s ministers over the past year was reviewed.
Minister Audu revealed that President Tinubu has approved the restart of the light section mill at the Ajaokuta Steel complex, with an initial capital injection of N35 billion, approximately $25 million, sourced from a private financial institution. This initiative aims to bolster the Ministry of Works’ extensive road construction agenda, which spans across the six geopolitical zones of Nigeria.
“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. That light section mill has the capacity to produce up to 400,000 metric tonnes of iron rods per annum,” Audu stated.
In collaboration with the Minister of Works, David Umahi, it was noted that 40,000 metric tonnes of these iron rods will be allocated for road construction throughout the country. Nigeria currently has approximately 30,000 km of roads under construction, which will require an estimated 7 million metric tonnes of iron rods over the next four years.
Despite Ajaokuta’s capacity being just a fraction of this requirement, the revival of the mill is seen as a crucial step in reducing Nigeria’s dependency on imported steel. “I have been working very closely with 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 Tinubu,” Audu noted.
The minister emphasized the broader economic implications of reviving Ajaokuta Steel, a project initiated in 1975 during the presidency of Shehu Shagari but left dormant for decades. Reviving Ajaokuta is projected to cost between $2 billion and $5 billion, with the potential to meet all of Nigeria’s steel needs.
“Reviving Ajaokuta will cost between $2 billion and $5 billion,” Audu stated. The minister underscored the importance of the Ajaokuta complex, which, if fully operational, could significantly reduce Nigeria’s $4 billion annual expenditure on steel imports and transform this economic drain into a source of national strength.
The Nigerian Senate is also set to probe the Ajaokuta Steel project over a $496 million payment, further highlighting the government’s renewed focus on revitalizing this critical asset. The move to restart the light section mill is a pivotal step towards realizing the full potential of Ajaokuta Steel, thereby contributing to Nigeria’s infrastructure development and economic growth.