The Minister of Steel Development, Shuaibu Audu, has requested funding of N35 billion from financial institutions to revive the moribund Ajaokuta Steel Company. The collaboration with financial institutions aims to explore the best financing options to restart the light Steel Mill in Ajaokuta and initiate iron rod production.
In a statement, the ministry’s Chief Information Officer, Tine-Iulun Maureen, revealed that the minister made this request during a meeting with a delegation from Stanbic IBTC Bank in Abuja on Tuesday.
Audu emphasized the importance of securing N35 billion in funding to restart the Light Mill Section of the Ajaokuta Steel Plant. This initiative aligns with the current administration’s agenda to revive Ajaokuta in phases, contributing to the revitalization of the steel sector, industrialization, economic diversification, job creation, and GDP growth.
The minister highlighted existing agreements with the Ministry of Works to be off-takers of the produced rods and with the Ministry of Defence to construct a Military Complex in Ajaokuta. He expressed optimism about the significant opportunities in Ajaokuta and the potential achievements that can be realized through strategic collaboration.
During the meeting, the CEO of Stanbic Bank, Wole Adeniyi, represented by the Head of Industrials, Debola Seriki, expressed the bank’s willingness to partner with the Ministry. The bank requested further details for consideration to support the project.
The statement also mentioned that the minister held discussions with the top management of United Bank of Africa and Voda Infrastructure Management Ltd, emphasizing the importance of raising funds for the immediate take-off of the project, contributing to the sustainable development of the steel sector.
