The Federal Government is engaging in discussions with the Chinese firm Luan Steel Holding Group to establish a new steel plant in Nigeria. This initiative also involves commencing the construction of military hardware at the Ajaokuta Steel Plant, part of the government’s drive to industrialize Nigeria through the steel industry.
A delegation, led by the Minister of Steel Development, Shuaibu Audu, the Minister of Defence, Mohammed Badaru, and the Permanent Secretary of the Ministry of Steel Development, Mary Ogbe, visited the Luan Steel Holding Group in Hefei and Guangzhou Regions of China. This visit aimed to explore collaborations for the revival of Nigeria’s steel industry.
The Ministry of Mines recently sought N35 billion funding from financial institutions to revitalize the moribund Ajaokuta Steel Company, aiming to restart the light Steel Mill in Ajaokuta and initiate iron rod production.
Shuaibu Audu highlighted that the discussions in China were a pivotal step toward reviving Nigeria’s steel industry, aligning with the administration’s vision. He emphasized the plan’s potential to attract substantial foreign direct investments, stimulate the nation’s economy, and create numerous job opportunities.
The Minister further highlighted the strategic significance of constructing military hardware at the Ajaokuta steel plant, envisioning its role in combating insecurity and terrorism in the country.
Audu mentioned that the delegation engaged in productive discussions with the leadership of Luan Steel Holding Group, expressing the firm’s interest in establishing a new Steel Plant in Nigeria and contributing to building military hardware at the Ajaokuta Steel Plant.
He expressed optimism about commencing commercial steel production in government-owned entities in Nigeria before the end of President Tinubu’s administration, citing the encouraging commitments made during discussions with the Luan Steel Holding Group.
The visit aimed to assess Luan steel plants firsthand before finalizing decisions, aligning with the government’s objective of revitalizing the Nigerian steel industry and leveraging strategic partnerships to bolster national security and economic growth.
