The Minister of Steel Development, Shuaibu Audu, has said that the light section mill of Ajaokuta Steel will supply 400,000 metric tonnes of iron rods annually for road construction projects nationwide.

This announcement was made during a press briefing on Thursday in Abuja to review the performance of President Bola Tinubu’s ministers over the past 12 months.

Audu revealed that Tinubu has approved the restart of the light section mill at the Ajaokuta Steel complex, with an initial capital injection of N35 billion from a private financial institution.

This initiative is set to support the Ministry of Works in its extensive road construction agenda, which spans the six geopolitical zones of the country.

“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,” he said.

Highlighting the collaboration with the Minister of Works, David Umahi, Audu noted that 40,000 metric tonnes of these iron rods will be used for road construction across the country.


The nation currently has around 30,000 km of roads under construction, which will require approximately 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.

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“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.

“There are so many roads that are being constructed across the country, about 30,000km roads across the six geopolitical zones.

“We understand that the Ministry of Works needs about seven million metric tonnes of iron rods over 4 years period to construct the 30,000 km of roads. Ajaokuta can produce 400,000 metric tonnes which is a drop in the ocean of what is required.

“But because it is an important asset, the president is keen on us getting Ajaokuta to work and being able to produce some of these iron rods that is required by the federal government,” Audu said.

The minister also emphasised the broader economic implications of reviving Ajaokuta Steel, a project initiated in 1975 during the presidency of Shehu Shagari but left moribund for decades.


“Reviving Ajaokuta will cost between $2 billion and $5 billion,” he said.

The minister underscored the importance of the Ajaokuta complex, which, if fully operational, could meet all of Nigeria’s steel needs.

Currently, Nigeria spends about $4 billion annually on steel imports. The government’s efforts to restart Ajaokuta are aimed at transforming this economic drain into a source of national strength.

CodeTemplar:
How true is this? Well it is a promise. It says ... to supply...

JohnBullMySon:
The steel rolling part of the plant has always been functional.

What is abandoned is the Blast Furnace complex that converts ore to iron. The blast furnace was never turned on even for one minute.

They import the steel they roll.

JohnBullMySon:
The steel rolling part of the plant has always been functional.

What is abandoned is the Blast Furnace complex that converts ore to iron. The blast furnace was never turned on even for one minute.

They import the steel they roll.

iwaeda:


https://punchng.com/ajaokuta-steel-to-supply-400000-metric-tonnes-of-iron-rods-for-road-construction/

JohnBullMySon:
The steel rolling part of the plant has always been functional.

What is abandoned is the Blast Furnace complex that converts ore to iron. The blast furnace was never turned on even for one minute.

They import the steel they roll.