The Minister of Steel Development, Shuaibu Abubakar Audu, has announced that Ajaokuta Steel will supply approximately 400,000 metric tonnes of iron rods annually to the Ministry of Works for road construction across Nigeria.
This announcement was made on Thursday during a press briefing in Abuja, marking the 12-month review of the performance of Chief Bola Tinubu’s ministers.
Audu stated that Tinubu has approved the restart of the light section mill at Ajaokuta Steel, backed by a seed capital of N35 billion sourced from a private financial institution. The minister emphasized the importance of this initiative, highlighting its role in the Tinubu’s concrete road revolution.
He further revealed a partnership with David Umahi, the Minister of Works, to supply 40,000 metric tonnes of iron rods for road construction across Nigeria’s six geopolitical zones.
Audu noted that the nation’s 30,000 kilometers of roads currently under construction would require about 7 million metric tonnes of iron rods over four years. Ajaokuta’s contribution of 400,000 metric tonnes annually is a significant, though relatively small, part of this requirement.
Audu stated, “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.
“I have been working very closely to 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 Ahmed 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 7 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 added.
Notably, Audu previously revealed that reviving the Ajaokuta steel mill will cost something in the range of $2 billion to $5 billion.
He said this huge sum required to revive the company was responsible for the government’s piecemeal approach towards getting the plant to work.The steel complex which was established in 1975 during the erstwhile president Sheu Shagari has remained moribund 45 years after its launch.
Nairametrics
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