Shuaib Abubakar Audu, the Minister of Steel Development, announced at the Ninth Nigeria Mining Week in Abuja that Ajaokuta Steel Company Limited would commence operations before the end of 2024. The plant, long considered a symbol of unrealized potential, is poised for a revival after decades of stagnation.
Audu revealed the Federal Government’s decision to privatize both Ajaokuta Steel and its associated Iron Ore Mine in Itakpe. This move, he explained, aims to reduce Nigeria’s annual $4 billion expenditure on steel imports, redirecting funds into the local economy. He emphasized that agreements with a Russian consortium led by Tyazhpromexport (TPE), the original builders of the steel plant, will spearhead its rehabilitation and eventual operation.
The resuscitation of Ajaokuta Steel is expected to be a game-changer for Nigeria’s economy. According to the Ministry of Steel Development, the project could generate over 500,000 jobs and significantly contribute to President Bola Tinubu’s vision of expanding Nigeria’s economy to $1 trillion by 2030. This would align with the government’s broader Renewed Hope Agenda, which places mining and industrialization at the heart of economic growth.
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Dr. Dele Alake, Minister of Solid Minerals, highlighted achievements under this agenda, including the prosecution of over 300 illegal miners and reforms designed to optimize the sector’s output. He reiterated the government’s commitment to addressing inefficiencies in mining, a sector that accounted for just 0.75% of Nigeria’s GDP in 2023 despite immense untapped potential.
While the revival of Ajaokuta Steel brings hope, the journey is fraught with challenges. Logistical, operational, and environmental hurdles remain. However, stakeholders, including the Nigerian Extractive Industries Transparency Initiative (NEITI) and the Miners Association of Nigeria, have called for comprehensive reforms to ensure long-term success.
The involvement of global partners such as TPE, Novostal M, and Proforce Manufacturing Limited underscores the international confidence in Nigeria’s steel sector. These collaborations not only bring technical expertise but also represent a vote of confidence in the nation’s industrial ambitions.
