Shuaibu Audu, the Minister of Steel Development, revealed on Monday during an interview with Channels Television's Politics Today that the Federal Government intends to initiate the manufacturing of military hardware at the long-dormant Ajaokuta Steel Mill.Read full article
He emphasized his collaboration with the Ministries of Defence and Works to finalize plans for the revival of the steel plant, focusing on the production of both iron rods and military equipment.
He wrote;
“In addition to restarting light steel mill, we want to produce military hardware in Ajaokuta Steel.
“I have been working very closely with Minister of Defence Alhaji Badaru and Minister of Works Senator Umahi to work hand in hand to produce iron rod in Ajaokuta and to produce military hardware capabilities in Ajaokuta.
“Whether it is helmets, whether it is bullets, whether it is vests, whether it is pads for tanks of all shapes and all of those things or rifles ammunitions, we will be able to have the capacity to be able to do that.”
However, the minister said that the current administration is committed to revitalising the light steel mill of the steel complex to be able to produce iron rods.
According to him, it will cost between two to five billion dollars to revamp the entire complex based on the estimate by experts, with the light steel mill section costing about N35 billion.
The minister also disclosed that President Bola Tinubu gave him approval to raise money locally to revive the light steel mill section of the steel plant.
He stated that the N35 billion investments on the steel plant will help it produce 50,000 tons of iron rods with the capacity to go up to 400,000 tons.
Audu identified lack of political will as one of the major reasons why the Ajaokuta Steel Mill has not functioned for over 40 years.
I think part of the issue is that there has been no political will. This is the first time in our 63-year history since independence that the President of the Federal Republic of Nigeria has created a Steel Ministry.
“He understands the industrial revolution will hinge on the Ministry of Steel. There were some concessions done in the past where concessionaires brought in didn’t have the skills required to be able to carry out the job, so those were some of the challenges,” he said.
The minister revealed the termination of the latest concession with Global Steel, resulting in the Nigerian government paying approximately $496 million to conclude the agreement with the Indian company.