Shuaibu Audu, Minister of Steel Development, has stated that Ajaokuta Steel’s light section mill will deliver 400,000 metric tonnes of iron rods to road-building projects around the country each year.
The statement was made during a press briefing in Abuja on Thursday to examine President Bola Tinubu’s ministers’ performance over the last year.
According to Audu, Tinubu has approved the reopening of the light section mill at the Ajaokuta Steel complex, with an initial capital infusion of N35 billion from a private financial institution.
This effort is intended to help the Ministry of Works with its large road development agenda, which covers the country’s six geographic zones.
“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 stated.
Audu highlighted the partnership with the Minister of Works, David Umahi, stating that 40,000 metric tonnes of these iron rods will be utilised for road development throughout the country.
Over the next four years, the country will need nearly 7 million metric tonnes of iron rods to complete the 30,000 km of roads that are presently being built.
Despite Ajaokuta’s capacity being only a quarter of this demand, the mill’s resurrection is viewed as a critical step towards lessening Nigeria’s reliance on imported steel.
In his words:
“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.”
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