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Ajaokuta Steel to Provide 400,000 Metric Tonnes of Iron Rods for Road Construction

Published by admin on May 24th, 2024.

Ajaokuta Steel to Provide 400,000 Metric Tonnes of Iron Rods for Road Construction

Shuaibu Audu, the Minister of Steel Development, announced that Ajaokuta Steel’s light section mill will supply 400,000 metric tonnes of iron rods each year for road construction projects across the country.

This announcement came during a press conference in Abuja, where the performance of President Bola Tinubu’s administration over the past year was reviewed.

Audu stated that President Tinubu has given the green light to restart the light section mill at Ajaokuta Steel, with a N35 billion initial investment from a private financial institution.

This initiative aims to support the Ministry of Works’ extensive road construction efforts in all six geopolitical zones of Nigeria.

“We are in the final stages of securing over N35 billion, approximately $25 million, from a local financial institution to restart the light section mill and produce iron rods. This mill has the capacity to produce up to 400,000 metric tonnes of iron rods annually,” Audu explained.

He highlighted the partnership with the Minister of Works, David Umahi, noting that 40,000 metric tonnes of these iron rods will be dedicated to road construction projects nationwide.

Currently, about 30,000 kilometers of roads are being constructed, requiring around 7 million metric tonnes of iron rods over the next four years.

While Ajaokuta’s production capacity covers only a fraction of this demand, the mill’s revival is seen as a crucial step towards reducing Nigeria’s reliance on imported steel.

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Audu mentioned his close collaboration with Minister of Works David Umahi to ensure that the Ministry of Works receives the necessary iron rods for President Bola Tinubu’s concrete road initiative.

“Numerous roads are under construction across the country, totaling approximately 30,000 kilometers within the six geopolitical zones. The Ministry of Works needs about seven million metric tonnes of iron rods over a four-year period to complete these roads. Although Ajaokuta can only produce 400,000 metric tonnes, a small portion of what is needed, the president is committed to making Ajaokuta operational to contribute to this demand,” Audu noted.

He also discussed the broader economic impact of reviving Ajaokuta Steel, a project initiated in 1975 during President Shehu Shagari’s tenure but has been dormant for decades.

“Reviving Ajaokuta will require an investment of between $2 billion and $5 billion,” he added.

Audu emphasized the significance of the Ajaokuta complex, which, if fully operational, could meet all of Nigeria’s steel demands. Currently, Nigeria spends about $4 billion annually on steel imports. The government’s efforts to restart Ajaokuta aim to transform this economic burden into a national asset.