The Nigerian government has successfully attracted over $10 billion in investments from various investors. The Ajaokuta Steel Complex and National Iron Ore Corporation (NIOMCO) will be revitalized with this investment.
President Tinubu tasked Minister of Steel Development, Shuaibu Audu, with two key objectives since the ministry’s establishment. Specifically, he was tasked to revive the Ajaokuta steel complex and NIOMCO, as well as revitalize the steel industry. Jindal Steel Group has expressed interest in investing up to $5 billion in a new steel plant in Nigeria, announced during the G20 meeting in New Delhi, India, in September 2023.
New and existing steel plants in Nigeria will receive approximately $10 billion in fresh investments. This injection will lead to the creation of over 500,000 direct and indirect jobs in the steel sector. The ministry is close to obtaining a 35 billion Naira investment from private investors. This will allow the ministry to raise private funds to restart the Ajaokuta light section rail. In turn, the ministry will initiate the manufacturing of iron rods.
The Minister of Works and the ministry are working closely together to put this investment to good use. They aim to supply iron rods for the country’s road infrastructure. Additionally, they intend to establish an industrial hub at the Ajaokuta Plant. The plant, which has over 2200 hectares of land, will be the site of this new hub. Additional efforts to revive the sector include engaging with key stakeholders, analyzing global steel markets, developing an internal strategy, and consulting with industry players.
Also, the ministry requires an investment of between $2 to $5 million to develop a comprehensive roadmap and establish the necessary framework for the plant’s revival.
