Tinubu Receives Briefing on $10bn Investment in Nation's Steel Sector
Says new investments will spur growth in many sectors
President Bola Tinubu, yesterday, met with Minister of Steel Development, Prince Shuaibu Audu, and his defence counterpart, Alhaji Mohammed Badaru, to receive briefing on investment prospects in the steel sector.
During the meeting held at State House, Abuja, Tinubu emphasised that a revitalised steel development industry was both a catalyst for robust economic growth and a doorway to immense opportunities for Nigeria's massive pool of talented entrepreneurs.
The president stated, "We will remain unyielding in our determination to build a Nigeria where every citizen has an equal opportunity to prosper and achieve their dreams. New investments in steel production will spur the growth of so many sectors. Industrialisation will be a reality in our country with sufficient energy and steel.
“Nigerian steel will undergird our economy and other economies in our region in future years. I am glad that members of my cabinet have adopted my approach to attracting new investments and job opportunities for our people. Hard work is the only true pathway. We will not relent."
Audu and Badaru, according to a statement by presidential spokesperson, Ajuri Ngelale, informed the president of their discussions with a Chinese company, Luan Steel Holding Group, to build a new steel plant in Nigeria, as well as plans to commence the production of military hardware at Ajaokuta Steel Plant.
A delegation led by Minister of Defence and Minister of Steel Development had visited Hefei and Guangzhou regions of China to hold business talks with Chairman of Luan Steel Holding Group, Mr Wang Jianbing; Chief Executive Officer of the Company, Mr Xiao Weizhan; and other senior executives of Luan Steel Holding Group.
The Chinese company is expected to invest billions of dollars in Nigeria to build the new steel plant.
Audu briefed the president following his approval for the restart of work at the Light Steel Mill (LSM) section of Ajaokuta Steel Complex for the production of iron rods, which will cost N35 billion at the first stage.
He said several financial institutions had already provided offer letters for this transaction and the project was expected to create up to 5,000 direct and indirect jobs for Nigerians.
The minister also informed the president of discussions with the representatives of Jindal Steel Group of India.
Jindal Steel Group had indicated interest in investing up to $5 billion in a new steel plant in Nigeria on the side-lines of the G20 meeting in New Delhi, India, in September, 2023. The company was now considering either to acquire existing plants or set up greenfield plants.
According to the minister, upon the completion of these deals, about $10 billion worth of new investments in both new and existing steel plants in Nigeria will be established.