Nigeria Will Have To Pay Between $2 And $5 Billion To Revive The Ajaokuta Steel Mill

Shuaibu Audu, Minister of Steel Development

According to Nigeria's Minister of Steel Development, reviving the shuttered Ajaokuta Steel Mill would only cost $2 to $5 billion.

Shuaibu Audu, the Minister of Steel Development, the cost of reviving the Ajaokuta steel mill is estimated to be between $2 and $5 billion.

The Minister made this statement while touring the National Metallurgical Development Center (NMDC) and meeting with the governor of the state of Plateau. As per the Minister, the government's fragmented approach to reviving the plant was caused by the enormous amount needed to revive the company.

He remarked, “But this administration, under the Renewed Hope mantra of President Tinubu, has demonstrated the political will to revive the steel plant to promote development in the nation. Therefore, he has asked us to look for a concession partner that can take over the technical management of the mill. We are looking for one that has the expertise, in terms of steel production so that the facility can start to produce once again.

“Based on technical analysis, it will cost us between two to five billion dollars to revive the Ajaokuta steel mill, hence we are using a piecemeal approach. So, we are going to first, revive the light steel unit that can produce iron rods; we are at the final stage of signing a N35 billion funding from a local financial institution to commence work.”

The minister stated that he was in Jos to inspect the rolling mill there as well as to assess the National Metallurgical Development Centre's (NMDC) facilities, emphasizing the latter's vital role in advancing the nation's steel manufacturing initiatives.

In an effort to get the Ajaokuta Steel mill operating as soon as possible, the federal government plans to raise N35 billion through local financing. The multi-billion dollar integrated steel plant known as the Ajaokuta Steel Mill was founded in the late 1970s and early 1980s. However, despite the billions of Naira that each administration has spent on staff salaries and other operating costs, the mill has experienced a string of administrative setbacks that have rendered it unusable.