The Federal Government has assured that it will conclude and sign an agreement with a Chinese company for the revival of the Ajaokuta Steel Company before the end of 2026.
Minister of Steel Development, Sha’ibu Abubakar Audu, gave the assurance when he was featured as a guest on the NTA Network programme Good Morning Nigeria.
According to the minister, the current administration has taken several steps to revive the long-idle steel complex, noting that the Tinubu administration has prioritised securing credible technical and financial partners to revive Ajaokuta Steel, and discussions with a Chinese investor have reached an advanced stage.
He described the steel sector as the backbone of industrialisation in any serious economy, adding that the government is seeking private investment because it cannot solely fund the estimated cost of reviving the steel plant.
“For Ajaokuta Steel Company, like you know, it was established in 1979. It hasn’t produced any sheet of liquid steel since its inception. So, what we did in this administration over the last three years is we took a number of measures.”
“The first thing that we did was we have now engaged with serious partners to revive and bring in funding for the resuscitation of Ajaokuta. We are now in very, very advanced discussions with some Chinese companies, a Chinese company in particular, and we are confident that before the end of this year we can have an agreement signed for its revival.”
“Ajaokuta will need somewhere between $1.5 billion to $2 billion for its revival.”
The minister explained that the Federal Government requires a partner with the financial capacity, proven execution record and technical expertise to successfully restore the steel complex to full operation.
