President Bola Tinubu has held a meeting with the Minister of
Steel Development, Shuaibu Abubakar Audu, and the Minister of Defence, Mohammed
Badaru, during which he received a briefing on investment prospects in the
steel sector.
Tinubu,
during a meeting with the ministers at the Presidential Villa in Abuja on
Thursday, January 11, emphasised that a revitalized steel development industry
is both a catalyst for robust economic growth and a doorway to immense
opportunities for Nigeria’s massive pool of talented entrepreneurs.
The president said: “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.”
The
ministers, according to a statement issued by the Special Adviser to the
President on Media and Publicity, Ajuri Ngelale, informed President Tinubu of
their discussions with a Chinese company, Luan Steel Holding Group, to build a
new steel plant in Nigeria, as well as to commence the production of military
hardware in Ajaokuta Steel Plant.
A
delegation led by the Minister of Defence and the Minister of Steel Development
had visited Hefei and Guangzhou regions of China to hold business talks with
the Chairman of Luan Steel Holding Group, Wang Jianbing; the Chief Executive
Officer of the company, Xiao Weizhan, and other senior executives of the Luan
Steel Holding Group.
The
Chinese company is expected to invest billions of dollars in Nigeria to build
the new steel plant.
According
to Ngelale, the Minister of Steel Development briefed Tinubu, following his
approval to restart the Light Steel Mill (LSM) section of Ajaokuta Steel
Complex for the production of iron rods, on the progress made on restarting the
section, which will cost N35 billion at the first stage.
The
minister said several financial institutions had already provided offer letters
for this transaction and that the project is expected to create up to 5,000
direct and indirect jobs for Nigerians.
Audu also informed the president of discussions with the representatives of
Jindal Steel Group of India.
According
to him, Jindal Steel Group had indicated interest in investing up to $5 billion
in a new steel plant in Nigeria on the sidelines of the G20 meeting in New
Delhi, India, in September 2023, and is now considering to either acquire
existing plants or set up greenfield plants.
“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, which will create
over 500,000 direct and indirect jobs in the steel industry in line with
President Tinubu’s Renewed Hope Agenda for massive job creation through industrialisation,”
the minister added.