At a meeting with Ministers of Steel Development Shuaibu Audu and Defense Minister Mohammed Badaru on Thursday at the State House in Abuja, President Bola Tinubu was briefed on investment opportunities in the steel industry.
The president emphasized that a revitalized steel development sector opens up a world of opportunity for Nigeria’s plethora of gifted entrepreneurs and acts as a driver for strong economic growth.
“We’re going to be unwavering in our resolve to create a Nigeria where every person has an equal chance to thrive and realize their potential.
“New investments in the steel industry will support the expansion of several industries. When there is enough energy and steel in our nation, industrialization will become a reality.
“In the coming years, the economies of our region and ourselves will be supported by Nigerian steel.” I’m happy that my cabinet colleagues have embraced my strategy for drawing in fresh funding and employment prospects for our citizens. The only genuine route is hard labor. We’re not going to give up,” the president said.
The president was briefed by Messrs. Audu and Badaru about their talks with Luan Steel Holding Group, a Chinese business, about the construction of a new steel mill in Nigeria and the start of military hardware production at Ajaokuta Steel mill.
A group led by the ministers visited the Hefei and Guangzhou areas of China to have commercial negotiations with the Chairman of Luan Steel Holding Group, Wang Jianbing; the Chief Executive Officer of the firm, Xiao Weizhan, and other top executives of the Luan Steel Holding Group.
It is anticipated that the Chinese corporation would develop the new steel mill in Nigeria with billions of dollars.
After the president gave his consent to resume the Ajaokuta Steel Complex’s Light Steel Mill (LSM) section for the manufacturing of iron rods, the steel minister updated the president on the progress achieved in resuming the segment, which will initially cost N35 billion.
According to the minister, offer letters for this transaction have already been received from a number of financial institutions, and up to 5,000 direct and indirect jobs for Nigerians are anticipated as a result of the initiative.
Additionally, he updated the president on his conversations with the Indian officials of the Jindal Steel Group.
On the fringes of the G20 summit in New Delhi, India, in September 2023, Jindal Steel Group had shown interest in spending up to $5 billion in a new steel mill in Nigeria. The company is now thinking about either buying existing factories or building new ones.
In accordance with President Tinubu’s Renewed Hope Agenda for massive job creation through industrialization, the minister claims that 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. This will result in the creation of over 500,000 direct and indirect jobs in the steel industry.