By Taiwo Ajayi
In a significant stride towards industrializing Nigeria’s steel sector, the Federal Government has initiated discussions with the esteemed Chinese firm Luan Steel Holding Group. This partnership aims to establish a new steel plant in Nigeria and kick-start the production of military hardware at the Ajaokuta Steel Plant, marking a pivotal step in the country’s industrial development efforts.
A delegation comprising the Minister of Steel Development, Shuaibu Audu, the Minister of Defence, Mohammed Badaru, and the Permanent Secretary of the Ministry of Steel Development, Mary Ogbe, undertook a visit to Luan Steel Holding Group in the Hefei and Guangzhou Regions of China to solidify this collaboration.
Recent reports from the Mines ministry indicate a request for N35 billion in funding from financial institutions to revitalize the dormant Ajaokuta Steel Company. This move seeks optimal financing avenues to revive the light Steel Mill in Ajaokuta and commence iron rod production.
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Speaking on this strategic alliance, Audu emphasized that the trip to China stands as a pivotal action towards rejuvenating Nigeria’s steel industry, aligning with the administration’s vision for industrial revitalization.
“This endeavor aims to establish a functioning steel industry that will attract substantial foreign direct investments, bolster the nation’s economy, and generate hundreds of thousands of employment opportunities,” Audu expressed.
Highlighting the significance of the plan to manufacture military hardware at the Ajaokuta steel plant, Audu stressed its potential contribution to combatting insecurity and terrorism within the nation.
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The delegation engaged in fruitful discussions with Luan Steel Holding Group’s Chairman, Mr. Wang Jianbing, and CEO, Mr. Xiao Weizhan, among other senior executives. Audu noted the keen interest expressed by Luan Steel Holding Group in establishing a new Steel Plant in Nigeria and overseeing a segment of the Ajaokuta Steel Plant dedicated to building military hardware in the country.
Audu underscored, “With the commitments secured, we are optimistic that commercial steel production will commence in government-owned entities in Nigeria before the culmination of the current administration’s tenure.”
This collaborative endeavor between the Nigerian government and Luan Steel Holding Group marks a substantial leap towards fortifying Nigeria’s industrial landscape, potentially reshaping the nation’s economic and security spheres in the foreseeable future.
Source: Punch Newspaper
