The Minister of Steel Development, Shuaibu Audu, announced on Thursday that the light section mill of Ajaokuta Steel will soon supply 400,000 metric tonnes of iron rods annually, supporting nationwide road construction projects. This revelation came during a press briefing in Abuja, reviewing the performance of President Bola Tinubu’s administration over the past year.
Audu disclosed that President Tinubu has approved the revival of the light section mill at Ajaokuta Steel, with an initial capital injection of N35 billion from a private financial institution. This initiative aims to bolster the Ministry of Works’ extensive road construction agenda, spanning Nigeria’s six geopolitical zones.
“We are at the final stage of raising over N35 billion from a local financial institution, which is about $25 million, to restart the light section mill of the complex so that we can produce iron rods. That light section mill has the capacity to produce up to 400,000 metric tonnes of iron rods per annum,” Audu stated.
He highlighted the collaboration with the Minister of Works, David Umahi, noting that 40,000 metric tonnes of these iron rods will be allocated for road construction across the country. With approximately 30,000 km of roads currently under construction, an estimated 7 million metric tonnes of iron rods will be required over the next four years.
Although Ajaokuta’s capacity is a fraction of this requirement, the mill’s revival is seen as a crucial step in reducing Nigeria’s dependency on imported steel. Audu elaborated, “I have been working very closely with the Minister of Works, Mr. David Umahi, so that we can provide iron rods to the ministry as part of the concrete road revolution of President Bola Tinubu.”
“There are so many roads being constructed across the country, about 30,000 km across the six geopolitical zones. We understand that the Ministry of Works needs about seven million metric tonnes of iron rods over a four-year period to construct the 30,000 km of roads. Ajaokuta can produce 400,000 metric tonnes which is a drop in the ocean of what is required. But because it is an important asset, the president is keen on us getting Ajaokuta to work and being able to produce some of these iron rods that are required by the federal government,” Audu said.
The minister also emphasised the broader economic implications of reviving Ajaokuta Steel, a project initiated in 1975 during the presidency of Shehu Shagari but left dormant for decades. “Reviving Ajaokuta will cost between $2 billion and $5 billion,” he noted, underscoring its potential to meet all of Nigeria’s steel needs.
Currently, Nigeria spends about $4 billion annually on steel imports. The government’s efforts to restart Ajaokuta aim to transform this economic drain into a source of national strength, reducing reliance on foreign steel and fostering economic self-sufficiency.
