In a bid to bolster industrialization in Nigeria, the Federal Government has initiated discussions with Luan Steel Holding Group, a Chinese company, to collaborate on building a new steel plant in the country. The partnership also aims to kickstart the construction of military hardware at the Ajaokuta Steel Plant.
A high-level delegation comprising the Minister of Steel Development, Prince Shuaibu Audu, the Minister of Defence, Mohammed Badaru, and the Permanent Secretary of the Ministry of Steel Development, Mary Ogbe, visited Luan Steel Holding Group in the Hefei and Guangzhou Regions of China to explore potential collaboration.
The move aligns with the government’s vision of revitalizing the steel industry in Nigeria, with recent efforts to secure N35 billion in funding from financial institutions to revive the moribund Ajaokuta Steel Company. The collaboration with financial institutions seeks to identify optimal financing options to restart the light Steel Mill in Ajaokuta and initiate iron rod production.
Prince Audu emphasized that the trip to China signifies a strategic step toward realizing the goal of revitalizing the steel industry in Nigeria, attracting substantial foreign direct investments, stimulating economic growth, and generating employment opportunities.
The Minister highlighted that the plan to construct military hardware at the Ajaokuta steel plant is integral to enhancing Nigeria’s security efforts, particularly in combating insecurity and terrorism.
“We had very meaningful discussions with the Chairman of Luan Steel Holding Group, Mr Wang Jianbing, the Chief Executive Officer of the Company, Mr Xiao Weizhan, and other senior Executives of the Luan Steel Holding Group,” said Prince Audu. He added that Luan Steel Holding Group, like several other international and local investors, has expressed interest in establishing a new steel plant in Nigeria and contributing to the Ajaokuta Steel Plant’s capacity to manufacture military hardware.
The delegation, including the Permanent Secretary of the Ministry of Steel Development, Dr Mary Ogbe, and the Sole Administrator/Managing Director of Ajaokuta Steel Company, Mr Sumaila Abdul-Akaba, visited Luan steel plants to gain insights before finalizing decisions.
“With all the commitments on the ground, we are optimistic that before the end of President Tinubu’s administration, we will commence commercial Steel Production in some of the government-owned entities in Nigeria,” concluded the Minister.
