FG on a revival mission of Ajaokuta steel company

FG on a revival mission of Ajaokuta steel company

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FG on a revival mission of Ajaokuta steel company

Ajaokuta steel company

FG on a revival mission of Ajaokuta steel company. Shuaibu Audu, Minister of Steel Development, has asked N35 billion in assistance from financial institutions to resurrect the dormant Ajaokuta Steel Company.

Audu stated that the partnership with financial institutions intended to seek the best financing solutions for re-starting the Ajaokuta light steel mill and resuming iron rod manufacturing.

Tine-Iulun Maureen, the ministry’s Chief Information Officer, said in a statement that the minister revealed this when he met with a group from Stanbic IBTC Bank on Tuesday in Abuja.

“It has become imperative to seek funding of approximately N35 billion to enable the re-start of the Light Mill Section of the Ajaokuta Steel Plant for the production of iron rod in order to achieve the current administration’s agenda to revive Ajaokuta in phases in accordance with international standards,” the statement said.

“This is in furtherance of achieving its mandate of reviving the steel sector, improving industrialisation in the country, diversifying the economy, providing jobs for the teeming youths and growing the Gross Domestic Product, is collaborating with Financial Institutions, for best financing options to re-start the light Steel Mill in Ajaokuta.”

Audu went on to say that the ministry has an existing agreement with the Works Ministry to be off-takers of the rod produced, as well as an agreement with the Ministry of Defence to build a Military Complex in Ajaokuta, adding, “We have huge opportunities in Ajaokuta and potentially a lot can be achieved.”

Earlier, the CEO of Stanbic Bank, Wole Adeniyi, who was represented by the Head of Industrials, Debola Seriki, stated the bank’s willingness to collaborate with the Ministry while demanding additional specifics for consideration in the project’s implementation.

In the same line, the minister met with top management of United Bank of Africa and Voda Infrastructure Management Ltd to ensure that funds are raised for the prompt start-up of the project for sustainable growth of the steel sector.

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