By Felix Omoh-Asun
The federal government has initiated a bold drive to reactivate the steel and aluminum sector in the country.
Towards this end, a new $465 million investment is in the pipeline. The proposal is in under review to restore the Aluminium Smelter Company in Ikot-Abasi to full capacity within six years, while Premium Steel and Mines is set to begin Delta Steel rehabilitation within 18 months.
President Bola Tinubu made his known while speaking at the Inaugural Stakeholders Summit on the Development of the Steel Sector in Abuja recently.
He said this fresh investment commitments and timelines for reviving Nigeria’s steel and aluminium industries, with key projects, are expected to come onstream within the next six years.
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President Tinubu, represented by Vice President Kashim Shettima said the reforms target the restoration of major industrial assets, including Ajaokuta Steel Company, Aluminium Smelter Company of Nigeria, National Iron Ore Mining Company, and Delta Steel Company (now Premium Steel and Mines).
Sounding poetic, he said: “For nearly 50 years, we have nurtured the dream of becoming a regional steel powerhouse. We are not here to mourn missed opportunities; we are here to make the future.”
The President disclosed that a Memorandum of Understanding (MoU) has been signed with Tyazhpromexport (TPE) and partners to rehabilitate and operate Ajaokuta and the National Iron Ore Mining Company. A technical and financial audit of Ajaokuta, approved by the Bureau of Public Procurement, will guide investor selection, he said.
Other initiatives include the Construction of five mini-LNG plants worth over $500 million in partnership with NNPC Ltd and the private sector; an agreement with the Ministry of Defence to produce military hardware at the Ajaokuta Engineering Workshop; Plans for an Industrial Park and Free Trade Zone with a gas park and military-industrial complex in Ajaokuta.
According to him, Stellar Steel (Inner Galaxy Group) will invest $400 million in a new Ewekoro plant to produce hot-rolled coils and plates.
Tinubu said the government’s target is to produce 10 million tonnes of liquid steel annually by 2030 and create over 500,000 jobs.
“Government can lead, but the private sector must invest, academia must innovate, and skilled workers must emerge,” he added.
