UBA, Stanbic, Others Partner FG with N35bn Fund to Revive Ajaokuta Steel Mill

UBA, Stanbic, Others Partner FG with N35bn Fund to Revive Ajaokuta Steel Mill

  • The FG is collaborating with some banks in an ambitious plan to revive the Ajaokuta Steel Mill
  • According to the report, the project will cost the FG and its partners funding of about N35 billion
  • The FG added that the multilateral finance agreement is a step at revitalising the dormant iron and steel sector

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

In a bid to revive the Ajaokuta Steel Mill situated in Ajaokuta, Kogi State, the federal government has initiated discussions with various partners, including the United Bank of Africa (UBA), Stanbic IBTC Bank, and Voda Infrastructure Management Limited.

They are currently in the process of finalising a multilateral finance agreement amounting to approximately N35 billion.

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Ajaokuta Steel Mill
The minister emphasised that the multilateral finance agreement is a strategic step aimed at revitalising the nation's dormant iron and steel sector Photo credit - StateHouse, EnergyHouse
Source: UGC

Shuaibu Abubakar Audu, the Minister of Steel Development, revealed this collaborative effort by the federal government through the Ministry of Steel Development while meeting with Wole Adeniyi, the Managing Director of Stanbic IBTC Bank in Abuja.

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This development follows FG's earlier announcement of a plan to rehabilitate the moribund steel company in the next three years.

FG determined to revive Ajaokuta Steel

The minister emphasised that the multilateral finance agreement is a strategic step aimed at revitalising the nation's dormant iron and steel sector, ultimately contributing to the country's enhancement of industrialisation.

He emphasised the necessity of securing approximately N35 billion in funding to facilitate the restart of the light mill section at the Ajaokuta Steel Plant, with a specific focus on iron rod production.

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According to Leadership, the minister highlighted that the ministry has established agreements with the Federal Ministry of Works, designating them as off-takers for the produced iron rods.

Additionally, collaborations with the Ministry of Defence are in place to construct a Military Complex in Ajaokuta, ensuring adequate security.

He expressed optimism about the significant opportunities present in Ajaokuta, emphasising the potential for substantial achievements in the region.

It would be recalled that in September 20233, the Presidency announced successfully securing a historic investment pledge of $3 billion from Indian investors for the steel company.

Banks ready to fund the project

Wole Adeniyi, the Managing Director of Stanbic IBTC Bank, expressed the bank's readiness to collaborate with the ministry.

He underscored the importance of the ministry furnishing additional details for their thorough consideration in advancing the project.

Furthermore, a press statement from the Ministry's Press & Public Relations Department revealed that the Minister of Steel Development held discussions with the management of the United Bank for Africa (UBA) and Voda Infrastructure Management Limited.

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The objective is to secure funds promptly for the project's immediate commencement, aiming for the sustainable development of the steel sector.

Senator Akpoti-Uduaghan reveals how Ajaokuta Steel can help aviation sector

In related news, Legit.ng reported that the senator from Kogi Central, Natasha Akpoti-Uduaghan, envisions the production of aircraft spare parts in Kogi state through the revitalization of the Ajaokuta Steel company.

The Senator advocates for a strategic partnership between the aviation sector and the Ajaokuta Steel Company, emphasizing the potential for industrial collaboration.

In a communication provided to Legit.ng, the senator highlights the need for Nigeria to channel investments into enhancing capabilities in progressive sectors like aviation and aerospace industries.

Source: Legit.ng

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