In a strategic move towards industrializing Nigeria and bolstering the steel sector, the Federal Government has initiated discussions with the Chinese company Luan Steel Holding Group.
The focus of these talks involves the establishment of a new steel plant within Nigeria’s borders and the commencement of military hardware construction at the Ajaokuta Steel Plant.
A high-profile delegation, including 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, embarked on a visit to Luan Steel Holding Group in the Hefei and Guangzhou Regions of China to delve into the potential collaboration.
This initiative comes in the wake of the Ministry of Mines’ recent plea for a substantial N35 billion funding from financial institutions to resuscitate the dormant Ajaokuta Steel Company.
The collaboration with financial institutions aims to explore optimal financing options for reinvigorating the Ajaokuta Steel Mill and kickstarting iron rod production.
Prince Audu, in a statement, emphasized that the trip to China is a pivotal step in realizing the government’s vision to revive the steel industry in Nigeria.
He asserted that efforts are underway to create an operational steel industry that will attract significant foreign direct investments, stimulate the nation’s economy, and generate hundreds of thousands of job opportunities.
The discussions with Luan Steel Holding Group focused on the establishment of a new steel plant within Nigeria and the involvement of the Chinese company in a segment of the Ajaokuta Steel Plant dedicated to manufacturing military hardware.
Prince Audu highlighted the strategic significance of this plan in contributing to the nation’s fight against 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 further expressed optimism about the commitments made during the discussions, emphasizing the potential commencement of commercial steel production in government-owned entities in Nigeria before the end of President Tinubu’s administration.
As Nigeria explores avenues for economic diversification and national security enhancement, the collaboration with Luan Steel Holding Group signals a significant stride towards rejuvenating the steel industry and reinforcing defense capabilities.