• Friday, March 01, 2024
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$10bn Steel investment will catalyse economic growth – Tinubu

TCN suspends operations at Ajaokuta Steel over N33bn debt

President Bola Tinubu, on Thursday, applauded the proposed investment of $10 billion investments, which he said will help catalyse economic growth in Nigeria.

Ajuri Ngelale,the special adviser to the President on media and publicity, in a statement, said the President disclosed this when he received briefings from Shuaibu Audu, Minister of Steel Development, and Abubakar Badaru, the Minister of Defence, at the Presidential Villa Abuja on Thursday.

The President emphasized that a revitalized steel development industry is both a catalyst for robust economic growth and a doorway to immense opportunities for Nigeria’s massive pool of talented entrepreneurs.

According to the President, “We will remain unyielding in our determination to build a Nigeria where every citizen has an equal opportunity to prosper and achieve their dreams.

He noted that the new investments in steel production will spur the growth of so many sectors

“Industrialisation will be a reality in our country with sufficient energy and steel. Nigerian steel will undergird our economy and other economies in our region in future years. I am glad that members of my cabinet have adopted my approach to attracting new investments and job opportunities for our people.

“Hard work is the only true pathway. We will not relent,” the President stated.

The Ministers informed the President of their discussions with a Chinese company, Luan Steel Holding Group, to build a new steel plant in Nigeria, as well as to commence the production of military hardware in Ajaokuta Steel Plant.

A delegation led by the Minister of Defence and the Minister of Steel Development had visited Hefei and Guangzhou regions of China to hold business talks with the Chairman of Luan Steel Holding Group, Wang Jianbing; the Chief Executive Officer of the Company, Mr Xiao Weizhan, and other senior executives of the Luan Steel Holding Group.

The Chinese company is expected to invest billions of dollars in Nigeria to build the new steel plant.

The Minister of Steel Development briefed the President, following his approval to restart the Light Steel Mill (LSM) section of Ajaokuta Steel Complex for the production of iron rods, on the progress made on restarting the section, which will cost N35 billion at the first stage.

The Minister said several financial institutions had already provided offer letters for this transaction and that the project is expected to create up to 5,000 direct and indirect jobs for Nigerians.

The Minister of Steel Development also informed the President of discussions with the representatives of Jindal Steel Group of India.

Jindal Steel Group had indicated interest in investing up to $5 billion in a new steel plant in Nigeria on the sidelines of the G20 meeting in New Delhi, India, in September, 2023, and is now considering to either acquire existing plants or set up greenfield plants.

According to the Minister, upon the completion of these deals, about $10 billion worth of new investments in both new and existing steel plants in Nigeria will be established, which will create over 500,000 direct and indirect jobs in the steel industry in line with President Tinubu’s Renewed Hope Agenda for massive job creation through industrialisation.