• Sunday, February 25, 2024
businessday logo


FG partners UBA, Stanbic IBTC on N35bn fund to revive Ajaokuta steel mill

Reps urge FG to make Ajaokuta steel company operational

As part of move to revive Ajaokuta Steel Mill located in Ajaokuta, Kogi State, the Federal Government has begun talks with some partners, including the United Bank of Africa (UBA), Stanbic IBTC Bank and Voda Infrastructure Management Limited, striking a multilateral finance agreement in the region of N35 billion.

Shuaibu Abubakar Audu, the minister of steel development, who disclosed the move by Federal Government through the Ministry of Steel Development while playing host to Wole Adeniyi, managing director of Stanbic IBTC Bank in Abuja, noted that the multilateral finance agreement was undertaken as part of effort to revive the nation’s moribund iorn and steel sector with a view to improving industrialization in the country.

According to him, it has become imperative to seek funding of about N35 billion to enable Federal Government re-start the light mill section of the Ajaokuta Steel Plant for the production of iron rod.

Read also: Why Ajaokuta Steel Company needs urgent revival, by University lecturer

He stated that the Ministry had already had an existing agreement with the Federal Ministry of Works to be off-takers of the iron rod produced as well as with the Ministry of Defence to build a Military Complex in Ajaokuta for adequate, security, saying “We have huge opportunities in Ajaokuta and potentially a lot can be achieved.”

Wole Adeniyi, managing director, Stanbic IBTC Bank, said that bank was willing to partner with the ministry, stressing on the need for Ministry to provide more details for their consideration towards realizing the project.

Also, a press statement issued from the Press & Public Relations Department of the Ministry, indicated that the minister of steel development had also met with the management of United Bank for Africa(UBA) and Voda Infrastructure Management Limited in order to ensure that funds are raised for the immediate take-off of the project for sustainable development of the steel sector.