Business

Tinubu Receives Briefing On $10bn Investment In Nigeria’s Steel Sector

President Bola Tinubu, on Thursday, met with the Minister of Steel Development, Prince Shuaibu Abubakar Audu, and his Defence counterpart, Alhaji Mohammed Badaru, during which he received briefing on investment prospects in the steel sector.

The President, at the meeting held at the State,House, Abuja, 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 him: “We will remain unyielding in our determination to build a Nigeria where every citizen has an equal opportunity to prosper and achieve their dreams. New investments in steel production will spur the growth of so many sectors. Industrialization 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 two Ministers, according to a statement issued by presidential spokesperson, Ajuri Ngelale, 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, Mr 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.

Audu 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.

He 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 industrialization.

Deji Elumoye in Abuja 

Follow us on:

AriseNews

Recent Posts

Tinubu: Tax Reforms Pro-Poor, Will Eliminate Colonial Assumptions; No Tax without Outcry

President Tinubu has described the tax reform as pro-poor, emphasising its necessity despite resistance from…

3 hours ago

Tinubu: Nigeria’s Lithium, CNG Can Drive Local Automobile Industry, Spur Economic Growth

President Tinubu has highlighted Nigeria’s lithium reserves and CNG potential to attract automobile assembly and…

4 hours ago

Tinubu: No Regrets Removing Subsidies, We Were Spending Our Future

“We were spending our future, not investing,” President Tinubu said, defending the removal of subsidies…

4 hours ago

Tinubu: I Won’t Reduce the Size of My Cabinet, Nigeria is a Large Country

President Tinubu has insisted on retaining his cabinet size, noting that it is necessary for…

4 hours ago

Borrowing Is Not Criminal, President Tinubu Defends 2025 Budget

Tinubu has defended borrowing, calling it essential to correct economic mismatches and invest in long-term…

4 hours ago

Tinubu: I Am Proud Of What My Security Chiefs Are Doing, No Need To Probe Them

Tinubu has said he will not be probing Nigeria’s service chiefs, saying he has confidence…

5 hours ago