The Federal Government of Nigeria has initiated discussions with Luan Steel Holding Group, a Chinese firm, to establish a new steel plant in Nigeria.
The plan also includes the construction of military hardware at the Ajaokuta Steel Plant, as part of the government’s efforts to industrialize the country through the steel industry.
A delegation led by the Minister of Steel Development, Shuaibu Audu, along with the Minister of Defence, Mohammed Badaru, and the Permanent Secretary of the Ministry of Steel Development, Mary Ogbe, visited Luan Steel Holding Group in Hefei and Guangzhou Regions of China to explore collaboration possibilities.
The Ministry of Mines had recently sought N35 billion in funding from financial institutions to revive the Ajaokuta Steel Company, aiming to restart the light Steel Mill and kick-start iron rod production.
According to Audu, the trip to China is a crucial step towards realizing the government’s goals of reviving the steel industry, attracting foreign direct investments, boosting the economy, and generating job opportunities.
Audu highlighted the significance of constructing military hardware at the Ajaokuta steel plant in the fight against insecurity and terrorism.
The delegation engaged in discussions with Luan Steel Holding Group’s Chairman, Mr. Wang Jianbing, and CEO, Mr. Xiao Weizhan, expressing interest in setting up a new steel plant in Nigeria and contributing to the Ajaokuta Steel Plant.
The Minister of Defence and his team, including the Permanent Secretary and the Managing Director of Ajaokuta Steel Company, toured Luan steel plants to assess their capabilities and potential collaboration.
Audu expressed optimism, stating, “With all the commitments on the ground, we are optimistic that before the end of President Tinubu’s administration, we will commence commercial steel production in some of the government-owned entities in Nigeria.”
The move signifies a strategic effort to strengthen Nigeria’s steel industry and promote self-sufficiency in military hardware production.
