Nigeria’s Minister of Steel Development Shuaibu Abubakar Audu has stated that the Federal Government has reached an advanced stage in its efforts to revive the long awaited comatose Ajaokuta Steel Plant Project that is located in Kogi state.
This information regarding the project was disclosed by the minister during the weekend while hosting various stakeholders of the All Progressives Congress (APC). This event was held in Kogi State at his country home in Ogbonicha, Ofu Local Government Area of the state.
Ajaokuta Steel Plant Project Factsheet
Location: Ajaokuta, Kogi State, Nigeria
Initial capacity (Phase 1): 1.3 million tonnes of liquid steel every year.
Planned expansion: the expansion is expected to increase capacity to 2.6 million tonnes and further to 5.2 million tonnes per annum in coming phases.
Thermal power plant: 110 MW capacity (2 generators of 55MW each).
Other facilities: the project also entails a lime production plant and an alumino silicate refractory plant. Also, it entails a tar bonded dolomite plant, water treatment and recirculation facilities, extensive gas facilities.
Recent revival efforts:
- President Tinubu’s administration created the Federal Ministry of Steel Development in 2023.
- A Memorandum of Understanding (MoU) was signed with a Russian consortium (including Tyazhpromexport) for rehabilitation, completion, and operation.
- Plans for a full technical and financial audit are in place to attract private investors. This paves way for privatization of the steel plant.
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MOU Signed for the Project
The minister mentioned that the Federal Government has already signed a Memorandum of Understanding (MOU) with the Original Equipment Manufacturers (OEM). Additionally, the minister said that the government has further extended its search for private investors to China to make investments in the steel plant. This move is expected to mark a big step towards the plant’s resuscitation eventually.
“We are doing an amazing job. The journey has kicked off, and we will be able to turn Ajaokuta and deliver results hastily”, Audu mentioned.
Furthermore, he stressed that the move underscored the bold reforms and developmental strides of the President Bola Tinubu-led administration over the previous two years to boom the economy through steel development.
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