Nigeria’s President Bola Ahmed Tinubu has been briefed on promising investment opportunities worth $10 billion in Nigeria’s steel sector.
During a meeting at the State House in Abuja, President Tinubu, alongside the Minister of Steel Development, Shuaibu Abubakar Audu, and the Minister of Defence, Mohammed Badaru, received insights into the investment prospects within the steel sector.
The President underscored the role a revitalised steel development industry plays in fostering robust economic growth and creating vast opportunities for Nigeria’s skilled entrepreneurs.
“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.”
“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,” expressed the President.
The Ministers informed President Tinubu about discussions with Lu’an Steel Holding Group, a Chinese company, to establish a new steel plant in Nigeria and initiate the production of military hardware at the Ajaokuta Steel Plant.
During a delegation visit to China, led by the Ministers of Defence and Steel Development, discussions were held with Lu’an Steel Holding Group, highlighting the Chinese company’s commitment to investing billions of dollars in Nigeria for the construction of the new steel plant.
Additionally, the Minister of Steel Development updated the President on progress made to restart the Light Steel Mill (LSM) section of the Ajaokuta Steel Complex. The project, expected to cost N35 billion in the initial stage, has received offer letters from various financial institutions and is projected to generate up to 5,000 direct and indirect jobs.
Moreover, discussions with representatives of India’s Jindal Steel Group were also presented to the President. Jindal Steel Group had previously expressed interest in investing up to $5 billion in a new steel plant in Nigeria during the G20 meeting in New Delhi in September 2023. The group is now contemplating acquiring existing plants or establishing greenfield plants.
Upon the completion of these agreements, the Minister estimates that approximately $10 billion in new investments, spanning both new and existing steel plants in Nigeria, will be established. This initiative aligns with President Tinubu’s Renewed Hope Agenda, aiming for significant job creation through industrialization, potentially generating over 500,000 direct and indirect jobs in the steel sector.