Olayiwola Matthew
The federal government has entered discussions with the Republic of China to take over the revitalisation of the Ajaokuta Steel Company Limited (ASCL) and the National Iron Ore Mining Company (NIOMCO).
Shuaibu Abubakar, minister of steel development, disclosed this on Tuesday during the opening of the 10th edition of Nigeria’s Mining Week, themed ‘Nigeria Mining: From Progress to Global Relevance,’ held in Abuja.
Abubakar said the move followed the collapse of an earlier agreement with Russia due to the ongoing war with Ukraine. The conflict, he explained, disrupted the execution of a memorandum of understanding (MoU) signed with Tyazhmashpromexport (TPE) in September 2024 to rehabilitate, complete, and operate the Ajaokuta and NIOMCO facilities in Kogi state.
“Mr President will give the final approval based on financial, managerial and technical competencies,” he said, stressing that President Bola Tinubu’s administration remains determined to revive the steel complex after nearly five decades of dormancy.
The minister further revealed that the ministry is close to sealing a partnership with the ministry of defence and the Defence Industries Corporation of Nigeria (DICON) for the production of military hardware components such as rifles, vests, helmets, and bullets at Ajaokuta’s engineering workshop.
“This understanding is to support the defence sector of the Nigeria economy for improved security,” Abubakar added.
He noted that the National Steel Raw Materials Exploration Agency, based in Kaduna, has identified 12 iron ore deposits across the country, which are at different stages of exploration. The agency, he said, is generating resource data to attract more investment into the sector.
Abubakar explained that local steel production would stimulate demand for raw materials like iron ore, limestone, dolomite, refractory clay, and coal, generating broad economic benefits.
He urged private sector investors to take advantage of opportunities in the steel raw materials value chain, assuring that the government is collaborating with key ministries, particularly the ministry of solid minerals development, to drive growth.
According to the minister, the success of the administration’s efforts to attract foreign direct investment into the steel industry will depend on the establishment of a sustainable raw material supply base.