Nigeria spent $8 billion to import steel into the country annually, hence the urgent need to revamp the Ajaokuta steel company, the Minister of Steel Development, Shuaib Abubakar has said.
Abubakar disclosed this at an interactive session with the House of Representatives Committee on Steel Development in Abuja yesterday.
The minister said the revival of Ajaokuta steel will cost money and a 10 year document for its revival has been written will be presented President Bola Tinubu
He said the federal government paid $500 million to terminate the concessional agreement of Ajaokuta, adding that the ministry was working very hard to find a solution to Ajaokuta steel.
The minister said funding remains a big challenge to the development of the steel industry which is the bedrock of industrialisation but requires adequate funding.
He said the $2 billion being requested to receive the moribund steel company was just a preliminary calculation, noting that the figure might be less.
“This is an estimate that may not be accurate at the last decimal point. It is just a process that will allow us to arrive at the right destination.
The president has asked me to find a solution to Ajaokuta, so the figure will change pending the outcome of the technical audit.
“It’s clear to Nigeria that for this to happen we need funding and all the help we can get from the two chambers, this is why we need.I need all your support to make this a reality.”
The Committee’s chairman, Hon. Zainab Gimba, requested the ministry to provide it with all the procurement process and other explanations demanded, lamenting that Ajaokuta had remained a nightmare to many.