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Tinubu Approves N35bn For Ajaokuta Light Section Mill Restart

President Bola Tinubu has approved a seed capital of N35 billion from a private financial institution for the restart of the light section mill at the Ajaokuta Steel complex. The Minister of Steel Development, Shuaibu Abubakar Audu, disclosed this yesterday in Abuja during a press briefing at the 12-month review of ministers performance.

He said: “We are at the final stage of raising over N35 billion from a local financial institution, which is about $25 million to restart the light section mill of the complex so that we can produce iron rods.” The minister further said Nigeria now spent about $4 billion annually on the importation of steel, which is a critical infrastructure equipment. He said the light section mill would supply around 400,000 metric tonnes of iron rods to the Ministry of Works for road construction across Nigeria upon completion.

He revealed that his ministry was partnering with the Minister of Works, Senator David Umahi, to supply 40,000 metric tonnes of iron rods for road construction across the six geopolitical zones of the country. He noted that the 30,000 km of roads under construction nationwide would need about seven million metric tonnes of iron rods over four years,and added that Ajaokuta could supply 400,000 metric tonnes annually to these projects.

Audu said: “That light section mill has the capacity to produce up to 400,000 metric tonnes of iron rods per annum. “I have been working very closely to the Minister of Works, Mr. David Umahi, so that we can provide iron rods to the ministry as part of the concrete road revolution of President Bola Ahmed Tinubu.

“There are so many roads that are being constructed across the country, about 30,000km roads across the six geopolitical zones. “We understand that the ministry of works needs about 7 million metric tonnes of iron rods over a 4 year period to construct the 30,000 km of roads.

Ajaokuta can produce 400,000 metric tonnes which is a drop in the ocean of what is required. “But because it is an important asset, the president is keen on us getting Ajaokuta to work and being able to produce some of these iron rods that are required by the Federal Government.”

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