FG Partners Banks On N35bn Fund To Revive Ajaokuta Steel Mill

As part of move to revive Ajaokuta Steel Mill located in Ajaokuta, Kogi State, the federal government has begun talks with some partners, including the United Bank of Africa (UBA), Stanbic IBTC Bank and Voda Infrastructure Management Limited, striking a multilateral finance agreement in the region of N35 billion.

The minister of steel development, Shuaibu Abubakar Audu,who disclosed the move by federal government through the ministry of Steel Development while playing host to Wole Adeniyi, managing director of Stanbic IBTC Bank in Abuja, noted that the multilateral finance agreement was undertaken as part of effort to revive the nation’s moribund iron and steel sector with a view to improving industrialisation in the country.

According to him, it has become imperative to seek funding of about N35 billion to enable the federal government restart the light mill section of the Ajaokuta Steel Plant for the production of iron rod.

He stated that the ministry had already had an existing agreement with the Federal Ministry of Works to be off-takers of the iron rod produced as well as with the Ministry of Defence to build a Military Complex in Ajaokuta for adequate, security, saying “We have huge opportunities in Ajaokuta and potentially a lot can be achieved.”

Managing director, Stanbic IBTC Bank, Wole Adeniyi,said that the bank was willing to partner with the ministry, stressing on the need for the ministry to provide more details for their consideration towards realising the project.

Also, a press statement issued from the Press & Public Relations Department of the Ministry, indicated that the minister of steel development had also met with the management of United Bank for Africa(UBA) and Voda Infrastructure Management Limited in order to ensure that funds are raised for the immediate take-off of the project for sustainable development of the steel sector.