The Federal Government has initiated discussions with the Chinese firm, Luan Steel Holding Group, to establish a new steel plant in Nigeria and begin the production of military hardware at the Ajaokuta Steel Plant.

This initiative aligns with the government’s broader strategy to industrialize Nigeria through the development of the steel industry.

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A delegation comprising the Minister of Steel Development, Shuaibu Audu; the Minister of Defence, Mohammed Badaru, and the Permanent Secretary of the Ministry of Steel Development, Mary Ogbe, visited the Luan Steel Holding Group in the Hefei and Guangzhou Regions of China to explore collaboration opportunities.

Recently, the Ministry of Mines requested N35 billion in funding from financial institutions to revive the dormant Ajaokuta Steel Company.

The collaboration with financial institutions aims to identify optimal financing options for restarting the light Steel Mill in Ajaokuta and initiating iron rod production.

In a statement signed by the ministry’s Head of Press and Public Relations, Salamatu Jibaniya, Audu emphasized that the visit to China is a crucial step toward realizing the government’s goals of revitalizing the steel industry in Nigeria.

The objective is to establish an operational steel industry that attracts significant foreign direct investments, stimulates economic growth, and generates hundreds of thousands of job opportunities.

Audu highlighted that the plan to construct military hardware at the Ajaokuta steel plant is a strategic move to enhance the fight against insecurity and terrorism.

During discussions with Luan Steel Holding Group, the delegation explored various possibilities for setting up a new steel plant in Nigeria and involving the Chinese firm in the Ajaokuta Steel Plant’s military hardware production.

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“We had very meaningful discussions with the Chairman of Luan Steel Holding Group, Mr Wang Jianbing, the Chief Executive Officer of the Company, Mr Xiao Weizhan, and other senior Executives of the Luan Steel Holding Group,” Audu stated.

He expressed optimism about commencing commercial steel production in government-owned entities in Nigeria before the end of President Tinubu’s administration, citing the commitments received from Luan Steel Holding Group and other investors.