Luan Steel of China and Jindal Steel of India to build steel plants in Nigeria and restart Ajaokuta
President Bola Tinubu recently had a meeting with the Minister of Steel Development, Prince Shuaibu Abubakar Audu, and the Minister of Defence, Alhaji Mohammed Badaru, at the State House in Abuja. During the meeting, they discussed the investment prospects in the steel sector and the importance of revitalizing the industry.
The President highlighted that a thriving steel development industry not only contributes to robust economic growth but also provides immense opportunities for Nigeria’s talented entrepreneurs. He expressed his commitment to creating a Nigeria where every citizen has an equal chance to prosper and achieve their dreams. The President believes that new investments in steel production will stimulate the growth of various sectors and lead to industrialization in the country. He emphasized the significance of sufficient energy and steel in driving the economy, not only in Nigeria but also in the region.
The Ministers informed the President about their discussions with Luan Steel Holding Group, a Chinese company. They discussed plans to build a new steel plant in Nigeria and initiate the production of military hardware at the Ajaokuta Steel Plant. A delegation, led by the Minister of Defence and the Minister of Steel Development, visited Hefei and Guangzhou regions of China to hold business talks with the Chairman and CEO of Luan Steel Holding Group, along with other senior executives. The Chinese company is expected to invest billions of dollars in Nigeria for the construction of the new steel plant.
The President was briefed by the Minister of Steel Development regarding the restart of the Light Steel Mill (LSM) section of Ajaokuta Steel Complex. The Minister informed the President that the project would require an initial investment of N35 billion and had already received offer letters from various financial institutions. This initiative is expected to generate around 5,000 direct and indirect job opportunities for Nigerians.
Additionally, the Minister discussed the ongoing discussions with representatives from Jindal Steel Group of India. During the G20 meeting in New Delhi, India, in September 2023, Jindal Steel Group expressed their interest in investing up to $5 billion in a new steel plant in Nigeria. They are currently considering the option of acquiring existing plants or establishing new ones from scratch.
Upon the completion of these deals, Nigeria is set to witness approximately $10 billion worth of new investments in both new and existing steel plants. This significant investment is projected to create over 500,000 direct and indirect jobs in the steel industry, aligning with President Tinubu’s Renewed Hope Agenda for extensive job creation through industrialization.
