Nigeria’s President Muhammadu Buhari revealed that the process of reviving the Ajaokuta Steel complex through a concession includes multiple benefits to Nigerians ranging from over 500,000 estimated jobs and more than $1.6 billion in annual income to the Nigerian economy.
The President disclosed this during a visit to the Palace of the Ohinoyi of Ebiraland, Okene, Kogi on Thursday.
Buhari also revealed the concession process of the Ajaokuta Steel process has cost the Federal Government over $ 400 million.
Unlocking Great Potential: President Buhari stated that no other project in Nigeria holds the key to unlocking this vast potential as much as the Ajaokuta Steel Complex, he said:
- “No other single project holds the key to unlocking this vast potential as much as the Ajaokuta Steel Complex which we inherited as a long moribund complex strangulating under a tangle of local and international commercial disputes.
“I am glad to report that as we begin to round off in office, we can genuinely say that our administration has rescued Ajaokuta from all legal disabilities.
Time to concession: He added that the concession of the steel plant will be a private sector-based initiative, citing that FG has spent over $300 million in its costs so far.
- ”It is now ready for concessioning to a private investor with the right profiles to put it to work for Nigeria in general and Kogi in particular.”
”The process has cost this Federal Government over 400 million dollars so far, but I consider it money well spent as we move closer to achieving our objective of transforming Kogi State into Nigeria’s iron and steel powerhouse.”
Benefits: President Buhari revealed the benefits of Ajaokuta when the concession process includes $1.6 billion in annual income to the economy.
- “The benefits of getting Ajaokuta Steel Complex working again are numerous. It would provide over 500,000 estimated jobs and more than $1.6 billion in annual income to the Nigerian economy.
- ”Nigerians can rest assured that I remain committed to seeing this process to a logical conclusion before the end of my tenure in office.”
President Buhari also noted that Kogi is important for Nigeria’s trade and economic value chains citing the 614 km (384 mile) AKK gas pipeline which passes through the state when operations start in 2023.
What you should know
Nairametrics reported last month that President Muhammadu Buhari revealed the federal government appointed a transaction adviser for the concession of the Ajaokuta Steel Company and the Nigerian Iron Ore Mining Company, Itakpe.
He said a selection process is in the works, as the FG is committed to growing Nigeria’s steel industry.
The president also stated that the FG’s commitment to Nigeria’s mineral sector has led to a comprehensive Roadmap for the growth and development of the Nigerian Mining Sector, noting his administration has committed more resources to the development of the mining sector than any other government in the history of this country, citing that huge investment in the mining sector had yielded positive results over time.