President Tinubu Gets Briefed About $10 Billion Potential Investments In Steel Sector

President Bola Tinubu on Thursday received a briefing on $10 billion investment prospects in Nigeria's steel sector.

Minister of Steel Development Prince Shuaibu Abubakar Audu and Minister of Defense Alhaji Mohammed Badaru held a meeting with the President at the State House in Abuja, where Tinubu stressed on steel sector's development.

"We will remain unyielding in our determination to build a Nigeria where every citizen has an equal opportunity to prosper and achieve their dreams. New investments in steel production will spur the growth of so many sectors," Tinubu said, as per the statement shared on X, formerly known as Twitter.

The President further said that industrialization will be a reality for Nigeria with sufficient energy and steel, adding that Nigerian steel will boost the country's economy alongside other economies in the coming years.

"I am glad that members of my cabinet have adopted my approach to attracting new investments and job opportunities for our people. Hard work is the only true pathway. We will not relent," he added.

During the meeting, the minister informed the President regarding their meeting with Chinese company Luan Steel Holding Group, which will be constructing a new steel plant in the country alongside starting the production of military hardware in the Ajaokuta Steel Plant.

Minister Audu and Minister Badaru led a delegation to China's Hefei and Guangzhou regions to discuss the collaboration with the Chairman of Luan Steel Holding Group Wang Jianbing, Chief Executive Officer of the Company Xiao Weizhan and other senior executives.

The ministers told the President that the Chinese company is expected to invest billions of dollars in Nigeria to build the new steel plant.

After receiving approval from Tinubu to resume operations at the Light Steel Mill (LSM) section of the Ajaokuta Steel Complex for production of iron rods, Audu stated that the initial phase of the project would require N35 billion.

Audu noted that several financial institutions had already provided offer letters for this transaction, noting that this project can create 5,000 direct and indirect jobs for Nigerians.

Minister Badaru also briefed the Tinubu about the talks with the representatives of Jindal Steel Group of India, who indicated an interest in investing up to $5 billion in a new steel plant in Nigeria last year.

Badaru said that Jindal Steel is now considering either acquiring existing plants or setting up greenfield plants, noting that there will be about $10 billion worth of new investments in new as well as existing steel plants in Nigeria once these projects are completed.