FG moves to resuscitate ASCO Light Steel Mill, partners UBA, IBTC others for N35bn project financing


From Left: The Representative of the CEO, Stanbic Bank, Debola Seriki, Head, Industrials, Minister of Steel Development, Prince Shuaibu Abubakar Audu, Dolu Olugbenjo, Head, Infra Fund  and David Souza, Head, CIB Credit, during a meeting at the Ministry’s Headquarters to discuss financing options for the revival of the Light Steel Mill in Ajaokuta on Tuesday, in Abuja.


The Federal Government will begin a step-by-step resuscitation of Ajaokuta Steel Company (ASCO), starting with the revival of the Light Mill Section, a statement from the Ministry of Steel Development has said, adding that the ministry has kick-started talks with financial institutions in the country as part of efforts to realize the set goal.

The statement, which was signed by Tine-Iulun M.A, of the Press and Public Affairs Division of the ministry, said the collaboration with IBTC, UBA and VODA Infrastructure Limited aim to raise thirty-five billion Naira facility needed to begin the production of iron rods at the Light Mill Section of ASCO.

According to the statement, ‘the Minister of Steel Development, Prince Shuaibu Abubakar Audu revealed this when he played host to the MD/CEO of Stanbic IBTC Bank, Wole Adeniyi at the Ministry’s Headquarters on Tuesday, 5th of December, 2023 in Abuja.’

The minister said collaboration with financial institutions will help to achieve the mandate of the ministry to revive the steel sector, adding it will also improve industrialization, diversify the economy, provide jobs for the teeming youths and grow the Gross Domestic Product (GDP) of the country.

He explained that ‘collaborating with financial Institutions is for best financing options to re-start the Light Steel Mill in Ajaokuta,’ the minister said, noting that it restoring the Light Mill Section of the Ajaokuta Steel Plant will facilitate the realization of President Bola Tinubu’s Renewed Hope Agenda, adding that the ministry plans to revive Ajaokuta in phases in accordance with its set timelines and benchmark.

Prince Audu disclosed that the Ministry already has an existing agreement with the Federal Ministry of Works to be off-takers of the rod produced as well as with the Ministry of Defence to build a Military Complex in Ajaokuta, adding, Nigeria has huge opportunities in Ajaokuta and potentially a lot can be achieved.

Earlier, the CEO, Stanbic Bank,  Wole Adeniyi, who was represented by Head, Industrials, Debola Seriki, while stating the Banks willingness to partner with the Ministry, enjoined the Ministry to provide more details for their consideration towards realizing the project.

In the same vein, the Minister met top Management of UBA and Voda Infrastructure Management Ltd with a view to ensuring that funds are raised for the immediate take-off of the project for sustainable development of the Steel Sector.

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