FG Collaborates with Chinese Company for the Establishment of a New Steel Plan

The Nigerian Federal Government has initiated talks with the Chinese firm, Luan Stolding Group, to establish a new steel plant in Nigeria. Additionally, discussions are underway to commence the production of military hardware at the Ajaokuta Steel Plant. These developments stem from a delegation visit, including 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, during their tour of Luan Steel Holding Group in Hefei and Guangzhou Regions of China.

The government has emphasized collaboration with financial institutions to explore optimal financing options for restarting the light Steel Mill in Ajaokuta and initiating iron rod production. Minister Shuaibu Audu, in a statement by the ministry’s Head of Press and Public Relations, Salamatu Jibaniya, highlighted that the trip to China is a strategic step toward realizing the administration’s vision of revitalizing the steel industry in Nigeria.

The minister affirmed the ongoing efforts to establish an operational steel industry, attracting significant foreign direct investments, stimulating the national economy, and generating hundreds of thousands of job opportunities. He emphasized that the proposed construction of military hardware at the Ajaokuta steel plant is a crucial aspect of the plan, contributing to the nation’s fight against insecurity and terrorism.

During the visit, productive discussions were held with Luan Steel Holding Group’s Chairman, Mr. Wang Jianbing, and the Chief Executive Officer, Mr. Xiao Weizhan, along with other senior executives. Luan Steel Holding Group, like numerous international and local investors, has expressed interest in establishing a new steel plant in Nigeria and participating in the Ajaokuta Steel Plant’s military hardware production for Nigeria.