NCDMB Plans to Invest in $1.45bn Ajaokuta Steel Revitalisation Project

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The Nigerian Content Development and Monitoring Board (NCDMB), has said it was open to discussions around investment opportunities aimed at reviving the ailing Ajaokuta Steel Company, in Kogi State.

Executive Secretary, NCDMB, Mr. Simbi Wabote, stated this at a media briefing on the 2021 virtual Nigeria Oil and Gas Opportunity Fair(NOGOF) holding May 25 to 26 May, with the theme ‘‘Leveraging Opportunities and Synergies for Post Pandemic Recovery of the Nigerian Oil and Gas Industry.

Wabote said that over 80 per cent input for oil and gas projects was steel, saying the country continues to lose huge forex earnings due to the importation of steel as a result of a non functional steel sector in the country.

‘‘If the opportunity presents itself and the economics is right, why not. The current administrator of Ajaokuta steel was a colleague in Shell and l know him. For now, they are struggling with a lot of things but as soon there is clarity, we may consider the option.

“We only get involved in things that are very clear to us because we want to invest wisely. Though investment is a risk but still at that, we must be sure that we can get it 70 per cent right. Certainly, it is an area to be looked at.’’

Minister of Mines and Steel Development, Olamilekan Adegbite, had last year, hinted that the resuscitation of the Ajaokuta Steel Company and the National Iron Ore Mining Company (NIOMCO) projects will gulp about $1.45 billion (about N522 billion).

Credit: Sun


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