The Minister for Steel Development, Shuaib Abubarkar-Audu, has announced that Ajaokuta town and its surrounding area will soon be designated as a Free Trade Zone.
A proposal to this effect has been sent to President Bola Tinubu for consideration and approval.
This move is part of the government’s efforts to incentivize foreign investors who have expressed interest in investing in the country’s steel industry.
The designation of Ajaokuta as a Free Trade Zone is intended to provide additional benefits to attract these investors.
The minister made this announcement during his visit to the Ajaokuta Steel Company Limited, where he toured the complex with investors from the United States, Germany, Russia, and China.
Abubarkar-Audu explained that the purpose of the visit was to showcase the vast potential of Nigeria’s steel resources and the prospects it offers, as well as to assess the challenges hindering production at the Ajaokuta Steel Company and propose solutions.
He emphasized that if Ajaokuta Steel Company is operated efficiently, it has the potential to create over 500,000 jobs, which could significantly impact poverty reduction in Nigeria.
The minister also revealed that foreign investors would conduct an advanced technical audit of the steel complex and its facilities to determine the necessary steps to revitalize the company.
“We have the Russians, Americans, Arabs, and Chinese who are showing interest. They have come to show their desire to carry out an advanced technical audit to see what needs to be completed. After my findings from here, we will forward everything to Mr President for his approval,” Abubarkar-Audu said.
He further outlined that there is a three-year plan and a five-year plan in place to ensure the production of steel not only at Ajaokuta but also in other parts of the country.
The Chief Executive Officer of the Ajaokuta Steel Company Limited, Sumaila Abdul-Akaba, expressed gratitude to the President for prioritizing the revival of the company. He commended the minister for his vision and plans to rejuvenate the company, highlighting the abundant opportunities in Ajaokuta.
A foreign investor from Novostal-M Company in Russia, Mr. Jalil Hkoodshoev, praised the President’s initiatives to revive the company.
He noted that with the prospects he had seen on the ground, his company was interested in investing in Ajaokuta.
Hkoodshoev emphasized that the revitalization of the company would have a significant impact not only on Nigeria but also on the entire West African and African regions.
“It is amazing and I think that the initiatives that have been taken by His Excellency, the President of Nigeria will have a big impact not only for Nigeria but all the sub-region and all of Africa. I hope that in the next couple of years, we can participate also as partners of the government for this project, and for the steel business,” Hkoodshoev said.