Home Business Economy Indian firm to invest $10b in Nigeria’s steel sector – Minister

Indian firm to invest $10b in Nigeria’s steel sector – Minister

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An Indian firm, Jindal Steel Group is working on a $10 billion investment in both new and existing steel plants in Nigeria, which will create over 500,000 direct and indirect jobs in the steel industry in Nigeria.

According to the Minister of Steel Development, Prince Shuaibu Abubakar Audu, who briefed President Bola Tinubu along with his Defence counterpart, Alhaji Mohammed Badaru at the State House, Abuja on Thursday, said that the company is considering to either acquire existing plants or set up greenfield ones in Nigeria following further discussions with its representatives of company, which started on the sidelines of the G20 meeting in New Delhi, India, last September.

Audu briefed the President on the progress made so far, following his approval to restart the Light Steel Mill section of Ajaokuta Steel Complex for the production of iron rods, which will cost N35 billion at the first stage.

The minister said that several financial institutions had already provided offer letters for this transaction and that the project is expected to create up to 5,000 direct and indirect jobs for Nigerians.

The ministers informed the President of their discussions with a Chinese company, Luan Steel Holding Group, to build a new steel plant in Nigeria, as well as to commence the production of military hardware in Ajaokuta Steel Plant.

A delegation led by both ministers had visited Hefei and Guangzhou regions of China to hold business talks with the Chairman of Luan Steel Holding Group, Mr Wang Jianbing; the Chief Executive Officer of the Company, Mr Xiao Weizhan, and other senior executives of the Luan Steel Holding Group.

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

President Tinubu said that a revitalised steel development industry is both a catalyst for robust economic growth and a doorway to immense opportunities for Nigeria’s massive pool of talented entrepreneurs.

The President further said: “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. Industrialization will be a reality in our country with sufficient energy and steel. Nigerian steel will undergird our economy and other economies in our region in future 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”.

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One Comment

  1. Bebe OGHENE

    12 January 2024 at 9:30 am

    Let them build their plants.Acquiring existing plants was done by OBJ to an Indian consortium. THEY CAME INTO ALADJA STEEL PLANT,DISMANTLE THE KEY COMPONENTS AND SHIPPED BACK TO INDIA.TODAY ALADJA A GHOST OF HIS TRUE SELF.NIGERIA SHOULD LEARN FROM THIS IN UNDERSTANDING INDIANS MENTALITY INTO NIGERIAN INVESTMENT.

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