The Federal Government says it has reached an advanced stage of raising more than N35 billion required to restart the Light Mill Section (LMS) of the Ajaokuta Steel Company.
The Minister of Steel Development, Prince Shuaibu Audu, said this at the Ministerial Sectoral Update on the performance of President Bola Tinubu’s administration in the last one year,on Thursday in Abuja.
Audu said that a presidential approval had been given to raise the amount from a local financial institution, as part of the Tinubu’s administration resolve to boost the economic profile of Nigeria.
“The local financial institution has given us a final offer.
“I have done a cover letter and forwarded the relevant documents to the Minister of Finance to be able to take the financing on behalf of the Federal Government,” he said.
He said that the LSM had the capacity of producing 400,000 metric tonnes of iron rods per annum, and was critical in shoring up industrialisation in Nigeria.
According to him, he is working closely with the minister of works to supply the iron rods needed for road construction projects in the country from the section.
“There are so many roads being constructed in the country, about 30,000km of roads across the six geo-political zones.
“We understand that the ministry of works needs about seven million metric tonnes of iron rods over that four year period (first term) to construct these roads, Ajaokuta can produce 400,000 tonnes,” he said.
There are so many roads being constructed in the country, about 30,000km of roads across the six geo-political zones.
“We understand that the ministry of works needs about seven million metric tonnes of iron rods over that four year period (first term) to construct these roads, Ajaokuta can produce 400,000 tonnes,” he said.