By Our Correspondent in Abuja
Hon. Sanni Egidi Abdulraheem sponsor of the bill for a Special Purpose Trust Fund for Ajaokuta Steel Industry, addressed the public hearing on February 27th, 2025.
He expressed gratitude to the President of the Federal Republic of Nigeria for his commitment to revitalizing the industrial sector.
The bill aims to establish a Special Purpose Trust Fund for the completion of the Ajaokuta Steel Industry, development of key infrastructure, and advancement of the mining sector.
The fund will require $2.2 billion, broken down into reactivation and modernization ($800 million), development of associated mines ($410 million), external infrastructure ($520 million), staffing and training ($270 million), and initial working capital ($200 million).
The bill proposes a Special Trust Fund, a Special Board of Trustees, and a Trust Fund Project Implementation Committee.
These entities will be created and monitored by the Presidency, with appointments to the Board of Trustees made by the Presidency and subject to Presidential confirmation.
Hon. Egidi emphasized the importance of simultaneous and proportional financing of the three spheres of the Ajaokuta Steel Project: the steel plant proper, external infrastructure, and development of associated mines.
The Ajaokuta Federal Lawmaker noted that the Nigerian Government’s failure to adopt this approach has hindered the project’s progress.
He highlighted the need for a multi-sectoral approach to funding the project, citing the Russian exit from the project in 1994 due to the Nigerian government’s failure to match infrastructure development with progress on the steel complex.
Hon. Egidi also addressed misconceptions about the Ajaokuta Steel Plant’s technology being obsolete.
He emphasized that the Russian blast furnace technology is robust, easy to maintain, and labor-intensive, making it suitable for Nigeria’s huge manpower reserve.
According to him, operating only two or three units of the steel complex independently is not feasible due to the complex’s integrated nature.
He emphasized that full financing, rehabilitation, and operation of all five auxiliary service plants are required to operate even a single production unit.
Representative Egidi Abdulraheem emphasized the significance of the Ajaokuta Steel Plant for Nigeria’s industrialization and economic growth, urging his fellow lawmakers to pass the bill, stressing that it presents a historic opportunity to drive infrastructural development, and establish a self-sufficient industrial economy.
(Omanews.com)
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