The Digest:
The Federal Government has initiated talks with China to revitalize the Ajaokuta Steel Company and the National Iron Ore Mining Company. This move comes after a previous agreement with a Russian firm stalled due to the geopolitical fallout from the war in Ukraine, marking the latest chapter in the effort to awaken a project that has been comatose for nearly five decades.
Key Points:
- The Minister of Steel Development confirmed new talks with China to take over the project.
- This follows the abandonment of a 2024 memorandum of understanding with Russia's Tyazhmashpromexport.
- The Russia deal was hindered by complications from the war in Ukraine.
- Final approval from President Bola Tinubu is pending a review of competencies.
- The government is nearing a deal with the Defence Ministry to produce military hardware at Ajaokuta.
- Twelve new iron ore deposits have been identified across Nigeria to support the sector.
- The minister urged private sector investment in the steel raw materials value chain.
Sources: The Cable
