By Suleiman Abdulmumin
The long-awaited revitalization of the Ajaokuta Steel Industry took center stage at the National Assembly today as Hon. Sanni Egidi, sponsor of the bill for a Special Purpose Trust Fund, made a passionate case for its urgent passage during a public hearing.
Addressing key stakeholders, lawmakers, and industry experts, Hon. Egidi underscored the bill’s objective: to establish a dedicated Special Trust Fund managed by a Board of Trustees and an Implementation Committee—all under direct presidential oversight. The initiative, he stressed, is essential to breaking decades of stagnation and ensuring a structured, transparent, and well-financed approach to completing Nigeria’s largest steel project.
The bill proposes a $2.2 billion investment to fund three critical areas: reactivating and modernizing the steel plant ($800 million), developing associated mines ($410 million), providing external infrastructure ($520 million), staffing, training, and re-training ($270 million), and initial working capital ($200 million). Hon. Egidi emphasized that these investments must be executed simultaneously to avoid repeating past mistakes that led to the industry’s collapse. He noted that previous governments had failed to align infrastructure and mining development with steel plant progress, leading to setbacks such as the 1994 withdrawal of Russian experts due to Nigeria’s failure to meet its obligations.
The lawmaker dismissed claims that Ajaokuta’s blast furnace technology is obsolete, arguing that 72% of global steel production still relies on similar systems. He also rejected the notion that the project should be privatized at this stage, citing failed attempts with SOLGAS and GIL in the past. Instead, he advocated for full government investment before considering privatization, ensuring maximum value for the nation. “Ajaokuta Steel is Nigeria’s key to industrialization,” he stated. “If we fail to act now, this multibillion-dollar investment will turn into a giant scrap yard in the next 5 to 10 years.”
Hon. Egidi outlined the massive economic benefits of a functional Ajaokuta Steel Plant, including boosting automobile production, manufacturing rail tracks, ships, and structural steel, supporting oil, gas, and power industries, and empowering artisans, engineers, and small industries. He called on fellow lawmakers to rise to the occasion, emphasizing that no country has industrialized without a strong steel sector. “India, China, and South Africa have all built their industrial strength on steel. Nigeria must do the same.”
With $6 billion already sunk into the project, Hon. Egidi urged the National Assembly to approve the final $2.2 billion needed to complete the plant, calling it a small price to pay for a fully functional steel industry that will drive Nigeria’s industrialization. “The fate of Ajaokuta—and our economic future—is in our hands. History will remember those who take the bold step today.”
The public hearing concluded with strong backing from industry experts and stakeholders, setting the stage for further legislative action. The bill, if passed, could mark a turning point for Nigeria’s industrial revolution.