Kogi gov’t expresses strong support for Nigerian Ajaokuta Special Trust Fund bill
By: Goodluck E. Adubazi, Abuja.
The Kogi State Government has expressed strong support for the proposed bill, emphasizing its potential to drive economic transformation, industrialization, and job creation in Nigeria.
Nigeria’s steel industry is on the verge of a major transformation, thanks to a proposed bill to establish the Nigerian Ajaokuta Special Trust Fund. The bill, sponsored by Hon. Sanni Egidi Abdulraheem, Federal Lawmaker, Representing Ajaokuta Federal Constituency of Kogi State, aims to provide dedicated funding for the completion and operationalization of the Ajaokuta Steel Company, Nigeria’s largest and most ambitious steel project.
Located in Ajaokuta, Kogi State, the steel company was established in 1979 but has remained largely non-operational due to political, financial, and technical challenges. Despite reaching 98% completion in the 1990s, the project has struggled to get back on track.
The proposed trust fund seeks to address these challenges by providing a sustainable financial framework for the project’s completion.
The fund will support the development and procurement of essential raw materials, facilitate investments in mining and processing infrastructure, and promote industrial growth and economic diversification.
At a One-day Public hearing, on Thursday, the 27th of February, 2025, at the House of Representatives New Building, Meeting Room 429, National Assembly, Abuja. Kogi State Governor, His Excellency Gov Ododo Usman, ably represented by the commissioner for Solid Minerals and Natural Resources Kogi State, Hon.Engr. Abubakar Bashir Muhammad Gegu presented a memorandum in support of the bill and the way forward. It stated.
To unlock the full potential of Ajaokuta Steel, Nigeria needs a dedicated funding mechanism, strategic partnerships with the private sector and foreign investors, strengthened legal and policy frameworks, and the development of essential infrastructure.
The Kogi State Government has expressed strong support for the proposed bill, emphasizing its potential to drive economic transformation, industrialization, and job creation in Nigeria.
Ajaokuta Steel Company remains a national asset with the potential to revolutionize Nigeria’s industrial sector. If properly funded and managed, it could become a key driver of economic growth, infrastructure development, and job creation. The revival of Ajaokuta Steel is not just a necessity but a strategic imperative for Nigeria’s industrial future.
Dear Chairman and Honourable Members,
On behalf of the Kogi State Government led by the humble personified and able Governor Ahmed Usman Ododo, I extend my appreciation to the Committee on Steel Development for its efforts in revitalizing the steel industry, particularly in ensuring the completion and operationalization of the Ajaokuta Steel Company.
As the Commissioner for Solid Minerals and Natural Resources in Kogi State, I write to express strong support for the proposed Bill for an Act to Establish the Nigerian Ajaokuta Special Trust Fund. This initiative is critical to securing dedicated funding for the completion of Ajaokuta Steel Company and ensuring a steady supply of the essential raw materials needed for its full commercial operations.
JUSTIFICATION FOR THE ESTABLISHMENT OF THE TRUST FUND
1. Completion and Full Activation of Ajaokuta Steel Company:
The Ajaokuta Steel Company remains Nigeria’s most significant industrial project with the potential to drive economic transformation, industrialization, and job creation.
A dedicated trust fund will guarantee the financial resources required to complete the remaining phases of the project, ensuring its viability and sustainability.
2. Ensuring the Supply of Essential Raw Materials:
The trust fund will support the development and procurement of essential raw materials, including iron ore, limestone, dolomite, and coking coal.
It will also facilitate investments in mining and processing infrastructure to enhance the local supply chain.
3. Promotion of Industrial Growth and Economic Diversification:
The operationalization of Ajaokuta Steel Company will reduce Nigeria’s reliance on steel imports, leading to significant foreign exchange savings.
A functional steel industry will serve as the backbone for the engineering, manufacturing, and construction sectors, stimulating industrial growth across various value chains.
4. Production of Modern Engineering Equipment and Building Materials:
The revival of Ajaokuta Steel will support the production of critical engineering equipment for industries such as transportation, defense, energy, and construction.
The trust fund will also facilitate research and development initiatives to ensure the company’s ability to produce high-quality building materials tailored to national and international market needs.
5. Employment Generation and Skills Development:
A fully operational Ajaokuta Steel Company will generate thousands of direct and indirect jobs, fostering economic empowerment for Nigerians, particularly in Kogi State and the surrounding regions.
The trust fund will support vocational training and capacity-building programs to develop a skilled workforce for the steel industry.
Given the above, “I respectfully urge the Committee on Steel Development to:
1. Expedite the passage of the Bill establishing the Nigerian Ajaokuta Special Trust Fund to ensure immediate funding for the completion of Ajaokuta Steel Company.
2. Ensure that the Trust Fund is managed transparently, with clear guidelines for resource allocation and utilization.
3. Encourage private sector participation and international partnerships in the Trust Fund to attract additional investments and technical expertise.
4. Provide legislative backing for a sustainable supply chain by supporting policies that enhance raw material exploration, mining, and processing in line with global best practices.
“Kogi State, as the host of the Ajaokuta Steel Company and a key stakeholder in Nigeria’s solid minerals sector, remains committed to working with the Federal Government and relevant institutions to ensure the success of this initiative” he added.
The Commissioner appreciates the Committee’s dedication to steel development and looks forward to positive legislative action that will set Nigeria on the path to becoming a global player in the steel industry.
In attendance were, Rt. Hon. Speaker, House of Representatives, Hon. Tajudeen Abbas, GCON, ably represented by Hon. Shettima Lawal, Chairman, Committee on Steel Development, Hon. Zainab Gimba PhD, amongst other distinguished Honourable members, and CSOs
