The Federal Government has announced plans to investigate the ongoing crisis between Ajaokuta Steel Company and the Transmission Company of Nigeria (TCN) regarding a N33 billion debt.
Shuaibu Audu, the Minister of Steel Development, revealed this after a meeting with President Bola Tinubu at the Presidential Villa, Abuja.
TCN had disconnected Ajaokuta Steel from the national grid, citing an alleged N33 billion unpaid electricity bill accumulated over the years.
Minister Audu expressed concern over the substantial electricity consumption figure and questioned its rationale, especially considering Ajaokuta Steel is not operating at full capacity.
He acknowledged the challenges of reviving Ajaokuta Steel and highlighted the need for support from various government agencies.
The minister emphasized the gradual nature of the revival process, citing the complexity of restarting a plant inactive for 45 years.
Audu outlined plans to sit down with stakeholders, including electricity companies, to develop a plan for resolving the crisis and restoring normalcy.
He stressed that the efforts to revive Ajaokuta Steel require the support of the entire government apparatus and other stakeholders.
“This is an institution, a plant that has not been working for 45 years. It is a difficult task to try and get it back on track.
“So, we need the support of the entire government apparatus; we need the support of stakeholders to be able to do this difficult job,” the minister said.
In addition, the minister discussed the approval from the President for the Ministry to raise about N35 billion to restart the light steel section of the Ajaokuta Steel Plant.
He added that the initiative is part of the broader plan to revitalize the steel plant and create jobs for Nigerians.
