The Minister of Works, David Umahi, has disclosed that the government requires $35 billion to begin the statewide construction of concrete roads.
According to The Punch, he added that 16% of the steel required for building Nigeria’s roads with concrete pavement will come from the moribund Ajaokuta Steel Company.
This far-reaching agreement was the focus of discussion when the Works Minister met with the Minister of Steel Development, Shuaib Audu, at the ministry’s headquarters in Abuja.
The meeting emphasized the necessity of coordination, cooperation, and coherence in the implementation of the Federal Government’s action plans for national development, according to a statement released on Tuesday by the minister’s chief press secretary, Orji Uchenna.
The minister stated that the Federal Executive Council will approve the funding that will be obtained through cooperation with a commercial bank.
“How do we reactivate the Ajaokuta Steel?” Umahi said. “We are about to enter a concrete road, of which around sixteen percent is made of steel and thirty percent is made of cement. We decided to face the fact that we would need a large amount of money to get started, and God has given us an idea.
“To begin, we’ll need around $35 billion. It can get challenging if we begin to wait for FG. We looked at our potential profit and return on investment; some of it will go towards bank interest. We’re examining a partnership with a commercial bank but Federal Executive Council has to endorse it. If this could be done, it means Mr President is living up to his words and this is going to be possible.”
The ministers decided to collaborate and plan ways to take advantage of the Ajaokuta Steel Plant’s potential for the advancement of Nigeria’s road infrastructure, according to the statement.
He claimed that by taking advantage of the steel industry’s potential, Nigerians would benefit financially and employment-wise, and global market industrialization would be promoted.
In addition, the former governor of Ebonyi State gave the steel minister his word that he would assist efforts to maximise the Ajaokuta Steel Plant’s potential.
