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44 years after, Nigeria sets fresh 3-year revival plan for moribund steel plant, Ajaokuta

Published

1 year ago

October 8, 2023

Nigeria’s Minister for Steel Development, Shuaibu Abubakar Audu has revealed that plans are on for revival of the moribund Ajaokuta Steel Plant located in Kogi State.

“The Ministry of Steel Development is working on a Road Map that will contain a 3-Year Revival Plan for the revitalization of the Ajaokuta Steel Plant as well as contain a recommendation to designate the Plant Area as an Industrial Park that would be a Free Trade Zone to attract local and international investors”, he said.

Nigeria’s revenue from its mineral resources has been affected lately by industrial-scale oil theft in Niger Delta and increasing cases of illegal mining in some other parts of the country, notably in Zamfara and Osun states.

The ministry, in a statement on Saturday, said the government was committed to ensuring that the plant began production for the industrialization of the country, creation of jobs and wealth, and attracting foreign direct investment.

The minister further said the steel plant which had been moribund for about 45 years would be resuscitated so as to begin production before the end of President’s Tinubu’s tenure. He noted that the plant when revived, would be beneficial to all as it would create about 500,000 jobs for Nigerian youths.

Speaking further, Prince Audu stated that the purpose of the facility visit was to ascertain the operational and non-operational level of the plant and make recommendations on how to turn the plant around to begin production, noting that production of steel sheets from the Ajaokuta Steel Plant would be a significant achievement for the administration, a feat that has not been achieved in over 45 years.

A Raw Material Research Development Council had in 2022 claimed Nigeria was yet to establish a stable iron and steel sector despite the huge investment of over $ 7 billion already expended on steel development.

The country has continued to import steel despite heavy investment in the sector. Reports say

Nigeria imported $1.18 billion worth of steel materials in 2020, and imported iron, steel and metals, valued at N837.76 billion in the 3rd and 4th quarters of 2021.

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VenturesNow

IMF mission concludes 4th loan program assessment in Egypt

Published

6 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

VenturesNow

Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.