The federal government has assured Nigerians of giving life to National Iron and Ore Company, (NIOMCO) after 40 years.
The Minister of Steel Development, Shuaibu Audu, gave the assurance while on tour of the multi-million dollar iron ore complex in Itakpe, Kogi State.
Audu said NIOMCO is a priority to the Tinubu-led administration’s Renewed Hope Agenda and would ensure it works under his tenure
While on inspection of the assets of the company, the minister said his Ministry would ensure the declaration of industrialising Nigeria was achieved as a mandate given to him and the Ministry by the President.
According to him, the President, by making me a pioneer Minister of the Ministry of Steel Development, certain things have to be done to initiate steel production in Nigeria; trying to revive the Ajaokuta Steel Company and the Itakpe Iron Ore Mining Company. These are multi-billion dollar facilities and multi-billion dollar steel plants we have in Kogi State for the benefit of Nigerians.”
Audu revealed that the President promised rolling out thousands of CNG buses that would be powered by gas and distributed to Nigerian workers in both private and public sectors.
He said in the Ministry’s 2024 budget, a recommendation for production of the gas cylinders would be made in order for them to be produced in Itakpe.
Audu added: “What I have seen here clearly in Ajaokuta, components of that gas cylinders for the CNG plant can be made here in Itakpe. Itakpe has a significant role to play in the renewed hope agenda of Mr President.
“We are going to write a budget and the budget that will be hopefully approved by the National Assembly and ultimately signed by Mr. President would have a provision to upgrade some of the plants in Itakpe to enable produce some of the some of the gas cylinders’ components for the CNG buses.”
Similarly, the Sole Administrator of NIOMCO, Augustus Nkechika, said Ajaokuta cannot be relevant in the steel market without NIOMCO, based on the strategic role it plays in steel production as a feeder of raw materials and others.
He, however, lamented the condition of the company and therefore called for serious and deep attention from the government to ensure the place is resuscitated in terms of infrastructure and technology along with Ajaokuta Steel Company
Nkechika said: “The National Iron Ore Mining Company, Itakpe has been a cornerstone of our steel production,and it is imperative that we ensure its infrastructure and technology are up to date.
“A technical audit will help us identify areas for the rehabilitation, improvement, optimize processes, and ensure that we remain competitive in the global steel market.
“Funding; sustainable growth and development in the steel sector depend heavily on funding. To modernize our facilities, acquire cutting-edge technology, and expand our operations, we need adequate funding.
“We could explore both public and private sector investments as well as consider alternative financing mechanisms to ensure that we have the necessary resources to propel this industry forward.”
Nkechika also pointed out other challenges including declining and aging workforce; capacity building; security; and stakeholder engagement.
He expressed optimism that with the visit of the Minister NIOMCO will come alive as he was hopeful that, “We can overcome the challenges and forge a brighter future for the steel industry in Nigeria.”