FG needs $35b for 30,000 km of concrete road, says Umahi

The Federal Government is stepping up the reactivation of Ajaokuta Steel Company as it embarks on the construction of 30,000 kilometers of concrete road nationwide.

The government would need $35 billion to execute the road project that would be sourced creatively for maximum benefit to the country, the Minister of Works, Dave Umahi has said.

Umahi, who spoke after he met with the Minister of Steel on the strategy to be deployed to execute the project, said Ajaokuta Steel Company has become a critical component of the project as the government is determined to tap into the opportunities in the steel Industry to create jobs and wealth for Nigeria’s population as well as create a global market and encourage the nation’s industrialization.

Umahi’s Chief Press Secretary (CPS), Uchenna Orji, in a statement on Tuesday, said the inter-ministerial meeting between the two Ministers was in keeping with the Renewed Hope Agenda of President Asiwaju Bola Ahmed Tinubu who has shown his determination to reverse the negative trend of Nigeria’s developmental history and revolutionize national economic development within the shortest period.

Speaking on the outcome of their meeting, Umahi was quoted as saying that the Ministry of Steel Development would play a major role in the road infrastructure revolution plan envisioned by Mr. President by providing more than 16% of the materials needed for the construction of Nigeria’s roads in concrete pavement.

Umahi said: “How do we reactivate Ajaokuta Steel? We are going into concrete road, in this concrete road, about 16 percent of it is from steel while 30 percent is cement.

“We need a lot of money to start but we decided to face it and God has given us an idea, we need about $35 billion to start.

“If we start waiting for FG it might become difficult. We did Return On Investment (ROI), the profit we could have made, part of it will go to bank interest, we are looking at commercial banks but the 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”

While commending the Minister of Steel Development for his efforts in developing the steel sector, Umahi noted that the steel industry is the bedrock of Nigeria’s industrialization and the backbone that stimulates national development and economic boost for the industrial growth of any nation.

He pledged collaborative efforts to enhancing the potentialities of Ajaokuta Steel Plant- the largest Steel Mill in Nigeria, saying, “Mr President never made a mistake in his appointment, I call him a Divine President, and the most important thing is that our eyes are on the job.

“One of the Renewed Hope Agenda of Mr. President is to think outside the box, Mr. President inherited a large chunk of debt from the past administration, the beauty about it is that he is not complaining, he knew how the country was before he took the job and how it is.

“The good thing is that if you have passion for something God will give you an idea”.

Earlier, the Minister of Steel Development, Audu said the meeting was robust and incisive, adding, “We are seriously thinking outside the box to see how we can implement the Renewed Hope Agenda of Mr President.

“What we came to discuss here is how to restart Steel production at Ajaokuta Steel Plant. The Hon Minister of Works has made it very clear that the Federal Government is looking to develop over 30,000 kilometers of road and a large component of that will be from Steel wrought, and a percentage of that Steel wrought will be produced in Ajaokuta.

“We came to discuss how to implement the process for producing it in Ajaokuta within the shortest possible time.