NIGERIA: FG to Restore Ajaokuta by 2022

NIGERIA: FG to Restore Ajaokuta by 2022

The Federal Government of Nigeria is in expectation to commence restoration and reparation of the Ajaokuta steel mill factory to begin operation by 2022. The breakdown factory has been inactive for many years.

The Minister of Mines and Steel Development, Mr. Olamileken Adegbite stated that Nigeria and Russia already signed a memorandum of understanding (MoU) and the agreement between the two countries is expected to trigger the restoration and development of the Ajaokuta factory which has broken down for over forty years.

Nigeria hopes that the bilateral trade agreement with Russia will help develop the factory.

The Minister of Mines and Steel Development stated that to deduce the problem and make business easier in the mining sector, most importantly mineral export, stating that the ministry is in negotiation with the central bank of Nigeria to buy overall gold produced in Nigeria.

It was stated that normally under the proposed policy the Central Bank of Nigeria would purchase gold materials at a predominant international price to observe the occurrence of under-pricing encountered by miners.

He said that before that policy kick off the Ministry of Mines and Steel Development has issued licenses for gold mining in Ogun State and Federal Capital Territory to check and lessen illegal gold trading.

Mr. Olamileken Adegbite further noted that the ministry is working over to establish a one-stop-shop agency relating to the Department of Petrol Resources (DPR) under the Ministry of Petroleum Resources to resolve regulatory matters and licensing issues in the mineral sector.

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