Business
We’ll Resuscitate Ajaokuta Steel, Ore Mining Firm – FG
The Federal Government is working to resuscitate the Ajaokuta Steel Company Limited and National Iron Ore Mining Company Limited at the same time, the Permanent Secretary, Federal Ministry of Mines and Steel Development, Oluwatoyin Akinlade, has said.
Akinlade disclosed this when she paid a working visit to the two companies to ascertain their levels of preparedness ahead of the arrival of a team from Russia scheduled to technically audit the firms.
She said in a statement issued in Abuja by the Assistant Director, Press, Timothy Akpoili, that the Federal Government was committed to resuscitating both companies.
The permanent secretary said the ministry wants the two companies to begin full operations soon.
She was quoted as saying, “Ajaokuta is the future, the bedrock of Nigeria’s development. The resuscitation must be done, and can be done.”
Akinlade noted that Ajaokuta without NIOMCO was like a car without tyres, hence efforts were being made to resuscitate both companies at the same time to achieve the desired result.
The Tide recalls that in October 2019 in Sochi, Russia, President Muhammadu Buhari signed a Memorandum of Understanding with the Russian President, Vladimir Putin, to resuscitate and complete Ajaokuta Steel Company.
“One of the strategies in that process is the technical audit of the installed equipment,” the ministry said in its statement.
The Sole Administrator, NIOMCO, Nkechika Augustus, told the permanent secretary that the mandate of the company was to provide basic raw material for iron and steel production.
He said NIOMCO was required to supply Ajaokuta Steel with 2.15 million tonnes of iron ore concentrate with iron content of 63 to 64 per cent in its first phase of operation, during which the firm would be expected to produce 1.3 million tonnes of steel.
Edun made the call while speaking at the 2025 Fellowship Investiture of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, where he reaffirmed the federal government’s commitment to sustaining ongoing reforms and expanding access to finance as key drivers of economic growth beyond four per cent.
“We all know that monetary policy under Cardoso has stabilised the financial system in a most commendable way. Of course, it is a team effort, and those eye-watering interest rates have to be paid by the fiscal side. But the fight against inflation is one we all have to participate in,” he said.
The minister stressed the need for banks to broaden credit access and finance innovation-driven enterprises that can create jobs for young Nigerians.
“The finance and banking industry has more work to do because we must finance their ideas, deepen the capital and credit markets down to SMEs. They should not have to go to Silicon Valley,” he said.
The minister who described the private sector as the engine of growth, said the government’s reform agenda aims to create an enabling environment where businesses can thrive, access funding, and contribute meaningfully to job creation.
The facility, known as the Nigeria Actions for Investment and Jobs Acceleration (P512892), is a Development Policy Financing (DPF) operation scheduled for World Bank Board consideration on December 16, 2025.
According to the Bank’s concept note , the financing would comprise $500m in International Development Association (IDA) credit and $500m in International Bank for Reconstruction and Development (IBRD) loan.
If approved, it would be the second-largest single loan Nigeria has received from the World Bank under President Bola Tinubu’s administration, following the $1.5 billion facility granted in June 2024 under the Reforms for Economic Stabilisation to Enable Transformation (RESET) initiative.
The World Bank said the new programme aims to support Nigeria’s shift from short-term macroeconomic stabilisation to sustainable, private sector–led growth.
“The proposed Development Policy Financing (DPF) supports Nigeria’s pivot from stabilization to inclusive growth and job creation. Structured as a two-tranche standalone operation of US$1.0 billion (US$500 million IDA credit and US$500 million IBRD loan), it seeks to catalyse private sector–led investment by expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification,” the document read.
The document further stated that Nigeria’s private sector credit-to-GDP ratio stood at only 21.3 per cent in 2024, significantly below that of emerging-market peers, while capital markets remain shallow, with sovereign securities dominating the bond market.
To address these weaknesses, the DPF will support the implementation of the Investment and Securities Act 2025, operationalisation of credit-enhancement facilities, and introduction of a comprehensive Central Bank of Nigeria rulebook to strengthen risk-based regulation and consumer protection.
The operation also includes measures to deepen digital inclusion through the passage of the National Digital Economy and E-Governance Bill 2025, which will establish a legal framework for electronic transactions, authentication services, and digital records.
Beyond the financial and digital sectors, the programme targets reforms to lower production and living costs by tackling Nigeria’s restrictive trade regime. High tariffs and import bans have long driven up consumer prices and constrained competitiveness, particularly for manufacturers and farmers.
Under the proposed reforms, Nigeria would adopt AfCFTA tariff concessions, rationalise import restrictions, and simplify agricultural seed certification to increase the supply of high-quality varieties for maize, rice, and soybeans. The World Bank projects that these measures will help reduce food inflation, attract private investment, and enhance export potential.
The operation is part of a broader World Bank FY26 package that includes three complementary projects—Fostering Inclusive Finance for MSMEs (FINCLUDE), Building Resilient Digital Infrastructure for Growth (BRIDGE), and Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW)—all focused on expanding access to finance, strengthening institutions, and mobilising private capital.