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Afreximbank to invest $1bn to resuscitate Ajaokuta Mill

African Export Import Bank (Afreximbank) is investing $1 billion in Ajaokuta Steel Mills.

The Russians who will do the construction work from now till 2022, when full scale operations would begin, will contribute additional $500m.

This is not a loan by the FG but a foreign investment. Resuscitating the Mill was part of the agreement reached during a meeting between President Muhammadu Buhari and Russian President Vladimir Putin in Sochi, Russia, last year.

The multi-billion-dollar Ajaokuta Steel Mill is the largest steel mill in Nigeria. Begun by the Soviet Union in 1979 under a cooperation agreement with Nigeria, the complex reached 98% completion by 1994. The steelworks have been called the “bedrock of Nigeria’s industrialization”.

However, the project has been mismanaged, and the steel mill has not produced a single sheet of steel as of December 2017.

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