FG secures $4bn investment for Akwa Ibom steel plant

By Joy Baba-Yesufu

The federal government has announced the commitment of Jindal Group to offtake about 450 million metric standard cubic feet per day (MMscfd) of natural gas to underpin a $4 billion investment in a 10 million tonnes per annum Hot Briquetted Iron (HBI) Steel Plant to be located at Ibom Solutions Hub Industrial Park (ISHIP), a free zone facility in Akwa Ibom State.
According to Ekperikpe Ekpo, the Minister of State Petroleum Resources (Gas), who disclosed this in a statement, said the project is expected to create thousands of jobs and position Nigeria as a regional powerhouse for industrialization and high-grade steel production.
He explained that discussions were underway to finalize the Gas Sales and Purchase Agreement (GSPA) for the supply of natural gas to the Indian firm, following the agreement which was sealed after a meeting between Ekpo and Jindal Group Chairman, Naveen Jindal in New Delhi, India.
“As part of the agreement, ISHIP and Jindal have agreed to lease 300 hectares in the ISHIP for the project.
“During the meeting, Jindal expressed his company’s interest in investing in Nigeria due to the long history of cooperation between the two nations and his desire to support Nigeria’s drive for industrialization and economic growth.
“Jindal Group’s interest in Nigeria stems from the country’s strategic position in Africa and its vast natural gas reserves, which are essential for producing high-quality steel using new technology,” the statement read.
The minister informed the group of the Federal Government’s commitment to providing an enabling environment for investors, including significant incentives to encourage and protect investments in the gas industry.
He assured Jindal Group of the safety and security of their investment, highlighting Nigeria’s conducive business environment and the government’s dedication to supporting the project’s successful takeoff and implementation.