African Export Import Bank (Afreximbank) is investing $1bn 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 multibillion-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.