FG To Use Ajaokuta Steel Company For CNG Project

By Georgina Humphrey

The Federal Government says the Ajaokuta Steel Company will host the Compressed Natural Gas, CNG, Project across the country.

Minister of Steel Development Prince Shuaibu Abubakar Audu stated this during a 3-day working visit to the Steel Plant in Ajaokuta, Kogi state.

He explained that the initiative is aimed at producing and storing CNG, to support the President’s Gas Initiative Agenda and mitigate the impact of subsidy removal.

“The Federal Government has mulled the idea of exploring the utilization of the Ajaokuta Steel Company Limited, ASCL, for the proposed Federal Government Compressed Natural Gas, CNG, project” Prince Audu stressed.

“This development is part of government’s plan to resuscitate the ailing steel sector in Nigeria ” Ajaokuta Steel Company’s engineering workshop has presented a unique opportunity for the storage of Compressed Natural Gas in specialized CNG tanks” he noted.ALSO READ:Forensic Audit Of Workers Will Save Money – Reps Tell FG

The minister stressed that the use of ASCL’s infrastructure would bolster the country’s energy sector and reduce dependency on traditional fossil fuels.

“Furthermore, ASCL’s machine workshop stands poised to play a crucial role in this endeavor by producing essential accessories for gas cylinders used in CNG-powered buses”.

“This local production of components aligns perfectly with the President’s Gas Initiative Agenda, fostering self-sufficiency and contributing to the Nigerian economy” the minister emphasized.

“The machine shop is well-prepared for the manufacturing of various tools, implements, carriages and spare parts, This would expand production capacity that could lead to the creation of jobs and contribute to the growth of industries such as wheelbarrows, tricycle trucks (keke Napep), and more”.

“As this initiative progresses, it holds the potential to transform Ajaokuta Steel Company Limited into a key player in Nigeria’s transition towards cleaner and more efficient energy sources, and the CNG project underscores the government’s commitment to sustainable energy solutions and economic development.

Edited By Grace Namiji