..Targets 10M tonnes of steel production, 500,000 jobs
..Tinubu calls for private sector role in steel growth
The Nigerian government has signed key agreements with Russian firm Tyazhpromexport (TPE) and Chinese partners to revive the long-stalled Ajaokuta Steel Plant, in what President Bola Tinubu’s administration calls a major step towards industrialising Africa’s largest economy.
The deals, part of a broader push to revitalise Nigeria’s steel sector, aim to position the country as a regional steel hub, with a target of producing 10 million tonnes of steel annually and creating 500,000 jobs by 2030.
Speaking at the inaugural Steel Sector Stakeholders Summit in Abuja on Wednesday, Vice President Kashim Shettima, representing President Tinubu, said the government was committed to transforming Ajaokuta into the “industrial heart of the nation.”
He outlined ongoing efforts by the present administration to revamp legacy projects in the sector, such as the Ajaokuta Steel Company, the Aluminium Smelter Company of Nigeria, the National Iron Ore Mining Company, and the Delta Steel Company (now called Premium Steel and Mines), among others.
He revealed that apart from the TPE consortium, discussions were ongoing with other foreign investors, while an independent audit of the plant’s technical and financial status would guide final decisions on funding and operations.
The administration is also advancing plans to construct five mini-Liquefied Natural Gas (LNG) plants within the Ajaokuta complex, valued at over $500m, in partnership with the Nigerian National Petroleum Company (NNPC) and private investors. Additionally, a military hardware production deal with the Ministry of Defence is expected to utilise the plant’s engineering workshops, while a proposed Free Trade Zone and Industrial Park could attract further investment.
President Tinubu urged private sector players to collaborate with the government, stressing that “steel is the backbone of industrialisation, but we cannot do this alone.” He cited commitments from Premium Steel and Mines (formerly Delta Steel) to resume operations within 18 months, as well as a new $400m investment by Stellar Steel for a plant in Ogun State.
The push to revive Ajaokuta comes after decades of failed attempts by successive governments to operationalise the plant, originally designed in the 1970s with Soviet technical support to produce 1.3 million tonnes of steel yearly. Despite an estimated $8bn sunk into the project, mismanagement, legal disputes, and policy inconsistencies left it at just 5% completion by 2020, according to a Senate report.
The the vice president revealed that it has since established a solid bureaucracy in ensuring the steel sector becomes the engine for national transformation.
This, he said, followed the creation and reconfiguration of the Ministry of Steel Development on assumption of office in 2023, with a mandate to lead the charge in industrialisation.
“It has been positioned as the fulcrum for economic diversification. It is a signal of our seriousness to extract, process, and commercialise our God-given endowments. For many Nigerians, when we speak of steel, our minds return to Ajaokuta.
“We remember the promise of a crown jewel. For nearly fifty years, we have nurtured the dream of becoming a regional steel powerhouse. We are now ready to make that dream a reality. We are not here to mourn missed opportunities. We are here to make the future,” he stated.
‘In parallel, we have engaged other proposals from China and additional partners. A final decision is under careful review. A technical and financial audit of Ajaokuta, approved by the Bureau of Public Procurement, is currently ongoing. It will inform our next steps and shape investor selection.
“Our journey is not limited to old dreams. We are building new pillars. We have launched the construction of five mini-LNG plants in Ajaokuta. These are valued at over 500 million dollars. The project is in partnership with NNPC Limited and private sector stakeholders.
“We are also concluding an agreement with the Ministry of Defence and the Defence Industries Corporation of Nigeria. This will enable the production of military hardware at the Ajaokuta Engineering Workshop,” he said.
According to the Nigerian leader, the federal government is currently establishing an Industrial Park within the Ajaokuta area to host a Free Trade Zone.
“It will include a gas park. It will house a military-industrial complex. All of these will draw from the infrastructure already in place. They will position Ajaokuta as the industrial heart of our nation,” he explained.
On ongoing efforts to revive the Aluminium Smelter Company of Nigeria in Ikot-Abasi, which he said had been stalled by long-standing legal and operational hurdles, President Tinubu said a “new investment proposal of 465 million dollars has been submitted by the current management,” adding that the six-year plan to restore full capacity would be announced after a detailed review of the Ministry’s recommendations.
Revealing plans to revamp other legacy assets in the sector, the President said. “The management of Delta Steel Company, now Premium Steel and Mines, has committed to begin rehabilitation and operations within 18 months. This will depend on the availability of raw materials.
“We have also attracted a new project by Stellar Steel, part of the Inner Galaxy Group. They are investing 400 million dollars to build a new plant in Ewekoro, Ogun State. This facility will produce hot-rolled coils and plates. It is a bold step toward import substitution and value addition.”
The Nigerian leader described the stakeholders summit as proof of his administration’s resolve “to make the steel industry the backbone of Nigeria’s industrial future,” even as he assured that by 2030, Nigeria will start producing 10 million tonnes of liquid steel.
“We aim to create over 500,000 direct and indirect jobs. We have already developed a ten-year roadmap for the sector. We have outlined a three-year plan for the operationalisation of Ajaokuta. These plans focus on infrastructure, regulatory reform, and capacity development.”
President Tinubu, however, implored the private sector to join hands with the government in revamping the sector, saying the government cannot actualise the plan alone.
“But we cannot do this alone. Government can lead. But the private sector must invest. Academia must innovate. Skilled workers must emerge,” he appealed.
Earlier in his opening address, Minister of Steel Development, Prince Shuaibu Abubakar Audu, assured stakeholders that the potential of the steel sector is obvious, ranging from its market size to federal government incentives.
He noted that even though Nigeria is well-endowed with steel-making raw materials, it has yet to fully explore its potential for industrial development.
On his part, the Chairman of the Senate Committee on Steel Development, Senator Patrick Ndubueze, said the summit serves as a platform to facilitate robust engagement among industry stakeholders, the international community and others, to effectively shape Nigeria’s steel industry value chain.
“The presence of His Excellency Asiwaju Bola Ahmed, GCFR, our President and Commander-in-Chief of the Armed Forces, who is represented here by Vice President Kashim Shettima, to graciously declare this summit open, underscores the priority the Renewed Hope Administration places on industrialisation and economic diversification,” he added.
Also, the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, emphasised that while Nigeria’s steel value chain offers untapped potential, the Tinubu administration, in line with the Nigeria First policy, is committed to promoting local value creation by prioritising domestic production and supporting the local economy.
“We are committed to deep, sustainable value addition through streamlining approvals to attract and retain investors, ensuring transparent regulatory frameworks,” she added.
On his part, Minister for Solid Minerals Development, Dele Alake, maintained that the Nigerian steel industry is poised to move from stagnation to strength and from isolation to global relevance under the leadership of President Tinubu.
“Our goal is to position Nigeria as a steel hub of West Africa anchored on local beneficiation, sustainable practices, and public-private partnerships,” he said.
Also, the Minister of Transportation, Sa’idu Ahmed Alkali, noted that the event comes at a time when Nigeria is experiencing transformative reforms across all sectors of the economy, including the steel industry, as part of the federal government’s commitment to actualising the Renewed Hope Agenda of President Tinubu.
He expressed optimism that existing relevant policies, such as the Nigerian Minerals and Mining Act and other related laws, will provide the framework to reposition the Nigerian steel industry.
For the Minister of Marine and Blue Economy, Adegboyega Oyetola, who was represented by Mrs. Amaka Okereke, the gathering is a reminder that steel is not just a product, but a key enabler of Nigeria’s aspiration for national economic growth.
The Minister stressed that in Nigeria, the revival of the nation’s steel sector holds the promise of reducing import dependence and enabling the growth of countries that rely on these vital resources.
Nigeria’s reliance on steel imports has drained foreign reserves, with industry data showing the country spends over $3.3bn annually on steel products—despite possessing vast iron ore deposits. The National Iron Ore Mining Company in Itakpe, meant to feed Ajaokuta, has operated far below capacity, forcing manufacturers to depend on Chinese, Indian, and European imports.
Analysts say previous revival efforts were undermined by corruption and lack of political will. In 2016, the Buhari administration approved $1bn for Ajaokuta’s completion, but disputes with contractors stalled progress. A 2022 attempt to concession the plant collapsed after legal challenges from Indian firm Global Steel Holdings, which had earlier secured controversial rights under President Obasanjo.
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