The Federal Government has announced plans to revive all moribund steel companies in Nigeria, more than 20 years after a failed privatisation programme left once-thriving plants in ruins.
President Bola Tinubu said the initiative, which will cover both privatised and government-owned assets, aims to restore their role in national development. He spoke on Wednesday at the inaugural National Steel Stakeholders’ Summit on the Development of the Steel Sector in Abuja, themed “Rebuilding and Consolidating Nigeria’s Steel Industry: Collaborative Action for Sustainable Growth and Global Competitiveness” where Vice President Kashim Shettima represented him.
Failed Privatisation
In the early 2000s, the government sold inland rolling mills in Oshogbo, Katsina, and Jos, along with Delta Steel Company and the Aluminium Smelter Company of Nigeria. These plants eventually collapsed, leaving the country dependent on steel imports—costing about $4.5 billion annually and exposing industries to global price shocks.
Tinubu described the steel industry as the foundation of industrial growth, job creation, and sustainable development. He pledged that, with the sector revived, Nigeria could produce 10 million tonnes of liquid steel annually by 2030 and create over 500,000 jobs.
“Despite our vast deposits of iron ore, limestone, and coal, Nigeria imports more than 90% of the steel it consumes,” Tinubu said. “The Ajaokuta Steel Company, once our industrial crown jewel, stands idle—a monument to abandoned ambition. This is not just an economic failure; it is a threat to our sovereignty.”
Revival Efforts
The President said his administration has prioritised completing and commissioning the Ajaokuta Steel Company and the National Iron Ore Mining Company (NIOMCO), Itakpe. A technical and financial audit of Ajaokuta, approved by the Bureau of Public Procurement, is underway to determine its current state before selecting a core investor.
Although an MoU was signed in September 2024 with the plant’s original Russian builders, Tyazhpromexport, the government is exploring alternative partnerships with China due to the Russia–Ukraine war.
The Vice President added that the revival effort extends beyond Ajaokuta to other steel assets. The government has secured a commitment from Delta Steel Company (now Premium Steel & Mines Limited) to begin rehabilitation within 18 months, subject to raw material availability.
Other initiatives include:
- A $465 million proposal to revive the Aluminium Smelter Company of Nigeria in Akwa Ibom.
- Construction of five mini-LNG plants worth over $500 million in Ajaokuta in partnership with NNPC Ltd and private investors.
- Plans to produce military hardware in Ajaokuta’s engineering workshops with the Ministry of Defence and DICON.
- Development of an industrial park, free trade zone, and gas park around existing infrastructure.
- A new $400 million Stellar Steel plant in Ogun State to produce hot roll coils and plates.
The government is also drafting a scrap aggregation policy to regulate recycling, prevent vandalism of public infrastructure, and ensure steady raw material supply. Collection centres will be established in all six geopolitical zones, starting in the Southwest. Legislative work is underway on the Metallurgical Industry Bill, National Metallurgical Training Institute Establishment Bill, and amendments to the National Steel Council Act.
Shettima outlined a ten-year plan for the sector’s revival and a three-year specific plan for operationalising Ajaokuta, focusing on infrastructure, regulatory reforms, and capacity building.