FG Moves to Revive Moribund Steel Firms, Cut Imports
The Federal Government has indicated plans to revive all moribund steel companies in the country, more than two decades after a failed privatisation drive left once-thriving plants across Nigeria in ruins.
It stated that the resuscitation of steel assets, whether privatised or government-owned, will ensure they contribute to national development as originally envisaged.
President Bola Tinubu revealed the plan 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”.
Recall that in early 2,000, the privatisation policy of the government led to the sale of the inland rolling mills at Oshogbo, Katsina, and Jos, Delta Steel Company, and Aluminium Smelter Company of Nigeria to private companies, all of which failed and are no longer operational today.
The collapse of the steel industry forced the country to depend heavily on imports. This reliance drains an estimated $4.5bn from the economy annually and exposes critical sectors to global market shocks.
However, the President, in his keynote address, said that by revitalising Nigeria’s steel sector, the government would be igniting the very foundation of industrial growth, job creation, and sustainable development. Tinubu was represented by Vice President Kashim Shettima.
He declared that with the resuscitation of the companies, the country will produce 10 million tonnes of liquid steel annually by 2030 and create over 500,000 direct and indirect jobs. He also announced that a final decision to determine the best deal on the Ajaokuta Steel Plant, following a comprehensive review of their financial, managerial, and technical competencies, is expected to be taken very soon.
The president said, “The Nigeria National Steel Summit is the first of its kind, and it marks a defining moment in the life of our great nation. This is not merely a technical discussion; it is a national imperative. In revitalising our steel sector, we ignite the very foundation upon which industrial growth, job creation, and sustainable development are built.
“Despite our vast natural endowments in iron ore, limestone, and coal, Nigeria imports over 90 per cent of the steel it consumes. The Ajaokuta Steel Company, once envisioned as 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.
“How can we build, manufacture, or defend ourselves without the material that enables all three? Steel is more than an industrial input. The steel industry symbolises so many of our unrealised hopes, and it holds the key to unlocking the full measure of Nigeria’s industrial promise. It is the material expression of national strength. It builds our bridges, powers our industries, supports our defence, and lays the foundation for a modern economy.”
Tinubu stated that some of the milestones driving the Federal Government’s renewed steel sector push include the long-awaited operationalisation of the Ajaokuta Steel Company Limited and the National Iron Ore Mining Company, Itakpe.
He said his administration had prioritised the completion and commissioning of both plants. Tinubu also announced that a Federal Government–sponsored technical and financial audit of the Ajaokuta plant had commenced to determine its current state before engaging a core investor.
“Some of the key milestones shaping the industry include: Ajaokuta Steel Company Limited and National Iron Ore Mining Company, Operationalisation of Ajaokuta Steel Plant. Although we signed a Memorandum of Understanding in September 2024 with the original builders of the Ajaokuta Steel Plant, Messrs. Tyazhpromexport of Russia, we are currently exploring strategic partnership opportunities in China because of the lingering Russia-Ukraine war.
“Mr. President will soon make the final decision and determine the best deal following a comprehensive review of their financial, managerial, and technical competencies. I want all stakeholders to note that the completion and commissioning of Ajaokuta Steel Plant and National Iron Ore Mining Company, Itakpe, is a priority of Mr President.”
Shettima announced that a technical and financial audit of Ajaokuta, approved by the Bureau of Public Procurement, was underway to guide investor selection.
He revealed that five mini-LNG plants valued at over $500m were under construction in Ajaokuta in partnership with NNPC Limited and private investors.
“We are concluding arrangements with the Ministry of Defence and DICON to commence military hardware production in Ajaokuta’s engineering workshop,” he said. “We are establishing an industrial park, a free-trade zone, and a gas park, all anchored on existing infrastructure.”
The Vice President also disclosed ongoing talks on a $465m proposal to revive the Aluminium Smelter Company of Nigeria in Akwa Ibom, a planned rehabilitation of Delta Steel Company within 18 months, and a new $400m Stellar Steel plant in Ogun State to produce hot roll coils and plates.
Shettima said the government was developing a scrap aggregation policy to regulate the recycling industry, reduce vandalism of public infrastructure, and ensure a steady supply of raw materials.
Speaking in his welcome address, the Minister of Steel Development, Prince Audu Abubakar, said the summit was critical to realising President Tinubu’s Renewed Hope Agenda to grow the economy to $1tn by 2030.
“This is a summit of critical stakeholders, steel sector players, legislators, academia, policymakers, industrialists, and financial institutions, to align our collective efforts with the expectations from the steel sector,” the minister said.
He noted that despite Nigeria’s abundant raw materials, the absence of operational integrated steel plants had left the country reliant on imported billets and semi-finished products, draining $4.5bn annually from the economy.