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”, he said.
Shettima announced that a technical and financial audit of Ajaokuta, approved by the Bureau of Public Procurement, was underway to guide investor selection.
“We are in the process of undertaking a Federal Government-Sponsored Technical & Financial Audit of Ajaokuta Steel Plant to establish the current state of affairs. It is based on the outcome of the audit that the final agreement with the selected core investor for the reactivation, completion, and operation of the plant will be executed. Bureau of Public Procurement approval has been received, the contract awarded, and the technical audit process has started in earnest.
“The charge for the resuscitation of the Steel sector legacy assets is not limited to Ajaokuta Steel Company Limited. The Federal Government is also pursuing the resuscitation of the assets, whether privatised or government-owned, to ensure that they contribute to national development as envisaged from inception. We have recently obtained the commitment of the Management of Delta Steel Company, Aladja, now Premium Steel & Mines Limited, on the commencement of rehabilitation and operation of the Plant within the next 18 months, subject to the availability of the necessary raw materials.
“In September 2024, we signed an MoU with TPE and its consortium to rehabilitate and operate the Ajaokuta National Iron Ore Mining Company in Itakpe,” he said. “We have also received proposals from China and other partners. Our decision will be guided by the audit’s findings.”
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.
“We are establishing an industrial park, a free-trade zone, and a gas park, all anchored on existing infrastructure,” he said.
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.
“Scrap collection centres will be set up in all six geopolitical zones, starting with the Southwest,” he stated. “We are also working with the National Assembly on the Metallurgical Industry Bill, the National Metallurgical Training Institute Establishment Bill, and the amendment of the National Steel Council Act.
“It is in view of the foregoing and essential role of the steel industry as the backbone of any industrialised nation that has necessitated this stakeholders’ summit to sensitise you on the focus of the government to enable us harness the contributions of all industry players. Our set target is to achieve production of 10Million tonnes of liquid Steel by 2030 and generate over 500,000 jobs in the industry for a self-reliant and industrialised Nigeria.
“To ensure a structured development, the administration has outlined comprehensive roadmaps such as a ten-year plan for the overall revival of Nigeria’s steel sector as well as a three-year specific plan for the operationalisation of the Ajaokuta Steel Plant. These plans encompass infrastructure development, regulatory reforms, and capacity building to foster a conducive environment for the steel industry’s growth,” he concluded.
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.
“The steel sector is the backbone of industrialisation, supplying materials for construction, automobiles, electronics, shipbuilding, and defence.
“Mr President has demonstrated his resolve to revive the sector by creating a dedicated ministry”, he said.
Abubakar outlined the ministry’s reviewed 10-year roadmap, targeting 10 million metric tonnes of crude steel production annually, and highlighted fiscal incentives including up to 95 per cent capital allowances, duty-free importation of plant equipment, and tax holidays.
“We have banned the exportation of metal scraps, improved ease of doing business, and ensured that foreigners with Nigerian-registered companies can own mineral titles,” he said.
“The threshold of history is upon us, both collectively and individually. Let us take this event seriously.”
He underscored that revitalising local steel production would reduce Nigeria’s $4bn annual import bill.
He detailed incentives to attract investors, including capital allowances, import duty exemptions, tax holidays, and policies ensuring 30 per cent of steel inputs for government projects are sourced locally.
Audu also highlighted public-private partnerships, industrial parks, mini-LNG plants, and collaboration with the Ministry of Defence to manufacture military hardware, stressing that these measures would stimulate local raw material consumption, generate jobs, and establish Nigeria as a regional steel hub.
On his part, Chairman of the Senate Committee on Steel Development, Senator Patrick Ndubueze, pledged the Senate’s unwavering support for the sector, urging stakeholders to turn ideas into actionable outcomes.
Highlighting the Ajaokuta Steel Complex, he noted that over 20 of its 38 completed factories can operate independently if central utilities are restored.
He called for unbundling and concessioning these factories to capable Nigerians or verified foreign firms, criticising past wholesale concessions that undermined the sector.
“This summit must be a turning point,” Ndubueze said, “a defining moment to harness the full potential of our steel industry and position Nigeria as a hub for industrial excellence in Africa.”
The Minister of Solid Minerals Development, Dr. Dele Alake, revealed a new industrial trajectory for Nigeria’s minerals, with a $600 million lithium processing plant near the Kaduna-Niger border and a $200 million refinery near Abuja set for imminent commissioning.
“Two additional plants in Nasarawa will be operational by the end of 2025,” he declared to participants.
Alake stressed strict enforcement in the sector, reporting over 2,350 mining marshals deployed, more than 300 illegal operators arrested, and over 20 convictions secured.
He highlighted Nigeria’s continental leadership through the Nigeria Solid Minerals Company and chairmanship of the African Mineral Strategy Group, calling on stakeholders to adopt a cluster-based approach integrating mining, processing, and manufacturing to ensure competitiveness, job creation, and export readiness.
