The Federal Government of Nigeria has launched high-level discussions with prominent Chinese steel conglomerates to secure technical expertise, financial support, and partnerships aimed at resuscitating the long-dormant Ajaokuta Steel Company.
The initiative, spearheaded by Minister of Steel Development Shuaibu Audu, targets the revival of the facility—conceived in the late 1970s but plagued by policy inconsistencies, failed concessions, and chronic underinvestment for over four decades.
Ajaokuta, located in Kogi State, has the potential to produce up to 2.6 million tonnes of steel annually, reducing Nigeria's reliance on costly imports and bolstering sectors like construction, automobile manufacturing, and infrastructure development.In a statement issued by Audu's Special Assistant on Media, Lizzy Okoji, the talks focused on technical evaluations, operational blueprints, and financing structures to restore full productivity.
"This engagement highlights Nigeria’s seriousness in building transformative partnerships that will unlock long-term value across the manufacturing and infrastructure sectors," Audu said.
He reaffirmed that under President Bola Tinubu’s Renewed Hope agenda, the project's completion remains a top priority, with full operationalization targeted before the end of the current administration.
The move builds on earlier efforts, including January 2024 discussions with China's Luan Steel Holding Group to construct military hardware at the site and explore a new steel plant.
It also aligns with ongoing funding pursuits, such as the ministry's request for N35 billion to restart the Light Steel Mill Section and produce iron rods.
Experts estimate a total revival cost of $2 billion to $5 billion over three years, with calls for public-private partnerships to maximize efficiency.
Reviving Ajaokuta is projected to create thousands of jobs, stimulate economic growth, and position Nigeria as a regional steel hub. However, challenges persist, including the government's allocation of N6.21 billion in the 2025 budget for salaries of over 5,000 idle workers—highlighting the facility's ongoing financial burden despite its inactivity.
Stakeholders, including economists, advocate for privatization elements to ensure sustainable management.
Audu emphasized the broader economic benefits: "Our objective is clear: to secure strong technical and financial partnerships that can help us bring Ajaokuta Steel back to life."
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