The Federal Government plans to revive Nigeria’s moribund steel companies. President Bola Tinubu announced this at the National Steel Stakeholders’ Summit in Abuja on Wednesday, August 13, 2025.
The initiative aims to produce 10 million tonnes of liquid steel annually by 2030 and create over 500,000 jobs.
It addresses the collapse of plants like Ajaokuta and Delta Steel after a failed 2000s privatization.
Summit Highlights Industrial Goals
Tinubu, represented by Vice President Kashim Shettima, spoke at the summit themed “Rebuilding Nigeria’s Steel Industry.”
He called the steel sector the backbone of industrialization. Nigeria imports 90% of its steel, costing $4.5 billion yearly.
Reviving plants like Ajaokuta Steel Company and National Iron Ore Mining Company in Itakpe is a priority to reduce this dependency.
Ajaokuta Steel Plant Audit Underway
A technical and financial audit of Ajaokuta Steel Plant began to assess its condition. The audit, approved by the Bureau of Public Procurement, will guide the selection of a core investor.
Tinubu noted ongoing talks with Russia’s Tyazhpromexport and Chinese partners for rehabilitation, despite challenges from the Russia-Ukraine war. A final decision is expected soon.
Plans for Other Steel Assets
The government is also reviving Delta Steel Company in Aladja, with rehabilitation planned within 18 months.
A $465 million proposal aims to restore the Aluminium Smelter Company in Akwa Ibom.
Additionally, a $400 million Stellar Steel plant in Ogun State will produce hot roll coils. These efforts aim to boost local production and cut imports.
Incentives and Broader Initiatives
Minister of Steel Development Audu Abubakar outlined a 10-year roadmap targeting 10 million tonnes of crude steel.
Incentives include 95% capital allowances and duty-free equipment imports. Five mini-LNG plants worth $500 million are under construction in Ajaokuta.
A scrap aggregation policy and industrial parks will support raw material supply and job creation.
Stakeholders Urge Action
Senate Committee Chairman Patrick Ndubueze emphasized unbundling Ajaokuta’s 20 operational factories for concessions to capable investors.
Minister of Solid Minerals Dele Alake highlighted a $600 million lithium plant and mining enforcement.
The summit united stakeholders to align efforts, aiming to make Nigeria a regional steel hub by 2030.
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