President Bola Tinubu has announced that Nigeria aims to become a steel powerhouse by 2030, targeting the production of 10 million tonnes of liquid steel annually. He made this declaration during the inaugural stakeholders’ summit on the development of Nigeria’s steel sector in Abuja, with Vice-President Kashim Shettima representing him.
The president emphasized his administration’s commitment to revitalizing the steel industry as a cornerstone of the nation’s economic diversification strategy. This initiative follows the establishment of the Ministry of Steel Development in 2023, which has been positioned as a central element for economic growth. Tinubu highlighted the government’s dedication to harnessing Nigeria’s natural resources, stating, “It has been positioned as the fulcrum for economic diversification.”
Reflecting on the nation’s longstanding aspirations, Tinubu remarked, “For many Nigerians, when we speak of steel, our minds return to Ajaokuta. We remember the promise of a crown jewel. For nearly fifty years, we have nurtured the dream of becoming a regional steel powerhouse. We are now ready to make that dream a reality. We are not here to mourn missed opportunities. We are here to make the future.”
To advance this vision, the administration has signed a memorandum of understanding with Tyazhpromexport and its consortium to rehabilitate and operate the Ajaokuta Steel Company and the National Iron Ore Mining Company in Itakpe. Additionally, the government is engaging with other international partners, including Chinese firms, with a final decision under careful review.
A technical and financial audit of the Ajaokuta Steel Company, approved by the Bureau of Public Procurement, is currently underway. This audit will inform subsequent steps and guide investor selection.
Beyond steel production, the administration is investing in related infrastructure. The construction of five mini-LNG plants in Ajaokuta, valued at over $500 million, is in progress in partnership with NNPC Limited and private sector stakeholders. Furthermore, agreements are being finalized with the Ministry of Defence and the Defence Industries Corporation of Nigeria to facilitate the production of military hardware at the Ajaokuta Engineering Workshop.
Tinubu envisions transforming Ajaokuta into Nigeria’s industrial heart by establishing an industrial park, a free trade zone, and a military-industrial complex, leveraging existing infrastructure to drive economic growth.
In addition, a $465 million investment proposal has been submitted to revive the Aluminium Smelter Company of Nigeria in Ikot-Abasi, which has faced long-standing legal and operational challenges. The six-year plan to restore full capacity will be announced following a detailed review of the ministry’s recommendations.
The management of Delta Steel Company, now Premium Steel and Mines, has committed to commencing rehabilitation and operations within 18 months, contingent upon the availability of raw materials.
Moreover, a new project by Stellar Steel, part of the Inner Galaxy Group, is underway in Ewekoro, Ogun State. This $400 million investment aims to establish a facility for producing hot-rolled coils and plates, marking a significant step toward import substitution and value addition in the steel sector.
Through these comprehensive efforts, the Nigerian government is striving to revitalize the steel industry, enhance industrial capacity, and stimulate economic development in the coming years.
