The Federal Government of Nigeria has indicated plans to revive all moribund steel companies across the country, more than two decades after a failed privatization drive left once-thriving plants in ruins. This initiative was highlighted by Minister of Steel Development Shuaibu Audu, who has outlined a renewed commitment under President Bola Tinubu’s administration to resuscitate key steel assets, including Ajaokuta Steel Company, Delta Steel Company (now Premium Steel and Mines Limited), and inland rolling mills in Oshogbo, Jos, and Katsina. The privatization efforts, initiated in the early 2000s, notably failed when the 2004-2005 handover to private entities like Global Infrastructure Holdings Limited and subsequent sales did not restore operational capacity, leaving the sector dormant since the late 1990s due to mismanagement and underinvestment.
The government’s strategy includes a 10-year roadmap for the steel sector’s revitalization, with a three-year focus on Ajaokuta, estimated to require $2 billion to $5 billion, and a $1.5 billion rehabilitation plan for Ajaokuta alone. Recent efforts involve engaging Chinese firms like Sino Steel and Jingye Steel Group for technical and financial support, alongside local funding initiatives such as raising N35 billion for the Ajaokuta Light Steel Mill to produce 50,000 metric tonnes of iron rods annually. The move aims to reverse Nigeria’s 90% reliance on imported steel, costing over $4 billion yearly, and create hundreds of thousands of jobs, aligning with the Renewed Hope Agenda’s economic diversification goals. Critics question the feasibility amid historical mismanagement and the sector’s $8 billion investment sinkhole over 42 years.
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