Ajaokuta steel: FG Seeks Aid to Revive Dead Steel Industry

On the pedestrian of reviving decades of industrial stagnation, the Ministry of Steel Development has reached out to international donor agencies for technical and financial support aimed at reviving two of Nigeria’s long-dormant industrial assets – the Ajaokuta Steel Company Limited (ASCL) and the National Iron Ore Mining Company (NIOMCO). Speaking at a high-level meeting with donor representatives in Abuja, Minister Prince Shuaibu Audu outlined an ambitious plan to upgrade these institutions, preparing them for eventual privatization while transforming them into dynamic engines of local production.

Minister Audu emphasized that the revitalization of these public steel assets is not merely a matter of refurbishing outdated facilities but a strategic move to boost domestic steel output, reduce the country’s over-reliance on imported steel, and generate much-needed foreign exchange. “Our objective is to prepare these institutions for privatization by upgrading their infrastructure and operational capabilities, transforming them into robust engines of local production,” he said during his address. He underscored the urgent need for technical expertise, financial resources, and strategic guidance, which donor agencies are well positioned to provide. “Your partnership can accelerate the modernization of our steel assets, build essential infrastructure, empower our workforce with future-ready skills, and strengthen our regulatory frameworks,” he added.

The call for donor assistance marks a new chapter in the troubled saga of the Ajaokuta Steel project—a venture that was once envisioned as the bedrock of Nigeria’s industrialization. Conceived in the late 1970s with the support of Soviet expertise, the Ajaokuta Steel Mill was built on a sprawling 24,000-hectare site in Kogi State. It was heralded as a transformative project that could not only supply the country with domestically produced steel but also stimulate related industries such as construction, manufacturing, and transportation. By the time of its near completion in 1994, the complex had reached an impressive 98% technical completion. Despite this milestone, the plant was ultimately abandoned due to a combination of mismanagement, political interference, and chronic funding shortfalls. Only a few of the light rolling mills were ever brought into operation, and the vast majority of the plant’s capacity remains unused.

The collapse of the Ajaokuta Steel project has long been a symbol of unfulfilled national potential. Critics have lamented that while successive governments spent billions of dollars on a project that was meant to revolutionize the country’s industrial base, poor planning and erratic policy shifts left the facility in a state of perpetual dormancy. The abandoned complex, often referred to as a “white elephant,” stands as a stark reminder of missed opportunities in harnessing Nigeria’s abundant raw materials for industrial growth. Many experts argue that a fully operational steel mill in Ajaokuta would have not only reduced the country’s staggering annual expenditure on imported steel but would also have provided a platform for technological innovation and job creation.

Minister Audu’s remarks at the Abuja meeting indicate that the government is now ready to take decisive steps to correct this historical oversight. He explained that the current initiative will focus on a comprehensive upgrade of the existing infrastructure, modernizing the plant’s technology and enhancing its operational efficiency. “We envision a future where Nigeria’s steel industry drives economic growth, creates jobs, and anchors our efforts towards economic diversification,” the minister stated. His appeal was met with encouraging responses from international partners. Dr. Osuji Otu, Nigeria Country Representative for the United Nations Industrial Development Organisation (UNIDO), confirmed that UNIDO would soon unveil its 2024–2028 country partnership programme specifically designed to support these revitalization efforts. Similarly, representatives from the United Nations Development Programme (UNDP) and the Australian High Commission pledged to offer technical assistance, reinforcing the message that there is broad international support for a turnaround in Nigeria’s steel sector.

For decades, the Ajaokuta Steel project has been shrouded in controversy and controversy stemming from decades of neglect. Originally launched with high hopes in the late 1970s, the mill was intended to harness Nigeria’s vast deposits of iron ore and complement its significant gas reserves to produce high-quality steel. In its heyday, the project was touted as a catalyst for broader industrial development—capable of generating thousands of direct jobs and potentially millions of indirect employment opportunities in downstream industries. However, a series of political transitions, mismanagement issues, and inconsistent government policies led to repeated delays. Despite reaching near-completion, the plant has not produced a single sheet of steel on a commercial scale, leaving Nigeria to import steel at an annual cost estimated in billions of dollars.

Today’s renewed push for revival is not merely about salvaging an abandoned project; it represents a broader strategy to reposition Nigeria as a regional industrial leader. By harnessing modern technologies and leveraging international expertise, the government hopes to transform ASCL and NIOMCO into viable assets that will drive local production, stimulate ancillary industries, and help reduce the nation’s persistent trade deficit in manufactured goods. Minister Audu stressed that the modernization plan would include establishing dedicated technical teams and appointing desk officers to serve as liaison points between the government and donor agencies. “This coordinated approach will ensure that every investment translates into tangible improvements in our operational capabilities and ultimately leads to a sustainable steel industry,” he declared.

The international community’s response to the minister’s call is significant, as many donor agencies have expressed interest in contributing to projects that promise long-term economic dividends. The involvement of global institutions like UNIDO and UNDP, along with support from diplomatic missions such as the Australian High Commission, signals a robust commitment to seeing Nigeria’s industrial potential realized. If successful, the revival of Ajaokuta Steel and NIOMCO could serve as a model for reenergizing other neglected industrial projects across the country—a much-needed boost to a sector that has long been sidelined in favor of the oil industry.

In summing up his address, Minister Audu noted that the steel sector has the power to reawaken Nigeria’s industrial spirit. “Together, with the support of our international partners, we can build a future where the steel industry not only meets domestic demand but also contributes to global trade,” he said. The minister’s appeal, rich in both ambition and pragmatism, marks a critical juncture in Nigeria’s ongoing struggle to diversify its economy and create sustainable growth through industrialization.

… https://symfoninews.com/ajaokuta-steel-fg-seeks-aid-to-revive-dead-steel-industry/