President Bola Tinubu has sounded the alarm on the lingering troubles of the Ajaokuta Steel Company, warning that its decades-long paralysis posed a significant threat to Nigeria’s economic security and strategic independence.
The President made this assertion at the Inaugural Stakeholders Summit on the Development of the Steel Sector in Nigeria, held on Wednesday in Abuja.
President Tinubu emphasised that the steel industry was crucial to unlocking Nigeria’s industrial promise, saying, “how can we build, manufacture, or defend ourselves without the material that enables all three?
”Steel is more than an industrial input. The steel industry symbolises so many of our unrealised hopes, and it holds the key to unlocking the full measure of Nigeria’s industrial promise”, he added
He added that no nation has achieved true development without mastering steel, highlighting the sector’s importance in driving economic growth.
The President outlined his administration’s efforts to revamp legacy projects in the sector, including the Ajaokuta Steel Company, the Aluminium Smelter Company of Nigeria, the National Iron Ore Mining Company, and the Delta Steel Company, now known as Premium Steel and Mines.
The President also highlighted the importance of private sector participation in revamping the sector, saying, “but we cannot do this alone.
”The government can lead. But the private sector must invest. Academia must innovate. Skilled workers must emerge.”
Tinubu’s administration has set ambitious targets, including producing 10 million tonnes of liquid steel annually by 2030 and creating over 500,000 direct and indirect jobs.
Minister of Steel Development, Shuaibu Audu, assured stakeholders that the potential of the steel sector was obvious, with incentives such as capital allowances, import duty exemptions, tax holidays, and policies ensuring 30 per cent of steel inputs for government projects are sourced locally.
A Memorandum of Understanding has been signed with Tyazhpromexport (TPE) and its consortium to rehabilitate and operate the plant, with a technical and financial audit currently underway to inform next steps and shape investor selection.
A new investment proposal of $465 million has been submitted by the current management of the Aluminium Smelter Company of Nigeria to restore full capacity over six years.
In addition, Stellar Steel, part of the Inner Galaxy Group, is investing $400 million to build a new plant in Ewekoro, Ogun State, to produce hot-rolled coils and plates.
The federal government is establishing an Industrial Park within the Ajaokuta area to host a Free Trade Zone, which will include a gas park and a military-industrial complex, positioning Ajaokuta as the industrial heart of the nation.
Five mini-LNG plants were being constructed in Ajaokuta, valued at over $500 million, in partnership with NNPC Limited and private sector stakeholders.
The summit served as a platform to facilitate robust engagement among industry stakeholders, the international community, and others to shape Nigeria’s steel industry value chain.
