Hot Source•President promises to change narrative, reposition sector as industrial hub
• Audu: Revitalising local steel output to reduce Nigeria’s $4bn annual import bill
Deji Elumoye and Kasim Sumaina in Abuja
President Bola Tinubu yesterday sounded the alarm that the lingering troubles of the Ajaokuta Steel Company had gone beyond an economic setback and had morphed into a dangerous sovereignty risk.
Once touted as Nigeria’s industrial crown jewel, its decades-long paralysis now casts a shadow over the nation’s economic security and strategic independence, the President stated.
Tinubu, in his keynote address at the Inaugural Stakeholders Summit on the Development of the Steel Sector in Nigeria in Abuja, argued that the sector holds the key to unlocking the full measure of Nigeria’s industrial promise
“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. It is the material expression of national strength.
“It builds our bridges, powers our industries, supports our defence, and lays the foundation for a modern economy. No nation has achieved true development without mastering steel. For decades, Nigeria has aspired to do so—but we have not yet succeeded.
“My administration is changing the narrative. It is with great optimism that I welcome you to this important gathering,” Tinubu, who was represented by the Vice President, Kashim Shettima, stressed.
He explained that the summit was the first of its kind, pointing out that it marked a defining moment in the life of the nation.
He added: “It is a moment to reflect on the road we have travelled, acknowledge the challenges we have faced, and, above all, chart a bold new course for the future. Today, we turn our attention to a critical conversation, one that holds the potential to shape the future of our nation’s industrial landscape.”
Tinubu outlined ongoing efforts by his administration to revamp legacy projects in the sector, such as the Ajaokuta Steel Company, the Aluminium Smelter Company of Nigeria, the National Iron Ore Mining Company, and the Delta Steel Company (now called Premium Steel and Mines), among others.
Declaring open the summit, the President noted that his administration has since established a solid bureaucracy in ensuring the steel sector becomes the engine for national transformation.
This, he said, followed the creation and reconfiguration of the Ministry of Steel Development on assumption of office in 2023, with a mandate to lead the charge in industrialisation.
Tinubu outlined some of his administration’s efforts at transforming the sector to include the signing of a Memorandum of Understanding with Tyazhpromexport (TPE) and its consortium “to rehabilitate and operate the Ajaokuta Steel Plant and the National Iron Ore Mining Company in Itakpe.
He added: ‘‘In parallel, we have engaged other proposals from China and additional partners. A final decision is under careful review. A technical and financial audit of Ajaokuta, approved by the Bureau of Public Procurement, is currently ongoing. It will inform our next steps and shape investor selection.
“Our journey is not limited to old dreams. We are building new pillars. We have launched the construction of five mini-LNG plants in Ajaokuta. These are valued at over $500 million. The project is in partnership with NNPC Limited and private sector stakeholders.
“We are also concluding an agreement with the Ministry of Defence and the Defence Industries Corporation of Nigeria. This will enable the production of military hardware at the Ajaokuta Engineering Workshop,” he said.
According to the President, the federal government is currently establishing an Industrial Park within the Ajaokuta area to host a Free Trade Zone.
“It will include a gas park. It will house a military-industrial complex. All of these will draw from the infrastructure already in place. They will position Ajaokuta as the industrial heart of our nation,” he stated.
On ongoing efforts to revive the Aluminium Smelter Company of Nigeria in Ikot-Abasi, which he said had been stalled by long-standing legal and operational hurdles, Tinubu said a “new investment proposal of $465 million has been submitted by the current management,” adding that the six-year plan to restore full capacity would be announced after a detailed review of the Ministry’s recommendations.
Revealing plans to revamp other legacy assets in the sector, the President said: “The management of Delta Steel Company, now Premium Steel and Mines, has committed to begin rehabilitation and operations within 18 months. This will depend on the availability of raw materials.
“We have also attracted a new project by Stellar Steel, part of the Inner Galaxy Group. They are investing $400 million to build a new plant in Ewekoro, Ogun State. This facility will produce hot-rolled coils and plates. It is a bold step toward import substitution and value addition.”
He described the stakeholders summit as proof of his administration’s resolve “to make the steel industry the backbone of Nigeria’s industrial future,” even as he assured that by 2030, Nigeria will start producing 10 million tonnes of liquid steel.
“We aim to create over 500,000 direct and indirect jobs. We have already developed a ten-year roadmap for the sector. We have outlined a three-year plan for the operationalisation of Ajaokuta. These plans focus on infrastructure, regulatory reform, and capacity development.”
Tinubu, however, implored the private sector to join hands with the government in revamping the sector, saying the government cannot actualise the plan alone.
“But we cannot do this alone. The government can lead. But the private sector must invest. Academia must innovate. Skilled workers must emerge,” he appealed.
Earlier in his opening address, Minister of Steel Development, Shuaibu Audu, assured stakeholders that the potential of the steel sector is obvious, ranging from its market size to federal government incentives.
He noted that even though Nigeria is well-endowed with steel-making raw materials, it has yet to fully explore its potential for industrial development.
Audu explained that revitalising local steel production would reduce Nigeria’s $4 billion annual import bill.
He listed incentives to attract investors, including capital allowances, import duty exemptions, tax holidays, and policies that ensure 30 per cent of steel inputs for government projects are sourced locally.
Audu also highlighted public-private partnerships, industrial parks, mini-LNG plants, and collaboration with the Ministry of Defence to manufacture military hardware, stressing that these measures would stimulate local raw material consumption, generate jobs, and establish Nigeria as a regional steel hub.
On his part, Chairman of the Senate Committee on Steel Development, Senator Patrick Ndubueze, said the summit serves as a platform to facilitate robust engagement among industry stakeholders, the international community and others, to effectively shape Nigeria’s steel industry value chain.
Also speaking, Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, emphasised that while Nigeria’s steel value chain offers untapped potential, the Tinubu administration, in line with the Nigeria First policy, is committed to promoting local value creation by prioritising domestic production and supporting the local economy.
“We are committed to deep, sustainable value addition through streamlining approvals to attract and retain investors, ensuring transparent regulatory frameworks,” she added.
On his part, Minister for Solid Minerals Development, Dele Alake, maintained that the Nigerian steel industry is poised to move from stagnation to strength and from isolation to global relevance under the leadership of Tinubu.
“Our goal is to position Nigeria as a steel hub of West Africa anchored on local beneficiation, sustainable practices, and public-private partnerships,” he said.
Also, the Minister of Transportation, Sa’idu Alkali, noted that the event comes at a time when Nigeria is experiencing transformative reforms across all sectors of the economy, including the steel industry, as part of the federal government’s commitment to actualising the Renewed Hope Agenda of President Tinubu.
He expressed optimism that existing relevant policies, such as the Nigerian Minerals and Mining Act and other related laws, will provide the framework to reposition the Nigerian steel industry.
For the Minister of Marine and Blue Economy, Adegboyega Oyetola, who was represented by Mrs. Amaka Okereke, the gathering was a reminder that steel is not just a product, but a key enabler of Nigeria’s aspiration for national economic growth.
The minister stressed that in Nigeria, the revival of the nation’s steel sector holds the promise of reducing import dependence and enabling the growth of countries that rely on these vital resources.
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