President Bola Tinubu has restated his administration’s firm resolve to reposition the steel sector as the industrial hub of the nation’s economic diversification.
Accordingly, he has highlighted 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.
Speaking on Wednesday in Abuja when he formally declared open the Inaugural Stakeholders Summit on the Development of the Steel Sector in Nigeria, the President noted that his administration has since established a solid bureaucracy in ensuring the steel sector becomes the engine for national transformation.
Industrialisation
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.
“It has been positioned as the fulcrum for economic diversification. It is a signal of our seriousness to extract, process, and commercialise our God-given endowments. 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,” he stated.
Current Efforts
President Tinubu, who was represented at the maiden event by Vice President Kashim Shettima, 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.
‘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 dollars. 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.
The Nigerian leader said that the 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 explained.
Legal and operational hurdles
Speaking on the 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, President Tinubu said a “new investment proposal of 465 million dollars has been submitted by the current management.”
He said 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 dollars 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.”
President Tinubu 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,” he stated.
President Tinubu, however, implored the private sector to join hands with the government in revamping the sector, saying the government cannot actualise the plan alone.
He appealed to the people that government cannot do all alone, but it can lead and give the private sector chance to invest as academias also innovate to enhance the emergence of skilled workers.
Lateefah Ibrahim