By Taiwo Scholarstica
The Federal Government has taken a major step towards reviving the long-dormant Delta Steel Company in Ovwian-Aladja, Delta State, following a commitment of over $1.3 billion by Premium Steel and Mines Limited to rehabilitate and modernise the facility.
The development is expected to breathe new life into one of Nigeria’s major steel-producing assets and boost the country’s efforts to strengthen local manufacturing.
The Delta State Government announced the development, noting that the investment would support the restoration of the steel plant and help create thousands of employment opportunities for Nigerians.
A key part of the revival is the signing of a Sublease and Operations Agreement between the National Iron Ore Mining Company (NIOMCO), Itakpe, and Premium Steel and Mines Limited.
The agreement is designed to ensure a steady and sustainable supply of iron ore to the steel plant, addressing one of the major requirements for the return of full-scale production.
Under the agreement, Premium Steel has committed to restoring the facility to its original production capacity of one million tonnes of steel annually.
Commercial production is expected to commence within 18 to 24 months as rehabilitation and modernisation work progresses.
Speaking on the development, the Minister of Steel Development, Shuaibu Audu, said the revival would have a significant impact on Nigeria’s industrial sector.
According to him, “The revival of the Delta Steel Company will restore local steel production, create opportunities for young Nigerians and strengthen downstream industries.”
Audu added that the investment was in line with the Federal Government’s Renewed Hope Agenda, particularly its focus on economic diversification, industrialisation and job creation.
The revival is projected to generate about 25,000 direct and indirect jobs, providing employment opportunities for residents of Delta State and Nigerians across different sectors of the economy.
Beyond employment, the return of the steel plant is expected to support businesses involved in construction, engineering, manufacturing, transportation and other industries that depend heavily on steel.
For years, the Delta Steel Company has remained largely inactive, despite its importance to Nigeria’s industrial development. Its planned revival is therefore being viewed as an opportunity to restore the facility to its position as a major contributor to the national economy.
The Federal Government and the investors are expected to work towards ensuring that the rehabilitation project remains on schedule and that the plant achieves commercial production within the projected timeframe.
The investment could also reduce Nigeria’s dependence on imported steel products while strengthening local capacity and encouraging the growth of industries that rely on locally produced steel.
With the $1.3 billion commitment and the agreement securing iron ore supply, stakeholders believe the long-awaited revival of the Delta Steel Company could mark a new chapter for Nigeria’s steel industry.