FG to revive Ajaokuta Steel with backing from top Chinese firms

The Federal Government has announced fresh efforts to revive the long-dormant Ajaokuta Steel Company, marking a renewed push to bring one of Nigeria’s most significant industrial assets back into full operation.

Over the weekend, authorities confirmed that the government has opened high-level discussions with major Chinese steel conglomerates to secure the technical know-how, financial support, and industrial partnerships required to restart the facility. The move is seen as central to Nigeria’s broader manufacturing and job creation agenda.

Leading the initiative is the Minister of Steel Development, Shuaibu Audu, who is currently heading a federal delegation on an investment mission to China. The delegation includes the Director-General of the Nigeria-China Strategic Partnership, Joseph Tegbe, as well as senior officials from the Nigerian Embassy in Beijing.

Meetings have already taken place with executives from several top Chinese steel producers, including Sino Steel (a subsidiary of Baowu Group), Fangda Steel Group, and Jingye Steel Group.

According to a statement from Lizzy Okoji, Special Assistant on Media to the Minister, talks have focused on technical assessments, the design of operational frameworks, and the development of financial structures that would make the revival of Ajaokuta Steel a reality.

Minister Audu reaffirmed the commitment of President Bola Tinubu’s administration to restoring the company as a key pillar of Nigeria’s industrial strategy.

“Our objective is clear: to secure strong technical and financial partnerships that can help us bring Ajaokuta Steel back to life.

“The facility has immense potential to catalyse industrial growth, boost local manufacturing, and generate thousands of direct and indirect jobs for Nigerians,” he said.

He further noted that the discussions have centred around key elements such as technical evaluations, operational design, and financing models, all aimed at returning the steel plant to full operational capacity.

Joseph Tegbe, also speaking on the mission, described the meetings as “a strategic step in aligning China’s formidable industrial strengths with Nigeria’s development priorities.”

“This engagement reflects Nigeria’s commitment to forging meaningful partnerships that will unlock long-term economic value across our manufacturing and infrastructure sectors,” he added.

The development comes amid increased calls for the country to reduce its reliance on imported steel and instead harness local capacity to fuel national infrastructure projects, automotive production, and large-scale construction efforts.

Ajaokuta Steel, first envisioned in the late 1970s, has remained idle for decades due to inconsistent policies, failed concession arrangements, and chronic underinvestment. Yet the facility, with an installed capacity of 1.9 million tonnes and potential expansion to 5 million tonnes annually, remains central to Nigeria’s industrial future.

The current administration has vowed to complete its revival and position it as a driving force behind economic diversification and industrial resurgence.