Minister for Steel Development, Mr. Shuabu Abubakar Audu, has said a huge funding gap of about N3 trillion and a cabal working against Nigeria’s dream have been holding back Nigeria’s steel development.
For 47 years, the Ajaokuta Steel Company has stood as Nigeria’s abandoned industrial dream.
Billions of naira have been sunk into it, yet the plant is yet to produce a single sheet of steel.
The minister made a startling admission: a powerful “cabal” is actively holding back the project, working in concert with years of poor funding from successive governments to keep the dream in limbo.
Asked to explain how the cabal is being dealt with, the minister explained that those involved in the importation of steel into Nigeria are doing everything to frustrate the government including blocking moves to amend relevant laws in the National Assembly.
The minister, who spoke on a Podcast interview, Deep Insight with Agbonsuremi, said the lack of political will and consistent low budgetary allocation had been as damaging as the sabotage by vested interests who benefitted from Nigeria’s continued dependence on imported steel.
Ajaokuta was conceived in the 1970s to drive industrialisation and steel sufficiency, but decades of neglect, contract disputes, and alleged sabotage have left it at less than 10% completion.
The result: Nigeria imports over $4 billion worth of steel annually.
In what may signal a new chapter, Shuabu Abubakar Audu said it is now “hopeful” of sealing a deal with China to revive and complete the plant.
He believes a partnership with Chinese investors and technical partners could unlock funding, technology, and the political backing needed to finally deliver on the promise of Ajaokuta.
The minister said the Ajaokuta Steel Complex would commence commercial production by 2028 if the federal government concluded its ongoing negotiations with a Chinese investor this year; arguing the company can be fully revived if President Bola Tinubu is re-elected.
Audu disclosed that the Chinese investor was considering committing between $1.5bn and $2bn to revive the long-abandoned steel complex in Kogi State.
According to him, the investment will come through a combination of cash and equipment, while the federal government is considering a production-sharing arrangement that would allow the investor to recover its investment before ownership eventually reverts to the government.
The minister said the government had decided against injecting public funds into Ajaokuta because about N3tn was required to revive the complex, while its 2025 budgetary allocation was only N500m, with N50m earmarked for capital expenditure.
Ajaokuta Steel Complex, which was about 98 per cent complete in the early 1980s, has suffered decades of neglect, abandoned contracts, legal disputes and alleged asset stripping.
Audu revealed that “an ongoing technical and financial audit would determine the exact state of the complex, but estimated that about 70 per cent remains useful, with the remaining 30 per cent requiring significant upgrading.”
He explained that the federal government initially negotiated with Russian equipment manufacturers but had to shift its focus to China following the Russia-Ukraine war.
The minister also disclosed that the government had signed a 20-year gas supply agreement with the Nigerian National Petroleum Company Limited to provide gas to Ajaokuta, making the project more attractive to investors.
He said the government had also signed an agreement with the Ministry of Defence and Defence Industries Corporation of Nigeria to use part of the Ajaokuta complex for the production of military hardware, including helmets, bulletproof vests and ammunition.
Audu also argued that President Tinubu would require a second term to consolidate the reforms and achieve the administration’s long-term economic objectives.
“We are hoping, praying, that the President gets a second term so that we can have a 2030 $1tn economy,” he said.
He urged Nigerians to support Tinubu’s re-election, saying continuity was necessary to consolidate the reforms and complete major projects such as Ajaokuta.
$4bn steel imports
Audu said Nigeria currently imports about $4bn worth of steel annually, warning that beneficiaries of the import business could resist efforts to establish a strong domestic steel industry.
“The people that are benefiting from imports of $4bn in terms of iron and steel annually would fight tooth and nail to prevent the local industry from kick-starting.”
Asked whether such interests had attempted to frustrate his ministry, he said there had been constant efforts to make the government’s work difficult.
He said the steel sector could contribute about $100bn to Nigeria’s economy if Ajaokuta and other major steel facilities operated at full capacity.
According to him, the revival of Ajaokuta, Delta Steel and other facilities could create between 500,000 and one million jobs, while Nigeria’s estimated three billion metric tonnes of iron ore deposits in Kogi State provide a strong foundation for local steel production.
The minister expressed confidence that President Bola Tinubu’s $1tn economy target by 2030 is achievable, but argued that the administration would require a second term to consolidate its economic reforms.
He said Nigerians should expect three major outcomes from his ministry: the signing of an agreement to revive Ajaokuta, the revival of Delta Steel, and implementation of a 10-year blueprint for the wider development of Nigeria’s steel industry.
Audu said he remained confident of delivering on the assignment, adding, “Absolutely, I believe I can do it. And I believe that I will do it.”
Deep Insight With Agbonsuremi is a Podcast anchored by veteran journalist and broadcaster, Augustine Okhiria Agbonsuremi.
READ ALSO:
BREAKING: Tinubu begins three-week leave
APC candidate, Oyebamiji, congratulates Adeleke on re-election
Army warns against unauthorised X posts
Police dismantle bandits’ hideouts in Kaduna
Atiku’s subsidy push and echoes of desperation, By Tunde Rahman
Troops intercept ₦9.89m ransom, rescue 27 kidnap victims
