In a renewed push to revitalise Nigeria’s struggling steel sector, the Federal Government has deepened negotiations with Chinese steel conglomerate, Sino Steel, to bring the long-moribund Ajaokuta Steel Company back to full operation. The high-level engagement, held in Abuja, involved the Minister of Steel Development, Shuaibu Abubakar Audu, and the Director-General of the Nigeria-China Strategic Partnership (NCSP), Joseph Tegbe, in a strategic session with Sino Steel executives.
The meeting marks a major milestone under President Bola Tinubu’s Renewed Hope Agenda, which prioritises industrialisation, infrastructure development, and localisation of manufacturing as core pillars of Nigeria’s economic transformation. Ajaokuta Steel, once touted as Africa’s largest integrated steel plant, has remained non-functional for decades despite billions of naira invested over the years.
According to officials familiar with the outcome of the meeting, Sino Steel has agreed to deploy a team of engineers and industry experts to conduct a detailed on-site technical and viability assessment of the Ajaokuta facility. This evaluation will help determine the level of refurbishment needed, current operational gaps, and the plant’s potential for scaling up production to meet both domestic and export demands.
With an installed capacity of 1.9 million tonnes and an expandable potential of up to 5 million tonnes annually, the Ajaokuta complex is seen as critical to Nigeria’s ambitions in the automotive, construction, defence, and heavy machinery sectors. Its revival is expected to reduce Nigeria’s reliance on imported steel, create thousands of direct and indirect jobs, and stimulate ancillary industries such as mining and logistics.
Speaking after the meeting, NCSP DG Joseph Tegbe said the deliberations were “strategic, technical and action-oriented,” stressing that the collaboration signalled a robust alignment between Nigeria’s developmental goals and China’s industrial expertise.
“This engagement shows that both nations are committed to mutually beneficial development. Sino Steel’s proven track record in large-scale steel projects worldwide makes them a credible and capable partner for the Ajaokuta renaissance,” Tegbe added.
In his remarks, Minister Shuaibu Audu reaffirmed the government’s commitment to finally actualise the decades-long ambition of a functional steel industry. “We are moving beyond rhetoric. This administration is committed to delivering a fully operational Ajaokuta plant that serves as a backbone of Nigeria’s industrialisation drive,” he said.
Industry experts believe that reviving Ajaokuta is not only symbolic but vital to boosting Nigeria’s economic diversification. The global steel market, currently valued at over $870 billion, offers immense opportunities for emerging markets. Nigeria, despite being Africa’s largest economy, still imports over $4 billion worth of steel products annually, according to data from the National Bureau of Statistics (NBS).
China’s growing involvement in Nigeria’s infrastructure and industrial sectors has drawn both praise and scrutiny. However, many stakeholders see this renewed interest in Ajaokuta as a potential game-changer. “If executed transparently and efficiently, this project can become the flagship of Nigeria-China cooperation,” said Dr. Musa Bello, an industrial economist based in Abuja.
Sources within the Ministry of Steel Development disclosed that the technical team from Sino Steel is expected to arrive in Nigeria before the end of June 2025. Their findings will form the basis of a phased modernisation blueprint that includes equipment replacement, retooling, energy supply upgrades, and potential public-private financing models.
The renewed focus on the Ajaokuta Steel project aligns with broader efforts to revive Nigeria’s manufacturing base, including the development of Special Economic Zones (SEZs), export-processing clusters, and mineral processing hubs.
As the Tinubu administration intensifies its industrialisation drive, eyes remain fixed on whether this latest effort will finally break the jinx that has plagued the Ajaokuta Steel Company for over four decades.