The Federal Government plans to spend N6.04 billion on personnel costs for Ajaokuta Steel Company Limited in the 2026 fiscal year, despite the steel complex remaining non-operational more than 40 years after its inception.

In the 2026 Appropriation Bill, the company was allocated a total of N6.69 billion for the year, with personnel expenses alone accounting for roughly 90.4 per cent of the total allocation, according to Nairameteics.

This funding pattern underscores Ajaokuta’s enduring status as a non-producing public enterprise, sustained primarily through salary payments rather than industrial output.

Findings show that of the N6.04 billion earmarked for personnel, N4.79 billion is allocated to salaries and wages, while N1.25 billion is reserved for allowances and statutory social contributions.

This includes N479.42 million for employer pension contributions, N239.71 million for NHIS payments, and N59.82 million for employees’ compensation insurance. Regular allowances alone account for N468.9 million.

A closer examination of the proposed 2026 budget reveals a striking imbalance between recurrent and capital spending.

Total recurrent expenditure for Ajaokuta is projected at N6.28 billion, whereas capital expenditure is capped at just N410.8 million.

The budget document indicates that Ajaokuta is projected to generate no independent revenue in 2026 and will receive no grants, leaving the company entirely reliant on federal subventions for survival.

Despite this dependence, the company continues to appear in constituency-style capital projects, including solar street lighting in parts of Niger East and Kwara North, water facilities, road repairs, security lighting, and grants to market women and youths.

While these projects are ongoing, they are unrelated to steel production or industrial capacity and do little to alter the company’s long-standing non-operational status.

These projects, while ongoing, are not linked to steel production or industrial capacity and do little to change the company’s non-operational status.
Separately, the proposed 2026 budget includes allocations for revival-related activities under the Federal Ministry of Steel Development.

The ministry earmarked N150.99 million for the revitalisation of Ajaokuta Steel Company Limited and the National Iron Ore Mining Company, classified as an ongoing capital project.

In addition, N1.06 billion has been set aside for project preparation aimed at attracting investment to Ajaokuta.

The 2026 allocations are significantly lower than in 2025, when the ministry budgeted N2.41 billion for project preparation and N250.98 million for the revitalisation of Ajaokuta and NIOMCO.

This represents a 56 per cent year-on-year decline in project preparation spending, even as the steel complex remains idle.

Conceived in 1979 as Nigeria’s flagship industrial project, the Ajaokuta Integrated Steel Complex was intended to reduce steel imports, drive industrialisation, and support economic diversification.