The Federal Government says it will revive all moribund steel companies nationwide, more than 20 years after a failed privatisation drive left once-thriving plants in decay.

It noted that restoring both privatised and government-owned steel assets will enable them to contribute to national development as originally intended.

President Bola Tinubu announced the initiative on Wednesday at the inaugural National Steel Stakeholders’ Summit on the Development of the Steel Sector in Abuja, themed “Rebuilding and Consolidating Nigeria’s Steel Industry: Collaborative Action for Sustainable Growth and Global Competitiveness.”

Recall that in the early 2000s, the government’s privatisation policy led to the sale of the inland rolling mills in Oshogbo, Katsina, and Jos, as well as the Delta Steel Company and the Aluminium Smelter Company of Nigeria, to private investors. All of these ventures ultimately collapsed and remain non-operational today.

The collapse of Nigeria’s steel industry forced the nation into heavy dependence on imports, draining an estimated $4.5 billion from the economy each year and leaving critical sectors vulnerable to global market shocks.

In his keynote address, President Bola Tinubu—represented by Vice President Kashim Shettima—said that revitalising the steel sector would lay the foundation for industrial growth, job creation, and sustainable development.

He stated that once the companies are revived, Nigeria aims to produce 10 million tonnes of liquid steel annually by 2030 and generate over 500,000 direct and indirect jobs. Tinubu also disclosed that a final decision on the Ajaokuta Steel Plant, based on a thorough review of financial, managerial, and technical capabilities, will be taken soon.

The president said, “The Nigeria National Steel Summit is the first of its kind, and it marks a defining moment in the life of our great nation. This is not merely a technical discussion; it is a national imperative. In revitalising our steel sector, we ignite the very foundation upon which industrial growth, job creation, and sustainable development are built.

“Despite our vast natural endowments in iron ore, limestone, and coal, Nigeria imports over 90 per cent of the steel it consumes. The Ajaokuta Steel Company, once envisioned as our industrial crown jewel, stands idle, a monument to abandoned ambition. This is not just an economic failure. It is a threat to our sovereignty.

“How can we build, manufacture, or defend ourselves without the material that enables all three? Steel is more than an industrial input. The steel industry symbolises so many of our unrealised hopes, and it holds the key to unlocking the full measure of Nigeria’s industrial promise. It is the material expression of national strength. It builds our bridges, powers our industries, supports our defence, and lays the foundation for a modern economy.”

Tinubu noted that key milestones driving the Federal Government’s renewed push for the steel sector include the long-overdue operationalisation of the Ajaokuta Steel Company Limited and the National Iron Ore Mining Company in Itakpe.

He said his administration had made the completion and commissioning of both plants a priority.

Tinubu also revealed that the Federal Government had begun a technical and financial audit of the Ajaokuta plant to assess its current condition before bringing in a core investor.

“Some of the key milestones shaping the industry include: Ajaokuta Steel Company Limited and National Iron Ore Mining Company, Operationalisation of Ajaokuta Steel Plant. Although we signed a Memorandum of Understanding in September 2024 with the original builders of the Ajaokuta Steel Plant, Messrs. Tyazhpromexport of Russia, we are currently exploring strategic partnership opportunities in China because of the lingering Russia-Ukraine war.

“Mr. President will soon make the final decision and determine the best deal following a comprehensive review of their financial, managerial, and technical competencies. I want all stakeholders to note that the completion and commissioning of Ajaokuta Steel Plant and National Iron Ore Mining Company, Itakpe, is a priority of Mr President,” The VP said.

Shettima announced that a Bureau of Public Procurement–approved technical and financial audit of Ajaokuta was underway to guide the selection of investors.

He also disclosed that five mini-LNG plants, worth over $500 million, were being built in Ajaokuta through a partnership between NNPC Limited and private investors.

“We are concluding arrangements with the Ministry of Defence and DICON to commence military hardware production in Ajaokuta’s engineering workshop,” he said. “We are establishing an industrial park, a free-trade zone, and a gas park, all anchored on existing infrastructure.”

The Vice President further revealed ongoing negotiations on a $465 million proposal to revive the Aluminium Smelter Company of Nigeria in Akwa Ibom, plans to rehabilitate the Delta Steel Company within 18 months, and the establishment of a new $400 million Stellar Steel plant in Ogun State to produce hot roll coils and plates.

He added that the government was formulating a scrap aggregation policy to regulate the recycling industry, curb vandalism of public infrastructure, and guarantee a steady supply of raw materials.