The Federal Government is in advanced talks with Chinese investors to revive Ajaokuta Steel Company through a $2 billion investment plan aimed at boosting output to 10 million metric tonnes and generating $15 billion in annual exports to China.
The Federal Government has intensified high-level negotiations with Chinese investors to resuscitate the long-dormant Ajaokuta Steel Company, proposing a $2 billion investment anchored on a production-sharing model to restore large-scale steel manufacturing in Nigeria. Joseph Tegbe, Director-General and Global Liaison for the Nigeria-China Strategic Partnership, disclosed this in an interview in Abuja, describing the plan as a transformative step toward repositioning the 42-year-old steel complex as the backbone of Nigeria’s industrialisation drive under the administration of Bola Ahmed Tinubu.
Built in 1984 with an installed capacity of 1.3 million metric tonnes per annum, Ajaokuta has remained largely non-operational due to legal disputes and policy inconsistencies. Tegbe noted that Nigeria currently requires about 10 million metric tonnes of steel annually but produces only around 1.2 million metric tonnes, mostly from recycled scrap. “Even the 1.2 million metric tonnes produced locally is largely scrap-based. That is not sustainable when we have significant iron ore deposits in Itakpe and other parts of Kogi and Niger States,” he said.
According to Tegbe, the preferred Chinese investor — selected after engagements with nearly 10 companies — has conducted a technical assessment of the plant, deploying about 20 engineers to Nigeria at its own cost for a two-week evaluation. He said the firm concluded that although much of the equipment is outdated, the core infrastructure remains viable. “They told us that within six months of commencement, a steel rolling mill can begin operations,” Tegbe said, adding that the broader plan targets increased steel production and up to $15 billion in annual exports to China to rebalance trade.
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