Why Ajaokuta has failed to take off 40 years after it was declared 98% complete defies comprehension, despite its potential to kick-start Nigeria’s industrial development.
For 42 years, the Ajaokuta Steel Company Limited (ASCL) has stood as Nigeria’s most expensive industrial failure, consuming billions in annual maintenance without production. The ongoing Senate investigation into alleged corruption underscores how Africa’s largest steel complex remains a financial black hole. A former management staff revealed: “Political instability and policy inconsistency killed Ajaokuta. Each new government abandoned previous plans, creating contractor chaos and debt traps.”
Documents show the 68,000-acre complex suffers from contract inflation, mismanagement and underfunding. “Contracts were inflated, funds misappropriated,” the source added, noting technical incompetence stalled operations. Originally designed to produce 1.3 million tonnes annually, Ajaokuta owes its paralysis to 15 failed revival attempts since 1983, with $8 billion already wasted. The Senate committee recently discovered ₦33 billion mysteriously spent on “staff salaries” for non-operational facilities.