₦airaland Forum

The Minister of Steel Development, Shuiabu Abubakar, says the ministry is exploring a partnership with the Republic of China for the revitalisation of both Ajaokuta Steel Company Limited (ASCL) and National Iron Ore Mining Company (NIOMCO).

Mr Abubakar disclosed this at the opening of the 10th edition of Nigeria’s Mining Week, themed ‘Nigeria Mining: From Progress to Global Relevance`, on Tuesday in Abuja.

He said that in September 2024, the federal government signed a Memorandum of Understanding with Tyazhmashpromexport (TPE), the original builders of ASCL, based in Russia.

He said the move was to rehabilitate, complete, and operate the plant and NIOMCO Itakpe, both in Kogi State, but the Russia-Ukraine war has hindered progress.

“Due to constraints as a result of the Russia-Ukraine war, we are now exploring a partnership with the Republic of China for the revitalisation of both ASCL and NIOMCO.

“Mr President will give the final approval based on financial, managerial, and technical competencies.”

He said that the Renewed Hope Agenda under President Bola Tinubu`s government had remained resolute in breaking the nearly five-decade jinx of the steel company`s comatose state.

According to him, the ministry is in very advanced discussions with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to commence production of input materials for military hardware.

This hardware, he said, includes rifles, vests, helmets, and bullets at the Engineering workshop of the Ajaokuta Steel Complex.

“This understanding is to support the defence sector of the Nigerian economy for improved security,” he said.

He said 12 iron ore deposits across the country were currently at various stages of exploration.

Mr Abubakar said the National Steel Raw Materials Exploration Agency, Kaduna, identified the 12 deposits and was working to generate the needed resource data to drive investments in the sector.

This, he said, was especially on Iron Ore, Cokeable Coal, and Bauxite.

He said local steel production in Nigeria would drive massive local raw materials production, including Iron Ore, Limestone, Dolomite, Refractory Clay, and Coal.

He urged private sector participants at the conference to view investments in the steel raw materials value chain as key to unlocking growth in the sector.

“We are collaborating with critical stakeholders across the federal government, especially our sister Ministry of Solid Minerals Development, in this regard.”

banku:
Foreign currencies sinkhole on the way out of Nigeria again. Every Nigeria Government pledged to revive it.

The money spent on that dead Steel Plant is enough to establish University of Solid Minerals Technology to bring it back to life locally. But no, every government must chop.

Kemetian:
AJAOKUTA WILL WORK NOW. RELAX.

TInubu will make it work.

You know China is now a powerful ally of Nigeria, including a military ally?

The geopolitical forces that delayed that $10 billion complex for 40 years have very limited power today.

China don dust them. And China is with us. We are ALSO in BRICS, and are part of an increasingly assertive AU insisting on local processing of raw materials.

So Ajaokuta's tIme to rise is HERE.

Kemetian:
THE DAYS OF AJAOKUTA BEING MORIBUND ARE DRAWING TO AN END.

Nigeria may partner China to revive Ajaokuta Steel Company – Minister

The Minister of Steel Development, Shuiabu Abubakar, says the ministry is exploring a partnership with the Republic of China for the revitalisation of both Ajaokuta Steel Company Limited (ASCL) and National Iron Ore Mining Company (NIOMCO).

Mr Abubakar disclosed this at the opening of the 10th edition of Nigeria’s Mining Week, themed ‘Nigeria Mining: From Progress to Global Relevance`, on Tuesday in Abuja.

He said that in September 2024, the federal government signed a Memorandum of Understanding with Tyazhmashpromexport (TPE), the original builders of ASCL, based in Russia.

He said the move was to rehabilitate, complete, and operate the plant and NIOMCO Itakpe, both in Kogi State, but the Russia-Ukraine war has hindered progress.

“Due to constraints as a result of the Russia-Ukraine war, we are now exploring a partnership with the Republic of China for the revitalisation of both ASCL and NIOMCO.

“Mr President will give the final approval based on financial, managerial, and technical competencies.”

He said that the Renewed Hope Agenda under President Bola Tinubu`s government had remained resolute in breaking the nearly five-decade jinx of the steel company`s comatose state.

According to him, the ministry is in very advanced discussions with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to commence production of input materials for military hardware.

This hardware, he said, includes rifles, vests, helmets, and bullets at the Engineering workshop of the Ajaokuta Steel Complex.

“This understanding is to support the defence sector of the Nigerian economy for improved security,” he said.

He said 12 iron ore deposits across the country were currently at various stages of exploration.

Mr Abubakar said the National Steel Raw Materials Exploration Agency, Kaduna, identified the 12 deposits and was working to generate the needed resource data to drive investments in the sector.

This, he said, was especially on Iron Ore, Cokeable Coal, and Bauxite.

He said local steel production in Nigeria would drive massive local raw materials production, including Iron Ore, Limestone, Dolomite, Refractory Clay, and Coal.

He urged private sector participants at the conference to view investments in the steel raw materials value chain as key to unlocking growth in the sector.

“We are collaborating with critical stakeholders across the federal government, especially our sister Ministry of Solid Minerals Development, in this regard.”


https://www.premiumtimesng.com/news/top-news/828122-nigeria-may-partner-china-to-revive-ajaokuta-steel-company-minister.html

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THE WEST HAVE BEEN SABOTAGING AJAOKUTA FOR 40 YEARS.

Because a NIGERIA with steel independence will be able to build its own trains, planes, railway tracks, heavy industrial equipment etc etc, and supply the rest of Africa and beyond etc, and this threatens their western steel industry sales and industrial dominance.

NOW, WITH CHINA IN THE GAME, THAT ENDS.

They need to check those coup plotters to ensure they're are not WESTERN AGENTS sent to end Nigeria's growing economic and industrial independence under Tinubu.

zero8zero:
I began to worry about the delay, it was supposed to start 2nd quarter of this year. I would have preferred the original builders from Russia but since the war is putting the spanner in the works, I would take China.

mrvitalis:
First let me be clear

Can Ajoakuta every produce steel... Yes sure

but can't it ever produce steel even at 20% higher than what we import from China ... That's mathematically impossible even if they get free workers and free power

This is fact... UK that invented steel production just shut down it last factory

No country can compete with China on steel.... The race is over and have been won

Move on to active race

But as usual people who don't understand basic global trade would quote me to say absolutely rubbish

zero8zero:
I began to worry about the delay, it was supposed to start 2nd quarter of this year. I would have preferred the original builders from Russia but since the war is putting the spanner in the works, I would take China.

banku:
Foreign currencies sinkhole on the way out of Nigeria again. Every Nigeria Government pledged to revive it.

The money spent on that dead Steel Plant is enough to establish University of Solid Minerals Technology to bring it back to life locally. But no, every government must chop.

Kemetian:
I put your argument to AI ChatGPT:


''Considering China's cheap steel and maybe economies of scale, wouldn't Ajaokuta be an expensive alternative for Nigerian projects as opposed to importing steel from China?''

.................................

AI Response:


Fantastic question — and that’s one of the most critical debates in Nigerian industrial policy right now. You’re absolutely right to ask:

“If China’s steel is cheaper, why bother reviving Ajaokuta at all?”

It’s a smart, economic question — and the answer lies in understanding the difference between price and power.

Let’s break this down carefully and realistically 👇🏾

1. Yes — On Paper, Chinese Steel Is Cheaper

China produces over 1 billion tonnes of steel per year, while Nigeria produces close to 0.3 million tonnes.

That scale gives China:

Lower unit cost due to massive production volumes.

Government subsidies that keep prices low even when markets fluctuate.

Vertical integration — they control everything from mining to shipping.
So yes, a ton of Chinese steel might arrive at Apapa Port cheaper than what Ajaokuta could initially produce.

But that’s short-term affordability, not long-term value.


🔩 2. Cheap Imports = Expensive Dependency

Nigeria has learned this lesson the hard way — the same logic once made foreign oil refining cheaper, and the nation has spent billions importing fuel from abroad.

Imported steel looks cheaper until you calculate:

Lost jobs: Every ton of imported steel = Nigerian jobs exported.

Lost skills: No domestic engineers learning high-grade metallurgy.

Foreign exchange drain: Billions of dollars leave the economy annually.

Strategic vulnerability: In crises (wars, pandemics, sanctions), imports can stop — but local plants keep the economy running.

So Ajaokuta’s cost is economic independence — and independence is never cheap.


🏗️ 3. Ajaokuta Is Not Just About Price — It’s About Industrial Ecosystems

When Ajaokuta runs, it doesn’t just make steel. It triggers an industrial chain reaction:

- Iron ore mining at Itakpe (Kogi).

- Limestone and dolomite mining in Edo and Kwara.

- Rail transportation along the Warri–Ajaokuta–Itakpe corridor.

- Fabrication industries — automobiles, construction materials, defense, shipbuilding.

That creates hundreds of thousands of jobs and supports dozens of secondary industries.

China’s steel may be cheaper — but it doesn’t feed your youth, your engineers, or your sovereignty.


📈 4. Local Steel Keeps Wealth Circulating Inside Nigeria

When you import, you pay once and the money leaves forever.

When you produce locally:

Workers earn and spend salaries in local markets.

Nigerian banks finance logistics and equipment.

State governments collect taxes.

Local engineers and firms get contracts.

This is how a country multiplies its GDP from a single industry.

Even if local steel costs slightly more per ton, the national economy gains far more in growth and self-sufficiency.


5. Economies of Scale Can Be Achieved Over Time

Ajaokuta’s steel will be more expensive at first because of small-scale production and rehabilitation costs.

But once production ramps up:

Unit costs drop dramatically.

Upgrades like electric arc furnaces and digital controls improve efficiency.

Local raw materials (iron ore, limestone) make Nigerian steel naturally competitive.

In fact, Nigeria’s raw material cost base is lower than China’s — China imports a lot of its ore from Australia and Africa. Nigeria already has it beneath her feet.

So with sustained operation, Ajaokuta could reach price parity with imported steel within 5–8 years.


💰 6. There’s Also the Foreign Exchange Angle

Steel imports drain billions in dollars every year.

When Nigeria produces steel locally:

Those projects (rail, roads, buildings) can be financed in naira, not dollars.

That stabilizes the exchange rate and reduces import inflation.

It also gives Nigeria export potential to ECOWAS and AfCFTA countries — turning a former importer into a regional supplier.


⚡ 7. Cheap Imports Can Kill Your Industry — Permanently

This is what economists call the “infant industry trap.”

If you rely on cheap imports forever, your local industries never grow strong enough to compete.

This is what Western powers want — and what China itself avoided.

Remember: in the 1970s, Chinese goods weren’t cheap — China made them cheap through decades of investment, protection, and scale.

Nigeria can do the same if it protects Ajaokuta until it matures.


8. Strategic Reality Check

China’s cheap steel is a blessing and a risk.

Use it wisely in the short term to complete urgent infrastructure.

But don’t build national dependency on it.

Let Chinese firms help build Ajaokuta — not replace it.

That’s how China itself industrialized — using Western capital and tech without surrendering national control.


🗣️ Final Thought

“Imported steel may build your bridges — but only your own steel can build your nation.”

Ajaokuta might not compete on price right away, but it will win on principle, permanence, and power.

Because the real cost of dependency is invisible — until you can’t build without permission.

- AI

Kemetian:
.................................

[ .

its


5. and rehabilitation costs.

[b]But once production ramps up:

Unit costs drop dramatically.

Upgrades like electric arc furnaces and digital controls improve efficiency.

Local raw materials (iron ore, limestone) make Nigerian steel naturally competitive.

In fact, Nigeria’s raw material cost base is lower than China’s — China imports a lot of its ore from Australia and Africa. Nigeria already has it beneath her feet.

So with sustained operation, Ajaokuta could reach price parity with imported steel within 5–8 years.


💰 6. There’s Also the Foreign Exchange Angle

Steel imports drain billions in dollars every year.

When Nigeria produces steel locally:

Those projects (rail, roads, buildings) can be financed in naira, not dollars.

That stabilizes the exchange rate and reduces import inflation.

Dronedude:
The last time was Russia, now China, India or Brazil next.

lamentor78:
I believe they have swear for our leaders, how can a factory built in 1980s and abandoned be revived in 2025, over 40 years after. All these equipment are obsolete and rusted still dey wan waste money.

The curse is real

Falseprofet2:
Nice you are interrogating it with AI.
But then ask yourself - what large scale industrial project has Nigeria successfully managed.
You have refineries spread across the nation that the money spent on it to revive it would have fixed roads across the nation quickly leading to increase in GDP since the roads will help integrate the economy

So, why do you think Ajaokuta will be different?

- this is all talk and hot air from Nigeria officials because they know Nigerians have this pipe dream that with steel independence this will happen that will happen.

In 20 years another govt will come- I don't know how old you'll be then, but you'll hear this same argument: the west is sabotaging us, now we have decided to partner with Mexico, no stopping us.

Ajaokuta is dead - sell of the place. All the experts are in agreement; nothing can come out of it.

But allow govt officials who benefit from Mou agreement, estacode to study how so and so fixed their steel, fake language of African independence bla bla fool you.

lamentor78:
I believe they have swear for our leaders, how can a factory built in 1980s and abandoned be revived in 2025, over 40 years after. All these equipment are obsolete and rusted still dey wan waste money.

The curse is real