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The Bureau News reports that Nigeria’s long-standing ambition to revive the Ajaokuta Steel Company has come under renewed scrutiny following a £746 million export finance agreement with the United Kingdom.

The deal, signed under President Bola Ahmed Tinubu, is primarily aimed at modernising key seaports in Lagos, including Apapa and Tin Can Island. However, stakeholders argue that the structure of the agreement may disproportionately benefit the UK’s steel industry.

Concerns Over Steel Import Dependence

As part of the agreement, British Steel is expected to supply approximately 120,000 tonnes of steel billets valued at £70 million for the port upgrade project.

While the move is seen as a boost to UK manufacturing, critics say it underscores Nigeria’s continued dependence on imported steel despite the existence of the Ajaokuta Steel Company, one of Africa’s largest but dormant industrial assets.

The Bureau News gathered that the Federal Government has also explored alternative partnerships, including discussions with a Chinese firm over a proposed $2 billion investment aimed at reviving Ajaokuta.

Stakeholders React to Nigeria–UK Agreement

Public reactions have been mixed, with some Nigerians expressing concerns over the perceived imbalance in benefits.

According to social media commentators, a significant portion of the project’s value—estimated between 75% and 80%—could go to UK-based companies providing equipment, logistics, and technical expertise.

However, industry stakeholders have offered a more nuanced perspective.

Ibrahim Audu Abdurrahman, Chairman of the Iron and Steel Senior Staff Association of Nigeria (ISSSAN) at Ajaokuta, emphasized the importance of steel production to national development.

“Steel production drives industrial growth, creates jobs, attracts investment, and supports local industries. Abandoning Ajaokuta poses a serious threat to Nigeria’s economic future,” he said.

He added that the agreement could present opportunities for technology transfer from the UK to Nigeria, provided it is strategically managed.

Balancing Short-Term Gains With Long-Term Industrial Goals

Economists have highlighted the need for a balanced approach that addresses immediate infrastructure demands while safeguarding long-term industrial development.

Daniel Onyejiuwa, Head of the Economics Department at Glorious Vision University, described the deal as potentially beneficial if executed within agreed timelines.

Similarly, Kehinde Ola, a senior lecturer at the institution, noted that the importation of steel could serve as a short-term measure to complete ongoing port projects efficiently.

However, he acknowledged growing concerns about Nigeria’s reliance on foreign steel despite decades of investment in Ajaokuta.

The Future of Ajaokuta Steel

Established in 1979, the Ajaokuta Steel Plant remains largely inactive, despite reports that 40 out of its 42 units are technically completed.

Experts say years of policy inconsistencies, mismanagement, and funding challenges have stalled its operationalisation.

The Bureau News understands that stakeholders are urging the Federal Government to prioritise policies that will revive local steel production, create jobs, and reduce reliance on imports.

While the Lagos port upgrade is expected to improve trade efficiency and strengthen Nigeria’s position as a regional maritime hub, analysts insist that such gains must not come at the expense of domestic industrial capacity.

As debates continue, the future of Nigeria’s steel industry remains uncertain, with Ajaokuta standing at the centre of the country’s quest for industrial self-sufficiency.

Editorialtimes:
Nigeria–UK £746m Deal Raises Fresh Questions Over Ajaokuta Steel Revival | Nigeria News Today



Source: https://thebureaunews.com/nigeria-uk-deal-ajaokuta-steel-revival/

iwaeda:
I have told people, Ajaokuta as it is today, can not work, it is just a waste of time and resources.

tesseract:
Not completely true. For political reasons, yes it cannot work but structurally, No, it can work and has the required capacity to produce industrial grade steel. I speak based on authentic insider information.

Editorialtimes:
Nigeria–UK £746m Deal Raises Fresh Questions Over Ajaokuta Steel Revival | Nigeria News Today



Source: https://thebureaunews.com/nigeria-uk-deal-ajaokuta-steel-revival/

iwaeda:
I have been to Ajaokuta in my youthful years, I can emphatically tell you, it can't work. The Russian technology is obsolete.

Editorialtimes:
Nigeria–UK £746m Deal Raises Fresh Questions Over Ajaokuta Steel Revival | Nigeria News Today



Source: https://thebureaunews.com/nigeria-uk-deal-ajaokuta-steel-revival/

shopwiser:
They should jus demolish this shii to the ground, they keep using this plant as an excuse to embezzle.

Uselxxss government

elder1002:
Steel company not functioning.

And located in the west. Tinubu wont see this mega infrastructure to rehalibate and undergo manntainance and put present tech into thiis steel industry.

Industry that can not only create jobs but as a source of revenue to the country.

Okay privatize it let a private company buy it No.

Untill dangote builds a steel factory everyone will be shouting monopoly and won't hold government accountable for our government non functioning infrastructure.

Na road road roaf dem dae spend billions of dollars on

But hospital zero
Industry zero
Rail way 0


But budget for unconditional poor of the poorest cash transfer na A1

Sharing of rice palliative to 7 million nigerians A1

But invest money into our government refinery and industries always excuses

Sheuns:
No be this same steel plant Buhari and APC data boys tell us say dem go make work?

Experts have already said that thing can’t work because of its setup but the so called lovers of Nigeria say those that told them the truth are not patriotic.

DaGC:
I honestly don't understand the conspiracy about this steel plant. Multiple governments and multiple renovations, yet it doesn't work. Nigeria I hail thee.