Nigeria, China to Revive Ajaokuta Under 10-year Steel Revenue-sharing Deal
Samuel Mobolaji
The Nigeria-China Strategic Partnership (NCSP) is working with the Federal Ministry of Steel Development to revive the long-dormant Ajaokuta Steel Company under a proposed 10-year revenue-sharing agreement aimed at driving Nigeria’s industrialisation, particularly in the automotive and manufacturing sectors.
At a recent briefing with the Minister of Steel Development, Prince Shuaibu Abubakar Audu, the Director General of NCSP, Mr. Joseph Tegbe, said talks are ongoing with top Chinese steel manufacturers for a public-private partnership anchored on a zero-cost investment structure for Nigeria.
The partnership will focus on technology transfer, furnace modernisation, sheet metal production, and the expansion of local manufacturing value chains.
Tegbe said the goal goes beyond restarting Ajaokuta, noting that the broader objective is to reposition Nigeria as a leader in sectors where steel is a critical enabler of growth and productivity.
The initiative, which has received the endorsement of President Bola Ahmed Tinubu, aims to ensure long-term economic sustainability and growth in steel production.
The Minister reaffirmed the government’s commitment to the project and stressed the urgency of execution, describing Ajaokuta as the cornerstone of Nigeria’s industrial aspirations.
A delegation comprising the Minister of Steel Development, Managing Director of Ajaokuta Steel Company, and the NCSP Director General is scheduled to visit key steel production sites in China to engage potential investors and present the technical and commercial viability of the project.
Experts believe that reviving the Ajaokuta Steel Company could significantly reduce Nigeria’s dependence on steel imports, boost local vehicle assembly, and catalyse growth across the infrastructure and manufacturing sectors.
Once envisioned as the backbone of Nigeria’s industrial development, Ajaokuta has remained largely idle since the 1990s. The renewed political will and strategic international collaboration are fuelling optimism for a long-awaited turnaround.
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