Nigeria’s steel industry is poised for a major resurgence as the Federal Ministry of Steel Development enters into a strategic collaboration with the Nigeria-China Strategic Partnership (NCSP) to breathe new life into the Ajaokuta Steel Company. The initiative, which has received the full backing of President Bola Ahmed Tinubu, marks a significant turning point in Nigeria’s longstanding quest to industrialize its economy through local steel production.
At a recent high-level meeting held in Abuja, the Director General of the NCSP, Mr. Joseph Tegbe, disclosed that conversations are at an advanced stage regarding a public-private partnership involving top-tier Chinese steel manufacturers. According to Tegbe, the proposed deal is structured to attract zero-cost investment from the Nigerian side, operating instead on a revenue-sharing model that ensures mutual benefits while stimulating growth in key industrial sectors.
“This move is more than just about restarting the Ajaokuta Steel Plant,” Tegbe remarked. “It’s about laying the groundwork for Nigeria to emerge as a leader in industries where steel is not just important but essential — particularly in automotive manufacturing and heavy-duty industrial applications.”
The proposed model is a 10-year revenue-sharing agreement between Nigerian stakeholders and Chinese investors. It will prioritize technology transfer, the revival and modernization of production furnaces, and the establishment of new sheet metal lines to meet the demands of both the local and regional markets. With China already established as the world’s leading steel producer, Nigeria aims to leverage Chinese technical expertise and industrial capacity to fast-track the Ajaokuta project’s long-overdue revival.
Responding to the developments, the Honourable Minister of Steel Development, Prince Shuaibu Abubakar Audu, described Ajaokuta as the “cornerstone of Nigeria’s industrial potential.” He reaffirmed the Ministry’s commitment to executing the project with urgency, adding that the current administration is determined to make the steel plant a driver of national productivity and job creation.
To solidify the partnership, a Nigerian delegation comprising the Honourable Minister, the Managing Director of Ajaokuta Steel Company, and the Director General of NCSP will soon embark on a strategic visit to China. The visit will include tours of leading steel production facilities, investor engagements, and presentations highlighting both the technical feasibility and commercial potential of revamping the Ajaokuta complex.
Industry watchers say the significance of this collaboration cannot be overstated. Nigeria currently imports the majority of its steel requirements, spending billions of naira annually — a financial burden that could be dramatically reduced if Ajaokuta becomes operational. The ripple effects could also be transformative, especially in the automotive sector, where local steel availability would drive down production costs, encourage local assembly, and strengthen Nigeria’s ambitions to become a manufacturing hub in West Africa.
Ajaokuta Steel Company, originally conceived in the 1970s and once envisioned as the industrial heartbeat of the nation, has remained largely dormant for decades due to political missteps, funding challenges, and stalled negotiations. However, with renewed political will, international backing, and a clear implementation roadmap, optimism is growing among stakeholders that the dream of a fully functional steel industry in Nigeria may finally be realized.
The partnership with NCSP and Chinese stakeholders reflects a new era of strategic diplomacy — one where Nigeria leverages global relationships to drive domestic development, reduce import dependency, and empower the local economy. If successful, the project will not only catalyze the revival of Ajaokuta but also reposition Nigeria on the path to sustainable industrial growth.