By John Umeh
Nigeria’s long-stalled steel dreams may finally receive new life as the Federal Ministry of Steel Development confirmed it is seeking fresh partnerships with the Republic of China to rehabilitate the Ajaokuta Steel Company Limited (ASCL) and the National Iron Ore Mining Company (NIOMCO), both in Kogi State.
The disclosure was made by the Minister of Steel Development, Prince Shuaibu Abubakar, at the opening of the 10th Nigeria Mining Week in Abuja, themed “Nigeria Mining: From Progress to Global Relevance.”
Abubakar explained that while the Federal Government had signed a Memorandum of Understanding in September 2024 with Tyazhmashpromexport (TPE)—the Russian company that originally built Ajaokuta—the Russia-Ukraine conflict has stalled the implementation of the agreement.
“Due to constraints caused by the Russia–Ukraine war, we are now exploring partnership with the Republic of China for the revitalisation of both ASCL and NIOMCO. Mr President will make the final decision based on financial, managerial, and technical considerations,” Abubakar stated.
Steel Industry Tied to National Security
The minister further revealed that the ministry is in advanced discussions with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to begin local production of materials for military hardware at the Ajaokuta Engineering Workshop.
These will include rifles, vests, helmets, and bullets, underscoring the strategic importance of steel production to Nigeria’s national security architecture.
Expanding Local Exploration
Abubakar announced that 12 iron ore deposits across Nigeria are currently being explored by the National Steel Raw Materials Exploration Agency (NSRMEA) in Kaduna. The agency is also mapping resources such as cokeable coal, bauxite, limestone, dolomite, and refractory clay—all critical to building a self-sufficient steel sector.
He noted that increasing local steel production would stimulate demand for these raw materials, creating jobs and boosting Nigeria’s industrial capacity.
Call to the Private Sector
Addressing industry stakeholders, the minister urged private investors to see opportunities in the steel raw materials value chain.
“Investments in iron ore, fluxes, coal, and other alloying minerals are the key to unlocking growth. The Federal Government is committed to providing the enabling environment for investors,” he said.
Abubakar added that the Tinubu administration’s Renewed Hope Agenda is determined to end nearly 50 years of stalled efforts to operationalize Ajaokuta Steel, positioning Nigeria as a future hub for steel production in Africa.
