The Minister of Steel Development, Shuaibu Abubakar Audu, has blamed inadequate funding and powerful interests benefiting from steel imports for the prolonged failure to revive the Ajaokuta Steel Complex in Kogi State.
Audu said about N3 trillion would be required to restore the abandoned complex, adding that the Federal Government was therefore seeking private investment to avoid shouldering the entire financial burden. He disclosed this during an interview on *Deep Insight with Agbonsuremi*, hosted by veteran journalist and broadcaster Augustine Okhiria Agbonsuremi.
According to the minister, negotiations with a Chinese investor are at an advanced stage, with the company considering an investment of between $1.5 billion and $2 billion in cash and equipment. He said the government hopes to conclude the deal this year, with Ajaokuta expected to commence commercial production by 2028 if the agreement is successfully implemented.
Audu accused beneficiaries of Nigeria’s steel import market of frustrating efforts to develop local production, saying those who profit from the annual importation of about $4 billion worth of steel would resist measures capable of ending the country’s dependence on foreign supplies. He alleged that such interests had also attempted to frustrate proposed legislative changes in the National Assembly.
The minister said Ajaokuta, despite receiving billions of naira over the decades, had remained dormant because of poor political commitment, inconsistent funding, contractual disputes and alleged sabotage. He said an ongoing technical and financial audit would establish the current condition of the facility, although preliminary assessment indicates that about 70 per cent remains useful while the rest requires substantial rehabilitation.
He added that the government had signed a 20-year gas supply agreement with the Nigerian National Petroleum Company Limited and reached an agreement with the Ministry of Defence and Defence Industries Corporation of Nigeria to utilise part of the complex for the production of military equipment. Audu said the revival of Ajaokuta and other steel facilities could generate between 500,000 and one million jobs and contribute as much as $100 billion to the Nigerian economy.
Audu also expressed support for President Bola Tinubu’s re-election, arguing that continuity would be necessary to complete the Ajaokuta project and consolidate the administration’s economic reforms. He said his ministry’s immediate priorities included securing the Ajaokuta revival agreement, restoring Delta Steel and implementing a 10-year development blueprint for Nigeria’s steel industry.
