The Federal Government says it expects to sign a long-awaited agreement with a Chinese company before the end of 2026 to revive the dormant Ajaokuta Steel Company, a project that will require an estimated $1.5 billion to $2 billion in investment.
The assurance was given by Sha’ibu Abubakar Audu, Minister of Steel Development, during an appearance on the Nigerian Television Authority (NTA) programme Good Morning Nigeria.
According to the minister, discussions with the prospective Chinese investor have reached an advanced stage as the Tinubu administration intensifies efforts to resuscitate the steel complex, which has remained idle since it was established in 1979.
Audu said the government has prioritised securing credible technical and financial partners capable of restoring Ajaokuta Steel to full operation.
He noted that the Federal Government cannot independently finance the enormous cost of reviving the facility and is therefore relying on private-sector investment.
“For Ajaokuta Steel Company, as you know, it was established in 1979 and has not produced a single sheet of liquid steel since inception,” he said.
He added that negotiations with a Chinese company have progressed significantly and expressed confidence that a revival agreement would be signed before the end of the year.
According to the minister, restoring the steel plant will require between $1.5 billion and $2 billion, making the involvement of an experienced investor with strong technical expertise and financial capacity essential.
Audu said the government has already launched several initiatives to prepare the steel complex for rehabilitation.
These include:
- A comprehensive technical audit to assess facilities requiring rehabilitation and upgrades.
- Development of gas infrastructure to support future operations.
- Strategic partnerships aimed at ensuring the plant’s long-term sustainability.
He disclosed that the procurement process for the technical audit has been completed and that the assessment of the plant is currently underway.
The minister also revealed that the Ministry of Steel Development, in collaboration with the Nigerian National Petroleum Company (NNPC), has begun developing five mini-LNG plants within the Ajaokuta Steel complex.
According to him, the project is expected to attract about $500 million in foreign direct investment (FDI) while strengthening industrial gas supply across northern Nigeria.
