Ajaokuta Steel Set for Revival as Nigeria-China Partnership Targets Automotive, Manufacturing Growth

PHOTO CAPTION: DG, NCSP, Joseph Olasunkanmi Tegbe, and the Honourable Minister of Steel Development, Prince Shuaibu Abubakar Audu 

ABUJA, Nigeria – June 3, 2025 – The long-dormant Ajaokuta Steel Company is poised for a significant revival through a new collaboration between the Nigeria-China Strategic Partnership (NCSP) and the Federal Ministry of Steel Development. This initiative aims to re-establish Ajaokuta as a cornerstone of Nigeria’s industrialization, with a strong focus on bolstering the automotive and manufacturing sectors.

During a recent briefing with the Honourable Minister of Steel Development, **Prince Shuaibu Abubakar Audu**, the Director General of NCSP, **Mr. Joseph Tegbe**, confirmed that advanced discussions are underway for a public-private partnership involving leading Chinese steel manufacturers. The proposed investment model for Nigeria is designed to be zero-cost, anchored on a revenue-sharing agreement to ensure sustainable steel production and long-term economic growth.

“This initiative is not just about restarting Ajaokuta—it’s about positioning Nigeria to lead in sectors where steel is central to productivity and development,” Tegbe stated. The comprehensive plan, which has received full endorsement from President Bola Ahmed Tinubu, includes a proposed 10-year revenue-sharing arrangement between Nigerian and Chinese investors. Key strategic focus areas for the revival encompass technology transfer, sheet metal production, furnace modernization, and the expansion of vital manufacturing value chains.

Responding to the briefing, Minister Audu emphasized the urgency of executing the project, reaffirming his commitment by describing Ajaokuta as "the cornerstone of Nigeria’s industrial potential."

Consequently, a high-level delegation, comprising the Minister of Steel Development, the Managing Director of Ajaokuta Steel Company, and the Director General of NCSP, is scheduled to visit major steel production facilities in China. The visit will involve engaging prospective investors and delivering strategic presentations highlighting both the technical feasibility and commercial viability of the Ajaokuta project.

Industry experts suggest that a successful revival of the steel sector could dramatically reduce Nigeria’s reliance on steel imports, provide a crucial boost to local vehicle production, and spur significant growth across the broader manufacturing and infrastructure sectors. Once envisioned as the backbone of Nigeria’s industrial future, the Ajaokuta Steel Company has remained largely inactive since the 1990s. With renewed political will and targeted international collaboration now in motion, stakeholders are increasingly optimistic that Ajaokuta may finally realize its long-awaited potential.