Ajaokuta Steel: Why Nigeria’s $8bn Plant Still Has Not Produced Steel
Ajaokuta Steel Company in Kogi State was conceived in 1979 as the backbone of Nigeria’s industrialisation. The complex was designed to produce 1.3 million tonnes of liquid steel yearly, but it has never delivered commercial steel despite claims that much of the facility is mechanically complete. The project has been held back by missing raw-material supply chains, unreliable power and gas supply, policy reversals, failed concessions and costly arbitration disputes. Nigeria has continued to fund the plant, with the 2026 budget allocating ₦6.5 billion, including about ₦6.04 billion for personnel costs for roughly 3,000 workers. A major recent step is a 20-year gas supply agreement involving Ajaokuta, NNPC and other partners. The Federal Government is also discussing a possible Chinese-backed revival deal estimated at $2 billion to $5 billion. However, the plant remains idle while Nigeria still depends heavily on imported steel. The central question is whether the new gas deal, private investment plans and proposed links to local manufacturing and defence production can finally turn Ajaokuta from a long-running public expense into a functioning steel mill.
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