The Minister of Steel Development, Prince Shuiabu Abubakar, says Nigeria is exploring a partnership with China to revive Ajaokuta Steel and NIOMCO after delays caused by the Russia–Ukraine war.
The Minister of Steel Development, Prince Shuiabu Abubakar, has announced that the ministry is exploring a partnership with the Republic of China to revitalise the Ajaokuta Steel Company Limited (ASCL) and the National Iron Ore Mining Company (NIOMCO) in Kogi State.
Abubakar disclosed this on Tuesday in Abuja during the opening of the 10th edition of Nigeria’s Mining Week, themed “Nigeria Mining: From Progress to Global Relevance.”
Shift from Russia to China
The minister explained that in September 2024, the Federal Government signed a Memorandum of Understanding (MoU) with Messrs. Tyazhmashpromexport (TPE), the original builders of Ajaokuta Steel, based in Russia, to rehabilitate, complete, and operate both ASCL and NIOMCO.
However, he said the Russia–Ukraine war had hindered progress on the agreement, prompting the government to seek alternative partnerships.
Renewed Hope Agenda and Defence Collaboration
Abubakar reaffirmed that the Renewed Hope Agenda under President Bola Tinubu’s administration remains committed to breaking the nearly five-decade jinx that has kept Ajaokuta Steel in a comatose state.
He revealed that the ministry is in advanced discussions with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to begin production of input materials for military hardware at the Engineering Workshop of the Ajaokuta Steel Complex.
The planned production will include rifles, vests, helmets, and bullets, marking a significant step toward localising defence manufacturing.
Exploration of Iron Ore Deposits
The minister also disclosed that 12 iron ore deposits across Nigeria are currently at various stages of exploration.
He said the National Steel Raw Materials Exploration Agency (NSRMEA) in Kaduna identified these deposits and is working to generate resource data to attract investment in the sector, particularly in iron ore, cokeable coal, and bauxite.
Abubakar emphasised that local steel production would stimulate massive consumption of raw materials such as iron ore, limestone, dolomite, refractory clay, and coal, creating economic benefits and industrial growth.
Call for Private Sector Investment
The minister urged private sector participants at the conference to view investments in the steel raw materials value chain as critical to unlocking growth in the industry.
He added that the Federal Government’s efforts to reposition the Nigerian steel industry for sustainable growth and increased foreign direct investment (FDI) depend on a steady supply of mineral raw materials.
Government Commitment to Enabling Environment
Abubakar assured that the government remains committed to providing a conducive environment for investors and industry players.
The minister reiterated that the revitalisation of Ajaokuta and NIOMCO remains a top priority for the Tinubu administration, as the projects are central to Nigeria’s industrialisation and economic diversification goals.