Move to revive Ajaokuta begins as FG partners Chinese firms

The federal government has initiated a strategic partnership with China’s Luan Steel Holding Group to revive the long-dormant Ajaokuta Steel Complex.

Ministers of Steel Development and Defence recently led a delegation to China, where they explored investment and technical collaboration to not only restore steel production but also establish military hardware manufacturing at the site.

This move is part of President Bola Tinubu’s “Renewed Hope” agenda, aimed at reindustrializing Nigeria, creating thousands of jobs, and reducing reliance on imported steel.

The government had earlier earmarked ₦35 billion for reviving the plant’s light mill, while ongoing discussions suggest a full-scale rehabilitation could require between $2 billion and $5 billion in investment.

The Ajaokuta Steel project, first launched in 1979, has suffered decades of abandonment, with previous revival efforts stalling due to funding and technical issues. If successful, the latest China-backed initiative could transform Nigeria into a regional hub for steel production and defense manufacturing.