Nigeria eyes Chinese partnership to reignite Ajaokuta, NIOMCO revival plans

The federal government has opened discussions with the Republic of China to take over the revival of the Ajaokuta Steel Company Limited (ASCL) and the National Iron Ore Mining Company (NIOMCO) in Kogi state.

The Minister of Steel Development, Shuaibu Abubakar, disclosed this on Tuesday at the opening of the 10th edition of the Nigeria Mining Week in Abuja, themed “Nigeria Mining: From Progress to Global Relevance.”

According to the minister, the government was forced to seek alternative investors following the inability of Russia’s Tyazhmashpromexport (TPE) to fulfil its obligations under a memorandum of understanding (MoU) signed with Nigeria in September 2024.

The agreement had sought to rehabilitate, complete, and operate both the Ajaokuta Steel complex and the Itakpe-based NIOMCO.

“The war has made it impossible to make progress on the MoU. We are now in talks with the Chinese government to take over the revitalisation process.

“Mr President will give the final approval based on financial, managerial, and technical competencies,” he said.

Abubakar said President Bola Tinubu’s administration remains committed to reviving the Ajaokuta Steel Company, which has remained moribund for nearly five decades despite its potential to transform Nigeria’s industrial base.

He revealed that the Ministry of Steel Development is also finalising an agreement with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to produce military hardware such as rifles, vests, helmets, and bullets at Ajaokuta’s engineering workshops.

“This understanding is to support the defence sector of the Nigerian economy for improved security,” the minister said.

Abubakar added that the National Steel Raw Materials Exploration Agency (NSRMEA), Kaduna, has identified 12 iron ore deposits across the country at different stages of exploration.

He said the agency is currently generating reliable resource data to attract both local and foreign investments into the steel and mining sectors.

He noted that the government’s renewed push for local steel production would stimulate demand for raw materials such as iron ore, limestone, dolomite, refractory materials, and coal—resources that are abundant in the country.

According to him, this would yield far-reaching economic benefits and help reduce Nigeria’s dependence on imported steel.

The minister urged private sector players to take advantage of the growing opportunities in the steel value chain and invest in local processing and production.

“We are collaborating with critical stakeholders across the federal government, especially our sister Ministry of Solid Minerals Development, to create an enabling environment for investment,” he said.

Abubakar further explained that the government’s efforts to attract foreign direct investment into Nigeria’s steel industry depend on ensuring a sustainable and competitive supply of raw materials, supported by sound regulatory and institutional frameworks.

He emphasised that the Tinubu administration views the steel sector as a cornerstone of Nigeria’s industrialisation and economic diversification agenda, adding that its revival would create jobs, boost infrastructure development, and enhance the country’s technological capacity.

With the talks now shifting to Beijing, the federal government hopes to finally break the decades-long cycle of abandoned promises that have kept Ajaokuta and NIOMCO from realising their full potential as drivers of Nigeria’s industrial growth.