Despite N4trn Investment, Hope Dims For Ajaokuta Steel Take-Off - Newstrends
Connect with us

Business

Despite N4trn Investment, Hope Dims For Ajaokuta Steel Take-Off

Published

on

The completion of the remaining two per cent of work on the 43-year-old Ajaokuta Steel Rolling Mill, as promised by the federal government, has been ruled out this year, despite a $10 billion (about N4.155 trillion) worth of investment, Daily Trust reports.

A geologist, Professor Ibrahim Garba, said the plant’s chances of taking off are slim because it was predicated on a low-grade iron ore, an important raw material needed for the smooth operation of the rolling mill.

Prof. Garba, who served as the 14th vice-chancellor of the Ahmadu Bello University, Zaria, and also former vice chancellor of the Kano State University of Science and Technology, Wudil said it is doubtful if the steel plant will work for Nigeria.

Our correspondent reports that the professor had worked on secondment at the Federal Ministry of Mines and Steel Development, Abuja as Director-General, Nigeria Mining Cadastre Office. 

He spearheaded the development and implementation of the Mining Cadastre System in Nigeria.

Prof. Garba’s verdict on the Ajaokuta Steel Mill came in the wake of renewed efforts by the federal government to salvage the plant which is almost completed.

Recall that the Minister of Mines and Steel Development, Olamilekan Adegbite, had said that the project was thwarted by the outbreak of the COVID-19 pandemic and the ongoing Russia-Ukraine war.

The minister, who disclosed this to State House reporters recently, said President Muhammadu Buhari had approved the release of $2m for the conduct of a technical audit to ascertain the condition of the facility before restarting the work.

READ ALSO:

He said as demanded by Russian contractors, “Arrangements were being made to commence the process but COVID-19 came and put a halt to all activities, causing a force majeure.”

However, the force majeure (unforeseeable circumstances that prevent someone from fulfilling a contract) that the minister attributed as the reason for the project’s delay has been described by experts as a weak defence for the many years the project has taken without being completed.

‘Plant unlikely to function’

Prof. Garba in an interview with Daily Trust warned that the Ajaokuta plant may never work because the quality of iron ore in Nigeria is very low. 

Because of this, Nigeria had to rely on Guinea’s high-grade iron ore to blend before milling the steel.

He said, “People keep saying that for every government that comes, the minister will collect billions and put it there, the money will disappear and nothing worked.

“This is because Ajaokuta was conceived at the time when we knew little about the issues. The main iron ore deposit for Ajaokuta is at Okene, in one place called Itakpe and the entire deposit is only 300 million tons, which is small and of very low quality of like 35 per cent, when you need about 50 – 60 per cent to have very efficient steel production.

“At that time, what the Nigerian government did was, having known that the Russians built it for us knowing that the iron ore was poor, they went to Guinea and arranged with one big mine in Guinea that produces very high-grade iron ore. 

“In fact, Nigeria took up shares in that mine, so that they can be bringing high-grade iron ore into Nigeria to blend with our low grade to produce the steel,” the professor said.

“That is why they constructed the Alaja in Warri, by the seaside so that when importing the iron ore from there, you come to Alaja and use gas through one technology they called Direct Production and produce steel.”

According to him, this product could then be moved by rail from Itakpe to Warri, which explained the purpose of that railway line between the two towns.

“You bring the iron ore from Guinea, bring it up to Ajaokuta and blend with our own. You see, what it means is that if you need about 50 – 60 per cent iron ore, which means if the rock that contains the iron ore is 60 per cent, you have to remove all the remaining 40 per cent. And, if you have 40 per cent, you have to remove about 65 per cent as waste, and you are going to use the same energy to process these two grades of iron ore.

“So, that means you will not be making money because the people that are producing the steel are producing it from higher-grade iron ores, which means your cost of production will be very high, so you cannot compete.

“That is why for iron ore, we know we have vast amounts of it, but of low grade. We have some that are of high grade around Lokoja, but they have some components that are not wanted and very difficult to remove,” he further explained.

Only advanced technology will save the day

According to Prof. Garba, the Chinese have developed a technology of eliminating unwanted things in that iron ore.

READ ALSO:

“So we are hoping that if we get some sense, we can actually develop those iron ores through the new technology and begin to produce steel.

“But, as of now, we cannot list iron ore as a comparative advantage in Nigeria because of this low-grade issue and so on.”

Ministry upbeat

But a source in the ministry debunked the claim on low-grade iron ore, claiming that Nigeria has high-grade iron ore to make the industry work at full capacity when completed.

The source, who did not want to be quoted, declared that if there are people who “Have evidence that Nigeria imports iron ore from Guinea, they should tender it.”

Daily Trust recalled that in the second week of this month, the minister of mines said that a local company in partnership with a British firm had offered to execute the technical audit of the Ajaokuta Steel plant at no cost to Nigeria without preconditions.

He disclosed this in a press release signed by his Special Assistant on Media, Ayodeji Adeyemi in response to claims that the Ajaokuta steel plant had been handed over to a British company for rehabilitation.

Minister Adegbite explained that when the technical audit is completed, the result would be shared with all interested investors and potential partners interested in Ajaokuta Steel Plant resuscitation, which they would use to enter their submission bids. 

How FG invested over $10bn in 3 decades

While some experts argued that the billions of dollars spent on the project could have been used to develop industries for other minerals with more comparative advantage, others felt that Nigeria has been losing billions of dollars in revenue and job creation for the last 35 years.

Findings revealed that for the period that the project has lingered, the federal government had sunk over $10bn to start milling. 

The project, which as far back as 1994 had reached 98 per cent completion, has the capacity to provide direct employment for 10,000 technical staff and indirectly 500,000 unskilled upstream and downstream employment, when in operation.

Sadly, till date, with all these huge investments, the multi-billion-dollar project has not produced a single steel product that can contribute to the development of Nigeria.

The integrated plant was envisaged to have multiplier effects on all sectors of the Nigerian economy such as the industrial, agriculture, transport and construction sectors, among others.

The steel plant was designed to produce 1.3 million tons of liquid steel per annum in phase one, with a built-in capacity to expand its production to 2.6 million tons of flat iron and steel products in its second phase. The plan for phase three was to produce 5.2 million tons of various types of steel products, including heavy plates.

The steel plant complex also has a highly sophisticated assemblage of 43 different plants made up of a web of complex iron, cable and machinery of different sizes and functions. Findings revealed that out of the 43 plants, 40 are already completed and can produce independently.

Also, Ajaokuta Steel has the capacity to become a major producer of industrial machinery, auto-electrical spare parts, shipbuilding, railways and carriages.

How much is Nigeria losing?

Despite these facts, the moribund company had continued to receive regular budgetary allocations and disbursements in the past six years, despite being idle.

READ ALSO:

Reports say the government allocated a total of N20bn to the idle steel company between 2015 and 2021. Also, based on the 2022 budget details, the federal government had allocated N4.2bn to the Ajaokuta Steel Company Limited for the fiscal year.

The details show that N3.9bn was allocated to cover personnel costs, N186.9m for capital projects implementation, while N75.3m will be expended on overhead.

Under personnel costs, the federal government allocated N3bn to salaries and wages, while N924.6m was designated for allowances and social contributions.

Similarly, the sum of N97.2m was allocated for the provision of water facilities, N59.3m for the maintenance of power facilities and N30.5m for lighting, safety and security.

Nigeria’s peers making billions from steel

The foundation stone of the Ajaokuta Integrated Steel plant was laid in 1980 by a former President of Nigeria, Shehu Shagari, on 24,000 hectares of sprawling green-field landmass. It was envisaged to serve as the bedrock of Nigeria’s industrialisation.

The steel company, built by a Russian company called TyazhpromExport on 800-hectares has four different types of rolling mills inside the plant.

South Korea, which started its steel construction around the same time as Ajaokuta Steel, now has a revenue base of over $60bn per annum and employed over 65,000 staff. According to a World Steel Association (WSA) report, South Africa and Egypt produced 6.1 and 5m tons of steel in 2016. And while South Africa is the 22nd on the list of countries on steel production, Egypt is the 27th.

China, the world’s largest steel producer, topped the chart with a production of 808.4m tons, representing about 50 per cent of global steel output for 2016.

 Why successive govts attempt to concede Ajaokuta

In an attempt to revamp the company, in June 2003, former President Olusegun Obasanjo conceded Ajaokuta Steel to Messrs SOLGAS ENERGY of the USA on a 10-year tenure; in August 2004, the federal government terminated the SOLGAS agreement due to non-performance.

Again, an Indian company, Global Steel Holdings Limited, won the concession of the Ajaokuta Steel Mill for a 10-year period but the agreement was revoked after the federal government accused the firm of asset stripping, a development that led to a court case between the two parties.

The federal government announced in 2016 that the legal dispute had been resolved, after it reportedly ceded the National Iron Ore Mining Company, Itakpe, to Global Steel for the remaining concession period, in line with an agreement reached during mediation talks. However, the resolution has since turned contentious. In 2016, President Muhammadu Buhari fulfilled his campaign promise on Ajaokuta Steel by settling out of court the legal bottleneck surrounding the companies.

However, the federal government signed a modified concession agreement with GINL to enable the firm to retain the National Iron Ore Mining Company, Itakpe. The modified seven-year concession agreement was signed on August 1, 2016, while the federal government took over Ajaokuta Steel.

While the federal government was planning to re-concession Ajaokuta Steel again, stakeholders in the Nigerian Metallurgical Society urged it to complete the remaining two per cent and operate the plant for a few years before concessioning it.

DAILY TRUST

Loading

Auto

Pi-CNG boss: Clean mobility will cut transport cost, create jobs, power Nigeria’s economic growth

Published

on

Pi-CNG boss: Clean mobility will cut transport cost, create jobs, power Nigeria’s economic growth

 

The Federal Government has declared that Nigeria’s transition to compressed natural gas (CNG) and electric vehicles (EVs) is no longer an environmental ambition but a critical economic strategy to slash transportation costs, strengthen energy security, create jobs and unlock new investments across the automotive value chain.

Making the declaration at the 3rd Nigeria Auto Industry Summit (NAISU) organised by the Nigeria Auto Journalists Association (NAJA) in Lagos, the Executive Chairman and Chief Executive Officer of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), Barrister Ismaeel Ahmed, said clean mobility had become a central pillar of President Bola Ahmed Tinubu’s transport and energy reforms.

Delivering a keynote address titled, “Nigeria’s Clean Mobility Future: The EV and CNG Journey Under the Bola Tinubu Administration,” Ahmed said the Presidential Initiative was established to coordinate Nigeria’s transition to cleaner transportation by building a sustainable ecosystem for CNG and electric mobility.

He explained that the Initiative’s mandate extended beyond promoting alternative fuels to attracting investments, expanding refuelling and charging infrastructure, supporting vehicle conversion, strengthening local manufacturing, developing technical skills and boosting consumer confidence.

According to him, the programme was conceived following the removal of fuel subsidy to provide Nigerians with a practical and affordable transport alternative by leveraging the country’s abundant natural gas resources.

“Our focus from the beginning has been to build the foundation of a sustainable industry rather than pursue isolated interventions,” Ahmed said, noting that Pi-CNG & EV has worked closely with regulators, investors, vehicle manufacturers, conversion firms, financial institutions, development partners, transport unions and state governments.

Reviewing the Initiative’s achievements over the past two years, he said Nigeria’s CNG ecosystem has expanded rapidly, with more certified conversion centres established across the country and refuelling infrastructure growing through public and private sector investments.

He added that vehicle conversions have continued to rise as commercial transport operators and private motorists increasingly embrace the lower operating costs of CNG, while thousands of technicians have been trained to ensure safe and professional conversion services nationwide.

Ahmed also disclosed that strategic partnerships with financial institutions, energy companies, vehicle manufacturers and state governments are helping to improve access to financing, stimulate infrastructure development and accelerate the adoption of clean mobility solutions.

To strengthen safety and regulatory compliance, he announced the introduction of the Nigeria Gas Vehicle Monitoring System, which he said would enhance transparency, improve regulatory oversight and build public confidence in the conversion industry.

While acknowledging the remarkable progress recorded in CNG adoption, Ahmed stressed that the Initiative remains equally committed to advancing electric mobility, saying Nigeria’s long-term transport future would be powered by multiple clean-energy technologies.

He revealed that government is engaging manufacturers, investors and development partners on electric vehicle deployment, charging infrastructure, local assembly and policy reforms aimed at accelerating market growth.

Despite the progress, Ahmed identified infrastructure expansion, consumer financing, local manufacturing, technical capacity development, research, innovation and standardisation as key areas requiring sustained investment and collaboration.

He urged government agencies, investors, manufacturers, transport operators, financial institutions, development partners and the media to work together to overcome these challenges and build a sustainable clean mobility ecosystem.

Describing the media as a strategic partner, Ahmed called on members of the Nigeria Auto Journalists Association to intensify public education on the economic, environmental and technological benefits of clean mobility.

“The transition to clean mobility is as much an information challenge as it is an infrastructure challenge. Public understanding influences public acceptance, while market confidence is built on accurate, timely and responsible information,” he said.

He pledged deeper engagement with journalists through regular technical briefings, industry dialogues and improved access to credible data to combat misinformation and promote informed public discourse.

Ahmed said Pi-CNG & EV would continue expanding CNG infrastructure nationwide, strengthen the regulatory framework, support local manufacturing and vehicle conversion capacity, deepen financing partnerships and collaborate with stakeholders to build a commercially viable clean mobility industry.

According to him, the true measure of the Initiative’s success will not be the number of conversion centres or refuelling stations established, but its ability to reduce transport costs, improve energy security, generate employment, stimulate industrial growth and improve the quality of life of Nigerians.

He commended NAJA for providing a platform for robust industry dialogue, saying stronger collaboration among government, industry players and the media would be essential to accelerating Nigeria’s clean mobility transition.

Loading

Continue Reading

Auto

Côte d’Ivoire woos Nigerian auto investors to regional mobility expo

Published

on

From left Mr. Akin Akinbola, MD/CEO of Promosalons Nigeria; Dr. Kaslime Kouassi, Director of Tourism who represented the Ivorian Ambassador to Nigeria His Excellency Ambassador Kalilou TRAORE; and Mr. Luc AZILINON, President of Interlinks Auto and MIWA Africa.

Côte d’Ivoire woos Nigerian auto investors to regional mobility expo

  • 150 global brands to storm Abidjan 

Côte d’Ivoire is making a bold bid to become West Africa’s automotive and mobility hub with the launch of EQUIP AUTO Côte d’Ivoire, an international trade exhibition expected to attract more than 150 exhibitors and brands from across Europe, Asia and Africa in a move aimed at deepening regional trade and cross-border investment.

The maiden edition of the exhibition will hold from November 26 to 28, 2026, at the Abidjan Exhibition Centre, bringing together about 10,000 industry professionals, investors, policymakers and members of the public from across the automotive value chain.

Speaking at a press conference in Lagos on Wednesday, President of Interlinks Auto and MIWA AFRICA SARL, Mr. Luc Azilinon, described the event as a major milestone in expanding the globally recognised EQUIP AUTO brand into sub-Saharan Africa.

The briefing, held at the Radisson Blu Hotel, Victoria Island, was convened by the Managing Director/Chief Executive Officer of Promosalons Nigeria, Cameroon and Gabon, Mr. Akin Akinbola, whose organisation represents the organisers of EQUIP AUTO Côte d’Ivoire in Nigeria and Cameroon.

According to Azilinon, the exhibition is being organised through a collaboration between EQUIP AUTO Paris and MIWA AFRICA SARL and is designed to become West Africa’s leading business platform for mobility and the automotive industry.

He said the three-day event would feature exhibitions, thematic workshops, conferences, business-to-business and business-to-consumer meetings, product demonstrations and live vehicle testing.

The exhibition will cover passenger vehicles, light commercial vehicles, heavy-duty and industrial vehicles, transport, automotive aftermarket, agriculture and public works, reflecting the realities and growth potential of the West African market.

Azilinon disclosed that exhibitors are expected from Germany, France, Türkiye, Italy, Algeria, Nigeria, Cameroon, India, China, South Korea and Japan.

“Our ambition is to position EQUIP AUTO Côte d’Ivoire as the leading platform for developing business in West Africa by combining innovation with business opportunities and establishing the region as a strategic mobility hub for Africa,” he said.

He added that the event’s innovative B2B2C format would create a strategic meeting point for vehicle manufacturers, distributors, repairers, fleet operators and government agencies, while giving participants access to cutting-edge technologies and mobility solutions tailored to regional needs.

According to him, the exhibition is also expected to stimulate regional trade, strengthen cross-border partnerships, support the modernisation of automotive infrastructure and distribution networks, and facilitate the expansion of international companies into West African markets.

Explaining why Côte d’Ivoire was selected to host the inaugural edition, Azilinon cited the country’s political stability, investor-friendly environment, strategic infrastructure and growing economic influence within the Economic Community of West African States.

He noted that Côte d’Ivoire has maintained strong institutional stability following the 2025 elections, recorded major investments in transport, energy and construction, and hosts the Port of Abidjan, one of West Africa’s busiest maritime gateways.

He also pointed to the country’s robust economic performance, with a growth rate of 6.5 per cent in 2024, driven by agriculture, agribusiness, infrastructure and services.

The Ivorian Ambassador to Nigeria, Ambassador Kalilou Traoré, was represented at the event by Dr. Kaslime Kouassi, underscoring the country’s commitment to strengthening economic and commercial ties across the region through the automotive sector.

Loading

Continue Reading

Aviation

Obi Must Apologise, Pay ₦25,000 or Face FAAN Action — Keyamo Issues Ultimatum

Published

on

Peter Obi has no police escort — Spokesman replies Keyamo over CCTV video
Minister of Aviation and Aerospace Development, Festus Keyamo and Nigeria Democratic Congress (NDC) presidential candidate Peter Obi

Obi Must Apologise, Pay ₦25,000 or Face FAAN Action — Keyamo Issues Ultimatum

The Minister of Aviation and Aerospace Development, Festus Keyamo, has issued a seven-day ultimatum to Nigeria Democratic Congress (NDC) presidential candidate Peter Obi, demanding a public apology and payment of a ₦25,000 fine over a parking violation at Abuja’s Nnamdi Azikiwe International Airport. Keyamo’s demand follows an internal investigation he ordered after Obi publicly claimed his vehicle was unjustly clamped as part of a political persecution campaign by the Federal Government. The minister released CCTV footage which he says contradicts Obi’s account, insisting the former Anambra governor violated airport regulations and then used his influence to evade the prescribed fine. In a statement posted on his X page, Keyamo declared that what had emerged was a clear case of an opposition candidate trying to whip up unnecessary sentiments for a wrong he and his driver committed.

According to the minister’s detailed narrative, the incident occurred on July 4, 2026, and the CCTV footage tells a very specific story. Obi arrived at the domestic terminal at approximately 8:28 p.m., driven by a police officer, and entered the building with two other occupants. The police driver then parked the vehicle in a designated drop-off zone—almost blocking the entrance—and also left the vehicle unattended. The driver briefly returned at about 8:32 p.m. to retrieve an item but abandoned the vehicle again. Airport security personnel then clamped the tyres, with Keyamo insisting nobody knew the vehicle belonged to Obi at the time. When the driver discovered the clamp, he contacted Obi, who spoke with an airport manager and requested the vehicle’s release—which was granted without payment of the ₦25,000 fine. Keyamo emphasised that the vehicle remained unattended for about 30 minutes in a restricted zone, describing this as a security risk under global airport standards.

READ ALSO:

However, the Peter Obi Media Office and the Obidient Movement have strongly rejected Keyamo’s narrative, accusing the minister of releasing poorly edited propaganda and manipulating CCTV footage to criminalise the opposition leader. They have raised several counter-claims that directly challenge the minister’s version of events. On the timing dispute, the Obidient Movement argues that timestamps on Keyamo’s own footage show Obi’s vehicle arriving at 20:28 and being clamped at approximately 20:34—six minutes, not thirty. The group accused Keyamo of zooming into the seconds display to confuse viewers into believing they were looking at the minute counter. On the identity of the driver, Obi’s spokesman, Idris Zekeri Jnr, stated that Peter Obi does not have any police or civil defence personnel attached to him in Abuja, challenging Keyamo’s reference to a “police driver”. Obi’s camp also claims the incident Keyamo publicised is entirely different from the one Obi narrated during his interview, suggesting a pattern of targeting the opposition figure. Furthermore, both the Obidient Movement and Obi’s media office insist other vehicles were parked in the same area without being clamped, pointing to selective enforcement targeting Obi. They also questioned why Keyamo showed no similar enthusiasm in investigating high-profile incidents involving Adams Oshiomhole and KWAM 1—known associates of the President.

The Presidency has weighed in on the matter, with presidential spokesman Bayo Onanuga backing Keyamo’s position. Onanuga stated that the evidence completely debunked Obi’s falsehood that he was unduly targeted and persecuted, insisting that he and his police driver broke a simple parking rule at the Airport.

Keyamo has made two formal demands, warning that failure to comply within seven days would prompt him to direct the Federal Airports Authority of Nigeria (FAAN) to take further action. First, Obi must tender an unreserved, public apology to the airport workers he accused of persecution. Second, Obi must voluntarily return to the airport and pay the ₦25,000 fine for wrongful parking, which he allegedly evaded through influence peddling. The minister declared that Obi cannot be bigger than the law.

Meanwhile, legal analyst Ekemini Udim, a Senior Partner at Justice Chambers, has questioned the minister’s authority to impose a fine, arguing that Keyamo is not a court of law. Udim cited a Court of Appeal decision which held that the Federal Road Safety Commission cannot impose fines without taking offenders before a magistrate’s court, arguing the same principle should apply to FAAN. Furthermore, he noted that under the principle of criminal liability, it is the person who commits the offence that should be made to pay for the offence—suggesting that if Obi was not the driver, he cannot be held personally liable.

Obi Must Apologise, Pay ₦25,000 or Face FAAN Action — Keyamo Issues Ultimatum

Loading

Continue Reading

Trending