Nigeria Turns to China to Revive Ajaokuta Steel and Iron Ore Projects

Nigeria may finally be taking decisive steps to end decades of failed attempts at reviving its steel industry.

The Minister of Steel Development, Shuaibu Abubakar, says the federal government is now exploring a strategic partnership with the Republic of China to resuscitate both the Ajaokuta Steel Company Limited (ASCL) and the National Iron Ore Mining Company (NIOMCO) in Itakpe, Kogi State.

Mr Abubakar made the disclosure at the opening of the 10th edition of Nigeria’s Mining Week held on Tuesday in Abuja.

The conference, themed “Nigeria Mining: From Progress to Global Relevance,” gathered key stakeholders from across Africa’s mining and metallurgical sectors to discuss how Nigeria could reposition itself as a global player in mineral processing and steel production.

The minister said the initiative aligns with President Bola Tinubu’s Renewed Hope Agenda, which aims to industrialise Nigeria by unlocking the potential of the long-abandoned steel industry—a project first conceived nearly five decades ago as a cornerstone of national development.

A Shift from Russia to China in Ajaokuta Revival Efforts

Abubakar recalled that in September 2024, the federal government signed a Memorandum of Understanding (MoU) with Tyazhmashpromexport (TPE)—the original builders of Ajaokuta Steel, based in Russia—to rehabilitate, complete, and operate both ASCL and NIOMCO.

However, progress stalled following the ongoing Russia–Ukraine conflict, which disrupted logistics, financing, and technical collaboration.

“Due to constraints arising from the Russia–Ukraine war, we are now exploring a partnership with the Republic of China for the revitalisation of both ASCL and NIOMCO,” he said.

According to the minister, President Tinubu will make the final decision once the Chinese partners are fully assessed for financial, managerial, and technical competence.

He stressed that the project’s success would not only transform the steel sector but also create thousands of jobs and attract billions in investment to the economy.

Steel to Power Military Production and Industrial Growth

Mr Abubakar also revealed that the Ministry of Steel Development is in advanced discussions with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to produce key input materials for local defence manufacturing.

He said the Ajaokuta Steel Complex’s Engineering Workshop will soon be used to fabricate components for rifles, helmets, vests, and bullets.

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

The collaboration could position Ajaokuta as a dual-use industrial base—supporting both civilian and military production—while reducing Nigeria’s dependence on imported materials for defence manufacturing.

Twelve Iron Ore Deposits Under Exploration Nationwide

Abubakar noted that Nigeria’s National Steel Raw Materials Exploration Agency (NSRMEA) in Kaduna has identified 12 iron ore deposits across the country that are now at various stages of exploration.

The agency is working to generate comprehensive geological data to attract both local and foreign investors.

He said the exploration efforts cover iron ore, coking coal, and bauxite—key raw materials for steel production. “Local steel production will drive massive development in raw materials such as dolomite, refractory clay, limestone, and coal,” he added.

The minister urged private sector participants at the Mining Week to seize opportunities across the steel value chain, noting that collaboration between government and industry would be critical to achieving sustainable growth.

“We are working closely with critical stakeholders, including the Ministry of Solid Minerals Development, to make this a national success,” he said.