Ajaokuta Steel's Privatization Could Boost Nigeria's Economy

In a keynote address at a virtual international conference titled "Ajaokuta Phenomenon," Prof. Banji Oyelaran-Oyeyinka, a former senior special adviser at the African Development Bank, highlighted that the privatization of Ajaokuta Steel Company could unlock $115 billion in GDP and create 70,000 jobs.

He criticized the government's failure to manage the plant effectively over the decades, noting that despite significant investments of $6 to $10 billion, Ajaokuta remains an idle monument to unrealized potential. Oyelaran-Oyeyinka urged the Nigerian government, led by President Bola Tinubu, to take decisive action towards privatization, recommending a model similar to South Korea's POSCO, which successfully transformed its steel industry.

He warned that continued delays would leave Nigeria dependent on steel imports, exacerbating foreign exchange pressures. Other panelists echoed concerns about past failures and the need for close monitoring of any new agreements to avoid corruption and mismanagement.