Nigeria Signs $1.3bn Deal to Revive Delta Steel Plant

The Federal Government of Nigeria has signed a significant agreement with Premium Steel and Mines Limited (PSML) for the rehabilitation and revival of the Delta Steel Plant located in Ovwian-Aladja, Delta State. This agreement, executed between the National Iron Ore Mining Company (NIOMCO) and PSML, involves an investment of over $1.3 billion aimed at exploring and exploiting raw materials, modernizing the plant, and restoring full-scale production.

The Delta Steel Plant, commissioned in 1982, has faced operational challenges, leading to its shutdown after operating at only 25% of its capacity. The plant was privatized in 2005 and sold to PSML by the Asset Management Corporation of Nigeria in 2015.

The Minister of Steel Development, Prince Shuaibu Abubakar Audu, stated that this initiative aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, focusing on local manufacturing and job creation. The project is expected to commence commercial operations within 18 to 24 months, supported by a sustainable iron ore supply from NIOMCO.