Nigeria Revives Ajaokuta Steel with $2 Billion Investment

The Nigerian federal government is making renewed efforts to revive the Ajaokuta Steel Company, which has been a symbol of the country's industrial ambitions for over four decades. The revival is supported by a proposed $2 billion investment from China and aims to address Nigeria's significant steel production gap, as the country currently produces only 1.2 million metric tonnes of steel annually against a requirement of about 10 million metric tonnes.

Senator John Enoh, the Minister of State for Industry, emphasized the importance of steel for meaningful industrialization and stated that the government is engaging with international investors to enhance the industrial sector's contribution to GDP, targeting 25% by 2030. The National Industrial Policy aims to promote manufacturing and job creation, while Nigeria's mineral resources, including three billion tonnes of iron ore reserves, support the investment case.

However, analysts caution that without private investment and good governance, Ajaokuta could become another costly fiscal burden.