ACCORDING TO VANGUARD NEWSPAPER Nigeria spent over N1 trillion on steel importation in 2025, according to available data from the National Bureau of Statistics, NBS.
This is despite the abundant raw materials for steel production in the multi-billion-dollar Ajaokuta Steel Complex in Kogi State, left idle for over four decades.
The steel industry is widely regarded as the bedrock of industrialisation.
Across the world, countries seeking sustainable economic growth have prioritised steel production because of its critical role in manufacturing, construction, transportation, infrastructure, defence and other strategic sectors.
Available data from the NBS showed that Nigeria’s iron and steel imports consumed an average of about N526 billion annually over the past six years.
In 2025 alone, the value rose above N1 trillion, and these figures represent officially recorded trade and do not capture unrecorded or under-reported imports.
Ajaokuta Steel Complex was conceived as an integrated metallurgical complex capable of producing up to 5.2 million tonnes of liquid and finished steel products annually.
Its planned output included heavy plates, flat sheets, wire rods, bars, structural shapes and industrial chemical by-products.
Beyond meeting domestic demand, the complex was designed to supply steel to West African countries and, eventually, other African markets.
If fully operational, Ajaokuta could become one of the pillars of Nigeria’s industrial transformation.
Analysts say the project could create hundreds of thousands of direct jobs and millions of indirect jobs across mining, engineering, manufacturing, construction, transportation and other sectors.
Domestic steel production would also reduce the country’s import bill, conserve foreign exchange and potentially generate export earnings.
A functioning steel industry would provide critical inputs for automobile manufacturing, road and rail construction, housing, machinery, fabrication and other downstream industries.
Organised labour gives insight
Speaking to Financial Vanguard on the state of the nation’s steel sector, President of the National Association of Steel Workers, Oyabugbe Sunday, said Nigeria currently exports raw materials while importing finished steel products at significantly higher costs, thereby limiting domestic value addition, industrialisation and sustainable economic growth.
On the annual import bill, he stated: “Nigeria spends several billions of US dollars annually importing iron and steel products, resulting in a substantial outflow of foreign exchange.
‘’Industry estimates indicate that the country’s annual steel import bill is approximately $4 billion, although the exact amount fluctuates, depending on import volumes and global market prices.”
On the cost of reviving the steel plant, he said: The last audit of Ajaokuta Steel Company reportedly indicated that the project was about 95 per cent complete and required approximately $1.5 billion to become operational.
Past failed attempts to revive Ajaokuta
Efforts to revive Ajaokuta steel through private-sector concessions have a long and troubled history, with successive arrangements by past administrations ending in failure, controversy and costly legal dispute.
The first major concession came under the administration of former President Olusegun Obasanjo, who expressed his determination to revive the plant.
In June 2003, the federal government entered into a 10-year concession agreement with SOLGAS Energy Limited, an American company, to rehabilitate, complete, commission and operate the Ajaokuta Steel Complex.
Despite assurances, the company failed to deliver on its obligations, and the federal government terminated the concession in 2004 for non-performance.
The failure of SOLGAS was not a surprise to those who followed the concession arrangement. Experts earlier argued that the company did not have the technical know-how to deliver on the deal and advised the government not to seal it.
The government then turned to Global Infrastructure Nigeria Limited, GINL, linked to Indian steel magnate, Pramod Mittal’s Global Steel Holdings.
