The Nigeria-China Strategic Partnership (NCSP) is collaborating with the Federal Ministry of Steel Development to revive the long-dormant Ajaokuta Steel Company by proposing a revenue-sharing agreement.
According to a statement, the partnership is set to position the structure as a cornerstone of Nigeria’s renewed push toward industrialisation, with a strong focus on the automotive and manufacturing sectors.
In a recent briefing with the Minister of Steel Development, Mr Shuaibu Abubakar Audu, the Director General of NCSP, Mr Joseph Tegbe, confirmed that discussions are progressing around a public-private partnership with leading Chinese steel manufacturers.
The proposed structure is a zero-cost investment model for Nigeria, anchored on a revenue-sharing agreement designed to support sustainable steel production and long-term economic growth.
“This initiative is not just about restarting Ajaokuta—it’s about positioning Nigeria to lead in sectors where steel is central to productivity and development,” said Mr Tegbe.
The plan, which has received full endorsement from President Bola Ahmed Tinubu, includes proposed 10-year revenue-sharing arrangement between Nigerian and Chinese investors.
Key focus areas include technology transfer, sheet metal production, furnace modernization, and the expansion of manufacturing value chains.
Responding to the briefing, the Minister emphasized the urgency of execution and reaffirmed his commitment to the initiative, describing Ajaokuta as “the cornerstone of Nigeria’s industrial potential.”
Consequently, a high-level delegation comprising of the Minister of Steel Development, MD Ajaokuta Steel Company and DG NSCP will be visiting major steel production facilities in China, engage prospective investors, and deliver strategic presentations focused on both the technical feasibility and commercial viability of the Ajaokuta project.
Industry experts suggest that a successful revival of the steel sector could dramatically reduce Nigeria’s reliance on steel imports, boost local vehicle production and spur growth across manufacturing and infrastructure.
Once envisioned as the backbone of Nigeria’s industrial future, the Ajaokuta Steel Company has remained largely inactive since the 1990s. With renewed political will and targeted international collaboration now in motion, stakeholders are increasingly optimistic that Ajaokuta may finally realize its long-awaited potential.