President Bola Ahmed Tinubu has announced a $465 million investment proposal to revive the Aluminium Smelter Company of Nigeria (ALSCON), as part of his administration’s plan to overhaul the nation’s steel sector.
The initiative, unveiled on Wednesday at the Inaugural Stakeholders Summit on the Development of the Steel Sector in Abuja, aims to create over 500,000 jobs, position Nigeria as a West African steel hub, and drive industrial growth by 2030.
Represented by Vice President Kashim Shettima, Tinubu reaffirmed his administration’s resolve to make the steel sector the industrial heart of Nigeria and a key driver of economic diversification.
He said the government has established a “solid bureaucracy” to transform the sector, including the creation and reconfiguration of the Ministry of Steel Development in 2023.
Tinubu outlined plans to revive legacy projects such as the Ajaokuta Steel Company, the National Iron Ore Mining Company, and the Delta Steel Company (now Premium Steel and Mines).
The President said these, along with the Aluminium Smelter Company, would anchor Nigeria’s push for self-sufficiency in steel production.
On ongoing efforts to revive the Aluminium Smelter Company of Nigeria in Ikot-Abasi, which he said had been stalled by long-standing legal and operational hurdles-President Tinubu disclosed:
“A new investment proposal of 465 million dollars has been submitted by the current management. The six-year plan to restore full capacity would be announced after a detailed review of the Ministry’s recommendations.”
The President revealed that the management of Delta Steel Company, now Premium Steel and Mines, has committed to begin rehabilitation and operations within 18 months, subject to the availability of raw materials.
“We have also attracted a new project by Stellar Steel, part of the Inner Galaxy Group.
“They are investing 400 million dollars to build a new plant in Ewekoro, Ogun State. This facility will produce hot-rolled coils and plates. It is a bold step toward import substitution and value addition,” he said.
Tinubu described the stakeholders’ summit as proof of his administration’s determination to make the steel industry the backbone of Nigeria’s industrial future.
He assured that by 2030, Nigeria will start producing 10 million tonnes of liquid steel.
“We aim to create over 500,000 direct and indirect jobs. We have already developed a ten-year roadmap for the sector.
“We have outlined a three-year plan for the operationalisation of Ajaokuta. These plans focus on infrastructure, regulatory reform, and capacity development,” Tinubu said.
President Tinubu, however, implored the private sector to join hands with the government in revamping the sector, saying the government cannot actualize the plan alone.
President Tinubu, however, implored the private sector to join hands with the government in revamping the sector, saying the government cannot actualize the plan alone.
“But we cannot do this alone. Government can lead. But the private sector must invest. Academia must innovate. Skilled workers must emerge,” he appealed.
Earlier in his opening address, Minister of Steel Development, Prince Shuaibu Abubakar Audu, assured stakeholders that the potential of the steel sector is obvious, ranging from its market size to federal government incentives.
He noted that even though Nigeria is well-endowed with steel-making raw materials, it has yet to fully explore its potential for industrial development.