Africa’s richest man and President of Dangote Petroleum Refinery, Aliko Dangote, has declared that the Ajaokuta Steel Company can no longer be revived, describing ongoing efforts to resuscitate the project as a national act of self-deception. Speaking to journalists on Tuesday, Dangote said the project is obsolete and economically unviable in today’s global industrial landscape.
“Honestly, just between us, Ajaokuta isn’t going to succeed,” he stated. “We can continue to fool ourselves. We can keep deceiving ourselves. It’s not possible.” While he acknowledged that no country can develop without a functional steel industry, he insisted that the Ajaokuta model has long been overtaken by modern technology and global market shifts.
Initiated in 1979 under President Shehu Shagari, the Ajaokuta Steel Complex was conceived as the centerpiece of Nigeria’s industrial revolution. Located on 24,000 hectares in Kogi State, it reached 98% completion by 1994. However, more than four decades later, it has never produced a single ton of steel due to chronic mismanagement, corruption, and shifting political interests.
Despite this history, the federal government continues to invest heavily in the dormant project. Investigations by The Whistler show that between 2016 and 2024, the plant received ₦42.03 billion in budgetary allocations, with over 80%—₦33.99 billion—spent solely on personnel costs.
In 2024, the Ministry of Steel Development budgeted ₦9.45 billion for the company, including ₦4.4 billion for salaries and ₦4 billion for concession-related services. A separate ₦800 million was allocated for transaction advisory services tied to the project’s proposed revitalization.
Minister of Steel Development, Shuaibu Audu, recently announced a new three-year revival plan, involving discussions with Russian and Chinese firms to secure about $2 billion in funding.
However, Dangote’s comments cast doubt on the plan’s viability and underline growing skepticism about whether the government should continue pursuing it.
Dangote also warned against a broader pattern of outdated economic thinking across Africa. “People are importing poverty into our nations and exporting our jobs,” he said, adding that the continent’s fast-growing population makes job-focused industrial planning more urgent than ever.