President Bola Ahmed Tinubu has announced a $465 million investment proposal aimed at reviving the Aluminium Smelter Company of Nigeria (ALSCON), part of his administration’s broader push to overhaul the country’s steel sector.
The announcement came on Wednesday during the Inaugural Stakeholders Summit on the Development of the Steel Sector in Abuja.
Represented by Vice President Kashim Shettima, Tinubu reaffirmed his administration’s commitment to making the steel industry the industrial backbone of Nigeria and a key driver of economic diversification.
He said the government has put in place a “solid bureaucracy” to transform the sector, including the creation and restructuring of the Ministry of Steel Development in 2023.
As part of efforts to revive Nigeria’s steel industry, Tinubu outlined plans to restore legacy projects such as the Ajaokuta Steel Company, the National Iron Ore Mining Company, and the Delta Steel Company, now Premium Steel and Mines, alongside the Aluminium Smelter Company.
He said these projects would serve as anchors in achieving self-sufficiency in steel production.
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On the Aluminium Smelter Company of Nigeria in Ikot-Abasi, which has been stalled for years by legal and operational challenges, 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.”
He also revealed that the management of Delta Steel Company has pledged to begin rehabilitation and operations within 18 months, depending on the availability of raw materials.
Additionally, Stellar Steel, part of the Inner Galaxy Group, will invest $400 million in a new plant in Ewekoro, Ogun State, to produce hot-rolled coils and plates, a step he described as crucial for import substitution and value addition.
Tinubu expressed confidence that Nigeria could begin producing 10 million tonnes of liquid steel annually by 2030, with the potential to create more than 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,” he said.
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The President urged the private sector to collaborate with the government in achieving these goals.
“But we cannot do this alone. Government can lead. But the private sector must invest. Academia must innovate. Skilled workers must emerge,” he said.
In his opening remarks, Minister of Steel Development Prince Shuaibu Abubakar Audu highlighted the untapped potential of Nigeria’s steel industry, citing its vast market size and the incentives offered by the federal government.
He noted that despite being rich in steel-making raw materials, Nigeria has yet to fully leverage them for industrial development.
Image Credit: Daily Post Nigeria
