The Federal Government has reaffirmed its commitment to strengthening the domestic steel industry after executing a major sub-lease and operations pact to unlock over $1.3 billion in private-sector investment for the full revival of the dormant Delta Steel Company.
The agreement, signed between the National Iron Ore Mining Company (NIOMCO), Itakpe, and Premium Steel and Mines Limited (PSML), marks a decisive step towards reactivating the Ovwian-Aladja steel complex in Delta State.
Under the operational framework, the Federal Government is resolving longstanding raw-material supply bottlenecks by guaranteeing sustainable iron-ore access from NIOMCO to power the steel plant’s operations.
The Minister of Steel Development, Prince Shuaibu Abubakar Audu, emphasised that the resuscitation forms a core pillar of President Bola Ahmed Tinubu’s Renewed Hope Agenda, aimed at accelerating local manufacturing, driving import substitution, and creating high-value jobs.
‘The revival of Delta Steel Company is not merely about bringing an old industrial facility back to life,’ Minister Audu stated. ‘It is about restoring Nigeria’s capacity to produce steel locally, creating opportunities for our young people, supporting downstream industries, and strengthening the foundation for sustainable industrialisation.’
Commissioned in 1982 as an integrated greenfield complex with a capacity to produce one million metric tonnes of liquid steel annually, the Delta Steel Plant suffered years of operational decay-peaking at just 25 per cent capacity before shutting down entirely.
Efforts to privatise the asset in 2005 were stalled by financial distress, leading to its acquisition by PSML via the Asset Management Corporation of Nigeria (AMCON) in 2015. The facility has remained inactive as a fully integrated plant ever since.
Under the newly executed agreement, PSML has committed to injecting over $1.3 billion into raw-material exploration, site rehabilitation, and modernising the production lines. Commercial operations are targeted to resume within 18 to 24 months, returning the complex to its full capacity of 1 million tonnes of liquid steel per annum.
The Ministry outlined key economic deliverables expected from the deal, including a capital injection of over $1.3 billion in direct foreign/private investment into Nigeria’s real sector, creating about 5,000 direct jobs and over 20,000 indirect jobs across logistics and fabrication chains.
The deal is expected to ensure immediate upstream commercial reactivation of NIOMCO and the expansion of the Ajabanoko iron-ore deposits, target a push of 10 million tonnes of annual liquid-steel capacity by 2030, and increase freight transport along the Central Rail Line and the full deployment of the DSC Jetty for maritime logistics.
The Minister noted that the government will closely monitor progress to ensure the firm adheres strictly to the 18 to 24-month timeline.
‘The Federal Government is committed to working with responsible private-sector investors to unlock the enormous potential of Nigeria’s steel sector, while ensuring that investments are supported by the necessary raw materials, infrastructure, policy coordination, and an enabling business environment,’ Audu added.
The Ministry of Steel Development commended the strategic collaboration of the Federal Ministry of Justice and the Federal Ministry of Solid Minerals Development in finalising the agreement, reiterating that actualising local steel production remains central to positioning Nigeria as an industrial hub across Africa.