By Suleiman Abdulmumin
The Ajaokuta Steel Complex, long regarded as Nigeria’s most ambitious industrial project, continues to generate national discourse over its viability, technological relevance, and economic potential. In a detailed briefing, Engr. Aliu Ayuba provided clarifications to frequently asked questions surrounding the complex, highlighting its strategic importance to Nigeria’s industrial future.
Addressing concerns over raw materials, Ayuba affirmed that Nigeria possesses sufficient deposits to sustain commercial steel production. He noted that the Itakpe iron ore reserve in Kogi State alone holds an estimated 300 million metric tonnes, capable of supporting initial production phases for several decades. Additional deposits at Abadja, Ochokochoko, and Koton Karfe further strengthen the country’s resource base. Limestone and dolomite, essential for steel processing, are also abundant, while coal requirements can be met through a blend of local and imported sources.
On the issue of technology, Ayuba dismissed claims that the Ajaokuta facility is outdated. He explained that Blast Furnace (BF) and Basic Oxygen Furnace (BOF) technologies still account for over 70 percent of global steel production. According to him, the facility is designed for phased expansion, with plans to scale production from 1.3 million metric tonnes annually in Phase 1 to 2.6 million metric tonnes in Phase 2, and eventually higher output levels.
Environmental concerns were also addressed, with Ayuba emphasizing that the plant incorporates a Closed-Loop Carbon Recycling System (CLCRS). This system captures and purifies exhaust gases, recycles energy within the production process, and significantly reduces emissions, aligning operations with global environmental standards.
On ownership structure, Ayuba argued against outright privatization of the complex, advocating instead for a Government-to-Government (G2G) partnership under a Build-Operate-Transfer (BOT) arrangement. He stressed that steel production is a critical national asset tied to economic sovereignty and security, and should remain under strategic national control.
Highlighting the economic benefits, Ayuba revealed that the steel complex has the potential to catalyze massive industrial growth. During its initial phase, 16 private steel rolling mills were established nationwide in anticipation of raw material supply from Ajaokuta, alongside three inland rolling mills in Oshogbo, Katsina, and Jos. Once fully operational, the complex is expected to generate up to 10,000 direct jobs and millions of indirect employment opportunities across the value chain.
Beyond employment, the facility is also positioned to drive infrastructure development. It has the capacity to produce heavy rails for up to 4,000 kilometers of railway construction annually, as well as materials for power infrastructure and national security applications such as high-tensile fencing.
Despite being widely described as 98 percent complete, Ayuba clarified that the remaining work lies primarily in external logistics. Critical infrastructure such as rail links to raw material sources and dredging of the River Niger are required to facilitate efficient transportation of inputs and finished products.
On funding requirements, he noted that the exact cost of full revival cannot yet be determined due to past vandalism and theft of components. He recommended a comprehensive joint technical and forensic audit involving Nigeria and a credible international partner to establish the precise investment needed.
As debates continue over the future of the Ajaokuta Steel Complex, stakeholders maintain that its successful completion and operation could serve as a cornerstone for Nigeria’s industrialization, reduce dependence on imports, and position the country as a major player in the global steel market.