The Federal Government, through the Ministry of Steel Development, has signed a sub-lease and operations agreement with Premium Steel and Mines Limited, PSML, to revive and fully operationalise the moribund Delta Steel Company in Ovwian-Aladja, Delta State.
The agreement, signed with the National Iron Ore Mining Company, NIOMCO, Itakpe, marks a major step in the government’s drive to reposition Nigeria’s legacy steel assets as catalysts for industrialisation, economic diversification, job creation and sustainable national development.
The Delta Steel Plant was commissioned in 1982 with an installed capacity of one million tonnes of liquid steel per annum. It was established as an integrated greenfield plant designed to significantly boost Nigeria’s industrial development.
However, the plant suffered prolonged operational challenges and was shut down after operating at about 25% of its designed capacity.
In a bid to attract private capital, the Federal Government privatised the company to Global Infrastructure Holdings Limited in 2005. The Asset Management Corporation of Nigeria, AMCON, later resold it to PSML in 2015 to recover unserviceable debts.
The plant has not operated as an integrated steel plant since 2015 — a situation the administration of President Bola Ahmed Tinubu, GCFR, says it is determined to change.
PSML has committed to invest over $1.3 billion in the project for raw material exploration, plant rehabilitation and modernisation to achieve full production capacity of one million metric tonnes of liquid steel per annum.
The company said it will achieve full reactivation and commence commercial operations within 18 to 24 months, subject to a sustainable supply of iron ore, which has now been secured through the agreement with NIOMCO.
The deal is expected to support the restoration of critical production facilities, strengthen the domestic steel value chain and reduce Nigeria’s dependence on imported steel products.
Speaking on the development, the Minister of Steel Development, Prince Shuaibu Abubakar Audu, said the revival aligns with President Tinubu’s Renewed Hope Agenda, particularly the administration’s commitment to strengthening local manufacturing and creating employment opportunities.
“The revival of Delta Steel Company is not merely about bringing an old industrial facility back to life. 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,” Audu said.
The Minister added that the government is committed to working with responsible private-sector investors to unlock the potential of the steel sector, while ensuring investments are supported by raw materials, infrastructure, policy coordination and an enabling business environment.
He noted that the successful operation of the plant will require reliable access to iron ore from NIOMCO, Itakpe, as well as dependable power, logistics and supporting infrastructure.
The project is expected to:
reactivate NIOMCO and support the development of the Ajabanoko iron ore deposits, facilitate the rehabilitation and commercial operation of PSML.
It is projected to attract over $1.3 billion in investment and create about 5,000 direct and over 20,000 indirect jobs
The Federal Government stressed that the agreement must translate into actual mine development, plant rehabilitation, commercial steel production and sustainable jobs within the agreed 18 to 24-month implementation period.
The Ministry of Steel Development also extolled the support of the Ministry of Justice and the Ministry of Solid Minerals Development, and commended PSML for its commitment to reviving the strategic national asset.
The government said it remains committed to transforming Nigeria into a competitive steel-producing nation capable of meeting a substantial proportion of domestic demand and positioning the country as a major player in the African steel and metals value chain.