Nigeria Pushes $2bn China-Backed Deal to Resurrect Ajaokuta Steel, Targets 10m Tonnes Output

Story: Written by Joseph February 27,1026
Nigeria has stepped up negotiations with Chinese investors over a $2 billion plan to revive the long-idle Ajaokuta Steel Company, a move aimed at restoring large-scale steel production and boosting exports.
The talks, driven by the Federal Government of Nigeria, centre on a production-sharing framework that could lift annual output to 10 million metric tonnes and generate up to $15 billion in steel exports to China each year.
Speaking in Abuja, Joseph Tegbe, Director-General of the Nigeria-China Strategic Partnership, said the revival plan aligns with President Bola Ahmed Tinubu’s push to unlock dormant industrial assets and reduce Nigeria’s dependence on imported steel.
Commissioned in 1984 with an installed capacity of 1.3 million tonnes, Ajaokuta has remained largely inactive for decades due to legal disputes and policy setbacks. Tegbe noted that Nigeria needs about 10 million tonnes of steel annually but produces only around 1.2 million tonnes, mostly from recycled scrap.
According to him, a preferred Chinese firm—selected after talks with nearly 10 companies—has completed a technical assessment, deploying 20 engineers to Nigeria. While some equipment is obsolete, the core structure is still viable, with rolling mill operations possible within six months of take-off.
Under the proposal, the Chinese partner will finance rehabilitation and expansion, subject to approval by China’s National Development and Reform Commission. Nigeria will retain ownership, while the investor recovers costs through a sliding-scale share of production over five to 10 years.