Nigeria’s ambition to be Africa’s largest hub of steel production and distribution is still in limbo, after nearly half a century in its embryonic stage.
Ajaokuta Steel Complex conceived to be the largest integrated steel plant on the African continent, was intended to be the bedrock for Nigeria’s industrialisation, and remains largely uncompleted despite decades of development since 1979 due to alleged mismanagement, funding issues, and political challenges, with current government efforts focused on revival through partnerships, potentially with Russian firms, to harness its massive potential for economic growth and defence production.
Situated on 24,000 hectares present day Kogi State, it would have been the biggest steel mill in Africa, with vast infrastructure and facilities if had become fully functional.
It was conceived to produce 5.2 million tonnes of steel annually, support infrastructure, create jobs, and diversify the economy. All these dreams remain unattained.
Given what is in the public domain, the complex was 98% complete by 1994 with most of its 48 production units being idle as only light mills are operating for basic fabrication. It is disturbing that the authorities are unwilling to navigate the course to ensure the project becomes a reality despite the ‘unverified’ completion level.
It is noteworthy that the government, under President Tinubu’s administration, has been reportedly working to revive the complex, engaging original builders and exploring private sector involvement, with recent agreements with a Russian consortium.
It is sad that mismanagement and corruption have been largely responsible for the sorry state of this sleeping economic giant: Prolonged delays, disputes, and political interference have plagued the project for decades, analysts had posited.
In addition to the various encumbrances, funding is a factor among the issues. The project stalled due to financial issues, leading to contractor withdrawals as reported in past must not be allowed in the recent quest to re-write the steel complex story.
The complex was further destabilised by over three decades of legal issues bordering on broken agreements and policy inconsistencies. Given the position that these have been fully been put behind, it is expected that a more decisive action would follow to revamp the this ‘sleeping giant’.
It is unappealing to note that the Ajaokuta Steel Complex has outlived not fewer than 16 presidents in its moribund state
It is gratifying that its vast infrastructure and facilities still intact despite several years of inactivity.
We believe, if comes fully on stream it support infrastructure, create jobs, and diversify the economy.
It is unhealthy to seek partnership for the steel plant outside the original project developer- Russia, as that could engender complexities and distortions.
Several controversies have continued to trail the complex, including humongous budgetary allocations whereas its production lines remain inactive or uninstalled as the case may be.
In the recent national budget, N6.04 billion was allocated to the steel complex even in its unproductive state.
There is every urgency to seek appropriate response to revamp the project given its robust potentials to turn around the nation’s limited industrial and military capabilities.
The steel industry if revamped would create millions of job opportunities for teeming unemployed Nigerians, beside ancillary services that would accrue therefrom.
The government must take the bull by the horns by engaging technical partners with the requisite know-how in similar projects to bring the project on course so as to achieve the desired goals.
AljazirahNigeria do not counsel that the complex be sold out rightly, a Public, Private, Partnership, PPP, model could help salvage the complex from imminent redundancy and decay.
The recurrent components which constitute the bulk of the budgetary allocation should not be allowed to go down the drain without commensurate work that would see the complex roar to life.
