…As NCSP, Steel Ministry propose revenue-sharing agreement
By Yahaya Umar
Nigeria is actively seeking to woo the Australian government and investors to tap into the country’s mining sector.
The Minister for Solid Minerals, Mr Dele Alake, is currently at Murdoch University in Australia for a two-week programme focused on enhancing mining sector expertise and strengthening bilateral ties between Nigeria and Australia.
The initiative, running until June 15, includes lectures on extractive metallurgy and sustainable geochemistry, alongside field visits and high-level discussions with industry experts.
The scheme, backed by the Commonwealth Department of Foreign Affairs and Trade and the Australian High Commissioner to Nigeria, aims to support Nigeria’s efforts to revitalize its solid minerals sector for economic diversification.
A key part of the visit will be an Industry Panel Discussion to develop actionable strategies for Nigeria’s mining sector and foster cooperation in resource development.
Murdoch University’s Vice Chancellor, Professor Andrew Deeks, highlighted the programme’s alignment with the university’s commitment to ethical and sustainable engagement, as well as Australia’s broader foreign policy goals.
The visit also further solidifies Murdoch University’s ongoing relationship with Africa.
This is not the first time that the country has been targeting Australia. In April 2024, The minister spoke with potential investors while virtually addressing the Nigeria-Australia Investment Roundtable
Mr Alake assured the Australian investors that plans for the establishment of the private sector led Nigerian Solid Minerals Corporation has reached advanced stages.
He stressed that the corporation was poised for Joint Ventures with investors on critical minerals like lithium, gold, baryte lead, and iron-ore amongst others.
“Both the legislative and corporate processes for the establishment of the corporation have reached appreciable stages. I hope to invite you to the formal unveiling of Nigeria’s intervention in the international mining business, very soon”, he added.
However, the Nigeria-China Strategic Partnership ,NCSP, is collaborating with the Federal Ministry of Steel Development to revive the long-dormant Ajaokuta Steel Company by proposing a revenue-sharing agreement.
According to a statement, the partnership is set to position the structure as a cornerstone of Nigeria’s renewed push toward industrialisation, with a strong focus on the automotive and manufacturing sectors.
In a recent briefing with the Minister of Steel Development, Mr Shuaibu Abubakar Audu, the Director General of NCSP, Mr Joseph Tegbe, confirmed that discussions are progressing around a public-private partnership with leading Chinese steel manufacturers.
The proposed structure is a zero-cost investment model for Nigeria, anchored on a revenue-sharing agreement designed to support sustainable steel production and long-term economic growth.
“This initiative is not just about restarting Ajaokuta it’s about positioning Nigeria to lead in sectors where steel is central to productivity and development”, said Mr Tegbe.
The plan, which has received full endorsement from President Bola Ahmed Tinubu, includes proposed 10-year revenue-sharing arrangement between Nigerian and Chinese investors.
Key focus areas include technology transfer, sheet metal production, furnace modernization, and the expansion of manufacturing value chains.
Responding to the briefing, the Minister emphasized the urgency of execution and reaffirmed his commitment to the initiative, describing Ajaokuta as “the cornerstone of Nigeria’s industrial potential”.
Consequently, a high-level delegation comprising of the Minister of Steel Development, MD Ajaokuta Steel Company and DG NSCP will be visiting major steel production facilities in China, engage prospective investors, and deliver strategic presentations focused on both the technical feasibility and commercial viability of the Ajaokuta project.
Industry experts suggest that a successful revival of the steel sector could dramatically reduce Nigeria’s reliance on steel imports, boost local vehicle production and spur growth across manufacturing and infrastructure.
Once envisioned as the backbone of Nigeria’s industrial future, the Ajaokuta Steel Company has remained largely inactive since the 1990s. With renewed political will and targeted international collaboration now in motion, stakeholders are increasingly optimistic that Ajaokuta may finally realize its long-awaited potential.
