Conference tasks FG on privatisation of facility

A development economist, Prof. Banji Oyelaran-Oyeyinka, has called on the Federal Government to take renewed steps to make the Ajaokuta Steel Company operational because it has the capacity to contribute $115 billion to the country’s Gross Domestic Product (GDP), save $9.1 billion in foreign exchange, and create 70,000 jobs.

Speaking during a Virtual International Conference on Ajaokuta organised by the Coalition for the Revival of Ajaokuta, Oyelaran-Oyeyinka noted that a country of over 200 million people without primary steel production is a travesty and a national embarrassment, warning that continued delay in reviving the Ajaokuta Steel Company threatens the nation’s industrial future.

He maintained that steel remains central to national development, as the product is not just a commodity, but the backbone of modern civilisation and the silent force behind industrial power.

According to him, Nigeria has already spent an estimated $10 billion on the project without producing steel, while still importing about $4 billion worth of steel yearly, an economic contradiction he said the country can no longer afford.

He noted that the plant, designed to produce 1.3 million tonnes of steel yearly, could significantly meet domestic demand, conserve scarce foreign exchange, and catalyse industrial development if fully operational.

“The time for hesitation has passed,” Oyelaran-Oyeyinka stated, urging the Federal Government to reposition steel as the backbone of Nigeria’s industrialisation strategy.

His intervention comes at a time when Ajaokuta continues to attract heavy public spending despite remaining largely dormant for over four decades. In the 2026 budget, the government allocated about N6.69 billion to the company, with over 90 per cent going to personnel costs rather than production, underscoring its status as a non-performing asset.

Oyelaran-Oyeyinka blamed the persistent failure of Ajaokuta on poor leadership, corruption, and policy inconsistency, arguing that the collapse of the project marked a turning point in Nigeria’s industrial decline. He maintained that no country has achieved meaningful industrialisation without a functional steel base.

Drawing comparisons with China, India, and South Korea, he said strategic investments in steel production were central to their transformation into industrial powerhouses, warning that Nigeria risks falling further behind without similar commitment.

He suggested a full privatisation of the steel complex, proposing that majority ownership be handed to a capable Nigerian consortium working in partnership with experienced global operators to ensure efficiency and technical expertise.

However, at the end of the one-day international conference, the participants unanimously urged the government of Nigeria to privatise the company as the last option for its survival.

The fourth International Conference on Ajaokuta was held over the weekend with over 50 participants.

The theme of the event was ‘Ajaokuta Phenomenon in the Tinubu’s Era: A Turning Point or Another Missed Opportunity?’

In a communiqué signed by the National Coordinator of the Coalition, Mohammed Bougei Attah and Nnanna Nwafor, CSO representative and Executive Director of FENRAD, it reflects a structured dialogue among stakeholders on the state, challenges, and future pathway for the Ajaokuta Steel Company.