The Federal Government, through the Ministry of Steel Development, has signed an agreement with Premium Steel and Mines Limited (PSML) to facilitate the revival and full operationalisation of the former Delta Steel Company in Ovwian-Aladja, Delta State.

The agreement marks a significant milestone in the Federal Government’s ongoing efforts to reposition Nigeria’s legacy steel industry assets as a critical driver of industrialisation, economic diversification, job creation and sustainable national development.

The Sub-lease and Operations Agreement between the National Iron Ore Mining Company (NIOMCO), Itakpe, and PSM, as part of ongoing efforts by the Federal Government to reposition Nigeria’s moribund steel assets as catalysts for industrialisation, economic diversification and job creation.

The Delta Steel Plant, commissioned in 1982 with an installed production capacity of one million tonnes of liquid Steel per annum, was established as an integrated green Steel Plant with the capacity to contribute significantly to Nigeria’s industrial development.

However, the plant experienced prolonged operational challenges and was eventually shut down after operating at only about 25% of its designed capacity.

The Federal Government, in an effort to attract private capital for the revival of the Plant, privatised the company to Global Infrastructure Holdings Limited in 2005. However, the Asset Management Corporation of Nigeria (AMCON) subsequently re-sold the company to Premium Steel and Mines Limited in 2015 to recover unserviceable debts.

The Plant has not been operated as an integrated Steel Plant since 2015, an ugly situation the President Bola Ahmed Tinubu, GCFR government is poised to change.

The management of Premium Steel and Mines Limited (PSML) has committed to inject over $1.3 billion USD into the project for raw material exploration and exploitation, Steel Plant rehabilitation and modernisation for sustainable operation to achieve full capacity production of 1 million metric tonnes of liquid Steel per annum.

The management of PSML promised to achieve the full reactivation and commence commercial operation of the integrated Steel Plant within 18 – 24 months subject to availability of sustainable Iron Ore supply which has now been provided.

The agreement provides an important framework for renewed collaboration between the Federal Government and the company towards the rehabilitation, reactivation and sustainable operation of the steel plant.

The initiative 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 that the revival of Delta Steel Company is consistent with President Bola Ahmed Tinubu’s Renewed Hope Agenda, particularly the Administration’s commitment to strengthening local manufacturing, creating employment opportunities and unlocking the productive capacity of Nigeria’s industrial sector.

He said: “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.”

The Minister further emphasised that the Federal Government is committed to working with responsible private-sector investors to unlock the enormous potential of Nigeria’s steel sector, while ensuring that investments are supported by the necessary raw materials, infrastructure, policy coordination and enabling business environment.

The Ministry recognises that the successful operation of Delta Steel Company will require reliable access to Iron Ore and other critical raw materials, particularly from the National Iron Ore Mining Company (NIOMCO), Itakpe, as well as dependable power, logistics and supporting infrastructure.

The project is expected to: “Re-activate NIOMCO and support the development of the Ajabanoko iron ore deposits;

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, attract more than $1.3 billion in investment and create about 5,000 direct and over 20,000 indirect jobs.

The Federal Government has emphasised that the agreement must translate into actual mine development, plant rehabilitation, commercial steel production and sustainable jobs within the agreed 18 to 24 months implementation period.

The Federal Ministry of Steel Development appreciates the support of the Ministry of Justice and the Ministry of Solid Minerals Development and commends PSML for its commitment to the revival of this strategic national asset.

The Federal Government 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.