Blessing Ibunge in Port Harcourt
The Nigerian Society of Chemical Engineers (NSChE) has called for the urgent revival of the moribund Ajaokuta Steel Company, warning that Nigeria loses about $4 billion annually to steel imports while missing out on millions of jobs and enormous industrial development opportunities.
The Society said reviving the steel complex through a transparent, private sector-led investment arrangement would significantly reduce the country’s dependence on imported steel, conserve foreign exchange, stimulate mining and manufacturing, and accelerate infrastructure development.
National President of NSChE, Bayo Olarewaju-Alo, made the call at the Society’s 56th Annual Conference, Annual General Meeting and Exhibition in Port Harcourt, Rivers State, yesterday.
Olarewaju-Alo disclosed that Nigeria’s annual steel demand stood at approximately 10 million tonnes, while domestic production was only about 1.2 million tonnes, largely from scrap-based operations.
He described the situation as a major economic setback, arguing that the country’s continued dependence on imported steel was draining its foreign reserves and undermining the development of indigenous industrial capacity.
“In my briefing, I stated that currently Nigeria imports about 10 million tons per annum of steel. That’s our need. If we have our own steel-making industry, we wouldn’t be importing that amount of steel. Rather, we’d be saving about $4 billion in foreign exchange,” he said.
He stressed that the benefits of reviving Ajaokuta would extend beyond foreign exchange savings to employment generation, improved infrastructure, technological advancement and stronger industrial capacity.
“The multiplier effect is that we will create a lot of jobs, not just for engineers, but all categories of people. People will be supplying materials that are required. People will be engaged in mining coal and iron ore,” he added.
According to him, a functional Ajaokuta would stimulate activities across the mining, transportation, power, engineering and manufacturing sectors, while strengthening the country’s capacity to execute major infrastructure projects.
“There is no country in the world that has very good infrastructure development that does not need steel input. Any major project to be executed in Nigeria will require steel input,” he said.
To achieve this, the NSChE president advocated majority private ownership by a Nigerian consortium or conglomerate, supported by strategic technical partners and a minority Federal Government stake.
He, however, warned that changing ownership alone would not guarantee success, insisting that investors must have access to reliable iron ore, natural gas, electricity, transportation infrastructure, financing and sustainable markets.
The Society recommended transparent privatisation through competitive international bidding, resolution of Ajaokuta’s legacy liabilities and contractual disputes, and enforceable agreements for critical production inputs.
It also proposed a phased rehabilitation programme, beginning with the restoration of existing rolling mills using imported billets within the first three years to generate revenue, rebuild technical capacity and restore investor confidence.
The Society further urged investors to evaluate conventional blast-furnace technology alongside gas-based direct-reduced iron and electric arc furnace technology, noting that Nigeria’s natural gas resources could provide a competitive advantage.
Olarewaju-Alo said gas was equally critical to the country’s industrial transformation, not only as an energy source for steel production but also as feedstock for fertilisers, methanol, hydrogen and petrochemicals.
He maintained that increased domestic gas utilisation could support manufacturing, improve electricity supply and strengthen Nigeria’s energy security.
The conference themed, ‘Advancing Nigeria’s Industrial Revolution Through Gas Valorisation and AI-Driven Engineering Imperatives’, also examined artificial intelligence, smart manufacturing, energy efficiency and indigenous technological development.
The Society called on the federal government to prioritise gas infrastructure, local equipment fabrication, research commercialisation and responsible adoption of artificial intelligence to accelerate industrialisation.
It urged policymakers and investors to move beyond repeated promises and translate the Ajaokuta revival agenda into a commercially viable industrial project.
“Ajaokuta must become a productive industrial asset whose output serves Nigeria’s development. The time for a private sector-led revival is now,” the Society declared.