Nigeria–UK £746m Deal Raises Fresh Questions Over Ajaokuta Steel Revival | Nigeria News Today
By Queen Madaki
The Bureau News reports that Nigeria’s long-standing ambition to revive the Ajaokuta Steel Company has come under renewed scrutiny following a £746 million export finance agreement with the United Kingdom.
The deal, signed under President Bola Ahmed Tinubu, is primarily aimed at modernising key seaports in Lagos, including Apapa and Tin Can Island. However, stakeholders argue that the structure of the agreement may disproportionately benefit the UK’s steel industry.
Nigeria News Today: Concerns Over Steel Import Dependence
As part of the agreement, British Steel is expected to supply approximately 120,000 tonnes of steel billets valued at £70 million for the port upgrade project.
While the move is seen as a boost to UK manufacturing, critics say it underscores Nigeria’s continued dependence on imported steel despite the existence of the Ajaokuta Steel Company, one of Africa’s largest but dormant industrial assets.
The Bureau News gathered that the Federal Government has also explored alternative partnerships, including discussions with a Chinese firm over a proposed $2 billion investment aimed at reviving Ajaokuta.
Stakeholders React to Nigeria–UK Agreement
Public reactions have been mixed, with some Nigerians expressing concerns over the perceived imbalance in benefits.
According to social media commentators, a significant portion of the project’s value—estimated between 75% and 80%—could go to UK-based companies providing equipment, logistics, and technical expertise.
However, industry stakeholders have offered a more nuanced perspective.
Ibrahim Audu Abdurrahman, Chairman of the Iron and Steel Senior Staff Association of Nigeria (ISSSAN) at Ajaokuta, emphasized the importance of steel production to national development.
“Steel production drives industrial growth, creates jobs, attracts investment, and supports local industries. Abandoning Ajaokuta poses a serious threat to Nigeria’s economic future,” he said.
He added that the agreement could present opportunities for technology transfer from the UK to Nigeria, provided it is strategically managed.
Balancing Short-Term Gains With Long-Term Industrial Goals
Economists have highlighted the need for a balanced approach that addresses immediate infrastructure demands while safeguarding long-term industrial development.
Daniel Onyejiuwa, Head of the Economics Department at Glorious Vision University, described the deal as potentially beneficial if executed within agreed timelines.
Similarly, Kehinde Ola, a senior lecturer at the institution, noted that the importation of steel could serve as a short-term measure to complete ongoing port projects efficiently.
However, he acknowledged growing concerns about Nigeria’s reliance on foreign steel despite decades of investment in Ajaokuta.
The Future of Ajaokuta Steel
Established in 1979, the Ajaokuta Steel Plant remains largely inactive, despite reports that 40 out of its 42 units are technically completed.
Experts say years of policy inconsistencies, mismanagement, and funding challenges have stalled its operationalisation.
The Bureau News understands that stakeholders are urging the Federal Government to prioritise policies that will revive local steel production, create jobs, and reduce reliance on imports.
While the Lagos port upgrade is expected to improve trade efficiency and strengthen Nigeria’s position as a regional maritime hub, analysts insist that such gains must not come at the expense of domestic industrial capacity.
As debates continue, the future of Nigeria’s steel industry remains uncertain, with Ajaokuta standing at the centre of the country’s quest for industrial self-sufficiency.
